| Summary: | 碩士 === 東吳大學 === 會計學系 === 89 === This study describes audit market concentration in Taiwan from 1991 to 1999, and provides the analysis of trends changing over this period. It extends prior research which has focused on listed market and examines through the use of concentration ratios and Herfindahl Indices across all sub-markets, including listed ＆ OTC, semi-traded public and loan-purpose markets. Individual and aggregate Big 5 market shares are calculated with reference to the number of clients audited and the square root of client assets.
The results indicate that the auditor concentration in the listed ＆ OTC sub-market is the highest and in the loan-purpose sub-market is the lowest, which the degree of concentration is significantly different among each sub-market. Concentration ratios increase in each sub-market from 1991 to 1999, whether measured by the number of clients audited or the square root of client assets at the five firm levels, which the market structure becomes gradually concentrated. Either concentration ratios or Herfindahl Indices computed based on the square root of client assets reveal that the degree of concentration of the Big 5 firms in the IPO audit market is larger than that in the non-IPO audit market.
However, the market shares of the Big 5 firms are more balanced in the IPO audit market than those in the non-IPO audit market. In other words, there is probably more competitive among the Big 5 firms in the IPO audit market. On the other hand, we find that the industry factors may affect auditor concentration levels and the Big 5 firms are the important components in each sub-market.
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