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Service Quality, Size, And Performance Of Audit Firms: Consideration Of Market Segments And Business Strategies

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  • Yi-Fang Yang
  • Lee-Wen Yang
  • Min-Ning Lee

Abstract

This study investigates the relative importance between service quality and firm size in the performance determinants of audit firms under different market segments and business strategies. This study extracts a human capital-based service quality by the principal component analysis technique. In terms of market segment, total samples are divided into national, regional, and local audit firms. Further, based on the business strategies audit firms take, regional and local firms are classified into two categories: stability and expansion type firms. Empirical results indicate that service quality is a more important performance determinant than firm size in the national firms. However, firm size is more important in the regional and local firms. Next, operating performance of expansion regional firms is better than that of stability regional firms. The extent of performance effects of service quality and firm size differs between audit firms taking varied business strategies

Suggested Citation

  • Yi-Fang Yang & Lee-Wen Yang & Min-Ning Lee, 2015. "Service Quality, Size, And Performance Of Audit Firms: Consideration Of Market Segments And Business Strategies," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(4), pages 51-66.
    • Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:51-66
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    More about this item

    Keywords

    Service Quality; Firm Size; Performance; Market Segment; Business Strategy;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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