On the Benefits of Audit Market Consolidation: Evidence from Merged Audit Firms
研究审计事务所合并后的效率提升，发现合并后审计工时显著减少但审计质量未下降，国内十大事务所合并效率提升更明显，而国际四大事务所合并后审计费用反而上涨，部分源于其认证效应。
ABSTRACT We examine efficiency improvement associated with audit firm mergers. Our analysis is made possible by a unique dataset of audit hours in China. We find a significant reduction in audit hours, unaccompanied by a deterioration in audit quality, of merged audit firms. Further, we find a larger reduction in audit hours when acquirers are Chinese domestic Big 10 audit firms and when client firms are more complex. These results are consistent with the notion of economies of scale arising from horizontal mergers. However, enhanced efficiency does not necessarily reduce audit fees. Instead, we find an increase in audit fees when acquirers are international Big 4 audit firms even when we control for possible changes in market power. This premium is at least partially due to the certification effect of international Big 4 audit firms.