Study On The Operational Efficiency And Its Driving Factors Of Accounting Firms In China

With the development of globalization and the trend of international accountingconvergence, it would be hardly avoided that our accounting firms is beginninginternational business. International accounting firms had "took root in china", andgaining a firm foothold gradually. For China’s local accounting firms, which is full ofcompetition. The core issue of this paper is operational efficiency, which is animportant index to measure the competitiveness of China’s accounting firm. It is alsothe key point to maintain the sustainable development of China’s accounting firm.Therefore, It has very important significance to study the operational efficiency andits driving factors of accounting firms in China. The international competition and thecompetition between our local accounting firm, which will make the high efficiencyaccounting firms win.The research objects of this paper are our accounting firm’s operating efficiencyand its driving factors. In the aspect of theory research, firstly, I reviewed the relatedresearches at home and abroad. Secondly, I stated the implication of accounting firm,the development history of accounting firms in China and the related important theoryabout operational efficiency in detailed. Lastly, I compared the analytical method tomeasure the operating efficiency of accounting firms, and then I chose the best one formy research.In the aspect of empirical study, I used Malmquist index to analysis theoperational efficiency of specimens from2002to2010. In order to compare “the bigfour accounting firms” with our local accounting firms, I made a distinction. Idiscovered the average efficiency of the latter than the former. After decomposed theMalmquist index, I also found the contribution of “EFFCH” is more than others. Then,I used Malmquist index and “EFFCH” to established measurement model to study thedriving factors. In my conclusions, first, the more higher proportion of CPA is notconducive to the operational efficiency of China’s accounting firms. Second, There isa positive correlation between the proportion of experienced CPA and the efficiencyof accounting firms in our country. Third, there is a positive correlation between thecustomer resource quality and the efficiency. Fourth, capacity expansion has muchnegative impact on the efficiency of accounting firm. In the end, according to myresearch, I put forward some advices to promote the operational efficiency of ourlocal accounting firms.