Influence of banks on company auditor choice: the case of Japan

Christopher K M Pong, Tsutomu Kita

    Research output: Contribution to journalArticlepeer-review


    The purpose of the paper is to examine the auditor services market in Japan in 2000. We used a sample of 1,485 companies listed on the Tokyo Stock Exchange. We found that auditor mix within the client base was dependent on the main bank. There was evidence that in some cases companies had a tendency to choose their main bank’s preferred auditor. We also found that the market was dominated by four audit firms: Shin Nihon, ChuoAoyama, Asahi and Tohmatsu. These four firms collectively audited 81% of the companies. There were reasonable levels of auditor choice for companies within each industry sector. One or more of the Big 4 firms had substantial market share in each industry sector.
    Original languageEnglish
    Pages (from-to)87-98
    Number of pages12
    JournalInternational Journal of Auditing
    Issue number2
    Publication statusPublished - Jul 2006


    Dive into the research topics of 'Influence of banks on company auditor choice: the case of Japan'. Together they form a unique fingerprint.

    Cite this