Audit Market Concentration: Some Evidence from the Republic of North Macedonia
Date Issued
2023-02
Author(s)
Tocev, Todor
DOI
10.4335/2023.3.6
Abstract
Audit market concentration has been thoroughly researched both
globally and regionally. According to previous studies, the audit market is
often dominated by the Big Four at the EU level, while in the region, the
concentration is lower, indicating that it has oligopolistic features. This
paper analyzes and measures the concentration of the audit market in
Republic of North Macedonia, through Herfindahl-Hirschman index - HHI
and concentration ratio - CR4, based on three independent variables: auditrelated revenue, number of clients and number of employees. The research
covers the period from 2014 to 2021 and it is concluded that at the
beginning of the analyzed period (2014-2017), according to audit-related
revenue, the audit market in Republic of North Macedonia had the
characteristics of an oligopoly, but today it is nonconcentrated market and
ranges from perfect competition to oligopoly. In terms of the number of
employees and the number of clients, the results from our research show
that audit market in Republic of North Macedonia is not concentrated.
globally and regionally. According to previous studies, the audit market is
often dominated by the Big Four at the EU level, while in the region, the
concentration is lower, indicating that it has oligopolistic features. This
paper analyzes and measures the concentration of the audit market in
Republic of North Macedonia, through Herfindahl-Hirschman index - HHI
and concentration ratio - CR4, based on three independent variables: auditrelated revenue, number of clients and number of employees. The research
covers the period from 2014 to 2021 and it is concluded that at the
beginning of the analyzed period (2014-2017), according to audit-related
revenue, the audit market in Republic of North Macedonia had the
characteristics of an oligopoly, but today it is nonconcentrated market and
ranges from perfect competition to oligopoly. In terms of the number of
employees and the number of clients, the results from our research show
that audit market in Republic of North Macedonia is not concentrated.
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