The Empirical Analysis Of The Influence Of Auditor Industry Specialization On Auditor Market Structure

Since1998， In1998, China’s accounting firms transformed. From that on, theindependent audit and the audit market in China began to develop. In October3,2009, thesuggestions on accelerating the development of China’s CPA industry has put forward clearlyto perfect policy measure, optimize development environment, guide and promote China’sCPA industry to realize good and fast development. Based on these, the paper study theimpact of auditor industry specialization behavior on the audit market structure, and analyzethe impact of audit market structure development of other factors. We want to put forwardpolicy suggestions on audit market structure in China and audit firm industry specializationdevelopment.Depending on the review of the domestic and foreign accounting firm merger’s history,the paper use the division of labor and specialization theory to explore the industryspecialization operation of generation and development of theory of motivation and I thecompetitive market theory to analyze audit market structure validity. This paper analyze "behaviorism" theory as the theoretical basis of empirical. Through empirical analysis, thepaper study the impact of the audit firm industry specialization behavior, accounting firm sizeand the customer the industrial characteristic on China audit market mechanism. the threefactors and the audit market structure in China ’s influence is positive correlation, consistentwith the expectations hypothesis; finally based on he empirical conclusions, the paperprovides the policy suggestion for our country industry specialization behavior and structureof audit market development.In this paper, the main research results and significance include:（1）based on the theoryof behaviorism, According to "the behavior structure", the paper analyzes the impact of theaccounting firm specialized behavior, scale development and customer market characteristicson the audit market structure, and the three and the audit market structure in China ’sinfluence is positive correlation.（2）Based on the analysis of the annual income, branchnumber, number of employees, industry number audit engaging in, geographical distribution,we research the correlation of the above factors and firm industry specialization by SPSS. We point out the correlation level of the industry specialization operations and the factors, inorder to research how to realize the auditor industry specialization.（3）Customer industrycharacteristics the audit market in China has great influence to the audit market. In theempirical analysis, we joined the industry character variable, customer industry characteristicand the audit market concentration is related.We find that on the higher the concentration of the market. the concentration is higher.At high concentration of industry customers, fewer large enterprises occupy a higher marketshare, these larger companies will first choose a larger scale, higher credibility of theaccounting firm, thus, is conducive to the formation of higher audit market concentration.Firms especially the larger CPA preferred a high degree of concentration of industriesinvolved, through large-scale enterprises on the audit, and conducive to the understanding ofthe industry, occupy a higher market share, formed a specialized management.