The Relationship between the Auditor's Report Tone and Audit Market Competition

Boone, J.P. Khurana, I.K. and Raman, K. (2012), “Audit market concentration and auditor tolerance for earnings management”, Contemporary Accounting Research, Vol. 29 No. 4, pp. 1171– 1203. https://doi.org/10.1111/j.1911-3846.2011.01144.x
2) Ball, R. (2001), “Infrastructure Requirements for an Economically Efficient System of Public Financial Reporting and Disclosure”, Brookings-Wharton Papers on Financial Services, Vol. 1 No. 1, pp. 127– 69.
3) Blankley, A.I. Hurtt, D.N. and J. MacGregor. (2012), “Abnormal audit fees and restatements”, Auditing: A Journal of Practice and Theory, Vol. 31 No. 1, pp. 79– 96.
4) Bengoriz, F. Khosravipoor, N. and Noroolahzadeh, N. (2020), “Study the Effect of Audit Market Concentration on Auditors' Job Stress and Audit Quality of Tehran Stock Exchange (TSE) Listed Firms”, ADVANCES IN MATHEMATICAL FINANCE AND APPLICATIONS, Vol. 5 No. 1, pp. 113-128. http://amfa.iau-arak.ac.ir/article_666226.html
5) Chaney, P.K. and K. L. Philipich. (2002), “Shredded reputation: The cost of audit failure”, Journal of Accounting Research, Vol. 40 No. 4, pp. 1221– 1245.
6) Chaney, P.K. Jeter, D.C. and P. E. Shaw. (2003), “The impact on the market for audit services of aggressive competition by auditors”, Journal of Accounting and Public Policy, Vol. 22 No. 6, pp. 487– 516.
7) Choi, M.S. and Zéghal, D. (1999), “The effect of accounting firm mergers on international markets for accounting services”, Journal of International Accounting, Auditing and Taxation, Vol. 8 No 1, pp. 1-22.
8) Caves, R.E. and Porter, M.E. (1978), “Market structure, oligopoly, and stability of market shares”, The Journal of Industrial Economics, pp. 289-313.
9) Danos, P. and Eichenseher, J.W. (1982), “Audit industry dynamics: Factors affecting changes in client-industry market shares”, Journal of Accounting Research, Vol. 20, pp. 604– 616.
10) Dopuch, N. and Simunic, D. (1980), “The nature of competition in the auditing profession: A
118 / The Relationship between the Audit Report Tone and Audit Market Competition
Vol.8 / No.30 / Summer 2023
descriptive and normative view”, Regulation and the Accounting Profession, Vol. 34, pp. 283– 289.
11) Davis, L.R. Ricchiute, D.N. and Trompeter, G. (1993), “Audit effort, audit fees, and the provision of nonaudit services to audit clients”, The Accounting Review, Vol. 68, pp. 135– 150.
12) Davis, A.K. Ge, W. Matsumoto, D. and Zhang, J.L. (2015), “The effect of manager-specific optimism on the tone of earnings conference calls”, Review of Accounting Studies, Vol. 20 No. 2, pp. 639–673. https://doi.org/10. 1007/s11142-014-9309-4
13) Davis, A.K. Ge, W. Matsumoto, D. and Zhang, J.L. (2014), “The effect of manager-specific optimism on the tone of earnings conference calls”, Review of Accounting Studies, Vol. 20 No. 2, pp. 639–673
14) Davis, A. Piger, J. and Sedor, L. (2012), “Beyond the Numbers: Measuring the Information Content of Earnings Press Release Language”, Contemporary Accounting Research, Vol. 29 No. 3, pp. 845-868 .
15) Danos, P. and Eichenseher, J.W. (1982), “Audit industry dynamics: Factors affecting changes in client-industry market shares”, Journal of Accounting Research, Vol. 20, pp. 604– 616.
16) Dekeyser, S. Gaeremynck, A. Knechel, W.R.,and Willekens, M. (2015), “Strategic Competition by Audit Firms (Master’s Thesis)”, Retrieved from http://wp.unil.ch/.
