Provision of Non-audit Services and Individuals’ Investment Decisions: Experimental EvidenceFaculty Publications
AbstractWe 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.
Citation InformationAckert, 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.