The Demand for Auditor Provided Non-Audit Services: A Panel Data Analysis

20 Pages Posted: 24 Jul 2014

See all articles by Kai Teck Ng

Kai Teck Ng

Singapore Management University

Chee Kian Leong

University of Nottingham, Ningbo China

Date Written: 2012

Abstract

In this paper, we analyze which characteristics of the firm determine the demand for auditor provided non-audit services (APNAS). Using a panel data sample of 195 Australian companies between 1999 and 2002, we found that board characteristics and audit characteristics matter little for APNAS purchase. Instead, consistent results across models suggest the importance of other firm characteristics such as whether there is a leadership change, the auditor's share of APNAS and whether the auditor's firm is a Big 5 auditing firm. Additionally, historical APNAS purchases also have an impact on current APNAS purchase.

Keywords: Audit and Non-audit services; Panel/Pooled

JEL Classification: M42, C23

Suggested Citation

Ng, Kai Teck and Leong, Chee Kian, The Demand for Auditor Provided Non-Audit Services: A Panel Data Analysis (2012). Available at SSRN: https://ssrn.com/abstract=2470406 or http://dx.doi.org/10.2139/ssrn.2470406

Kai Teck Ng

Singapore Management University ( email )

Li Ka Shing Library
70 Stamford Road
Singapore 178901, 178899
Singapore

Chee Kian Leong (Contact Author)

University of Nottingham, Ningbo China ( email )

199 Taikang East Road
Ningbo, Zhejiang 315100
China

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