Keywords
market concentration
specialization
Peru
How to Cite
Abstract
The objective of the research is to analyze the concentration of the auditing market in Peru in the period 2014-2019. A data was built with the fees paid by the audited companies that were obtained from the Report on compliance with the Code of Good Corporate Governance of companies listed on the Lima Stock Exchange. The sample is made up of 638 companies from different economic sectors in Peru. Using market concentration indicators, segmentation by economic sectors and segmentation by size of the audited company, it is possible to show that the auditing market is highly concentrated and dominated by the big four; that there are barriers to entry for small audit firms to provide their services to larger audited firms; that the audit firms are specialized by sector of the Peruvian economy. It is also verified that they have specialized by size of the audited company; and that audit firms are cost-efficient to be able to permanently serve the different segments of audited companies.
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