Refocusing ethics education in accounting:

an examination of accounting students

tendency to use their cognitive
moral capability
Linda Thorne*
Schulich School of Business, York University, 4700 Keele Street, North York,
Ontario, Canada M3J 1P3
Received 1 October 1999; accepted 1 March 2001
Abstract
The traditional focus of accounting ethics education research has been on developing an
understanding of how to increase the cognitive moral capability of students entering the
accounting profession. Nevertheless, it has not previously been ascertained whether account-
ing students use their cognitive moral capability in the resolution of accounting-specic moral
dilemmas. This study examines the cognitive moral capability, prescriptive reasoning, and
deliberative reasoning of 110 accounting students enrolled in a cooperative accounting pro-
gram. The results suggest that cooperative accounting students do not use their full cognitive
moral capability in the resolution of accounting-specic moral dilemmas. In addition, asso-
ciations between demographic variables and accounting students cognitive moral capability
reported in existing accounting ethics research do not appear to extend to cooperative
accounting students propensity to utilize principled moral considerations. This suggests the
need for additional investigation of factors that may inuence accounting students propensity
to use principled moral considerations in the resolution of accounting-specic moral dilem-
mas, and for further investigation into the eect of cooperative accounting education on
accounting students moral reasoning. Crown Copyright # 2001 Published by Elsevier
Science Ltd. All rights reserved.
Keywords: Ethics education; Cognitive moral capability
J. of Acc. Ed. 19 (2001) 103117
www.elsevier.com/locate/jaccedu
0748-5751/01/$ - see front matter Crown Copyright #2001 Published by Elsevier Science Ltd. All rights
reserved.
* Tel.: +1-416-736-5062; fax: +1-416-736-5687.
E-mail address: lthorne@schulich.yorku.ca (L. Thorne).
1. Introduction
The traditional focus of accounting ethics education research has been on devel-
oping an understanding of how to increase the cognitive moral capability of students
who will soon enter the accounting profession. According to the cognitive-develop-
mental perspective, an individuals cognitive moral capability represents the degree
to which an individual can employ sophisticated cognitive moral structures in his or
her moral decision making process (Kohlberg, 1958). The use of sophisticated cog-
nitive moral structures is associated with an individuals tendency to act in a moral
way (Blasi, 1980). Signicant insights into factors that may inuence accounting
students cognitive moral capability have emerged from accounting ethics research
using a cognitive-developmental perspective. Still to be determined, however, is the
extent to which accounting students use their cognitive moral capability in the
resolution of accounting-specic moral dilemmas? Identication of the factors that
inuence accounting students propensity to use their full cognitive moral capability
also requires further work.
This study considers the extent to which cooperative accounting students use their
cognitive moral capability in their moral decision making. The results indicate that
cooperative accounting students do not use their full cognitive moral capability in
the resolution of accounting-specic moral dilemmas. These results do not identify a
deciency in accounting students moral cognition, rather they suggest an opportu-
nity for educators to consider alternative approaches that encourage accounting
students to use more principled considerations for resolving accounting-specic
moral dilemmas.
In addition, associations between demographic variables and accounting students
cognitive moral capability reported in existing accounting ethics research do not
appear to extend to cooperative accounting students propensity to utilize principled
moral considerations. This suggests the need for additional investigation of factors
that may inuence accounting students propensity to use principled moral con-
siderations in the resolution of accounting-specic moral dilemmas, and for further
investigation into the possible eect of cooperative accounting education on
accounting students moral reasoning.
This paper is organized as follows. The next section presents the theoretical
background and describes the existing evidence examining the moral reasoning of
accounting students from a cognitive-developmental perspective. The third section
presents the hypotheses development. The fourth section describes the statistical
approach and measures, the fth section describes the sample, and the sixth section
presents the results. The nal section describes the conclusions and potential limita-
tions of the research, and discusses implications of the study for future research.
