A Study On The Selection Of Internationalization Strategy Of China Accounting Firms

With the development of economic globalization, the scale of foreign investment and financing has been increasing. China’s foreign direct investment has increased in a row since 2002 at an average rate of 33.6%, in 2005, it broke through the trillions of dollars for the first time, jumped to the amount of $118.02 billion. At the same time, overseas financing scale is also considerable, the amount of foreign investment we absorbed is $126.3 billion, increase by 6.4%. Massive overseas investment and financing activities offers great opportunities and challenges for accounting firms in our country. While according to the national Treasury Department statistics, the accounting firm that engaged in overseas business is only 70, and just 12 of them owned a stable income, such situation is unsuited to the rapid development of overseas entity of our country, who need the accounting firm to provide professional services to reduce the business risk. Therefore, the research on the internationalization strategy of accounting firms is of great theoretical and practical significance.Firstly, this paper put forward the external causation of enterprises in our country going global, investment and financing scale growing and the defensive motivation of high quality customer resources occupied by the big four auditors, which is also the motivation to maintenance economic security, and then come the conclusion of the necessity and urgency of the accounting firm internationalization in our country.Secondly, the paper analyses the literature both at home and abroad, from the four aspects of connotation, motivation, difficulties and problems, as well as the strategic choice of the internationalization of accounting firm, and then raise the research direction of this paper. In the next, it elaborate the basic concepts, combined with the theory of International Production Eclecticism, competitive advantage and the evolution, it analyze the internationalization of accounting firms even further.The internationalization of domestic large accounting firm’s is the general trend of the Times, but what about the current external environment we confronted, what kind of strategy should we adopted to cope with the internationalization. In the following, the paper analyzes the present situation of internationalization of accounting services, mainly from two aspects:one is the competition environment of this industry analyzed on the basis of porter’s five competition models, the analysis are as follows:low barriers of accounting services industry trade leads to the high threat of potential entrants, the lack of competitiveness result in the high bargaining power of buyers, the short of internationalized talent bring about the high suppliers bargaining power; another is the advantages and disadvantages of native accounting firms and the opportunities and threats of the industry analyzed on the basis of SWOT model:, the local firm has the advantage of lower human resource cost, the disadvantage is that audit quality being not approved, the lack of international talent and so on; the opportunity of our local firms is that massive enterprises going global demand for various accounting services, threat is the fierce competition in the market after the opening of accounting audit environment.After realizing the current situation of internationalization, in the fourth and fifth chapter, the paper analyze the classic cases of accounting firms internationalization both home and abroad, and provides the experience for domestic accounting firms, including expand the scale, promote the strength, start the market from areas such as east Asian that have less cultural difference and target the customer that of our own country. In the sixth chapter, it put forward the strategy choice of local accounting firms from the aspects of market, location and methods. Simultaneously, the paper proposed the measure of advancing from the aspect of government and industry association:in the aspect of government, it should strengthen international cooperation, provide all kinds of policy support and improve the practice of industry environment of the industry and strengthen the industry regulation; In the accounting firm level, should pay attention to personnel training, expand their scale, put efforts to build the international brand and develop the varieties of their services.