The Influence Of Diversification Of Non-audit Service On Operational Strategy And Performance

This research models after small and medium-sized accounting firms whose market structure is categorized as monopolistic.This research employs questionnaire for data collection and the questionnaire is filled out by accountants registered to the Taiwan CPA Association.In regard to empirical analysis,this research utilizes several methods for evaluation:1) structural equation modeling,SEM;and 2) mediated moderation model.This research first examines the hypothetical model with LISREL to test for goodness-of-fit.Then OLS regression model is applied to test the moderating model and the significance of the trust mechanism.Data are collected from CPAs of CPA firms in Taiwan via questionnaire.To clarify the relationships among these variables,structural equation modeling(SEM) is conducted to examine the model fit and three hypotheses.Finally,conclusions are presented and suggestions are made for future research.In total,500 questionnaires were distributed to conveniently sampled subjects.Of them 310 were found usable,resulting in a response rate of 62%.The results of analysis clearly indicate that:(1) a positive relationship between heterogeneity of non-audit service and price competitive action;(2) a positive relationship between heterogeneity of non-audit service and non-price competitive action;(3) a negative relationship between non-price competitive action and performance;(4) the relationship between heterogeneity of non-audit service and price competitive action is weaker when organizations exist interpersonal trust;and(5) the relationship between heterogeneity of non-audit service and non-price competitive action is weaker when organizations exist interpersonal trust.