The Scalization Path Choice Of China's Accountant Firm

Since the reform and opening up, the Chinese economy has maintained a rapid and sustainable development. Chinese large enterprises urgently need large firms'service, while the large firms do not grow up with the large enterprise even though they should. Along with China entering the WTO, the market of accounting is further opened. The Big Four international public accounting firms' entrance causes more keen competition.This article concludes the experience of Big Four, Baker Tilly and Begbies Traynor in culture forming, diversification and internationalization. By designing human capital, the ratio between professional staffs and partners, per partner income as variety to exam China's top100 auditors'performance,it reveals problems of internal governance in which domestic accounting firms encountered.In this paper, we have Shu Lun Pan CPA Management Co., Ltd(SLPCM) as the object of case study. We analyses the differences in terms of financial characteristics between customers of ShuLun Pan Certified Public Accountants Co., Ltd(SLPCPAC) and SLPCM's members, and the result show that the former had a higher level of potential customers'risk than its leaguer.The result of Logistic Model test reveal that SLPCPAC had not taken measures to control its high customers'risk. This phenomenon reveals the problem in which domestic accountants firms encounter in the process of scalization.Finally, based on the result of the above research, we point out that we could take merging as the main way together with diversification to enlarge domestic firms'scale, while large-scale firms should take chances to go abroad to realize internationalization.The main contribution of this paper as the following:In the evaluation of the TOP firm's performance, this article uses the ratio between professional staffs and partners as an indicator of one firm's internal governance, and uses two-way analysis of variance(ANOVA) to identify whether there are interactions between the ratio and other human capital factors, and also uses one-way ANOVA to identify whether there are significant differences within the groups which is dividend by young CPA's number. These methods are innovative points of this article.Having SLPCM which plays a very important role in domestic audit market as the object of case study, there is a certain degree of practical significance.This article has put forward a realistic path choice for scalization of domestic accounting firms.