An Analysis of Big 4 Pricing and Firm Size: The Differential Impact of Demand and Supply Shocks on Large and Small Clients

2016 ◽  
Author(s):  
Fatima Alali ◽  
Jian Zhou
Keyword(s):  
Firm Size ◽  
Differential Impact ◽  
Demand And Supply ◽  
Supply Shocks ◽  
Big 4

The Economics of Commodities and Commodity Markets

2018 ◽  
Author(s):  
Florian Ielpo
Keyword(s):  
Raw Materials ◽  
Commodity Prices ◽  
Essential Element ◽  
Commodity Markets ◽  
Production Costs ◽  
Demand And Supply ◽  
Spot Prices ◽  
Supply Shocks ◽  
The Business Cycle

This chapter covers the economic fundamentals of commodity markets (i.e., what shapes the evolution of the price of raw materials) in three steps. First, it covers the theories explaining why the futures curve can be upward or downward sloping, an essential element for commodity producing companies. The evolution of inventories and hedging pressures are the two dominant sources of explanation. Second, the chapter reviews the fundamentals of commodity spot prices: technologies, supply, demand, and speculation. Production costs draw the long-term evolution of prices, but demand and supply shocks can trigger substantial variations in commodity prices. Third, the chapter presents how commodity prices interact with the business cycle. Commodities are influenced by the world activity but can also have a material impact on it.

scholarly journals Tracking inflation on a daily basis

2020 ◽  
Vol 156 (1) ◽  
Author(s):  
Santiago E. Alvarez ◽  
Sarah M. Lein
Keyword(s):  
Real Time ◽  
Price Index ◽  
Daily Basis ◽  
Relative Importance ◽  
Online Data ◽  
Demand And Supply ◽  
Supply Shocks ◽  
Policy Measures ◽  
Real Time Information ◽  
Time Information

Abstract Using online data for prices and real-time debit card transaction data on changes in expenditures for Switzerland allows us to track inflation on a daily basis. While the daily price index fluctuates around the official price index in normal times, it drops immediately after the lockdown related to the COVID19 pandemic. Official statistics reflect this drop only with a lag, specifically because data collection takes time and is impeded by lockdown conditions. Such daily real-time information can be useful to gauge the relative importance of demand and supply shocks and thus inform policymakers who need to determine appropriate policy measures.

The Effect of Chinese Demand and Supply Shocks on Peruvian Exporters

2015 ◽  
Vol 52 (8) ◽  
pp. 1922-1934
Author(s):  
Jean Paul Rabanal ◽  
Olga A. Rabanal
Keyword(s):  
Demand And Supply ◽  
Supply Shocks

An Analysis of Big 4 Pricing and Firm Size: The Differential Impact of Demand and Supply Shocks on Large and Small Clients

2017 ◽  
Vol 34 (2) ◽  
pp. 204-230 ◽  
Author(s):  
Fatima Alali ◽  
Randal Elder ◽  
Jian Zhou
Keyword(s):  
Small Firm ◽  
Great Recession ◽  
Small Firms ◽  
Unique Contribution ◽  
Demand And Supply ◽  
The Great Recession ◽  
Audit Market ◽  
Sarbanes Oxley ◽  
Big 4 ◽  
Recession Period

We investigate Big 4 pricing over the period of 2000 to 2010. We classify the data into five periods: 2000-2001 as the pre-Sarbanes–Oxley Act (SOX) period, 2002-2003 as the SOX period, 2004-2006 as the Auditing Standard 2 (AS2) period, 2007 as the AS5 period, and 2008-2010 as the Great Recession period. The shocks to the audit market associated with these changes in auditing regulations and the economic environment have differential impacts on large clients and small clients. The percentage of small clients using Big 4 auditors dropped significantly over these shocks, whereas the percentage of large clients using Big 4 auditors experienced a large drop only from the SOX period to the AS2 period. We find that Big 4 pricing increased significantly from the pre-SOX period to the SOX period and continued to increase significantly in the AS2 period. Big 4 pricing experienced a significant decline in the AS5 period and declined insignificantly in the Great Recession period. Big 4 small firm pricing decreased significantly in the AS2 period compared with the SOX period and in the Great Recession period compared with the AS5 period. We find that the Big 4 pricing for small clients is contingent on the nature of competition. The Big 4 charged small firms higher prices in the SOX period, AS5 period, and Great Recession period when competition was lower. Our paper provides a unique contribution as a comprehensive analysis of Big 4 pricing and Big 4 small firm pricing.

