Abstract

  


 



Provision of Non-Audit Services and Individuals' Investment
Decisions: Experimental Evidence


Lucy F. Ackert


Kennesaw State University - Michael J. Coles College of Business; Federal Reserve Bank of Atlanta

Bryan K. Church


Georgia Institute of Technology - Accounting Area

Arnold Schneider


Georgia Institute of Technology - College of Management

Research in Accounting Regulations, Vol. 20, 2007

Abstract:     
We conduct an experiment to investigate whether concerns about an auditor's independence and reputation affect individuals' investment decisions. We examine whether the disclosure of audit and non-audit fees affects participants' investment decisions. We find that investment in clients of a less reputable auditor is reduced relative to that in other companies when non-audit fees exceed audit fees. Participants' investment in companies audited by a reputable auditor, however, is not affected by fee disclosures.

Keywords: Non-Audit Services, Investment Decisions, Auditor Independence, Auditor Reputation

JEL Classification: M49, G11, C91

Accepted Paper Series


Date posted: November 12, 2007  

Suggested Citation

Ackert, Lucy F., Church, Bryan K. and Schneider, Arnold, Provision of Non-Audit Services and Individuals' Investment Decisions: Experimental Evidence. Research in Accounting Regulations, Vol. 20, 2007. Available at SSRN: http://ssrn.com/abstract=1029177

Contact Information

Lucy F. Ackert (Contact Author)
Kennesaw State University - Michael J. Coles College of Business ( email )
1000 Chastain Road
Department of Economics and Finance
Kennesaw, GA 30144
United States
770-423-6111 (Phone)
770-499-3209 (Fax)
Federal Reserve Bank of Atlanta
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
Bryan K. Church
Georgia Institute of Technology - Accounting Area ( email )
755 Ferst Drive
Atlanta, GA 30332-0250
United States
404-894-3907 (Phone)
404-894-6030 (Fax)
Arnold Schneider
Georgia Institute of Technology - College of Management ( email )
800 West Peachtree St., NW
Atlanta, GA 30308-1149
United States
(404) 894-4907 (Phone)
(404) 894-6030 (Fax)
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