Diminishing Numbers of Accounting Majors - Essay Example

Literature Review Diminishing Numbers of Accounting Majors: Suggested Causes As accounting and college and admissions personnel will surely attest, the number of college students electing accounting majors has experienced a sharp decline for the last 10 to 15 years. While this reduction in the numbers of accounting majors has been well documented, the establishment of an effective rationale to explain this phenomenon is needed to curtail negative perceptions of the profession and stem the exodus of accounting majors (and would-be accounting majors) to other academic departments. As Fedoryshyn and Tyson (2003) have indicated, the factors responsible for this decline are likely to be many and varied. One of the most alarming trends related to the reduction in accounting majors is the diminishing number of high school students who express interest in pursuing professions in accounting. For example, in 1985, 6.5% of entering freshmen selected accounting as their college major (Dey, Astin, & Korn, 1991). This number had dropped to 2.3% by the fall of 2000, a decline of almost 65% (Kellogg, 2001). Some scholars have suggested other causes for the diminishing numbers of accounting majors. Albrecht & Sack (2000) cited several reasons for the decline in accounting majors, including: lower starting salaries than other business majors; more attractive career alternatives available to students than in the past; a lack of information and misinformation about what accounting is and what accountants do; and the increased opportunity and actual costs associated with 150-hour accounting programs. While these factors may offer partial explanations for the decline in numbers of accounting majors, recent studies have focused on the relationship between students' perceptions of the accounting profession and their decisions to select college majors outside the profession. Student Perceptions of the Accounting Profession and Curriculum A study conducted by Stice, Swain, and Worsham (1997) examined the impact of performance in the first accounting course on students' decisions to major in accounting. The researchers concluded that perceptions and attitudes toward accounting, rather than classroom performance, were the most important factors on the decision to major in accounting. As a result of the research by Stice, Swain and Worsham, additional studies have explored the attitudes of students toward accounting courses as a means of understanding the influence of these perceptions on the decision to continue with or abandon the accounting major. Other studies have focused on the effects of highly publicized accounting scandals to determine whether these might contribute to the diminishing numbers of accounting majors nationwide. Coleman, Kreuze and Langsam (2004), studied the influence of Enron and other accounting scandals on students' perceptions of the profession of accounting among 338 college students. The researchers found that students "continue to believe that the accounting profession is honorable, and most do not plan to change college majors as a result of these corporate income restatements and accounting irregularities" (p. 138). Coleman et al. also concluded that the recent corporate income restatements and accounting irregularities of corporations such as Enron did not prompt respondents to either rethink their career choice or change their college major (p. 138). While Fifty-five percent of the respondents thought that accounting, as a career choice, had become less attractive because of these accounting irregularities, 89% indicated that they perceived the accounting profession as honorable, if somewhat tarnished by recent events in the corporate world. Faculty Professionalism and Positive Perceptions of Accounting Recent studies have also analyzed such variables as perceptions of instructor expertise and their effects on the manner in which students view the accounting profession in general, and the accounting curriculum in particular. Mounce, Mauldin and Braun (2004) examined the influence of demonstrated faculty experience and professionalism on students' perceptions of accounting. Their findings indicated that professors possessing relevant practical experience were perceived by students to be "of significantly higher quality than professors lacking relevant practical experience" (p. 399). Perceptions of faculty professionalism have been posited as contributing factors to students' perceptions of the accounting profession. Accounting Majors' Perceptions of the 150-hour Rule According to Biershaker, Howe and Seol (2004), most states "now require students who sit for the Certified Public Accountant (CPA) examination to have 150 semester hours of college education" (p. 211). The 150-hour requirement is intended to provide the following benefits: (1) improve preparation of students for the accounting profession; (2) enable students to be more successful on the CPA exam; (3) provide a more well-rounded education for new entrants to the profession; (4) and attract more capable