An Investigation of Factors Influencing the Use of Computer-Related Audit Procedures

2009 ◽  
Vol 23 (1) ◽  
pp. 97-118 ◽  
Author(s):  
Diane Janvrin ◽  
James Bierstaker ◽  
D. Jordan Lowe
Keyword(s):  
Risk Assessment ◽  
Firm Size ◽  
Business Processes ◽  
Internal Controls ◽  
Future Research ◽  
Audit Firm ◽  
Factors Influencing ◽  
Big 4 ◽  
Two Factors ◽  
Client System

ABSTRACT: We provide data on the extent to which computer-related audit procedures are used and whether two factors, control risk assessment and audit firm size, influence computer-related audit procedures use. We used a field-based questionnaire to collect data from 181 auditors representing Big 4, national, regional, and local firms. Results indicate that computer-related audit procedures are generally used when obtaining an understanding of the client system and business processes and testing computer controls. Furthermore, 42.9 percent of participants indicate that they relied on internal controls; however, this percentage increases significantly for auditors at Big 4 firms. Finally, our results raise questions for future research regarding computer-related audit procedure use.

The Market for Audit Services: The Role of Market Power

2020 ◽  
Vol 19 (3) ◽  
pp. 3-8
Author(s):  
Tracy Ti Gu ◽  
Dan A. Simunic ◽  
Michael T. Stein ◽  
Minlei Ye ◽  
Ping Zhang
Keyword(s):  
Market Power ◽  
Firm Size ◽  
Academic Research ◽  
Audit Fees ◽  
Local Market ◽  
Capital Investments ◽  
Audit Firm ◽  
Big 4 ◽  
The Subject

ABSTRACT The market for audit services has been the subject of extensive academic research since the 1970s. The prevailing view is that audit markets are characterized by tiers of suppliers (Big 4 versus non-Big 4, and industry specialists versus non-specialists) where the upper tier suppliers produce and sell a systematically higher level of assurance, while competition among suppliers within tiers is essentially perfect and a uniform price prevails within the submarkets. We discuss three papers that challenge this orthodoxy. These papers argue and find that the price of an audit is essentially unique to each (auditor, client) pair and that this price depends on both audit firm size and client size. Furthermore, audit firm size is linked with the firm's capital investments, which enhance auditor efficiency and market power. We conclude that audit markets are atomistic and that local market power is an important determinant of audit prices and audit fees.

DO GLOBAL CRUDE OIL MARKET SHOCKS HAVE DIFFERENTIAL EFFECTS ON US REGIONS?

2017 ◽  
Vol 23 (5) ◽  
pp. 1978-2008 ◽  
Author(s):  
Bebonchu Atems ◽  
Mark Melichar
Keyword(s):  
Crude Oil ◽  
Aggregate Demand ◽  
Personal Income ◽  
Oil Shocks ◽  
Demand And Supply ◽  
Demand Shocks ◽  
Industrial Composition ◽  
Oil Market ◽  
Supply Shocks ◽  
Market Shocks

The paper investigates whether US regions respond differently to shocks in the crude oil market. We disentangle oil market shocks into distinct demand and supply shocks and examine the response of regional personal income to these shocks. Results indicate that for most regions, oil supply shocks decrease real personal income. Except for the Rocky Mountains and the Southwest, global aggregate demand shocks are recessionary, typically about a year and a half after the shock. When we split our data into oil-producing and non-oil-producing regions, we find that global aggregate demand shocks have no effect on oil-producing regions but cause a decrease in income in non-oil-producing regions. Our analysis further indicates that oil-specific demand shocks have positive and persistent impacts on oil-producing regions but are recessionary in non-oil-producing regions. We also document significant asymmetries in the regional responses to small versus large oil shocks. In addition, the paper shows that regional differences in industrial composition explain some of the variation in the responses of real regional personal income to oil shocks.

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