Purpose – The purpose of this paper is to examine the effect of the Enron scandal, Arthur Andersen's demise and the Sarbanes-Oxley Act on audit fees. Design/methodology/approach – The paper uses empirical methodology (univariate and multivariate). Findings – Audit fees and the Big-4...

In this paper we examine the effect of Enron, Andersen, and Sarbanes-Oxley on the fees paid by clients for their audits, and on the movement of clients from one auditor to another. As a percentage of total assets the average audit fee increased from 0.092 percent in 2000, the year before the...

In this paper we provide evidence that independent director turnover is influenced by a series of economic factors. Directors, both independent and insider, are less likely to leave if they are paid well or if the firm has a director pension plan. They are also more likely to leave when the firm...

The financial scandal surrounding the collapse of Enron caused erosion in the reputation of its auditor, Andersen, leading to concerns about Andersen’s ability to continue in existence and ultimately its demise. In this paper we investigate the timing of switch by former Andersen’s clients....