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Article
Provision of Non-audit Services and Individuals’ Investment Decisions: Experimental Evidence
Faculty Articles
  • Lucy Ackert, Kennesaw State University
  • Bryan K. Church, Georgia Institute of Technology - Main Campus
  • Arnold Schneider, Georgia Institute of Technology - Main Campus
Document Type
Article
Publication Date
1-1-2007
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.

Citation Information
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.