Impact Research On Audit Market Performance Of The Accounting Firm Merger

With the development of economy and the growing importance of the audit, peoplepay more and more attention to the operation of the audit market. In the last century,"eight" certified public accountants by merging rapidly formed the oligopolistic marketstructure, most of the market share. This phenomenon is caused by domestic scholar’sresearch; oligopolistic market structure of the impact on the audit market is positive ornegative? Can promote the audit market effective competition? In order to solve the doubt,in the1970s, people introduced the industrial organization theory to research the auditmarket. And our country accounting firm under the government actively guide, repeatedlarge-scale merger. In recent years, studies have shown that the first and secondconsolidation effect is not satisfactory. So are well underway for the third time to merge,can effectively integrate the audit market resources, on the basis of the "big" to "stronger",the purpose of improving the quality of certified public accountants audit, not just the sizeof the expansion, to really build a high quality of local firms. Therefore, under the thirdwave of merger accounting firm merger’s influence on audit market performance is themain content of this article studies.Based on the theory of industrial organization theory, scale economy theory,reputation, and the theory of "deep pocket" theory as the foundation, and analyses the firmmerger motivation, this paper analyzes the intrinsic motivation with extrinsic motivationfirm merger, it is concluded that combined its own advantages and audit marketparticularity is the important reason for the merger. Main body parts for empirical research,this paper selected the nine mainland firms with a-share audit qualification as Arepresentative of the third wave of merger, and in the nine in merging in2008-2011as theresearch sample, from both before and after the merger by the same firm to audit companyas samples. With the audit fee and audit quality two indicators to measure the audit marketperformance, due to the audit quality will not be able to measure directly, and the directsubstitution variable is the audit opinion type. Therefore, this article USES the audit feesand audit opinion type as the audit market performance meas ure. Multiple regressionmodels was set up at the same time, with descriptive statistical analysis comparison firmbefore and after the merger of audit fees and audit opinion type proportion, and through theregression tests to verify the accounting firm merger and the correlation between audit feesand audit opinion type. Finally draw the conclusion: accounting firm merger on audit feesand audit opinion type has significant impact. After the merger of the audit fee issignificantly higher than before the merger, the combined non-standard audit opinionsbefore also significantly higher than the proportion of the merger. This shows that themerger improves the performance of audit market; the third time has achieved expectedeffect of the merger wave. At the same time, because China’s office of the time is short, thecombining process in hurry, merged reasons, etc., the hard to avoid in the process ofconsolidation of resources integration problems, so this article at the end of the article putsforward some Suggestions.The contribution of this paper has three main points: one is the data innovation.Thispaper selects one of the two, by the merger audit by audit firm merged with the company sample pre merger, the annual selection of2008--2011merger of firms, because itinvolves the merger before and after the merger, so the accounting year of2007--2012, until2012, the data is novel. Two is there search of our country withmore earnings management as a measure of audit quality, earnings management asthe audit quality of indirect measurement, audit quality direct substitution variables--thetype of audit opinion to measure, supplement the relevant empirical. Three of the firms’merger behavior from the microscopic point of view of the impact on the audit marketperformance, the audit fee and audit quality of two variables, and a comprehensive study ofthe market performance.