The Complementarity between Foreign and Native IT Workers: Evidence from an Industry-Level Analysis

This study investigates if foreign information technology (IT) workers complement or substitute for native IT workers within the production function framework. We first examine the differences between foreign and native IT workers in their skill sets and then test their complementarity/substitution relationship using an US industry-level dataset obtained by matching the productivity data to the Current Population Survey. Our findings suggest that foreign and native IT workers are complements rather than substitutes. The results of this study shed light on this important issue and bear theoretical and practical implications

Are Foreign IT Workers Paid Higher Than the Natives? A Replication Study Using Three US National Surveys

This study is a conceptual replication of Mithas and Lucas (2010) (hereafter ML). It investigates whether foreign information technology (IT) workers are paid higher than native IT workers. It replicates ML using three US national surveys: Current Population Survey, National Survey of College Graduates, and American Community Survey. While being able to obtain the same results as ML, this study shows that the estimated wage premium to foreign IT workers may differ across data sources used, predicting variables that are controlled, and the estimation methods applied. Further analysis using comparable subsamples reveals that sample size may also play a role in estimating the wage premium. This study enriches literature on wage differentials between foreign and native IT workers and deepens our understanding on the impact of foreign IT workers on the natives

The who, where, what, how and when of market entry

This introductory, along with the eight articles contained within this Special Issue, highlights and brings greater clarity to entrant-incumbent interactions and to firm movement - when entrants traverse market territories for the creation and/or delivery of offerings, where 'markets' include service or product categories, technology or resource spaces, industries, sectors and/or geographies. Collectively, this Special Issues explains that firm movement across market boundaries is highly consequential, influencing resource-capability mixes inside firms, interfirm relations, market logic and industry value chains, and of course, people, communities and even nations. Specifically, we develop a field-wide perspective of market entry by expanding on the framework of market entry that Zachary and his colleagues developed (Zachary et al., 2015) - i.e., the who (players such as incumbents, entrants, suppliers, etc.), when (the timing and sequence of entry), how (the strategy, resources, capabilities, etc.), where (the space of entry) and what (product, service, business model, etc.) - to include two additional categories: complements (networks, platforms, ecosystems) and non-market elements (government, political, social and cultural arrangements). We also summarize the eight highly diverse and insightful articles that make this Special Issue, and conclude with a discussion to highlight foundational questions that point to new directions in future research in this field. In sum, we hope to inspire scholars to go beyond counting outcomes (e.g., entry/exit rates, or profiling successful versus unsuccessful entrants), to consider contexts, processes and contingencies (e.g., cost, time, collaboration, competition, interfirm relations, etc.) and to discover boundary conditions that inform a theory of market entry

회계법인의 노동유연화 전략이 감사보수와 감사품질에 미치는 영향

학위논문(석사)--서울대학교 대학원 :경영대학 경영학과,2019. 8. 이우종.The provision of audit services is a highly labor-intensive task. This paper analyzes monthly CPA (certified public accountants) employment data of each audit firm to assess the implications of CPA staffing for audit pricing and audit quality. Consistent with the prevalence of short-term hires of freelance CPAs during busy season, we find that growth in CPA employment peaks before busy season but drops dramatically to below zero afterward. We further document that the standard deviation of changes in monthly CPA numbers within a year is negatively associated with audit fees, implying that flexible staffing enables audit firms to charge lower fees to clients. By contrast, we find no evidence that flexible staffing impairs audit quality. We conclude that audit firms reduce operating leverage via flexible staffing arrangements and share the benefit with clients without compromising audit quality.본 연구는 회계법인의 노동유연화 전략이 감사보수와 감사품질에 미치는 영향을 분석한다. 본 연구는 한국공인회계사회에서 제공하는 회계법인별 월별 회계사 수 데이터를 활용하여 회계법인이 감사시즌에 대비하여 어떻게 인력을 운영하고 있는지 파악하고, 이러한 회계법인의 인력운영결과가 감사보수와 감사품질에 미치는 영향을 분석하였다. 본 연구는 감사시즌 직전에 회계사 수가 가장 많이 증가하고, 감사시즌이 끝난 직후에 회계사 수가 급감하는 현상을 발견함으로써 회계법인들이 감사시즌에 단기적으로 회계사들을 채용하는 노동유연화 전략을 사용함을 발견하였다. 더 나아가, 본 연구는 회계사 수의 월별변동성으로 측정된 노동유연화의 정도가 감사보수와 음(-)의 상관관계가 있음을 발견하였으나, 감사품질과는 유의한 상관관계를 발견하지 못하였다. 이는 회계법인이 노동유연화 전략을 통해 절감한 비용을 감사품질을 손상시키지 않으면서 피감법인들에게 공유함을 시사한다.I. Introduction II. Literature Review and Hypothesis Development 2.1. Human Resource Management in Audit Firms 2.2. Consequences of Flexible CPA Staffing Ⅲ. Research Design 3.1. Uniqueness of the Audit Data Available in Korea 3.2. Change in the Number of CPAs within an Audit Firm 3.3. Model Specifications IV. Sample and Descriptive Statistics 4.1. Data and Sample Selection 4.2. Descriptive Statistics Ⅴ. Empirical Results 5.1. Effect of Flexible CPA Staffing on Audit Fees 5.2. Flexible Staffing and Labor Cost Savings 5.3. Audit Quality Test Ⅵ. Additional Analyses 6.1. Effect of Client Bargaining Power 6.2. Sensitivity Test: An Alternative Measure of Flexible Staffing 6.3. Control for Selection Bias 6.4. Differential Effects between Big4 and non-Big4 6.5. Effect of Initial Audit Engagement Ⅶ. Conclusion Reference Appendix A. Variable Definitions. Appendix B. Annual Change in the Number of CPAs. Appendix C. Regression Model for Monthly Trend.Maste

Essays on financial gatekeeper regulation

This thesis consists of three studies that investigate how regulation affects Certified Public Accountant (CPA) and financial adviser markets. The first chapter, which is co-authored with Stefano Cascino and Ane Tamayo, investigates whether local occupational licensing regimes create geographical labor market barriers. To study this question, we investigate the labor market consequences of a regulatory change that extended the geographical scope of CPA licenses. Prior to the regulatory change, CPAs required a separate license for each U.S. state they wished to provide services to. With the regulatory change, CPAs can offer services across state lines holding a single CPA license. Our study reveals that local occupational licensing regimes create meaningful labor market barriers. Specifically, we find that CPA wages and service prices decline with the removal of licensing induced geographical barriers. The second chapter, which is co-authored with Zachary Kowaleski and Andrew Sutherland, explores whether the content of exams financial advisers need to take to provide investment advice affects financial adviser misconduct. Specifically, we study differences in misconduct between advisers that are subject to exams with an emphasis on professional ethics and advisers subject to exams with an emphasis on technical material. Comparing two advisers within the same firm and year, we find that advisers subject to more ethics-related topics exhibit lower future misconduct rates. The third chapter, which is solo authored, investigates the relation between firm licensing requirements and entrepreneurship in audit markets. Specifically, I study whether mandatory peer review—that is, CPAs having to monitor each other in an effort to promote service quality—affects CPA entrepreneurship. I find that CPA entrepreneurship declines and entrepreneur exit rates increase with the introduction of mandatory peer review. Increases in exit rates, however, are not pronounced for lowquality service providers, but are concentrated among young female CPA entrepreneurs