2. Theoretical background and literature review
According to the cognitive-developmental perspective, an individuals cognitive
moral capability captures the degree to which he or she may potentially incorporate
104 L. Thorne / J. of Acc. Ed. 19 (2001) 103117
higher order principles in his or her moral reasoning (Rest, 1994). This cognitive-
developmental approach to moral decision making has been illustrated by the
metaphor of a staircase: cognitive moral capability advances like steps on a stair-
case, development progresses by going up the staircase, one step at a time and
always in the same order (Rest, 1994). Individuals moral sophistication is the degree
to which they incorporate principled considerations in resolving moral dilemmas.
Principled considerations are those that reect the most sophisticated level of moral
development. Kohlbergs (1958) three levels of moral development are depicted in
Fig. 1.
Pre-conventional considerations are those dened by external authority, self-inter-
est, and the rewards and punishments attached to various outcome choices. Con-
ventional considerations are dened by the social group and ones interpretation of
the group norm. Principled or post-conventional considerations are dened by com-
plex notions of universal fairness, ones internal sense of responsibility (conscience),
and ones interpretation of what is best for society.
Numerous studies using a cognitive-developmental perspective show a lower cog-
nitive moral capability in accounting students than other undergraduates of similar
age and education levels (e.g. Armstrong, 1993; Armstrong & Mintz, 1989; Cohen &
Pant, 1989; Hiltebeitel & Jones, 1991, 1992; Langenderfer & Rockness, 1989). Two
separate, but related, streams of research have used a cognitive-developmental per-
spective to investigate ways that educators and educational institutions may encou-
rage the development of accounting students cognitive moral capability. The rst
stream of research has explored the eect of dierent educational interventions on
the cognitive moral capability of accounting students. This research stream shows
that emphasis on ethics, professionalism, and a liberal arts approach to education
generally encourages the development of accounting students cognitive moral cap-
ability (e.g. Armstrong, 1987, 1993; Armstrong & Mintz, 1989; Bernardi, 1995;
Cohen & Pant, 1989; Hiltebeitel & Jones, 1991, 1992; Jerey, 1993; Langenderfer &
Rockness, 1989; Ponemon, 1993; Ponemon & Glazer, 1990; St. Pierre, Nelson, &
Gabbin, 1990).
The second stream of research investigates the association between demographic
variables and accounting students cognitive moral capability. Empirical ndings
Fig. 1.
L. Thorne / J. of Acc. Ed. 19 (2001) 103117 105
suggest that cognitive moral capability generally is higher for female accounting
students and positively associated with a liberal attitude, age, years of education and
grade point average (e.g. Armstrong, 1987, 1993; Bernardi, 1995; Icerman, Karcher
& Kennelley 1991; Jeery, 1993; Lampe & Finn, 1992; Shaub, 1994; St. Pierre et al.,
1990; Thorne, 1999).
Signicant ndings from the existing research have suggested ways to increase the
cognitive moral capability of students entering the accounting profession. The
development of higher cognitive moral capability in accounting students is desirable
because it is associated with better ethical decision choices in practicing accountants
(Ponemon, 1992), and in individuals in general (Blasi, 1980). However, existing
accounting education research has not examined to what extent accounting students
use their full cognitive moral capability in their moral reasoning process. This may
be partially due to the general lack of recognition in the existing research of the
distinction between accounting students cognitive moral capability and the cogni-
tive structures used in accounting students moral reasoning.
Cognitive moral capability describes the most sophisticated cognitive moral struc-
ture one can use to resolve moral dilemmas. That is, cognitive moral capability
describes the degree to which an individual is potentially capable of using principled
considerations in the resolution of moral dilemmas. Cognitive-developmental
researchers use context-free approaches and measures to ensure that they capture
the most sophisticated considerations individuals are capable of using. Accordingly,
cognitive moral capability does not describe the actual cognitive considerations an
individual applies in the resolution of moral dilemmas encountered in everyday life
(Rest, 1994).
Rest (1994) describes two cognitive processes or structures, prescriptive and
deliberative reasoning, that are integral to an individuals moral reasoning processes.
