Market Concentration of Audit and Assurance Services in Thailand
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Abstract
The purpose of this study is to analyze the market structure of audit and assurance services in Thailand, including two research questions: first, how do audit market structure concentrate? second, what are the audit firms in Thailand that have the high degree of audit market share? The data was collected from the audit firm’s revenue in Stock Exchange of Thailand from period 2013-2017 and measured the level of market concentration by Herfindahl-Hirschman Index (HHI). The findings show that high audit market concentration in Thailand, especially in Publicly Accountable Entities (PAEs) segment. Regarding to market concentration driven, the Big4 firms are the highest marketing share of audit firms.Our study suggests that the high market concentration of audit firm impairs perfect competition, resulting to audit quality as well as abnormal audit fee problems. Additionally, this study contributes to audit market structure and audit concentration literature. To strengthen the governance mechanism, the regulators play important governance role on the audit quality as well as the abnormal audit fee problems, which may result from audit market concentration.
Article Details
The articles published in the journals are the authors' opinions, not the opinion of the editorial team or administrative staff. The articles published is copyright of the Journal of Business Administration and Accounting, Khon Kaen University.
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