Library Header Image
LSE Research Online LSE Library Services

Public equity and audit pricing in the U.S.

Jorgensen, Bjorn N. and Badertscher, Brad and Katz, Sharon and Kinney, William (2013) Public equity and audit pricing in the U.S. Working papers series, The University of Texas at Austin, Texas, USA.

Full text not available from this repository.


Does audit pricing of U.S. firms with publicly traded equity differ from pricing of otherwise similar, firms with private equity?. The answer is potentially important for evaluating for regulatory regime design efficiency and for understanding audit demand and production economics. For U.S. firms with publicly- traded debt, we hold constant the regulatory regime, including issuer reporting mandates as well as auditor responsibilities and practices. We thus vary equity, ownership factors and public securities market factors plus any related de facto litigation risk and audit demand. In cross-section, we find that audit fees for public equity firms 12% to 25% higher than fees for similar private equity firms. Time-series comparisons for firms that change owners hip status yield larger percentage fee increases (decreases) for those going public (private). Results are consistent with substantial incremental audit fees arising from higher auditor litigation risk associated with public equity ownership.

Item Type: Monograph (Working Paper)
Official URL:
Additional Information: © 2013 The Author(s)
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HM Sociology
Sets: Departments > Accounting
Date Deposited: 05 Aug 2013 10:41
Last Modified: 09 Jun 2014 10:35

Actions (login required)

View Item View Item