| Summary: | 碩士 === 靜宜大學 === 會計學系研究所 === 92 === This study attempts to explore the origins of liability insurance coverage for public accounting firms and examine the impact of liability insurance on the performance of public accounting firms in Taiwan. According to the Draft of Amendment to Certified Public Accountants Act and relevant literature, this study first explores the origins of liability insurance coverage for public accounting firms from the viewpoints of public accounting oversight and financial reporting transparency. Then, this study compares the effect of Sarbanes-Oxley Act on the liability insurance of public accounting firms in Taiwan before and after the Act. Using Census Report of Accounting Firms in Taiwan, this study empirically examines the impact of liability insurance coverage on the performance of public accounting firms in terms of accounting profit, net profit margin, and total revenue earned by employee .
The main findings are as follows:
1.Big-sized public accounting firms are more likely to buy liability insurance coverage than medium/small-sized public accounting firms in Taiwan.
2.The big-sized public accounting firms with liability insurance coverage show significantly higher accounting profit, greater total revenue earned by employee, but smaller net profit margin.
3.For the medium/small public accounting firms with and without liability insurance coverage, no significant differences exist in the accounting profit, net profit margin, and total revenue earned by employee .
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