The Economic Consequences Of Merger Of Accounting Offices

This paper takes all the accounting firm merger as the research objects between2005-2009,through the test of the change of audit fees and audit quality before and after the merger to test what economic consequences have produced after firm merger according to the office of the listing Corporation data between the year of2003-2012through empirical methods, the data is divided into two kinds according to the scale of the firms before merger, that are merger of big offices and merger of small offices to do the empirical tests. the results are divided into two categories, the audit fee of the kind of big offices increased significantly before and after the merger, while audit fee statistics of the small kind of offices did not change significantly before and after the merger, to explore whether the results of the changes of audit quality, we use accounting information quality as a proxy for audit quality to test the changes of audit quality before and after the merger, the results show no matter big offices or small offices merger, the audit quality changed significantly before and after the merger.These results show that:the merger type have no influence on the degree of earning management, so the merger played a significant role in the improvement of the audit quality, but for the audit fee,the big offices merger indeed played a role, but the small offices merger did not have this effect. It means that the improvement of the audit fee is due to the effect of reputation of the big offices before the merger, so the selection of the merger object is very important.