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

National Taipei College of Business Department of Accounting Information Taipei Taiwan, ROC
Quality and Quantity (Impact Factor: 0.72). 06/2010; 44(4):691-712. DOI: 10.1007/s11135-009-9232-0


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.

KeywordsMarket share-Market concentration-Competition type-Accounting firms

1 Follower
15 Reads
  • [Show abstract] [Hide abstract]
    ABSTRACT: Ammonia emitted from animal feeding operations is an air pollutant contributing to the formation of fine particulate matter (PM(2.5)), considered a major environmental risk to human health. In the United States, farm animals are the greatest contributor to gaseous ammonia emissions. Ammonia reacts with atmospheric nitric and sulfuric acids to form PM(2.5) (nitrate and sulfate), but the proportion of PM(2.5) attributable to ammonia emitted from animal farming operations has not been quantified. Thus, the objective of this analysis was to estimate the contribution of ammonia emitted from farm animals to PM(2.5) in the United States. The following approach was used: (1) the amount of ammonium in sulfate and nitrate PM(2.5) was calculated based on chemically speciated measurements published by the United States Environmental Protection Agency; and (2) the amount of ammonium in sulfate and nitrate PM(2.5) originating from livestock was assumed equal to the fraction of the total ammonia emissions attributable to livestock. Across different regions of the United States and under different weather conditions, PM(2.5) formed from ammonia emitted from livestock operations were estimated to contribute on average from 5 to 11% of the total PM(2.5) concentrations. In certain areas (North Central, for example) and in cool weather, farm animal contribution to atmospheric PM(2.5) concentration may be as much as 20%.
    Journal of Dairy Science 06/2011; 94(6):3130-6. DOI:10.3168/jds.2010-3681 · 2.57 Impact Factor
  • [Show abstract] [Hide abstract]
    ABSTRACT: Twelve 200-L barrels were used to determine the effects of N content and straw addition on changes in chemical composition and volatile losses measured by mass balance of dairy manure during a 136-d storage period. In addition, on d 0, 3, 6, 12, 28, 56, and 136, rate of NH₃-N emission was measured, and core samples were collected to characterize fermentation pattern. High N (3.06% N, HN) and low N (2.75% N, LN) manures were obtained from cows fed diets with 17.2 and 15.2% crude protein (dry matter basis), respectively. On d 0, manure scraped from a freestall barn floor was diluted with water to 10% dry matter and loaded in barrels with (+S) or without (-S) mixing 22g of chopped wheat straw per kilogram of undiluted manure. Data were analyzed as a randomized complete block with a 2×2 factorial arrangement of treatments and 3 replications. We observed no interaction between treatments for the reported measurements, but several day-of-storage by treatment interactions were found. Throughout storage, total NH₃-N (TAN, NH₃-N + NH₄⁺-N; 71.9 vs. 104.3 mg/dL), pH (6.40 vs. 6.74), and total volatile fatty acids (TVFA, starting on d 12) were lower for LN relative to HN manure. In the presence of straw, crust formation occurred between d 12 and 28, and pH became lower and TVFA became higher starting on d 56, compared with no straw. Treatments did not influence loss of organic matter, organic N, organic C, or N, which averaged 31, 29, 26, and 20%, respectively. However, neutral detergent fiber loss was 44% higher for +S relative to -S manure. Consistent reductions in the C:N ratio indicated proportionally higher volatile C loss than volatile N loss during storage. Overall rate of NH₃-N emission was 36% lower for LN than for HN manure. In the presence of straw, rate of NH₃-N emission did not differ until after crust formation, but was 67% lower on d 56 and 95% lower on d 136, when it was barely detectable, compared with manure with no straw. Manure pH was highly correlated with TVFA:TAN ratio (r=-0.78), and rate of NH₃-N emission was correlated with pH, TVFA:TAN, TVFA, and TAN (r=0.47, -0.44, -0.23, and 0.28, respectively). In this trial, both microbial fermentation and crust formation influenced NH₃-N emission rate and other measured responses, highlighting the importance of long-term sampling to evaluate treatment effects in manure storage studies.
    Journal of Dairy Science 06/2012; 95(6):3454-66. DOI:10.3168/jds.2011-4839 · 2.57 Impact Factor
  • [Show abstract] [Hide abstract]
    ABSTRACT: Purpose ‐ This paper aims to explore the relationship between market share and performance of large accounting firms. It also investigates whether the performance of international accounting firms is better than that of non-international accounting firms. Design/methodology/approach ‐ This paper divides the empirical analysis into two stages. The first stage constructs a multiple regression model to explore the relationship between market share, international operations and the performance of large accounting firms. The second stage uses the Tobit regression model to identify the determinants of market share of international accounting firms. Findings ‐ Empirical results show that there is a significant, positive relationship between market share and performance, and that the performance of international accounting firms is better than that of non-international accounting firms. Second, from the perspective of business characteristics, the scope of the most international accounting firms is traditional auditing services; namely financial attestation and tax business services. Practical implications ‐ From the clients' viewpoint, market share is one of the key indices in determining the quality of the accounting firms' service. Originality/value ‐ As the market for auditing services in Taiwan is saturated, in the future, the accounting industry will be concerned with non-auditing services. It is suggested that the large accounting firms could follow the demand changes of their clients: employ professionals in various fields to provide specialized services, adjust the range of transnational and management consultant services, and operate management consultant services more aggressively. These measures would have advantages in a fiercely competitive market.
    Baltic Journal of Management 10/2013; 8(4). DOI:10.1108/BJM-02-2013-0020 · 0.50 Impact Factor