And then there were four: a study of UK market concentration - causes, consequences and the scope for market adjustment

While concentration measures are a good indicator of market structure, the link with competitiveness is more complex than often assumed. In particular, the modern theory of industrial organisation makes no clear statement regarding the impact of concentration on competition - the focus of this paper is concentration and no inferences are made about competitive aspects of the market. The extent and nature of concentration within the UK listed company audit market as at April, 2002 and, pro forma, after the collapse of Andersen is documented and analysed in detail (by firm, market segment and industry sector). The largest four firms held 90 per cent of the market (based on audit fees) in 2002, rising to 96 per cent with the demise of Andersen. A single firm, Pricewaterhouse-Coopers, held 70 per cent or more of the share of six out of 38 industry sectors, with a share of 50 per cent up to 70 per cent in a further seven sectors. The provision of non-audit services (NAS) by incumbent auditors is also considered. As at April 2002, the average ratio of non-audit fees (paid to auditor) to audit fees was 208 per cent, and exceeded 300 per cent in seven sectors. It is likely, however, that disposals by firms of their management consultancy and outsource firms, combined with the impact of the Smith Report on audit committees will serve to reduce these ratios. Another finding is that audit firms with expertise in a particular sector appeared to earn significantly higher nonaudit fees from their audit clients in that sector. The paper thus provides a solid empirical basis for debate. The subsequent discussion considers the implications for companies and audit firms of the high level of concentration in the current regulatory climate, where no direct regulatory intervention is planned

Practical Wisdom in Ancient Rome: Public Action and Contemplative Life

Producción CientíficaThis chapter covers the main moments and authors of Roman thought in the field of practical wisdom. The contents of this proposal integrate a rich legacy within coexist, not without difficulties, two ways of understanding life. The sophisticated Hellenistic philosophy, which since the end of the Second Macedonian War and after the fall of Carthage got to become more and more present in the cultural scenes of the republican Rome; and the traditional Roman perspective, more pragmatic than reflexive, more agrarian than navigating, more realistic than idealistic. After analyzing both perspectives, we present the main proposals on practical wisdom during the republican period until the Principate: the traditionalist, from the hand of Cato the Censor; the epicurean, by Lucretius; the eclectic conciliation, developed by Cicero; and, finally, the Roman Stoicism, for which we will rely on the figure of Seneca, as one of his three top representatives and also for writing in Latin, unlike Epictetus and Marcus Aurelius. We intend to offer not so much an exhaustive work, but rather a map that allows to recognize the main veins of Roman practical thought

Market Shares and Concentration in the EU Auditing Industry: the Effects of Andersen’s Demise

Auditing industry, Market shares, Concentration, L10, M00,