The association between continuing professional education and financial performance of public accounting firms
ABSTRACT This study investigates the relationship between continuing professional education (CPE), a mechanism of professional training, and financial performance of public accounting firms. Both training subject (partner and assistant) and training location (internal and external) are included. Public accounting firms are categorized as big, medium, and small-sized ones. Empirical data are obtained from the 1992–1995 Survey Report of Public Accounting Firms in Taiwan, published by the Financial Supervisory Commission, Executive Yuan, Taiwan, ROC. Univariate test and multiple-regression model are employed to examine the financial performance effects of CPE. Main results indicate that both professional training of assistants and external professional training are positively related to financial performance in big-sized firms. Next, we document a significantly positive association between internal training of assistants and financial performance in either big-, medium-, or small-sized firms. Finally, both external professional training of partners in big-sized firms and external professional training of assistants in small-sized firms are positively related to financial performance. Few prior studies investigate professional training of public accounting firms by a regression model due to availability of empirical data. Accordingly, evidences obtained in this study provide useful information to partners for decision-making in public accounting firms under the considerably competitive audit market.
- SourceAvailable from: Sherliza Puat Nelson[Show abstract] [Hide abstract]
ABSTRACT: The objective of the study is to investigate the association of two human capital factors with financial reporting quality. Specifically the study examines the audit committees’ experts and the relationship with fraudulent financial reporting as a proxy to financial reporting quality. Theoretically the study is supported by behavioural and expertise literatures, other than the agency theory to develop the hypotheses. Three aspects of experts are examined: the accounting affiliated audit committees, audit committees with postgraduate qualification, and audit committee with managerial experience. The findings support and extend those of prior literatures, where leverage and management ownership are significant and related to the financial reporting quality as expected. Most importantly, results suggest that accounting affiliated audit committees are associated into improving the quality of financial reporting. Thus, improves the important roles of audit committee as effective monitoring mechanism.SSRN Electronic Journal 05/2010;
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ABSTRACT: This paper extracts auditor quality from human capital (education, experience, certificate, training, and effort) and decomposes auditor size into three levels (large, medium, and small) to investigate whether there is a positive relationship between auditor size and auditor quality and to examine whether there is a premium between auditor quality and auditor fees. First, the positive relationship between auditor size and auditor quality of large audit firms is higher than that of small audit firms, but there is no difference between medium and small audit firms. Second, the positive relationship between auditor quality and auditor fees of large audit firms is higher than that of small audit firms, but there is no difference between medium and small audit firms. Overall, our empirical results support that auditor size as a proxy in measuring auditor quality and echo that large audit firms with higher auditor quality have auditor fee premiums.01/2009;
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ABSTRACT: Project management is a critical organizational capability in the engineering construction sector: the development of that capability through continuing professional development (CPD) is, therefore, of substantive interest to practitioners and researchers alike. The aim of this investigation was to explore current practice in CPD in engineering construction. This was achieved by undertaking a cross-case analysis of the experiences of project management CPD in 17 organizations. The analysis revealed a highly unsystematic approach to CPD and a very limited adaptation of CPD to the engineering construction context. The impact of introducing more structured and contextualized approaches to CPD on the effectiveness of project managers needs to be investigated further.Construction Management and Economics 01/2012;