대형 회계법인의 합병과 감사시간 및 감사보수의 변화

In 2005, two large audit firms in Korea merged: Anjin and Hana accounting firms merged to form Anjin, and Younghwa and Angun audit firms merged to form Hanyoung. Using a difference-in-differences approach, this study examines whether these mergers affected audit fees and audit hours for the merged firms and other audit firms during the post-merger period, compared to the pre-merger period. Results suggest that audit fees and audit hours increased for all audit firms during the post-merger period. The merged audit firms experienced a greater increase in fees and hours compared to other audit firms. In summary, these findings suggest that the merged audit firms increased their audit hours due to the heightened legal responsibilities that accompanied their larger size and also increased their audit fees. These results are robust to additional analyses, including alternative model specifications, exclusion of certain years, and tests excluding firms that switched auditors during the sample period. Considering that Korean regulators have recently introduced various initiatives aimed at encouraging the consolidation of small and medium-sized audit firms to enhance their size, the findings of this study provide valuable insights into the effect of audit firm mergers