An Examination of the Effect of Regulatory Actions on Client Retention

11 Pages Posted: 19 Dec 2010

See all articles by Thomas E. Wilson Jr.

Thomas E. Wilson Jr.

affiliation not provided to SSRN

Barbara Apostolou

West Virginia University

Nicholas G. Apostolou

affiliation not provided to SSRN

Date Written: August 29, 2003

Abstract

Research into the significance of auditor credibility shows that firms distinguish the services of a more credible auditor. Further, demand for levels of auditor credibility is shown to vary across firms purchasing audit services. This study extends the line of enquiry regarding the effect of auditor credibility by examining the reaction of client firms to changes in their auditors credibility. Also, the firm characteristics associated with a reaction to a change in credibility are examined. The results suggest that clients of the Big Eight firms react differently than clients of smaller audit firms to the change in credibility.

Keywords: auditor credibility, SEC regulatory action, client retention, logit

Suggested Citation

Wilson Jr., Thomas E. and Apostolou, Barbara and Apostolou, Nicholas G., An Examination of the Effect of Regulatory Actions on Client Retention (August 29, 2003). International Journal of Auditing, Vol. 1, Issue 1, pp. 31-41, 2003, Available at SSRN: https://ssrn.com/abstract=1727112 or http://dx.doi.org/10.1111/1099-1123.00011

Thomas E. Wilson Jr. (Contact Author)

affiliation not provided to SSRN

No Address Available

Barbara Apostolou

West Virginia University ( email )

PO Box 6025
Morgantown, WV 26506
United States

Nicholas G. Apostolou

affiliation not provided to SSRN

No Address Available

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