|其它题名: ||The relationship between organization age and performance of public accounting firms in Taiwan|
|作者: ||郭雅芬;Kuo, Ya-fen|
|关键词: ||會計師事務所;組織年齡;組織生命週期;經營績效;Public Accounting Firms;Organization Age;Organizational Life Cycle;Operating Performance|
|上传时间: ||2010-01-11 04:32:04 (UTC+8)|
The increasingly competitive financial market is changing the world of CPA firms. As the organization age of CPA firms increases, the firms have to adjust the goals and strategies of their operation for different organizational life cycles in order to sustain the development of the firms. Of course, the execution of these adjustments always take into consideration the firms’ accumulated professional experience as well as the characteristics of their organization.
Therefore, this study took a closer look into the organizational life cycle to explore how CPA firms adjust. Specifically, this exploration will focus on: (1) the growth trend of the audit and non-audit services of CPA firms；(2) the human resources CPA firms invested correspondingly. The purpose of this study is to provide a reference point for firm managers so that they can expect the changes that they could be facing and take appropriate measures to cope.
This study analyzed eleven yearly Annual Report of Accounting Firms surveyed by the Ministry of Finance of R.O.C., between 1989 and 2002, and categorized CPA firms’ organizational life cycle into three stages according to the growth trends of the sales of CPA firms. For all the CPA firms in Taiwan, the three stages are: (1) youth—from 0 to 12 years old；(2) middle-age—from 13 to 28；(3) over-the-hill—from 29 to 79.
The analysis found that both the sales and profit rate show a trend of positive growth during the youth stage, a rapid growth during the middle-age stage, and a stable, even negative, growth for the over-the-hill firms. Statistical analysis found significant differences among the three stages, which confirmed that there does exist the organizational life cycle for CPA firms.
Further analysis was carried out, by means of a Two-way ANOVA, to understand the factors affecting the CPA firms’ operating performance for each life cycle stage. The firms’ life cycle stages have an interaction effect with their sales structure (the portion of audit and non-audit services in the total sales). As a whole, all CPA firms’ operating performance will fluctuate with the variation of sales from non-audit services. In terms of the scale of the firms, only large-size firms show this effect. The over-the-hill firms with a higher portion of sales from non-audit services show a low operating performance. In other words, sales from non-audit services did not help elevate CPA firms’ operating performance.
The analysis on the interaction effect between the life cycle stages and human leverage factor found that mid-sized CPA firms show the most significant effect as their organization age increases. The operating performance of these firms is subject to the human resources the firms invest. The highest performers are those middle-aged firms with low human leverage.