Prescriptive reasoning involves the formulation of what should ideally be done to
resolve a particular moral dilemma. Deliberative reasoning involves the formulation
of an intention to act on a particular moral dilemma. Prescriptive and deliberative
reasoning are not necessarily of the same degree of moral sophistication as cognitive
moral capability. Prescriptive and deliberative reasoning are aected by context,
while cognitive moral capability theoretically is unaected by context (Nisan &
Kohlberg, 1982). Measurement of prescriptive and/or deliberative reasoning
requires the use of situation-specic measures that capture realistic moral dilemmas
typical of those encountered in a particular context (Thorne, 2000).
Shaub (1994) and Arnold (1997) identify the need to conduct context-specic
research into accounting students and accountants moral reasoning. This conten-
tion is supported by applied cognitive-developmental researchers (e.g. Jones, 1991;
Trevino, 1986) who recognize that context-specic attributes have signicant eects
on individuals moral reasoning. By using a cognitive-developmental perspective in a
context-specic study of accounting students moral reasoning, this research takes a
rst step into understanding accounting students moral decision processes. Further,
this study contributes to educational research in accounting ethics by drawing
attention to a potential opportunity to increase accounting students moral reason-
ing by encouraging their use of principled considerations.
106 L. Thorne / J. of Acc. Ed. 19 (2001) 103117
3. Development of hypotheses
The rst hypothesis compares accounting students tendency to use principled
considerations to resolve hypothetical moral dilemmas to their tendency to use
principled considerations to resolve accounting-specic moral dilemmas. Rest, Nar-
vaez, Bebeau, and Thoma (1999) argue that individuals are more likely to use more
principled reasoning in resolving context-free hypothetical moral dilemmas than in
resolving moral dilemmas individuals encounter in everyday life.
Previous cognitive-developmental research, not specic to the accounting domain,
provides empirical support for Rest et al.s (1999) argument. Leming (1973) con-
cluded that college students tendency to use principled considerations was higher
when resolving hypothetical moral dilemmas than when resolving moral dilemmas
they encountered in everyday student life. Lemings nding does not suggest that
there is a defect in students moral reasoning, rather his work suggests that college
students do not employ their full cognitive moral capability in their actual moral
decision making. An important implication of this nding is that educators should
not only consider how to increase students cognitive moral capability, but they
should also consider ways to encourage students to use more principled considera-
tions to resolve context-specic moral dilemmas.
To consider whether Lemings ndings extend to accounting students, the rst
hypothesis of this study is that accounting students apply more principled con-
siderations in the resolution of hypothetical dilemmas than in the resolution of
accounting-specic moral dilemmas:
H1: Accounting students use more principled considerations to resolve hypothe-
tical dilemmas than to resolve accounting-specic dilemmas.
The second hypothesis examines accounting students tendency to use principled
considerations in the resolution of accounting-specic moral dilemmas. More speci-
cally, the second hypothesis compares accounting students tendency to use prin-
cipled considerations in their prescriptive reasoning with accounting students
tendency to use principled considerations in their deliberative reasoning. Prescriptive
reasoning is a function of ones moral values as specically applied to a particular
moral dilemma, whereas deliberative reasoning involves ones attention to non-moral
considerations, in addition to moral considerations (Nisan & Kohlberg, 1992).
Power and Reimer (1978. p. 107) describe the prescriptive and deliberative reasoning
prison inmates applied to resolve an actual moral dilemma:
. . .once (inmates) began discussing real-life dilemmas, the contrast became
apparent between how the group thought the conicts should be resolved and
how they actually were resolved. Life in prison reected the lowest stages of
moral reasoning: Everyone acted either to avoid arbitrary punishment or to
further his or her own instrumental interests. Inmates who in discussion sug-
gested higher stage resolutions to real life conicts admitted that they could not
act on those resolutions and hope to survive in prison society [emphasis added].