students to the field of accounting. In the study, 247 accounting majors completed a questionnaire. Results indicated that "students' perceptions align fairly well with the intentions and the realities of the 150-hour requirement," (p. 211). The survey also revealed that most students felt they were entitled to additional compensation for the added 20 - 30 semester hours of required course credit. Overall, the students who participated in the study were not in favor of the 150-hour rule. However, most indicated they would continue to work toward the CPA designation, in spite of the increased education requirement. Analysis of the Literature An analysis of the pertinent literature regarding students' perceptions of accounting reveals the extent of the problem of diminishing numbers of accounting majors. While a number of studies have focused on uncovering the reasons for the field's losses of human capital, the need for more research in the area is clearly demonstrated. While Albrecht and Sack (2000) have suggested several reasons for the accounting exodus, their conclusions are based on observations of the general business environment rather than empirical evidence. Nor do they adequately measure students' perceptions and their influences on retention and dropout rates within the discipline at various levels of academic classification. Additional studies incorporating the methodologies of Stice, Swain and Worsham (1997) are needed to better understand the relationships between students' attitudes toward the profession of accounting and the continued journey toward professional practice. The suggestion by Coleman, Kreuze and Langsam (2004) that accounting scandals such as Enron may play a role in students' perceptions of accounting provides another opportunity for further study. Their logical hypothesis and reasonable conclusions merit more focused attention to determine if their findings can receive further validation by more rigorous quantitative methods of inquiry. Mounce, Mauldin and Braun's (2004) study of the role of instructor expertise and demonstrated professional experience as another influence on students' perceptions of accounting deserves a similar degree of focused attention. The study by Biershaker, Howe and Seol (2004) is particularly instructive in revealing accounting majors' perceptions about increased academic requirements at the Bachelor's degree level. While most undergraduate degree programs require 120 - 130 semester hours of credit for degree completion, the requirements for a Bachelor's degree in Accounting would need to be increased to 150 hours. Unless this occurs, holders of undergraduate degrees in accounting would not be able to sit for the CPA exam. As the study points out, while accounting majors generally do not approve of the increased academic requirements without being compensated for the additional training, the majority of accounting majors expressed willingness to complete the necessary requirements in order to achieve CPA designation. All in all, the studies described within the context of this review contribute to the understanding of the complex relationships between perceptions of accounting majors and their decision whether to continue in their course of study. The limitations of the present studies signal the need for more research in this area. With the prospect for a better understanding of how students' perceptions of an academic discipline can influence retention and dropout rates, the present challenge of recruiting able and gifted students to the profession of accounting can be overcome and the health of an important field of study can be effectively renewed. References Albrecht, S., & Sack, R. J. (2000). Accounting education: Charting the course through a perilous future. Sarasota, FL: American Accounting Association. Biershaker, J. L., Howe, M., & Seol, Inshik. (2004, May). Accounting majors' perceptions regarding the 150-hour rule. Issues in Accounting Education, 19, 211 - 228. Coleman, M., Kreuze, J. & Langsam, S. (2004). The new Scarlet Letter: Student perceptions of the accounting profession after Enron. Journal of Education for Business, 79, 134(8). Dey, E., Astin, A., & Korn, W. (Eds.). (1991). The American freshman: Twenty-five year trend. Los Angeles: American Council on Higher Education, Higher Education Research Institute, Graduate School of Education, University of California, Los Angeles. Fedoryshyn, M. W., & Tyson, T. N. (2003, June). The impact of practitioner presentation on student attitudes about accounting. Journal of Education for Business, 78, 273. Kellogg, A. P. (2001, January 26). This year's freshman: A statistical profile. The Chronicle of Higher Education, A48-A49. Mounce, P. H., Mauldin, D. S., & Braun, R. L. (2004, November). The importance of relevant experience among accounting faculty: an empirical analysis of students' perceptions. Issues in Accounting Education, 19, 399. Stice, J. D., Swain, M. R., & Worsham, R. G. (1997). The effect of performance on the decision to major in accounting. Journal of Education for Business, 73(1), 54- 57. Read More