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영어

In this study the researcher uses firm-level information to perform a supply-side analysis of factors that determine audit revenues of accounting firms. In particular, the researcher considers how accounting firm ownership, firm status, accumulated human capital, the mix of audit and non-audit services provided by a firm, and the entrance of new firms to an accounting service market affecting audit revenues in a competitive industry setting. This research was conducted using data from the Korean accounting service market where recent regulatory intervention changed the market structure and new rules requiring public disclosure of financial statements by all accounting firms were instituted. The researcher documented that audit revenues decreased with the dispersion of firm ownership among professionals, increased with the level of accumulated human capital, were higher for established big firms with big N affiliation relative to both established local firms without Big N affiliation and new firms formed in the market restructuring. The researcher also found that audit revenues were lower for firms that sold more taxation services and management advisory services and that audit revenues declined in the period after the market restructuring first occurred.