17) Eshleman, J.D. and Lawson, B.P. (2016), “Audit market structure and audit pricing”, Accounting Horizons, Vol. 31 No. 1, pp. 57-81.
18) European Commission. (2010), “Green paper: Audit policy, lessons from the crisis”, Brussels: European Commission.
19) Eshleman, J.D. and P. Guo. (2014), “Abnormal audit fees and audit quality: The importance of considering managerial incentives in tests of earnings management”, Auditing: A Journal of Practice and Theory, Vol. 33 No. 1, pp 117– 138.
20) Francis, J.R. Michas, P.N. and Seavey, S.E. (2013), “Does audit market concentration harm the quality of audited earnings? Evidence from audit markets in 42 countries”, Contemporary Accounting Research, Vol. 30, pp. 325– 355.
21) Financial Reporting Council (FRC). (2018), “Developments in audit”, London: Financial Reporting Council.
22) Gettler, L. (2004), “PwC exits NAB audit race, but stays close”, The Age(June 5). Available at:http ://www .theage .com .au/articles /2004/06/04/1086203633877.html.
23) Government Accountability Office. (2008), “Audits of Public Companies: Continued Concentration in Audit Market for Large Public Companies Not Call for Immediate Action”, Report to Congressional Addressees.
24) Gunn, J.L. and Kawada, B. and Michas, P.N. (2019), “Audit Market Concentration, Audit Fees, and Audit Quality: A Cross-Country Analysis of Complex Audit Clients”, Available at SSRN: https://ssrn.com/abstract=3457551
25) Government Accountability Office (GAO). (2008), “Audits of Public Companies: Continued Concentration in Audit Market for Large Public Companies Does Not Call for Immediate Action”, Washington, DC: GAO.
26) Huang, T.C. Chang, H. and J. R. Chiou. (2016), “Audit Market Concentration, Audit Fee, and Audit Quality: Evidence from China” Auditing: A Journal of Practice and Theory, Vol. 35 No. 2, Pp. 121 -145.
27) House of Lords. (2011), “Auditors: Market concentration and their role”, Select Committee on Economic Affairs, 2nd Report of Session 2010–2011. London: The Stationery Office.
28) Huang, X. Teoh, S.H. and Zhang, Y. (2014), “Tone management”, Accounting Review, Vol. 89 No. 3, pp. 1083–1113. https://doi.org/10.2308/accr50684
29) Henry, E. (2008), “Are investors influenced by how earnings press releases are written?”, The Journal of Business Communication, Vol. 45 No. 4, pp. 363–407. https://doi.org/10.1177/0021943608319388
30) Huber, P.J. (1973), “Robust Statistics: asymptotics, conjectures and Monte Carlo Annals of Statistics”, Vol. 1, pp. 799-821.
31) Habib, A. and Bhuiyan, M.B. (2011). “Audit Firm Industry Specialization and The Audit Report Lag”, Journal of International Accounting, Auditing and Taxation, Vol. 20 No. 1, pp. 32–44. https://doi.org/10.1016/j.intaccaudtax.2010.12.004
32) Huang, T.C. Chang, H. and Chiou, J.R. (2015), “Audit market concentration, audit fees, and audit quality: Evidence from China”, Auditing: A
International Journal of Finance and Managerial Accounting / 119
Vol.8 / No.30 / Summer 2023
Journal of Practice & Theory, Vol. 35 No. 2, pp. 121-145.
33) Jeroen van Raak, J. Peek, E. Meuwissen, R. and Schelleman, C. (2020), “The effect of audit market structure on audit quality and audit pricing in the private-client market”, Journal of Business Finance & Accounting, Vol. 47 No. 3-4, pp. 456-488. https://doi.org/10.1111/jbfa.12414
34) Kranton, R.E. (2003), “Competition and the incentive to produce high quality”, Economica, Vol. 70, pp. 385– 404.
35) Kallapur, S. Sankaraguruswamy, S. and Zang, Y. (2010), “Audit market competition and audit quality”, Indian School of Business.
