Productivity Growth in the Public Accounting Industry: The Roles of Information Technology and Human Capital

Chang, Hsihui; Chen, Jengfang; Duh, Rong‐Ruey; Li, Shu-Hsing

doi:10.2308/aud.2011.30.1.21

Cited by 35 publications

(24 citation statements)

References 42 publications

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“…Norwegian data from Sapprasert (2007) show that the productivity benefits from IT adoption in service industries increase with the size of the firm. Chang, Chen, Duh, and Li (2011) find that larger auditing firms have larger productivity returns on IT use. This paper will explore the hypothesis that jobs mismatch may be one of the causes of the low contribution of IT to small service firms' efficiency, since small service firms may not completely optimize human resource practices (Altinay, Altinay, & Gannon, 2008;Chaston, 1998;Jameson, 2000).…”

Section: Introductionmentioning

confidence: 95%

Jobs mismatch and productivity impact of information technology

Sandulli

Baker

López‐Sánchez

2014

The Service Industries Journal

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This paper studies the link between jobs mismatch and the impact of information technologies (ITs) on the efficiency of small service firms. From the perspective of job matching theory, the paper explores how small service firms that use ITs obtain an optimal matching between new skill requirements and workforce skills. The hypotheses suggest that optimal equilibrium will be obtained by matching IT intensity to ITs training and the proportion of workers with high educational levels.The study tests the hypotheses on a large sample of small services firms in Spain. The results confirm that matching the educational levels of the workforce with the IT intensity of the firm increases the efficiency of small service firms, while mismatch will decrease it. The contribution of IT training to firms' efficiency depends on training intensity but not on IT intensity.

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Section: Introductionmentioning

confidence: 95%

Jobs mismatch and productivity impact of information technology

Sandulli

Baker

López‐Sánchez

2014

The Service Industries Journal

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“…Both education and work experience foster the development of expertise in auditing (Bonner & Pennington, ; Hitt, Bierman, Schimizu, & Kochhar, ). Prior empirical findings demonstrate positive consequences of education and general experience for the profitability of audit firms (e.g., Bröcheler, Maijoor, & van Witteloostuijn, ; Chang, Chen, Duh, & Li, ) and demonstrate an association between task‐specific expertise of auditors and task performance (e.g., Bedard, ; Bedard & Biggs, ; Bonner & Lewis, ; Hammersley, ). In this respect, task‐specific training initiatives are associated with improved performance for tasks such as analytical procedures (Moreno, Bhattacharje, & Brandon, ) and a ratio analysis (Bonner & Walker, ).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Entrance requirements to the audit profession within the EU and audit quality

Linden

Hardies

2018

Int J Auditing

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This paper examines the relation between the stringency of entrance requirements to the audit profession within the EU and audit quality. Regulators and standard setters generally believe that such entrance requirements have beneficial effects by increasing audit quality. Whether this is indeed the case, however, is an empirical question given that regulations governing the entry to the audit profession are not the product of competitive market forces. We argue that a higher educational degree and longer traineeship period will result in higher audit quality. We also hypothesize that a professional oath will be positively associated with audit quality. Based on a sample of 3,782 firms from 20 different EU member states, we assess the relation between these requirements and abnormal working capital accruals. Our findings indicate that the requirement of a master's degree compared with a bachelor's degree is significantly associated with better accruals quality of audited financial statements. Second, we find that abnormal working capital accruals are lower in countries that require a traineeship period of at least 3 years. Finally, we find mixed evidence for the effect of a professional oath as part of the entrance requirements on audit quality.

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“…Apart from the previous issues, Chang et al. () and Banker et al. () indicated that competitive long‐term performance is sustained by core resources, such as physical, human, organizational, and financial capitals.…”

Section: Introductionmentioning

confidence: 99%

“…Several studies have incorporated various DEA models to measure the efficiency and improve the productivity of this complicated system in the accounting industry (e.g., Boyd, ; Flesher et al., ; Gammie and Joyce, ). These studies have mostly assessed the efficiency of business firms using the black box concept to measure performance (Chang et al., , , ). These studies have most often used traditional DEA with relatively simple structures (Banker et al., , 2005; Cheng, ), that is, structures that include only one activity (assuming that such an activity is regarded as a black box).…”

Section: Introductionmentioning

confidence: 99%

Assessing the efficiency of the accounting industry using multiactivity network DEA: evidence from Taiwan

Hsiao

Shu

Chou³

2017

Int Trans Operational Res

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Accounting firms are highly specialized and subject to government recognition through professional licenses. Accordingly, in assessing an accounting firm's performance, the performance measurement system should be generic enough to provide an integrated view of important factors from different perspectives. However, traditional performance measurements are based on several predefined factors that provide a partial view of the system or are limited to a single activity, thereby ignoring their interactions. This study proposes a modified data envelopment analysis model with multiactivity and network techniques on accounting firms. It creates a realistic approach to adequately measure the efficiency of the accounting industry and to suggest possible improvements for accounting firms. To verify the effectiveness of the model, we assessed the performance of 298 Taiwanese accounting firms in 2010 with three parallel‐connected activities and two series‐connected performance management processes. The results show that Taiwanese accounting firms greatly benefit from service processes and taxation activities.

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Productivity Growth in the Public Accounting Industry: The Roles of Information Technology and Human Capital

Cited by 35 publications

References 42 publications

Jobs mismatch and productivity impact of information technology

Jobs mismatch and productivity impact of information technology

Entrance requirements to the audit profession within the EU and audit quality

Assessing the efficiency of the accounting industry using multiactivity network DEA: evidence from Taiwan

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