Auditor Switching Costs & Market Power | Christopher Koch | AES Webinar

Why do companies stay with their auditor, and would easier switching make the audit market more competitive or more concentrated? Christopher Koch explores the hidden costs of changing audit firms and what they mean for auditor choice, market power, and competition. Using a structural model of clients’ audit-firm choices, the research examines switching between Big 4 and non-Big 4 firms and what could happen if switching costs disappeared. PAPER Switching Costs and Market Power in Auditing: Evidence from a Structural Approach Authors: Qiang Guo, Christopher Koch, and Aiyong Zhu Working paper: https://papers.ssrn.com/sol3/papers.c... Published article: https://doi.org/10.2308/TAR-2022-0416 The Accounting Review, 99(6), 219–245 (2024). This October 20, 2023 webinar presents the earlier working-paper version. IN THIS WEBINAR • What makes changing auditors costly? • How do switching costs vary across audit-firm choices? • What do counterfactual switching scenarios reveal about audit-market dynamics? Presenter: Christopher Koch Recorded: October 20, 2023 Host: Accounting and Economics Society (AES) The presentation and discussion during the talk are retained. Opening setup and the final Q&A have been removed. Subscribe for more accounting and economics research. Explore more AES webinars using the clickable videos at the end. AES research and events: https://www.accountingtheory.org/ Music:- MBB & ASHUTOSH - Sky Watch:-    • MBB & ASHUTOSH - Sky   https://www.ashutoshmusic.com/music Music By ASHUTOSH Artist channel:    / @ashutoshmusic   Music used in the opening intro; faded out before the presentation. #Auditing #AccountingResearch #AES