L. Thorne / J. of Acc. Ed. 19 (2001) 103117 107
Although prisoners were aware of and capable of higher level resolutions to real
life dilemmas, other considerations (such as survival) were given higher precedence
than moral values and inuenced their actual decision choice (Scharf, 1973). This
observation suggests that accounting students may weigh principled considerations
more heavily in prescriptive reasoning than in deliberative reasoning. This gives rise
to the second hypothesis:
H2: Accounting students use more principled considerations in their prescriptive
reasoning than in their deliberative reasoning.
4. Statistical approach and measures
4.1. Approach
Hypotheses 1 and 2 are tested by paired samples and independent samples t-tests,
respectively. Hypothesis 1 tests whether accounting students cognitive moral cap-
ability (CMC) score is higher than their prescriptive reasoning score and their
deliberative reasoning score. Hypothesis 2 tests whether accounting students pre-
scriptive reasoning score is higher than accounting students deliberative reasoning
score.
4.2. Generic moral development
The three-item version of Rests (1979) Dening Issues Test (DIT) is used as a
basis to calculate accounting students P-score, which is a measure of cognitive
moral capability. The DIT has been widely used by accounting researchers inter-
ested in measuring accountants and accounting students cognitive moral cap-
ability. It has also been used in many studies outside the accounting domain (e.g.
Colby & Kohlberg, 1987). The P (for principled) score is the percentage of principled
considerations an individual uses to decide how a hypothetical moral dilemma ought
to be resolved. To minimize subject fatigue, the three-story version of the DIT was
used as a measure of cognitive moral capability in this study.
1
4.3. Prescriptive and deliberative reasoning
Accounting students prescriptive reasoning and deliberative reasoning are mea-
sured using an accounting-specic instrument that includes four short cases
describing moral dilemmas representative of those found in the accounting rms in
1
Davison and Robbins (1978) report that the reliability of the P-score is generally in the upper
seventies and eighties for both testretest reliability (within 1-to-3-week intervals) and internal consistency
(as measured by Cronbachs alpha). For the three-story version of the DIT, the testretest reliability and
internal consistency of the P-score are generally 10 points lower than for the six-story version, although
still at acceptable levels (Bernardi, 1994b).
108 L. Thorne / J. of Acc. Ed. 19 (2001) 103117
which their cooperative work terms are spent. The instrument is, therefore, similar
to the DIT, except that the hypothetical moral dilemmas used in the DIT are
replaced with moral dilemmas that are specic to the accounting domain. Thorne
(2000) describes the development and testing of the accounting-specic DIT. There
are two versions of the accounting-specic DIT: prescriptive and deliberative. Each
version of the instrument is identical to the other, except that each version elicits one
particular aspect of accounting students moral decision process. The prescriptive
version of the accounting-specic DIT asks subjects to consider how the described
accounting dilemmas ideally should be resolved. The deliberative version of the
accounting-specic DIT asks subjects to consider how the same described account-
ing dilemmas will be resolved. The reliability and validity of the accounting-specic
instrument equals or exceeds the reliability and validity of the Dening Issues Test
(DIT) of similar length (Thorne, 2000).
4.4. Demographic variables
In order to gain insight into factors that may be associated with the use of prin-
cipled considerations, this study considers whether demographic variables, identied
in previous accounting research, are associated with the moral reasoning of coop-
erative accounting students. Cognitive-developmental theory presumes that cogni-
tive moral capability increases with exposure to stimulating environments, at least
up to a certain point in the development process (Kohlberg, 1976). Accordingly,
there is a general tendency to anticipate a positive association between cognitive
moral capability and work experience, age, and formal education. Empirical evi-
dence indicates that accountants cognitive moral capability increases during the
early years of working in an accounting rm (i.e. Lampe & Finn, 1992; Ponemon,
1992; Ponemon & Gabhart, 1993; Ponemon & Glazer, 1990). However, mixed evi-
dence exists regarding the association between accounting students cognitive moral
capability and their age and years of education (Ponemon & Glazer, 1990; Shaub,
1994), although generally a positive association has been found. Although the
appropriateness of the cognitive-developmental perspective for understanding the
moral reasoning of women has been criticized,
2
empirical investigations suggest that
female accountants and female accounting students possess higher levels of cognitive
moral capability than their male counterparts (e.g. Bernardi, 1994a, 1995; Bernardi
& Arnold, 1997; Etherington & Schulting, 1995; Lampe & Finn, 1992; St. Pierre,
Nelson, & Gabbin, 1990; Shaub, 1994; Sweeney, 1995).
