The Study On Scale Economy Of Accounting Firms

In the 20 years reform and opening-up,China's economy has being developed fast.Many big enterprises have succeeded in the overseas market, seized the international market. But because the domestic accountant firm has not the same development speed, our accounting firm still has not the ability to provide the corresponding service for our big enterprises. Our country auditing market has been occupied by Four Big. This is disadvantageous to the state economy security and need to change. How our country accounting firm should to rapidly do greatly and become strongly, going out is the most important problem.Thus, in 2006, CICPA made bigger and stronger overall goal: they want to use 5 to 10 years to foster around 100 accounting firm with a certain scale,which can provide integrated services for large enterprises and enterprise groups, On this basis, developing and training about 10 "going out" accounting firms which can provide integrated services for cross-border international business firm.The strategy of bigger and stronger implementation has promote a number of large-scale office development. So this article goal is to study large-scale accounting firm in China in the process and make objective and reasonable sum to verify the accounting firm of economies of scale. This article begins from literature review and related theory, then analyze our accounting firm's situation and the international firm "big four", reasoning the big gap between native accounting firm and the international accounting firm. The empirical study focus on the adoption of multiple regression to identify the main factors of affecting the performance of accounting firms, and then calculate the accounting firm of economies of scale.In this paper, the following conclusions: Four accounting firms have economies of scale factor greater than 1, with obvious economies of scale; local top 15, only in the Rsm, Ericsson, Shinewing, Ascenda value slightly greater than 1, most other accounting firms have economies of scale factor less than 1, the performance of diseconomies of scale.In short, in practice the number and market share as the main measure of the case, most accounting firms do not achieve economies of scale. According to research findings, policy recommendations put forward, our accounting firm should overcome their own weaknesses, and strive to achieve core competencies, achieve economies of scale development. The main innovation is through using the translog cost function, and multiple regression analysis, I have demonstrated most of the accounting firm are diseconomies of scale.However, due to disclosure restrictions, we only selected the top 20 accounting firms list in the CICPA on hundreds, while there are more than 7,000 accounting firms in China and their performance has not been studied;...