Impact of Audit Fee Deregulation on Audit-market Competition

In 1998, the audit fee standard was abolished by the Fair Trade Commission of Taiwan. This study aims to investigate the effects of the cancellation of the audit fee standard on audit-market competition of public companies during 1994–2002. The results indicate that after the event, the auditor excess entry rate, auditor excess exit rate and audit-market-share mobility all increased, which is consistent with the prediction of enhanced audit-market competition.