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This study aims to investigate the impact of auditor industry specialization (AIS) on clients’ tax planning at the audit firm level and individual auditor level, respectively.

The study’s sample consists of 44,637 firm-year observations of Chinese firms listed on the Shenzhen and Shanghai Stock Exchanges during the period from 2002–2020. The data are collected from the Taiwan Economic Journal. Panel regression is used to test hypotheses. Additionally, a two-stage least squares model is used to address concerns about possible endogeneity.

The relationship between tax planning and AIS is significantly positive at the audit firm level, while it is significantly negative at the individual auditor level.

The authors use manually collected data to investigate the distinct impacts of two AIS metrics on tax planning: the number of clients and the scale of clients.

This study investigates the effect of auditing industry specialization (AIS) on the relative derivatives use for earnings management.

The sample chosen in this study comprises 30,599 firm-year observations of Chinese public companies from 2005 to 2018. The sample is divided into two time periods (2005–2013 and 2014–2018) according to the year when IFRS 9 was implemented (IFRS 9, first discussed by the International Accounting Standards Board in March 2008, is based on an expected credit loss model for determining new and existing expected credit losses on financial assets. The definition was completed in July 2014 and implemented in 2018). AIS was gauged with respect to audit firms and individual auditors, and measured by market share in number and scale of clients. Linear regression is adopted to test hypotheses. Moreover, two-stage least square model (2SLS) is used to eliminate the concern of possible endogeneity.

When gauged with respect to client scale, the scale-based AIS constrained the level of derivatives use for earnings management in the first period (2005–2013) while increased the level in the second period (2014–2018). The findings sustain for the analysis of audit firms and that of individual auditors, and for different definitions of AIS.

The positive AIS-IN relation after the adoption of IFRS 9 implies the sacrifice audit independence. This could be indebted to the government policy that favors local audit firms to be comparable to international Big 4 audit firms, and therefore results in competition among local auditors/audit firms in securing number rather than quality of clients.

The data of AIS in China are collected using a Python web crawler.

This research intends to establish a model integrating the related theories in strategy management and competency in the HRM field, and to develop a systematic tool that can help a company quickly and precisely identify its core competency.

An internal value activity chain is obtained through analyzing customers' needs. The priority of the activities is then determined via examining external factors. The critical competency needed by the activity is abstracted from a process and operation analysis. Standardized procedures and tools for applying the Process Oriented Core Competency Identification (POCCI) model are sequentially deployed.

An empirical case was illustrated that the POCCI model not only helps a company identify the core competency that prevails over alternative approaches but also draws more recognition from the raters. The linkage between individual competency and organizational competitive advantage was solidified by the POCCI model and evidenced by an empirical case.

Misunderstanding over competency items might impede the consensus formation. A handbook of standardized procedures with unified definition is strongly suggested to facilitate the progression of competency identification.

The model, procedures and tools proposed in this paper can help most companies quickly and precisely identify their specific core competencies.

The POCCI model that emphasizes interdisciplinary integration and practical usage has never been thoroughly investigated in the previous literature and could serve as a prototype for further explorations.