Competition Conditions in Taiwan's Public Accounting Industry
學年 105
學期 2
出版(發表)日期 2017-02-01
作品名稱 Competition Conditions in Taiwan's Public Accounting Industry
著者 Bao-Guang Chang, Tai-Hsin Huang, Hsiu-Mei Wang
著錄名稱、卷期、頁數 Accounting and Finance Research 6(1), pp.43-56
摘要 This paper investigates the degree of market competition in the public accounting industry of Taiwan over the period 1994-2008, using the ‘H statistic’ proposed by Panzar & Rosse (1987). Differing from previous works, this paper applies a newly developed model, i.e., the censored stochastic frontier (CSF) model, to test whether the audit market has achieved its long-run equilibrium. The model is superior to the conventional model that requires researchers adding a unity to the dependent variable of returns on assets (ROA) for all observations, forcing the transformed dependent variable to be non-negative. One can then take the natural logarithm of this dependent variable. Evidence shows that Taiwan’s accounting industry is characterized as monopolistic competition with a trend towards perfect competition. The result will help to build up the empirical model for public accounting industry. The CSF model confirms that this industry is already in a long-run equilibrium in the second half of the sample, which validates the use of the Panzar-Rosse model. Conversely, the employment of the conventional approach leads to a rejection of the long-run equilibrium over the entire sample period.
關鍵字 Public accounting industry;Degrees of competition;H statistic;Panzar-Rosse model;Long-run equilibrium;Censored stochastic frontier mode
語言 en
ISSN 1927-5986;1927-5994
期刊性質 國外
通訊作者 Bao-Guang Chang
國別 CAN
出版型式 ,電子版,紙本

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