Accordingly, three separate regression analyses are used to examine the associa-
tion between demographic characteristics of the sample (i.e. work experience, age,
gender, and sector of employment) for each of the three dierent types of moral
reasoning: CMC, prescriptive reasoning, and deliberative reasoning. The demo-
graphic variables are operationalized by workterm, age, education, and gender.
Workterm is the number of years worked in an accounting rm. Workterm is a
2
For example, Gilligan (1982) has criticized the application of the cognitive-developmental approach
to females because it fails to incorporate the female conception of moral reasoning.
L. Thorne / J. of Acc. Ed. 19 (2001) 103117 109
continuous variable. Age is number of years of age, which also is a continuous
variable. Education is operationalized by number of years of post-secondary educa-
tion, which, again, is a continuous variable. Gender, is operationalized as female (0)
and male (1).
5. Method and sample description
5.1. Method
To test the hypothesis of this study, we compare the cognitive moral capability,
prescriptive reasoning, and deliberative reasoning of students enrolled in a coop-
erative accounting education program. Cooperative education programs advocate
the integration of relevant work experience into the educational process. Students
enrolled in a cooperative accounting program are selected as subjects for this study
as the work experience they receive in their non-academic work terms facilitates the
examination of context-specic aspects of accounting students moral decision-
making processes. The students used in this study worked as auditors in public
accounting rms during ve 4-month non-academic work terms.
A sample of 130 accounting students was obtained from a Canadian university
that exclusively employs a cooperative approach to accounting education. The
cooperative accounting program at this university integrates 4-month terms of
practical work experience in an accounting rm with the academic requirements
necessary to obtain an undergraduate degree upon the completion of 4 years of
education and a graduate degree after completing 5 years of education. Upon grad-
uating, students have fullled all requirements necessary to write the public
accounting professional exams.
3
Professors were contacted and asked for class time to administer a research ques-
tionnaire to their accounting students. This questionnaire included a three-story
DIT (Rest, 1979), either the measure of prescriptive or deliberative reasoning and
self-reported descriptive information.
4
One-half of the sample received the pre-
scriptive form of the accounting-specic DIT and the other half received the delib-
erative form of the accounting-specic DIT. To obtain equivalency between the
deliberative and prescriptive sub-samples, the two dierent forms of the instrument
(i.e. prescriptive or deliberative) were randomly assigned.
3
All students included in the sample were in the process of fullling the educational and professional
requirements necessary to obtain the designation of Chartered Accountant (CA). In order to receive the
designation of CA, candidates must full the following four requirements: (1) complete an undergraduate
college degree; (2) complete specied course work; (3) pass the uniform nal exams, and (4) possess 24
months of work experience in a CA rm.
4
Subjects were requested to provide self-reports of age, experience, gender, years of education, and
whether they had previously taken an ethics course. All subjects included in the samples had completed a
one-semester professional ethics course.
110 L. Thorne / J. of Acc. Ed. 19 (2001) 103117
5.2. Sample description
Of the 130 cooperative accounting students who participated in the study, 20
provided incomplete data or failed to pass the internal validity checks included in
the DIT, resulting in 110 valid responses.
5
Thus, the eective participation rate for
the cooperative accounting students was 85%.
As shown in Table 1, the mean age for the total sample was 24 years, students had
accumulated, on average, 1.7 years of accounting experience, and 52% of the sample
was female. There were no signicant dierences between the demographic char-
acteristics of students assigned to the prescriptive and deliberative sub-samples.
