Research On Economic Consequences Of Merger Between Shine Wing And Sichuan Junhe CPAs

Since 2001,domestic and international accounting firms merger boomed, many large firms were built from merging.Since 2013, "aircraft carrier" magnitude-Ruihua Certified Public Accountants came into existence, the pattern of domestic CPA firms was changing time by time since then.Take Shine Wing for example:from 2005 to 2009,Shine Wing was getting bigger and bigger by merging again and again.Generally,the combining forms can be divided into two kinds, one is through building,while the other is absorbing.No matter which one, totally,it is meant to be getting "bigger and stronger"as a result. And this kind of situation cannot do without neither the support of national policy in China, nor the strategy to grab the market share. While new firms are springing up across the country, the "big four" try to absorb the domestic big accounting firms to expand their oversea business and get an impregnable position in the tussle for the market.This essay based on the background of a big merging case of Shine Wing,revealed the economic consequences of this merger case,analyzed problems existing in the current accounting firm merger process in our country, and finnally, put forward some feasible and targeted suggestions. Merger of accounting firms, however, is not simply adding of two or more. Before merging, they may have many differences in various aspects,such as culture, human resources, the quality control system and so on.Then the conflicts will be there inevitably, which can influence the development of the merged accounting firms.From the example of Shine Wing, we see that if certified public accountants choose mergering as a kind of method to satiesfy the government, with no relevant measures to avoid conflicts in their respective production of resources integration, the substantive consolidation can hardly come true.There are still many problems,like the inappropriate targets, bad results on the employees’ physical and mental health,the culture conflicts and so on during the process of merging..As a typical merging case, Shine Wing can be a good example for satisfying the policy.