Factors Affecting the Supply of Accounting Graduates

Abstract

We use a cobweb model to construct a labor market model that can be used to analyze the impacts of changing labor market conditions on the market for new accounting graduates. These conditions are partitioned into macroeconomic and academic-specific changes. We find that 73.2 percent of the decline in the number of accounting baccalaureate degrees since 1990 can be explained by such factors as the decline in the relative salaries of entry-level accountants, the decline in academic preparedness of incoming freshmen, implementation of the 150-hour requirement, and increases in freshmen enrollments. Furthermore, we explain 60.1 percent of the observed increase in master's level accounting degrees. This increase can be attributed to a rise in the salary premium associated with earning a master ‘s degree and implementation of the 150-hour requirement.

A factor analysis on knowledge and skill components of accounting education: Chinese case

“…Most of the recommended changes have been widely echoed by other studies in more recent years (Ainsworth, 2001;Barsky et al, 2003;Billiot et al, 2004;Howieson, 2003;Robson, Savage, & Shaffer, 2002;Taylor & Rudnick, 2005;Wallace, 2001). However the proposals of those studies and reports are not concrete enough for accounting educators to form an explicit and consistent view on the desirable structure of accounting education in the changed business environment.…”

“…In particular, many non-accounting business subjects, or even non-business/ management subjects (including those in the disciplines of humanities and sciences) should have become the knowledge requirements for accounting students if they are to be able to meet the new challenges from the changing business world after graduation (Barsky et al, 2003;Billiot et al, 2004;Boyd, Boyd, & Boyd, 2000;Gill, 1998;Howieson, 2003;Wheeler, 2001). So it is reasonable for us to pose the second study proposition as stated below:…”

“…The entrance requirements for professional accountants rose substantially and continuously in order to cope with dramatic changes in the business world. The profession has to emphasize a much broader knowledge base and a wide range of professional skills for new entrants in the new business environment (Barsky et al, 2003;Billiot, Glandon, & McFerrin, 2004;Cummings et al, 2001;IFAC, 1996;Packer, 2001).…”

Accounting education literature review (2003–2005)

“…Chia concludes that employers are seeking students with a mix of academic skills and soft-skills so they are able to adapt to change. Billiot, Glandon, and McFerrin (2004) used models of changing labor market conditions to examine the market for new accounting graduates, with separate models for undergraduate and graduate accounting majors. A cobweb model was used, which modeled supply changes in the numbers of accounting graduates as a lagged response to changes in demand.…”

Decrease In The Number Of People Taking The CPA Exam Not Due To The 150-Hour Requirement

“…Schroeder and Franz (2004) found that the number of first-time CPA candidates increases in the year before the 150-hour-to-sit requirement was implemented in a jurisdiction and then dropped dramatically in the year the 150-hour-to-sit requirement was enacted, sometimes by as much as 75% ( p. 66). Billiot, Glandon, and McFerrin (2004) found that although "the accounting profession has no influence over the demographic conditions that impact the number of high school seniors who might be eligible to attend college…[or] … the macroeconomic conditions that cause unemployment rates to vary over time", there are other factors that they can control ( p. 464). Dresnack and Strieter (2005) studied the effectiveness of the 150-hour requirement as perceived by CPAs working in "public practice (40%), industry (40%), and not-for-profit, education, government, and retirement (20%)" in nine states that had implemented the requirement between 1993 and 1997 (p. 64).…”