Concentration of the Audit Market: Evidence from Serbia/ Koncentracija Tržišta Revizijskih Usluga U Republici Srbiji

• Authors: Kristina Mijić , Dejan Jakšić , Bojana Vuković
• Languages of publication: EN

Abstracts

EN

This paper presents a research on market concentration of audit services in the Republic of Serbia during the 2008-2011 period. Market concentration was measured by Herfindahl-Hirschman index (HHI) and concentration ratio CR4, based on four independent variables: operating revenue, net earnings, number of employees and number of audit clients. The research of market concentration based on operating revenue as the most referential variable indicated that the market for audit services in the Republic of Serbia has a moderate concentration and that it has the characteristics of an oligopoly of four largest audit firms known as “Big Four”. However, research of market concentration, when other variables are taken in consideration, does not reveal dominance of “Big Four” in terms of net earnings, number of employees and number of clients. The differences in conclusions when different variables are concerned can be explained by relatively high audit fees of “Big Four” and a lack of correlation between operating revenue and net earnings.

U radu je sprovedeno istraživanje i analiza koncentracije tržišta revizijskih usluga u Republici Srbiji u periodu 2008-2011. godina. Koncentracija na tržištu revizijskih usluga merena je Herfindahl Hirschman indeksom (HHI) i Indeksom koncentracije (CRn) na bazi nezavisnih varijabli: poslovni prihod, neto rezultat, broj zaposlenih i broj klijenata revizije. Rezultati istraživanja koncentracije revizijskog tržišta na bazi poslovnog prihoda kao najreferentnije varijable ukazuju da tržište revizijskih usluga u Republici Srbiji ima umerenu koncentraciju i da ima karakteristike oligopola. Međutim, posmatrajući koncentraciju tržišta prema ostalim varijablama, uočava se da nije prisutna dominacija „velike četvorke“ po pitanju visine neto rezultata, broja zaposlenih i broja klijenata. Razlike između vrednosti pokazatelja koncentracije potvrđuju prethodna istraživanja tržišta revizijskih usluga u Republici Srbiji o nepostojanju korelacije između poslovnog prihoda i neto rezultata revizijskih firmi i relativno visokoj ceni revizijskih usluga „velike četvorke“.

Keywords

EN

audit market; “Big Four”; audit market concentration

HR

tržište revizijskih usluga; „velika četvorka“; koncentracija

• Publisher: Sciendo
• Journal: Economic Themes
• Year: 2015
• Volume: 52
• Issue: 1
• Pages: 115-126

Dates

published

2015-03-01

received

2013-07-19

accepted

2013-12-20

online

2015-03-13

Contributors

author

Kristina Mijić

• University of Novi Sad, Faculty of Economics Subotica, Serbia

author

Dejan Jakšić

• University of Novi Sad, Faculty of Economics Subotica, Serbia

author

Bojana Vuković

• University of Novi Sad, Faculty of Economics Subotica, Serbia

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Identifiers

DOI

10.1515/ethemes-2014-0008