Research On The International Development Model Of Accounting Firms In China

With the continuous development of economic globalization and the gradual deepening of China’s "the Belt and Road" development strategy,the pace of " Going Global" of Chinese enterprises has become increasingly stable,achieving a new leap in the internationalization of Chinese enterprises.However,the trade frictions,cultural conflicts and even political interventions from the host countries have also greatly increased.Chinese enterprises urgently need professional service firms such as accounting firms to provide high-level services related to internationalization strategies.At the same time,National authorities also attach great importance to the international development of China’s accounting firms.The Chinese Institute of Certified Public Accountants has upgraded the development of "Internationalization" to a strategic level,and has issued a series of guidelines.However,at present,the internationalization development of China’s accounting firms is still at a primary stage,and the results are not obvious.The international market is still dominated by the "Big Four".Thence,whether it is for safeguarding China’s economic security or complying with the development law of accounting firms,how to implement internationalization of accounting firms in China has become an urgent problem to be solved.By combing the literature,we find that most of the existing research mainly focuses on the discussion of the motivation and development model of the accounting firm’s internationalization.There are few studies on the specific needs of the firm’s clients,and there is also a lack of in-depth field research on specific international developments,and research on how to cooperation and coordinate within the firm’s network is still insufficient.Therefore,based on the theoretical analysis,this paper conducts field investigation on some international enterprises and large local accounting firms in China,to gain a deeper understanding of the specific needs of enterprises in cross-border business and the status quo of the internationalization of local accounting firms.Also,we conduct in-depth case analysis of three different types of international development models,and focus on the model of internationalization development of local accounting firms in China.Specifically,this paper firstly combines with the internationalization motivation theory,such as internalization theory,the eclectic paradigm and the evolutionary theory,international business competitiveness theory like resource-based theory and dynamic capability theory,as well as internal governance theory such as the autonomous governance theory and the access theory,to analyze the internationalization of accounting firms.The analysis shows that the accounting firm’s human capital and relational capital are the critical resources and fundamental advantages of its international development,and the firms give professionals the access to share the firm’s brand and reputation in order to further enhance their human capital and relational capital,and promote international development.Secondly,this paper discusses the management and cooperation mechanism of professional service firms’ international network from the three aspects: the value of international network,the establishment of cooperation mechanism and the network management mechanism.And we summarize the cooperation and coordination mechanisms such as transfer pricing,industry specialization groups,cross configuration and employee rotation mechanism,and compensation coordination,laying the foundation for the case study in the following.Thirdly,I followed the mentor to conduct field interviews with 8 enterprises with cross-border business experience and 3 large local accounting firms,to understand the needs of international enterprises for accounting firms.Then combines the interview data of 3 accounting firms with the relevant literatures of the specific internationalization practices of 5 other China’s local accounting firms,to summarizes the current status of local accounting firms’ international development from the aspects of network expansion,cross-border business types and the talent development,and the difficulties and obstacles in the process of international development.On the basis of the international development experiences of the "Big Four",this paper conducts in-depth case analysis on the current three different types of international development models.Finally,from the aspects of entry modes,location selection and international business types,this paper suggests:(1)In terms of the internationalization path,small and medium-sized firms can consider joining the existing international accounting network,and large-scale firms should choose an international development model based on their own situation.When choosing to build an international network,firms should consider setting up a branch or merging the local to involve a high degree of intervention;(2)The location selection of the international network should start from Hong Kong,relying on the "the Belt and Road" market,and actively deploying Europe,North American market;(3)Enriching its own business types and exploring the two-way business development model of "China Investment + Investment China".At the same time,put forward corresponding development suggestions from two aspects of accounting firm industry itself and industry supervision department.The contributions of this paper are as follows:(1)Combined the theory of internationalization with the theory of internal governance,from the perspective of internal governance of accounting firms,analyzed the path selection and influencing factors of accounting firms’ implementation of internationalization,enriched the relevant theories of the internationalization of accounting firms;(2)Through field research,summed up the demand for accounting firms in the international development of Chinese enterprises,as well as the status quo,problems and difficulties in the internationalization development of local accounting firms in China.And finally constructed the path of the international development of our firm,and provided some reference for the international development of China’s accounting firms in the future;(3)Put forward corresponding development suggestions from two aspects of accounting firm industry itself and industry supervision department,in order to promote the international development of China’s accounting firms.