Audit market structure and related changes in Taiwan: the effects of CPA qualification changes and mergers

Audit market structure and related changes in Taiwan: the effects of CPA qualification changes... There are four material structure changes over the certified public accountants (hereafter the CPA) industry in Taiwan since 1988. They are the relaxation of CPA qualification examinations in 1988, the merger of KPMG and Cooper & Lybrand (C&L) in 1999, the reduction of CPA examination pass rates in 2001, and the merger of T. N. Soong (TNS) and Deloitte & Touche Taiwan (D&TT) in 2003. Thus, this study investigates how the four events make impact on the market concentration of CPA industry and the market competition type. Empirical data are obtained from the Census Report of Public Accounting Firms in Taiwan (1989–2003). Main findings show that the Big international accounting firms dominate the majority of the audit market. Besides, the Big international (or Big Four) market concentration during 1992–1997 is lower than that in other periods after loosing the CPA examination pass rates since 1988. Since tightening up of CPA examination pass rates in 2001, the Big international (or Big Four) market concentration display an increasing trend. Finally, accounting firm mergers in 1999 and 2003 have all contributed to the increase of market concentration of international (or Big Four) accounting firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Quality & Quantity Springer Journals

Audit market structure and related changes in Taiwan: the effects of CPA qualification changes and mergers

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Publisher
Springer Netherlands
Copyright
Copyright © 2009 by Springer Science+Business Media B.V.
Subject
Social Sciences; Methodology of the Social Sciences; Social Sciences, general
ISSN
0033-5177
eISSN
1573-7845
D.O.I.
10.1007/s11135-009-9232-0
Publisher site
See Article on Publisher Site

Abstract

There are four material structure changes over the certified public accountants (hereafter the CPA) industry in Taiwan since 1988. They are the relaxation of CPA qualification examinations in 1988, the merger of KPMG and Cooper & Lybrand (C&L) in 1999, the reduction of CPA examination pass rates in 2001, and the merger of T. N. Soong (TNS) and Deloitte & Touche Taiwan (D&TT) in 2003. Thus, this study investigates how the four events make impact on the market concentration of CPA industry and the market competition type. Empirical data are obtained from the Census Report of Public Accounting Firms in Taiwan (1989–2003). Main findings show that the Big international accounting firms dominate the majority of the audit market. Besides, the Big international (or Big Four) market concentration during 1992–1997 is lower than that in other periods after loosing the CPA examination pass rates since 1988. Since tightening up of CPA examination pass rates in 2001, the Big international (or Big Four) market concentration display an increasing trend. Finally, accounting firm mergers in 1999 and 2003 have all contributed to the increase of market concentration of international (or Big Four) accounting firms.

Journal

Quality & QuantitySpringer Journals

Published: May 15, 2009

References

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