Research On Consolidation Motivation And Integration Of Accounting Firms

In October3,2009, the State Council transmits the MOF on accelerating thedevelopment of China’s CPA profession, focused on supporting around10largeaccounting firms to multinational operations, and provide comprehensive services.Accounting firms in China starts late, in the short term, it is difficult to form largeaccounting firms with the core competitiveness that rely on their own development.Merger is an important way for firms to become bigger and stronger, that canrapidly improve the core competitiveness and increase market share. However, mergercannot create value, integration is the process to enhance value. The key to success forfirms lies in whether execution the substantive integration. Differences in the mergermotivation determine the different of integration after the merger, which provides theopportunity for combination merger motivation and integration research.Based on the review of present research situation, this paper expounded the firmmerger and related theories, the firm merger motives include three aspects: the role ofgovernment regulation, the demand of audit market, and the need of firm endogenousgrowth. At the same time, this paper depth analysis the relevant theory of accountingfirm merger integration, including development theory, competitiveness theory, andvalue theory. Focus on the firm merger integration content, which includes qualitycontrol, customer resources, human resources, salary incentive mechanism and culture.Most scholars carried out empirical research use large samples, rarely about thespecific case analysis (including merger successful cases and de-merger cases), and lackunderstanding of practice field ideas about the firm merger. In this paper, we selectiondomestic and foreign accounting firms merger cases as the research object, combinedwith on-site interviews, separately from the merging parties, from the merger successfulcases to de-merger cases, comprehensive analysis of the firm merger motivation andintegrated content, literature to enrich the merger integration research.According to the above theoretical analysis and cases study, we believe that theaccounting firms of our country should draw lessons and sum up experiences, learnfrom the merger successful case of large international accounting firms, become biggerand stronger, to realize the internationalization development strategy. Governmentdepartments and industry associations should provide guidance for the firm merger integration, draw up the guidance system of merger integration which suitable foraccounting firms in our country, promote firms to substantive integration, speed up the"going out" pace of development, and establishment of the international brandreputation.