Study On The Economic Consequences Of The Merger Of Accounting Firms In China

Under the guidance of national policies,China's accounting firms have experienced four waves of merger of accounting firms,which are all aimed at realizing the "bigger and stronger" of China's local accounting firms.Through merger wave four times,our country accounting firm does to a certain extent,the market competitiveness,in constantly improve the level of certified public accountants industry as a whole at the same time,however,many accountants just in order to response to the call of national policy,for passive merged,did not achieve effective integration after merger,and cause the firm appeared the situation of"big but not strong".In this paper,the representative RUIHUA accounting firm in the merger wave is selected as a case study to analyze the economic consequences after the merger of RUIHUA accounting firm,so as to investigate whether the accounting firm can achieve the goal of"becoming bigger and stronger" after the merger.This paper studies the economic consequences from the perspectives of supply and demand of audit market.First is audit market supply,this article from the accounting firm scale(business income,the number of certified public accountants),audit quality(proportion of non-standard audit opinions and audit efficiency(audit delay)were analyzed,and then through the audit fees and customer structure,customer number,customer scale)to reflect the audit market demand.The conclusion of this paper is that,no matter from the perspective of audit market supply or demand,RUIHUA accounting firm has expanded the scale of accounting firm,enhanced market competitiveness and improved audit quality,but this merger may be more reflected in "bigger" rather than "stronger".The reason lies in the lack of risk prevention before the merger and the imperfect integration of resources after the merger.