Journal article
An empirical study of returns to scale of CPA firms in the post SOX era
Annals of operations research, v 229(1), pp 253-264
Jun 2015
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper performs empirical tests for the returns to scale pattern of certified public accountant (CPA) firms in the post Sarbanes–Oxley Act (SOX) era using data envelopment analysis. Analyzing a sample of 70 of the top 100 CPA firms from Accounting Today surveys over the 6 years period 2005–2010, we find that our sample CPA firms as a whole exhibit decreasing returns to scale in the post SOX era, suggesting that these CPA firms had exhausted scale economies by expansions through mergers and acquisitions and organic growth. Thus, these firms may consider stopping their expansion plans and downsizing or divestitures in order to improve their production efficiency.
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Details
- Title
- An empirical study of returns to scale of CPA firms in the post SOX era
- Creators
- Hsihui Chang - LeBow College of Business Drexel University Philadelphia PA 19104 USAHiu Choy - LeBow College of Business Drexel University Philadelphia PA 19104 USAIny Hwang - College of Business Administration Seoul National University Seoul 151-916 South Korea
- Publication Details
- Annals of operations research, v 229(1), pp 253-264
- Publisher
- Springer US; New York
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:000354387600010
- Scopus ID
- 2-s2.0-85028230127
- Other Identifier
- 991014877945604721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Operations Research & Management Science