Accounting Firms: Global Spread with Limited Transnationalization
As financial markets have increasingly globalised, the regulatory framework is still nationally fragmented. One core regulatory element is the provision of assurance services by accounting firms. The Big 4 - the leading international providers of audit services Ð are not as international as are accounting standards or their clients. The paper traces three facets of the transnationalization of accounting firms: explanations for internationalization rooted in the theory of the firm, their modes of internal organization and limits to further transnationalization. Accounting firms are professional service firms with low fixed and high intangible assets. This limits the theories that can explain the internationalization of firms. We examine which theories are the most promising to explain the internationalization of the Big 4. Regarding their internal structures, our empirical analysis suggests that Big 4 accounting firms aspire to develop an integrated network structure which is known from the transnational corporation of the Bartlett and Ghoshal typology. This becomes particularly manifest in international staff exchange. Accounting firms are also deeply embedded in the regulatory framework. Its national fragmentation sets limits to further globalisation of assurance services.
|Date of creation:||Dec 2012|
|Date of revision:||Dec 2012|
|Contact details of provider:|| Postal: |
Phone: +49 441 798-4117
Fax: +49 441 798-4116
Web page: http://www.zen-tra.de/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:zen:wpaper:11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Finn Marten Koerner)
If references are entirely missing, you can add them using this form.