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Accounting Coordination Approach of cross-border Enterprises: Certified Public Accountant

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DOI: 10.23977/FEMS2020.003


Jing Cheng, Yanli Liu, Bing Zhou, Yang Liu

Corresponding Author

Yang Liu


This paper investigates the accounting coordination system arrangement implemented in Chinese and foreign joint ventures from 1979 to 1985, and analyzes the evolution of the above system arrangement based on the hypothesis of wealth maximization. The results show that in the cross-border direct investment environment, CPA is an important way of accounting coordination. If the number of joint ventures and the scale of investment are in a certain range, the institutional arrangement of accounting coordination through certified public accountants is more efficient than other institutional arrangements. The wealth maximization hypothesis, as a simple analytical hypothesis, can effectively explain why CPA becomes the most effective way of accounting coordination under the above conditions.


CPA, accounting coordination, FDI, institutional change, wealth maximization

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