The Research On Factors Influencing The Performance Of Chinese Accounting Firms Based On Grey Relational Analysis

In recent years, with the development of Chinese capital market, Chineseaccounting firms industry has seen rapid progress. However, compared withinternational accounting firms，the Chinese accounting firms has a long way to go. Theacademic community about how to improve performance of Chinese accounting firmshas put forward a number of suggestions. However, the research about factorsinfluencing the performance of Chinese accounting firms is lack of empirical support ofthe theory and is no uniform conclusion.Therefore, by using the method of gray system, this paper study factors influencingthe performance of Chinese accounting firms in order to find out which is the mostimportant factor and how to improve the performance of Chinese accounting firms.Grey system is treated as system in which information is known partly and unknownpartly. Grey system theory generates partial information, develop, mine data and extractvaluable information so as to control the system.This paper first interpretated of the concept of the performance and performance ofaccounting firms and introduced the domestic and foreign research on the performanceof accounting firms and the situation about the grey system applied to the research ofthe performance of the accounting firms. Next，this paper introduce factors influencingthe performance of Chinese accounting firms. Comparative Analysis on the currentaccounting firm performance study of the methods, it suggests that grey system methodhas unique advantages. In conclusion, grey system method applied to study factorsinfluencing the performance of Chinese accounting firms is feasible.Then, this paper introduces the calculation of synthetic degree of incidence.Through variable selection and model construction, this paper use professional softwareto calculate synthetic degree of incidence so as to analysis factors influencing theperformance of Chinese large accounting firms and medium-sized accounting firms.Finally, this paper really results in our consideration over problems of accountingfirms. This paper put forward the proposal about how to improve the performance ofaccounting firms in China. Also, it puts forward the study deficiency of this paper forfuture scholars to provide reference for further study.The following points are main contributions of the paper:This paper try to dig performance of accounting firms connotation, analyzeperformance of accounting firms with a new angle so as to solve the problems. Because the data of Chinese accounting firms is less and the paper study factors influencing theperformance of Chinese accounting firms by grey system from two perspective: largeaccounting firms and medium-sized accounting firms. This paper analyzes the effect onfactors influencing the performance of Chinese accounting firms in order to put forwardthe recommendations.As for selection of grey correlation model, considering the defects of DengInterrelatedness and development of the grey relational analysis method recently, thispaper choose synthetic degree of incidence as empirical model. As for selection offactors influencing the performance of accounting firms, combining with previousscholars’ research and the current situation of accounting firms industry, I take theleading certified public accountants as one of factors influencing the performance ofaccounting firms, and eliminate the selection of the "big four".