Abstract

Many studies indicate a positive correlation between human capital and operating performances for professional service providers. This paper takes a step further and explores the impact of demographic profiles on financial performances, given the lack of research on this front in Taiwan. To clarify the relationship between these factors, this paper takes a resources-based view in the examination of the influence of human capital and demographic profile on operating performances. Sample is sourced from “Survey of CPA Firms in Taiwan” issued by the Financial Supervisory Commission in 1999-2012. The empirical results suggest that (1) the greater the human capital, the better the organizational performances; (2) the higher the heterogeneity of educational backgrounds in the demographic mix, the better the organizational performances; (3) the heterogeneity in age in terms of the interaction between human capital and demographic profiles has a positive effect on organizational performances.

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