Abstract
SUMMARY: In this paper we decompose productivity growth into four components: efficiency change, technical progress, information technology (IT) capital accumulation, and human capital accumulation. We analyze data on the operations of 51 public accounting firms in Taiwan for the years 1993 and 2003, and find that productivity growth was driven primarily by the accumulation of IT capital and human capital. We also find that the difference in productivity growth between Big 4 and non-Big 4 accounting firms is attributable to technical progress and, especially, IT capital accumulation. Further, our multiple regression results indicate that accounting firms that had high growth in non-audit services (NAS) during the 11-year period enjoyed significantly higher productivity growth through greater IT capital and human capital accumulation than firms that remained focused on traditional audit services.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
