The Demand for Auditor Provided Non-Audit Services: A Panel Data Analysis
20 Pages Posted: 24 Jul 2014
Date Written: 2012
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: Suggested Citation