The Study On The M&A Of Chinese CPA Industry Based On The SCP

As china’s entry into WTO, foreign accounting companies in china are competing against local accountingfirms. How to solve the accountants challenges and respond to the member of the "to do better" strategy, isbecoming the biggest difficult problem for us.Because the previous study literature were only limited to the difficulty of statistics and most of them weretaking advantage of the form of substitute variable form to set on the Big Sample Study or using them to haveSWTO analysis to our accountant in the view of development strategy. Therefore we can achieve thedevelopment strategy for our accounting companies. From economics view, a new direction, it provides usanother development of our perspective. Through the use of the basic theory, the analysis of the SCP analysisparadigm, from the view of industrial economist, the situation of our accounting firms was analyzed. By therelevant statistical data to present our accounting firms in the type of atoms had to lower the type, but excludethe "four big role", our local accounting firms still in an atom of market structure. Today directed by our localand international situation of "big four" combined experience, our local accounting firms want to solve thepresent plight, the union of the road, namely, the slandered development strategy is one of the best ways toimprove our country’s CPA industry market structure.By the market structure of the analysis of our accounting firms to achieve economies of scale, the road is inour country by the indigenous status quo. Well, according to the state of the merger, is the performance reallyconsistent with the theory? With the performance of the mechanism of the analysis, this article assumes that dueto the special audit market, increase market structure is conducive to improve quality audit in CPA.At the sametime, in the market performance of the mechanism of the basis of analyzing, it selects the four accounting firmsas a testament to object, during the year2006between2008, after the merger of the four for the merger of theCPA, the quantity and quality, service revenue, accounting for a strong market share for a comparative analysisand found that consolidated for different accounting firms are different, merged itself after, the merge of the maineffect at all between offices organizing resources ability. But overall, the merger of the accounting firms attractsmore customers and increases the abilities of them. Generally speaking, a combined road is good to the officeitself and China’s Rigeste Accountant Industry.Since, a merger is our accounting firms to do is a shortcut, why my country is still unable to form one canagainst with the "four big ’’?The reasons: firstly, our accounting firms will be merged by the government, theparties to merge only focus on a formality, not the consolidation; Secondly, through analysis of the costs and benefits mergers and acquisitions,as a result of the merger party exists for risk of loss expected return difficult toestimate the uncertainty, therefore, often on the merger will adopt a cautious attitude, keep the risks to theminimum.Merger will be facing risk, how to reduce the risk to achieve the goal, the combination of the relevantliterature, believes that we accountants merger should try to analyze the feasibility of merger might be problemsif you want to the corresponding countermeasures. For the merger, it makes a clear statement from the view ofmerger accountants’ cultural resources, human resources and the client respectively. In general, accounting firmis very significant by units. After the merger, we must do a good job concerning the integration of humanresources.In integration, we should take every chance to integrate enterprise culture, because good corporateculture can remove some of the merger problems and enhance staff cooperation. After the merger of internalintegration, the merger must conduct a customer resource as soon as possible, the customer resources for bothsides have built up related management information system,and at the same time, we must strengthen channelsto attract high-quality clients’ resources.Overall, the merge of our accounting firms will be conducive to our economic development, however therelevant government departments should offer services rather than force them for its scale only. China’saccounting firm merge should be conducted according to market needs, such merger can really achieve the goalof competitive mechanism which is selecting the superior and eliminating the inferior.