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An International Meeting of American Accounting
Association
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Knowledge spillover effect in CPA firms: from the perspective of public good |
Tsung - Yi Tsai
National Yunlin University of Science and Technology and Lecturer at Shin Chien University
Chung - Cheng Yang
National Yunlin University of Science and Technology
Chung - Jen Fu
National Yunlin University of Science & Technology
Abstract: The aim of this study is to investigate the effect of knowledge spillover in CPA firms from the viewpoint of public good. We construct CPA firms production function in order to carry out a panel data analysis. Research sources come from the “a Census Report of CPA firms in Taiwan” conducted by Department of Statistics, Ministry of Finance, ROC from 1992-2001. The results show that human capital affects audit quality and is an important value driver of CPA firms. As the direct effect on audit revenue produced by providing audit services decline, CPA firms could maintain their growth by performing non-audit services. The transfer of knowledge spillover will improve professional skills, experience and learning, and productivity, which, ultimately, contribute to the performance of CPA firms. Knowledge spillover effect varies depending on the types of non-audit services as well as firm size. This effect is particularly significant for the management consultation services and Big-5.