Partnership Law and Its Spawn: Did LLP Deliver on Its Promises?

By Kevin Mcmeeking, Rachel Baskerville and Dalice Sim.

Published by Change Management: An International Journal

Format Price
Article: Print $US10.00
Published online: March 3, 2017 $US5.00

Institutional theory discusses whether organizations enhance their survival by converging around socially legitimated forms. This study contributes to this literature by examining the evolution of strategic choices among mid-tier and large accounting firms. The results show that the change in percentage of income from audit activities is different for the partnership and LLP firms over the period 2005–2013. Inflation adjusted fees per partner are not statistically significantly different from 2005 to 2013. The results suggest that a spread of offices, specialisation, and the degree of hierarchy lead to efficiencies of operations and wealth enhancement (through changes in fees per partner), but LLP choice per se does not necessarily increase fees.

Keywords: Limited Liability Partnerships, Strategic Choice, Fees, Specialisation

Change Management: An International Journal, Volume 17, Issue 1, pp.19-32. Article: Print (Spiral Bound). Published online: March 3, 2017 (Article: Electronic (PDF File; 1.048MB)).

Prof. Kevin Mcmeeking

Associate Professor, Accounting, University of Exeter, Exeter, Devon, UK

Dr. Rachel Baskerville

Professor, Accounting, Victoria University, Victoria, Wellington, New Zealand

Prof. Dalice Sim

Professor, Biostatistics, Otago, Otago, Wellington, New Zealand