Overall, the samples attributes appear to closely match those of the general popu-
lation of accounting students in terms of DIT score and age (e.g. Armstrong, 1987,
1993; Bernardi, 1995; Icerman et al., 1991; Jeery, 1993; Lampe & Finn, 1992;
Shaub, 1994; St. Pierre, Nelson, & Gabbin, 1990). Unlike prior research on
accounting students, the proportion of females in the sample was slightly over 50%,
all had taken an ethics course due to program requirements, and all had work
experience in accounting rms by virtue of their participation in a cooperative
accounting program.
6. Results
6.1. A comparison of prescriptive and deliberative reasoning scores
Table 2 reports accounting students cognitive moral capability, prescriptive rea-
soning scores, and deliberative reasoning scores as calculated from the results of the
survey. Examination of Table 2 shows that accounting students cognitive moral
capability scores are signicantly higher than their prescriptive reasoning and
Table 1
Summary of demographic information
Total sample Prescriptive sub-sample Deliberative sub-sample
Mean age (years) 24 24 23
Mean years of university completed 4 4 4
Mean years of accounting experience 2 2 2
Percent females 52 52 51
Sample size 110 56 54
5
Two tests of the validity of a subjects response are included in the DIT. The rst test is a consistency
check that evaluates whether an individuals ranking of an item is consistent with the signicance of the
item previously assigned by the individual. Subjects responses that are not consistent are discarded. The
second test requires the generation of an M score. M items are nonsense items used to check for ran-
dom responses by subjects. Subjects responses with high M scores are discarded. According to Rest
(1979) generally between 5 and 15% of subjects fail the internal validity checks included in the DIT. The
higher percent of invalid responses reported for this study reects 6% incomplete responses.
L. Thorne / J. of Acc. Ed. 19 (2001) 103117 111
deliberative reasoning scores. The results of paired samples t-tests comparing
accounting students cognitive moral capability and prescriptive reasoning and
deliberative reasoning are P<0.01 and P<0.01, respectively. Table 2 also shows
that accounting students prescriptive reasoning scores are signicantly higher than
accounting students deliberative reasoning scores. The results of independent sam-
ples t-tests comparing accounting students prescriptive reasoning scores to
accounting students deliberative reasoning scores are signicant at P<0.02.
6
These
ndings support Hypotheses 1 and 2.
6.2. Demographic variables and cognitive moral capability
Table 3, Panel CMC, reports the result of an ordinary least square (OLS) regres-
sion used to examine whether cooperative accounting students cognitive moral cap-
ability is associated with the four demographic variables (i.e. work experience, age,
education, and gender).
7
Results reported in Table 3, Panel CMC, show that
accounting cognitive moral capability, as measured by students DIT P-scores is
signicantly associated with years of post-secondary education (P<0.04). However,
the sign for the coecient is opposite to that found in previous research. Further-
more, the lack of statistically signicant coecients reported in Table 3, Panel
CMC, for age and work experience is consistent with results reported by Shaub
(1994), and suggests that neither age nor work experience aected the cognitive
moral capability of accounting students respondents.
8
Table 2
Cooperative accounting students cognitive moral capability (CMC), prescriptive reasoning (PR) and
deliberative reasoning (DR) scores
Prescriptive reasoning Deliberative reasoning
CMC-Mean (S.E.) [n] 38.9*** (2.2) [56] 35.9** (2.2) [54]
Context-specic Score-Mean* (S.E.) [n] 32.7*** (1.7) [56] 24.7** (2.1) [54]
***
Signicant dierence between CMC and prescriptive reasoning at P<=0.01
**
Signicant dierence between CMC and deliberative reasoning at P<=0.01
*
Signicant dierence between prescriptive and deliberative reasoning at P<=0.01
6
Because the mean DIT scores for the deliberative group are lower than those of the prescriptive
group, the deliberative score was standardized by the ratio of the respective groups DIT scores (i.e. the
ratio of 35.9/38.9 or 92%). Using this procedure, the adjusted deliberative scores increases to 26.8 (24.7/
0.92). After adjusting the deliberative scores, prescriptive scores (38.9) are still signicantly higher (0.01)
than deliberative scores (26.8). The signicance of the adjusted dierence indicates the robustness of the
nding of higher prescriptive reasoning than deliberative reasoning for the samples.
