The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting Firms
Taiwan’s Financial Supervisory Commission of the Executive Yuan promulgated the fully amended Certified Public Accountant Act in 2007, which directly led to significant changes in accounting law. From the perspective of the economic theory of law, this study investigates the amendment of the Certifi...
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doaj-3b821c1fd36a43f3a8bd57cb0362ce6e2021-01-26T00:02:44ZengMDPI AGSustainability2071-10502021-01-01131229122910.3390/su13031229The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting FirmsChung-Cheng Yang0Jian-Xiong Chen1Wen-Chi Yang2Department of Accounting, National Yunlin University of Science and Technology, Yunlin 64002, TaiwanDepartment of Accounting, National Yunlin University of Science and Technology, Yunlin 64002, TaiwanDepartment of International Business, Tamkang University, New Taipei 251301, TaiwanTaiwan’s Financial Supervisory Commission of the Executive Yuan promulgated the fully amended Certified Public Accountant Act in 2007, which directly led to significant changes in accounting law. From the perspective of the economic theory of law, this study investigates the amendment of the Certified Public Accountant Act resulting in an increase or decrease in the overall revenue and different revenue shares of accounting firms, and puts forward measures that should be taken by accounting firms and stakeholders. We focus on large accounting firms and divide the sample period into before and after 2008. This study uses the translog revenue function and revenue share functions of the public accounting industry, and based on the 1989–2017 Survey Report of Audit Firms in Taiwan, and we find that the amendment of the Certified Public Accountant Act has had a positive effect on overall revenue, increasing overall revenue and the overall management advisory services shares, and in reducing the overall accounting and auditing shares and tax services shares of large accounting firms. Additional analyses provide regulators with public policy implications and provide accounting firms with managerial information.https://www.mdpi.com/2071-1050/13/3/1229lawaccounting firmcertified public accountant actrevenue |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Chung-Cheng Yang Jian-Xiong Chen Wen-Chi Yang |
spellingShingle |
Chung-Cheng Yang Jian-Xiong Chen Wen-Chi Yang The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting Firms Sustainability law accounting firm certified public accountant act revenue |
author_facet |
Chung-Cheng Yang Jian-Xiong Chen Wen-Chi Yang |
author_sort |
Chung-Cheng Yang |
title |
The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting Firms |
title_short |
The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting Firms |
title_full |
The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting Firms |
title_fullStr |
The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting Firms |
title_full_unstemmed |
The Impact of the Amendment of Taiwan’s Certified Public Accountant Act in 2007 on Large Accounting Firms |
title_sort |
impact of the amendment of taiwan’s certified public accountant act in 2007 on large accounting firms |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2021-01-01 |
description |
Taiwan’s Financial Supervisory Commission of the Executive Yuan promulgated the fully amended Certified Public Accountant Act in 2007, which directly led to significant changes in accounting law. From the perspective of the economic theory of law, this study investigates the amendment of the Certified Public Accountant Act resulting in an increase or decrease in the overall revenue and different revenue shares of accounting firms, and puts forward measures that should be taken by accounting firms and stakeholders. We focus on large accounting firms and divide the sample period into before and after 2008. This study uses the translog revenue function and revenue share functions of the public accounting industry, and based on the 1989–2017 Survey Report of Audit Firms in Taiwan, and we find that the amendment of the Certified Public Accountant Act has had a positive effect on overall revenue, increasing overall revenue and the overall management advisory services shares, and in reducing the overall accounting and auditing shares and tax services shares of large accounting firms. Additional analyses provide regulators with public policy implications and provide accounting firms with managerial information. |
topic |
law accounting firm certified public accountant act revenue |
url |
https://www.mdpi.com/2071-1050/13/3/1229 |
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