Audit prices, product differentiation, and scale economies: further evidence from the Australian market
Article Abstract:
Research into audit prices charged by public accounting firms attempts to determine whether fees are based upon size of firm audited or identification of auditing firm as a member of the Big Eight. The research used as its sample the 100 smallest and 100 largest publicly traded firms in Australia that were not participants in the finance industries. The research finds, among other things, that: (1) Big Eight firms are more likely to audit the larger clients, (2) Big Eight firms' audit fees are significantly higher than non-Big Eight firms audit fees, overall, (3) for larger companies, there is no significant difference between audit fees charged by Big Eight or non-Big Eight firms, and (4) companies must select Big Eight firms based upon perceived product differentiation (or perceived enhanced expertise), although statutory requirements can be fulfilled by any public accounting firm.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1986
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The budgetary and performance influences of product standardization and manufacturing process automation
Article Abstract:
The influence of manufacturing process automation and product standardization on the relationships among performance of departments, participation in the budgetary process, and flexible budgeting was investigated. Nineteen electronics firms were surveyed with questionnaires. The questionnaires measured five variables: budget participation, departmental performance, use of budgets as static goals, process automation, and product standardization. Research results revealed that product standardization affected the design and use of budget systems. High participation in the budgetary process and the use of budgets as static goals were more effective in environments characterized by low product standardization than in environments with high product standardization.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1990
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Intangible assets and stock prices in the pre-SEC era
Article Abstract:
An investigation of the relationship between intangible assets and stock prices before the establishment of the US Securities and Exchange Commission (SEC) is presented. The pre-SEC reporting regime allowed considerable flexibility for managers capitalizing assets. Assets from a group of 1927 balance sheets are studied using cross-sectional models under which intangibles can play both a direct and an indirect role in equity valuation. Tests fail to show evidence for a predicted positive relation between capitalized intangibles and share prices. The historical context and motivation for the study are also discussed.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1999
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