7
Interactions between the independent variables were not signicant; therefore, they were excluded
from the statistical analysis presented.
8
The results presented in Table 3 do not signicantly change when the multiple regression includes
only age or education.
112 L. Thorne / J. of Acc. Ed. 19 (2001) 103117
6.3. Demographic variables and prescriptive reasoning
Table 3, Panel PR, reports the result of an OLS regression that examines the
associations between accounting students prescriptive reasoning and the four
demographic variables (i.e. age, education, work experience, and gender). To control
for accounting students CMC, this variable also was entered in the regression.
Results reported in Table 3, Panel PR, show that the prescriptive reasoning of
accounting students is signicantly associated with CMC (P<0.00).
6.4. Demographic variables and deliberative reasoning
Table 3, Panel DR, reports the result of an OLS regression that examines the
associations between accounting students deliberative reasoning and the four
demographic variables (i.e. age, education, work experience, and gender). To control
for accounting students CMC, this variable also was entered in the regression.
Results reported in Table 3, Panel DR, show that the deliberative reasoning of
accounting students is signicantly associated with CMC (P<0.00) and gender
Table 3
OLS testing the associations between cooperative accounting students demographic characteristics and
moral reasoning
Independent variable Expected association coecient P-value
Panel CMC: test of the associations using CMC as a dependent variable
a
Work experience + 0.20 0.47
Age + 1.37 0.11
Education + 5.50 0.04
Gender (male=1) 4.6 0.07
Constant 155 0.04
Panel PR: test of associations using prescriptive reasoning as dependent variable (PR)
b
Work experience + 1.65 0.32
Age + 1.01 0.12
Education + 2.4 0.23
Gender (male=1) 5.07 0.06
CMC + 0.21 0.00
Constant 97 0.07
Panel DR: test of the associations using deliberative reasoning as a dependent variable (DR)
c
Work experience + 4.46 0.13
Age + 1.9 0.26
Education + 6.07 0.09
Gender (male=1) 8.4 0.02
CMC + 0.43 0.00
Constant 106
a
N=110 F=1.39 R-sq=5.0% R-sq.(adj.)=1.4%
b
N=56 F=3.58 R-sq.=25% R-sq. (adj.)=19%
c
N=54 F=6.0 R-sq=38% R-sq.(adj.)=32%
L. Thorne / J. of Acc. Ed. 19 (2001) 103117 113
(P<0.02). However, the sign on the coecient for gender is opposite to that found
in previous research.
7. Discussion
Several key ndings emerge from this study. First, consistent with Hypothesis 1,
cooperative accounting students apply more principled considerations to resolve
hypothetical moral dilemmas than to resolve accounting- specic moral dilem-
mas. Second, consistent with Hypothesis 2, cooperative accounting students
prescriptive reasoning is signicantly higher than their deliberative reasoning. It may
be inferred from the results that accounting students do not always resolve
accounting-specic moral dilemmas using their most principled reasoning. Thus,
educational practices may be revised to encourage accounting students to increase
their tendency to resolve accounting-specic moral dilemmas at their cognitive
moral capability. Evidence that accounting students do not use their full cognitive
moral capability in the resolution of accounting-specic moral dilemmas does not
suggest a deciency in their moral cognition, rather this evidence suggests an
opportunity for educators to consider alternative approaches that encourage
accounting students to use more principled considerations for resolving accounting-
specic moral dilemmas.
Signicant inroads into increasing the moral reasoning of accounting students
may be made by identifying educational interventions that increase accounting stu-
dents propensity to use principled considerations in their prescriptive and delib-
erative reasoning processes. In particular, the results of this study emphasize the
importance of using accounting-specic material to encourage accounting students
to recognize and utilize their existing cognitive-developmental capability. Recent
work by Massey (1999) suggests that immediate feedback regarding the levels of
moral reasoning used to resolve accounting-specic dilemmas may encourage
accounting students to use their full cognitive moral capability in their moral deci-
sion process.
