A Study On The Selection Of Internationalization Model Of Accounting Firms

With the development of the economic globalization, there is a strong growingdemand for the international audit services, and the CPA profession has become moreand more international. So it is inevitable for the accounting firms to develop theirbusiness in the global. Internationalization model is an indispensable way foraccounting firms to develop their business in the global and it determines whethertheir global strategies can be successful or not. Although there are some researches onthe international model selection of accounting firms, many researchers just mentionit in a scattered way and lack of systematic research on this subject. So this paperfocus on the topic of international mode selection for accounting firms and does arelatively systematic research on it, and this paper also provides some policyrecommendations for the international development of accounting firms in order tocontribute to the implement of ‘go global’ strategies of Chinese local accountingfirms.This paper does a relatively systematic research on the international modeselection for accounting firms by using the normative research method, the case studymethod and the comparative analysis method. There are six parts in this paper. Thefirst part is an introduction of this study, it contains the research background, thepurpose and the cause of this research, the research methodology and the frameworkof this paper; the second chapter makes a review on the related literature, summarizesprevious research achievements and identifies the insufficient of previous studies; thethird part is the theoretical analysis of the international mode selection of anaccounting firm, it focus on the types and influencing factors of international modeselection of accounting firms; the fourth part discuss the choice of the internationalmode by using a specific case of foreign accounting firms which have lots ofsuccessful experiences in this area; combined with cases, part five makes research onthe international mode selection problem of Chinese local accounting firms from a practical point of view and does a comparative analysis of the international modeselection’s economic consequences by using specific cases; the last chapter makes theconclusions and provides some policy recommendations for the development of theaccounting firms.Based on the relatively systematic study of the model of accounting firms’internationalization, this paper finds that there are two basic modes for an accountingfirm to become international, one is inward and the other is outward pattern, theaccounting firm will make use of these two basic patterns in combination. The factorswhich influence the selection of the international mode can be divided into two parts:the external factors and internal factors. The external factor includes the country’smarket, economic, political elements for which the accounting firm current in and italso contains the target country’s market, economic, political, social and culturalelements. The internal factors include the international experience, human resources,capital and brand of the accounting firm. In fact, different accounting firms havedifferent consideration when they decide which international mode will be adopted.And there will be different economic consequences when choose differentinternational modes. If the accounting firm chooses an international model which issuitable for the condition of the firm, it will bring benefits to the firm; otherwise itwill slow the development of the firm. So when makes an international developingstrategy, the accounting firm should base on their own situation and consider variousinfluencing factors, choose the international model which is the most suitable one.The contributions of this paper include:(1) providing a relatively completeframework of factors which influence the international mode selection of accountingfirms;(2) based on a relatively systematic analysis of international model selection,this paper also gives some meaningful policy recommendations for the implement of‘go global’ strategies of Chinese local accounting firms.