Quality moderates market competition: evidence of Taiwanese service industry

Yang, Yi-Fang; Chen, Yahn-Shir

doi:10.1108/ijqrm-08-2013-0133

Cited by 2 publications

(5 citation statements)

References 35 publications

(34 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Based on the effects of the 150-h rule, prior researches report a positive association between higher education level of auditors and the audit quality [22]. Therefore, skilful auditors render high-quality services to clients, thus resulting in a good reputation and improved operating performance [16].…”

Section: Higher Academic Qualificationsmentioning

confidence: 99%

“…Under the regulation and laws, audit firms which render services to public companies are larger in size and hire more assistants. Based on prior studies [13][14][15][16], this study categorizes audit firms into three groups in terms of size, including national, regional, and local ones.…”

Section: Curvilinear Effects Of Academic Qualificationsmentioning

confidence: 99%

“…Regional and local firms have mean professional training (TRAIN) of 10.288 and 9.529, lower than that of national firms. For control variables, mean size (SCALE) of national audit firms is 17.589, higher than that of regional firms, 16.121, and that of local firms, 14.844. The average ages (AGE) of national audit firms are 17.009.…”

Section: Control Variablesmentioning

confidence: 99%

“…Beginning in the 21st century, Taiwanese Ministry of Education has loosened the higher education policy, resulting in the To investigate the relation between professional training, higher academic qualifications, and operating performance of audit firms, we take empirical data from the 1992-2015 Survey Report of Audit Firms in Taiwan. In terms of the market segmentation and based on previous studies [13][14][15][16], this study categorizes audit firms into three groups, national, regional, and local ones. Empirical results are as follows.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Higher Academic Qualifications, Professional Training and Operating Performance of Audit Firms

Chen

Yang

2020

Sustainability

Self Cite

View full text Add to dashboard Cite

This study examines the association between professional training, higher academic qualifications (educational levels) and operating performance of audit firms in Taiwan. We particularly focus on the curvilinear effects of higher academic qualifications on operating performance. We group the total sample into three categories: national, regional and local audit firms. Based on the theoretical framework in industrial economics, we establish a cross-sectional multiple regression equation to test our hypotheses. Both higher academic qualifications and professional training are positively related to the operating performance of audit firms. Professional training moderates the relation between higher academic qualifications and operating performance. Higher academic qualifications exhibit a curvilinear effect on operating performance with a reverse U-shaped relation for the national audit firms and a U-shaped relation for both regional and local audit firms. Due to data unavailability, some factors affecting the audit quality and operating performance are not included in our analysis, such as auditor teamwork, internal control system, operating policies and auditing procedures of audit firms. The findings that higher academic qualifications are positively associated with the operating performance of audit firms justify the educational policy of establishing institutes or graduate schools in accounting over the past two decades. Furthermore, audit firms skillfully exploit employees with higher academic qualifications to improve their operating performance. We are the first to document the moderating effects of professional training and the curvilinear association between higher academic qualifications and operating performance, contributing knowledge to related literature.Sustainability 2020, 12, 1254 2 of 16 reorganization of many junior colleges as an academy or technology university. The sharp increases in the number of university lead to substantial growth in the number of graduates with higher educational levels. Taking the higher education of accounting as an example, to date, 37 universities establish departments of accounting to grant bachelor's degree. Among which, 26 universities set institute or graduate school in accounting to deliver master or doctoral degree. Under the landscape of educational policy, Taiwanese audit firms recruit more auditors with higher educational levels. The Taiwanese Financial Supervisory Commission indicates that the ratio of auditors with bachelor's degrees rose from 49.3% in 1992 to 66.8% in 2015. The ratio of auditors with master's degree or above was 7.6% in 1992 and climbed to 20.4% in 2015. The growth rates of auditors with bachelor's degree are 35.5% but that of auditors with master's degree or above are as high as 168.4%.Audit firms are a professional organization and an expertise and human capital-intensive industry. To fulfil their auditing jobs, auditors are required to have academic educational levels, professional training and work experience [4]. Auditors typically in...

show abstract

Section: Higher Academic Qualificationsmentioning

confidence: 99%

Section: Curvilinear Effects Of Academic Qualificationsmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Higher Academic Qualifications, Professional Training and Operating Performance of Audit Firms

Chen

Yang

2020

Sustainability

Self Cite

View full text Add to dashboard Cite

show abstract

“…This finding is consistent with Yang and Chen who revealed a positive relationship between audit service quality and the performance of the accounting firms. 73 This may be due to the size, resources (both human and capital), and expertise available to these audit firms.…”

Section: Summary Of Findingsmentioning

confidence: 99%

The Impact of Corporate Governance and Financial Disclosure on Financial Performance: A study of panel data from 18 Commercial Banks in Ghana.

Kwarteng

2022

EHASS

View full text Add to dashboard Cite

The paper examines the impact of corporate governance and financial disclosure on the financial performance of banks in Ghana. Corporate governance was measured by three variables: board size, CEO duality, and board composition. Financial disclosure was also measured by timeliness, bank size, and quality of auditors. Financial performance, as the dependent variable, was measured by return on assets (ROA), and return on equity (ROE). The study used panel data from 18 commercial banks operating within the Ghanaian banking industry, both listed and unlisted, over a ten-year period (2009 to 2018). A random-effects regression model was used, and the results revealed that board size, timeliness, and quality of auditors were statistically significant and positively related to return on assets. Board composition, however, had a significant negative relationship with return on assets. There was no significant association between bank size and return on assets. Moreover, the findings of the study showed that board size and bank size had a positive and significant relationship with return on equity. Board composition and timeliness were however negative and statistically related to the return on equity. There was no significant nexus between the quality of auditors and return on equity. The study findings place emphasis on the combined effect of corporate governance and financial disclosure on financial performance, particularly within the banking industry in Ghana. Keywords: Corporate Governance, Financial Disclosure, Financial Performance, Commercial Banks.

show abstract

Quality moderates market competition: evidence of Taiwanese service industry

Cited by 2 publications

References 35 publications

Higher Academic Qualifications, Professional Training and Operating Performance of Audit Firms

Higher Academic Qualifications, Professional Training and Operating Performance of Audit Firms

The Impact of Corporate Governance and Financial Disclosure on Financial Performance: A study of panel data from 18 Commercial Banks in Ghana.

Contact Info

Product

Resources

About