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