Journal article
Measuring productivity growth, technical progress, and efficiency changes of CPA firms prior to, and following the Sarbanes–Oxley Act
Socio-economic planning sciences, v 43(4)
2009
Abstract
This paper investigates productivity growth, technical progress, and efficiency change for a group of the 56 largest CPA firms in the US from the period 1996–1999 through the period 2003–2006, where the former preceded, and the latter followed, enactment of the Sarbanes–Oxley Act (SOX). Data envelopment analysis (DEA) is used to calculate Malmquist indices of three measures of interest: productivity growth, technical progress, and efficiency change. Results indicate that CPA firms, on average, experienced a productivity growth of approx. 17% from the pre- to post-SOX period. Consistent with the finding of Banker et al. [Banker RD, Chang H, Natarajan R. Productivity change, technical progress and relative efficiency change in the public accounting industry. Management Science 2005;51:291–304], this productivity gain can be attributed primarily to technical progress rather than a change in relative efficiency. In addition, results indicate that the “Big 4” firms underperformed their non-Big 4 counterparts in both productivity growth and technical progress.
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18 citations in Scopus
Details
- Title
- Measuring productivity growth, technical progress, and efficiency changes of CPA firms prior to, and following the Sarbanes–Oxley Act
- Creators
- Hsihui Chang - Drexel UniversityHiu Lam Choy - Drexel UniversityWilliam W. Cooper - The University of Texas at AustinBarnett R. Parker - Pfeiffer UniversityTimothy W. Ruefli - The University of Texas at Austin
- Publication Details
- Socio-economic planning sciences, v 43(4)
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Scopus ID
- 2-s2.0-67849122783
- Other Identifier
- 991019173551804721