36) Kallapur, S. Sankaraguruswamy, S. and Zang, Y. (2008), “Audit Market Competition and Audit quality”, www.ssrn.com.
37) Langli, J.C. and Svanström, T. (2014), “Audits of private companies, In D. Hay, W. R. Knechel, & M. Willekens (Eds.)”, The Routledge companion to auditing (pp. 148– 158). New York: Routledge.
38) Lang, M. and Lundholm, R. (2000), “Voluntary disclosure and equity offerings: Reducing information asymmetry or hyping the stock?”, Contemporary Accounting Research, Vol. 17 No. 4, pp. 623–662. https://doi.org/10.1506/9N45F0JX-AXVW-LBWJ
39) Lobo, G. and Zhao, Y. (2013), “Relation between audit effort and financial reporting misstatements: Evidence from quarterly and annual restatements”, The Accounting Review, Vol. 88 No. 4, pp. 1385– 1412.
40) Melloni, G. Stacchezzini, R. and Lai, A. (2016), “The tone of business model disclosure: an impression management analysis of the integrated reports”, Journal of Management & Governance, Vol. 20 No. 2, pp. 295-320 .
41) Merkl-Davies, D.M. and Brennan, N.M. (2011), “A conceptual framework of impression management. New insights from psychology, sociology and critical perspectives”, Accounting and Business Research, Vol. 41 No. 5, pp. 415–437
42) Merkl-Davies, D.M. Brennan, N.M. and McLeay, S.J. (2011), “Impression management and retrospective sense-making in corporate narratives”, Accounting, Auditing & Accountability Journal, Vol.24 No.3, pp. 315–344.
43) Markus, S. and Steven, M. (1997), “The structure of the Belgian audit market: The effects of clients' concentration and capital market activity”, International Journal of Auditing, Vol. 1 No. 2, pp. 151-162. DOI:10.1111/1099-1123.00019
44) Motta, M. (2004), “Competition policy: theory and practice”, Cambridge University Press.
45) Newton, N. Persellin, J.S. Wang, D. and Wilkins, M.S. (2016), “Internal control opinion shopping and audit market competition”, The Accounting Review, Vol. 91 No. 2, pp. 603-623.
46) Newton, N.J. Wang, D. and Wilkins, M.S. (2013), “Does a lack of choice lead to lower quality? Evidence from auditor competition and client restatements”, Auditing: A Journal of Practice & Theory, Vol. 32 No. 3, pp. 31– 67.
47) Numan, W. and M. Willekens. (2012), “An empirical test of spatial competition in the audit market”, Journal of Accounting and Economics, Vol. 53 No. 1 and 2, pp. 450– 465.
48) Numan, W. and Willekens, M. (2012), “An empirical test of spatial competition in the audit market”, Journal of Accounting and Economics, Vol. 53, pp. 450– 465.
49) Pearson, T. and Trompeter, G. (1994), “Competition in the market for audit services: The effect of supplier concentration on audit fees”, Contemporary Accounting Research, Vol. 11, pp. 115– 135.
50) Pound, G. and Francis, J.R. (1981), “The accounting services market: Theory and evidence”, Journal of Business Finance & Accounting, Vol. 8, pp. 353– 371.
51) Rousseeuw P.J. and Yohai, J.V. (1984), “Robust regression by means of S-estimator”, In Robust and Nonlinear Time Series (J. Franke, W. H ̈ardleand D. Martin, eds)Lecture Notes in Statist, Vol. 26, pp. 256-272.
52) Sikka, P. Haslam, C. Cooper, C. Haslam, J. Christensen, J. Driver, D.G. and Willmott, H. (2018), “Reforming the auditing industry”, report commissioned by the Shadow Chancellor of the Exchequer, John McDonnell MP.
53) Sirois, L.Ph. and Simunic, D.A. (2011), “Auditor Size and Audit Quality Revisited: The Importance of Audit Technology”, Available at SSRN: https://ssrn.com/abstract=1694613
120 / The Relationship between the Audit Report Tone and Audit Market Competition
Vol