Study On Accounting Firm Merger's Reasons And Performance

Since the early-1980s Certified Public Accountant System restored, china's accounting firms have experienced three large-scale merger tides. It can be said that the merger has been one of the important phenomena in China's Certified Public Accountant duty field, and the main way which is used by accounting firms to expand the scale. Therefore, it is of importantly theoretical and practical significance to analyses the merger's reasons and study merger's performance, and guide and impetus merged accounting firms'smooth development, then promote the adjustment and the healthy development of China's audit market structure.Depending on the review of the domestic and foreign accounting firm merger's history, this article gives an emphasis to analyze the merger's difference. According to the analysis of merger's history and the domestic and foreign accounting firm merger's difference, the merger has played the vital role for accounting firms'scale expansion, and the merger's leading force and the difference of merger object's choice conditions are the main difference of the domestic and foreign accounting firm merger. Based on this, this article analyzes the merger's reasons, and points out that pursuing scale economy is the accounting firm merger's intrinsic motive, and the demand of the market development and the establishment of effective audit market structure are the accounting firm merger's external power, and the merit of merger owning and audit market's particularity are the important reasons for the accounting firms to expand the scale in merger way.This article has carried on the empirical inspection on China's accounting firm merger's performance. According to the result of the empirical research, looking from the accounting firms, whether the fusion mechanism of merged accounting firms is perfect or not and the flexibility of different enterprise culture also have the significant influence to the merger performance; looking from the audit market, in whole, China's accounting firms present the phenomena of uneconomical of scale; China hasn't established the effective audit market structure at present; Although the merger has started to appear certain achievements, but the effect is limited, and has not the tremendous influence on the competition condition of audit market.Finally, synthesized to the analyses of the difference of the domestic and foreign accounting firms merger and the result of empirical research on china's accounting firm merger, this article points out the primary trouble in china's accounting firm merger, for instance, the accounting firms the fusion mechanism of merged accounting firms is imperfect, and lack the international professional technology, structural entry barriers have the adverse effect to the merger, and so on. At the same time, in view of these questions, this article puts forward the corresponding improvement strategy from the two aspects of accounting firms and the government.