The results also show that accounting students use more principled considerations
in their prescriptive assessment of the ideal resolution of an accounting-specic
moral dilemma than in their deliberations on what will be done to resolve an
accounting-specic moral dilemma. This suggests the importance of framing (i.e. the
use of prescriptive or deliberative frames) for inuencing the tendency of accounting
students to use principled considerations in the resolution of accounting-specic
moral dilemmas. To encourage the use of more principled reasoning, accounting
students could be educated to consider their prescriptive assessment of an account-
ing dilemma even when deliberative resolutions are requested. Additionally, educa-
tors may also encourage accounting students to compare their prescriptive and
deliberative responses to accounting-specic dilemmas to provide insight into which
factors may impede the use of principled considerations in resolving accounting
dilemmas. Testing of these suggestions and additional exploration of other
education interventions that promote accounting students use of principled
114 L. Thorne / J. of Acc. Ed. 19 (2001) 103117
considerations may help ensure future accounting professionals adhere to a high
moral standard in their resolution of moral dilemmas.
Unexpectedly, the results also suggest that the association between the demo-
graphic characteristics of the sample of cooperative accounting students and cognitive
moral capability is not necessarily similar to that reported in previous accounting
ethics research. This may be due to the homogeneity of the sample used in this
research and in research on accounting students in general (c.f. Shaub, 1994). Of
particular interest, the negative association between years of education and cognitive
moral capability and the higher cognitive moral capability of male accounting
students compared with their female counterparts diers from what was found
in previous accounting research. Additional exploration of these ndings may
provide further insight into factors that aect the moral reasoning of accounting
students.
Finally, the results of this study also suggest that cooperative education may dier
from other forms of accounting education in its aect on the moral reasoning of
accounting students. However, longitudinal research and research that specically
compares the moral reasoning of cooperative to non-cooperative accounting stu-
dents, while eliminating potential contamination from institution-specic eects
(Bernardi & Arnold, 1997), is required to obtain a full understanding of the eect of
cooperative education on accounting students moral reasoning.
Several limitations aect the interpretation of the results of this study. In
particular, this study was based on a cognitive-developmental perspective and
the statistical analysis has relied upon self-reports of responses to pre-selected
moral dilemmas. The limitations of the cognitive-developmental perspective and
the use of self-reports apply to this research. Furthermore, the results of the
study are limited by the validity and reliability of the instruments used in the study,
and in the comparability of the instrument scores with each other. Although
all three instruments were subject to extensive testing with resulting high levels
of validity and reliability, their formulation relied upon dierent expert panels to
evaluate the stage scores of the items included in the instrument. Although the
criteria for the development of the instrument scores were the same for all
instruments, the results of the study are limited to the extent that the experts
may have dierent interpretations of the criteria for the scoring. In addition,
the dierent instruments used in this study were developed 20 years apart, as the
generic DIT (Rest, 1979) was developed in the 1970s while the accounting-specic
DIT was developed in the 1990s. Although these instruments purport to measure
individuals moral cognition, an alternative explanation for the dierence in
individuals scores derived from using these two dierent instruments may be that
the dierence may reect a shift in ethical norms over the 20 year period. Finally,
the sample used in this study was, by design, a particular type of accounting student
in a single educational institution. Therefore, the attributes of the sample may limit
the applicability of the research ndings to other populations of accounting
students. Future research is required to evaluate the extent to which the ndings
reported in the study describe associations found in other samples of accounting
students.
L. Thorne / J. of Acc. Ed. 19 (2001) 103117 115
Acknowledgements
I would like to thank Irene Gordon, two anonymous referees, and participants at
the 1999 Canadian Academic Accounting Association in Toronto for their helpful
comments and suggestions.
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