The Analysis of Audit Market Concentration in Visegrad 4 Countries

Michal Šindelář ()
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Michal Šindelář: Prague University of Economics and Business

A chapter in Eurasian Business and Economics Perspectives, 2022, pp 191-204 from Springer

Abstract: Abstract The aim of the paper is to analyze the audit market concentration in Visegrad 4 countries during the period 2017–2020. The analysis is based on main stock markets in these Visegrad 4 countries—the Czech Republic is represented by Prague Stock Exchange (PSE), the Slovak Republic is represented by Bratislava Stock Exchange (BSSE), the Hungary is represented by Budapest Stock Exchange (BSE), and the Republic of Poland is represented by Warsaw Stock Exchange (GPW). The analysis is based on domestic shares listed on these stock exchanges. A total of 43 companies listed on PSE, 95 companies listed on BSSE, 107 companies listed on BSE, and 1432 companies listed on GPW were analyzed during the whole period. The traditional market concentration indicators—the Herfindahl–Hirschman index and Concentration ratios—are used for this analysis. The data show a very high market concentration on PSE and BSE. At these stock markets, the concentration ratio for four companies is over 95% in the area of audit fees. The high market concentration is also confirmed by the Herfindahl–Hirschman index. On GPW the Big4 firms control around 80% of audit fees and their influence has been gradually declining in recent years. A more detailed analysis shows that only 30% of auditors operating at BSSE and BSE provide non-audit services permitted by European legislation.

Keywords: Audit fees; Audit market concentration; Herfindahl–Hirschman index; Auditor’s independence; Visegrad 4 countries (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-031-15531-4_12

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DOI: 10.1007/978-3-031-15531-4_12

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