Chang, H. H., Choy, H. L., Cooper, W. W., and Lin, M. H. 2015. Service Mix and Productivity: Evidence from Accounting Firms. NTU Management Review, 25 (3): 197-226. https://doi.org/10.6226/NTUMR.2015.AUG.R12032
Hsi-Hui Chang, Professor, LeBow College of Business, Drexel University
Hiu-Lam Choy, Associate Professor, LeBow College of Business, Drexel University
William W. Cooper, Professor Emeritus, Red McCombs School of Business, University of Texas at Austin
Mei-Hwa Lin, Professor, Department of Accounting, National Chengchi University
Abstract
This paper examines which type of professional services provided by accounting firms can most effectively utilize human resources in generating revenues. Results indicate that for a given level of human resources, management advisory services (MAS) contribute the most to an accounting firm’s revenues. This pattern continues to hold after the passage of the Sarbanes-Oxley Act (Act) despite the restriction on MAS imposed by the Act. In addition, with the increasing emphasis on auditing and certification of internal control services in the post-Act period, accounting firms’ employees with CPA designations become significant drivers of accounting firms’ productivity.
Keywords
accounting firmsproductivitySarbanes-Oxley Act