Professional Documents
Culture Documents
of Accounting as a Major
Sharifah Sabrina Syed Ali*and Michael Tinggi**
Introduction
Accounting program, a specialized professional programincluding financial accounting,
accounting information system, cost and managerial accounting, taxation, auditing, financial
statement analysis, accounting theory and practices including professional standards such as
International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles
(GAAP), financial management and public sector accountingprepares the students to practice
the profession of accounting and perform any related business function.
Literature Review
There are several reasons that may influence students to choose accounting as a
major. For example, those who excel in playing with numbers or are good at
mathematics would consider choosing accounting as a major. Past studies show that
personal interests, peer influence, family background, career opportunity and job
availability are some of the factors that influence students decision.
1*
Lecturer, Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan,
Sarawak, Malaysia; and is the corresponding author. E-mail: sassabrina@feb.unimas.my
1*
Lecturer, Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan,
Sarawak, Malaysia. E-mail: tmichael@feb.unimas.my
StudentsReserved.Choice of Accounting as a Major
Factors2013 InfluencingIUP.AllRightste
25
Students perception towards their major was examined by Giladi et al. (2001), who found
that most of the students decide on their major during the high school years and the reason for
the selection is the job prospect. Thus, a large proportion of students are expected to opt for
accounting as major. Other studies like Sabot and Wakeman (1991) and Walstrom et al. (2008)
examined factors like job or income prospect as important criteria for the major selection.
Didia and Hasnat (1998) and Bauer and Dahlquist (1999) showed that personality plays
an important role in the choice of the major. Worthington and Higgs (2004) also observed
that the students choose the major that matches their personality and personal interest. In
addition, the role of characteristics may also be statistically significant in determining the
choice of major. Furthermore, many studies identified that various family members, peers,
and other significant persons also have an impact on an individuals choice in many ways
(Hanson, 1994). Kenny et al. (2003) showed that peers persuasion help students to decide
whether to study overseas or in their home country. It however, is effective only after the
original intention to study abroad is established. Further, Pearson and Dellmann (1997)
found that the importance of siblings, friends and the media combined was less than that of
parents. According to Dynan and Rouse (1997), media influence and past achievement
lead to the students choice of major.
Past Achievements
Savolainen et al. (2008) suggested that reading comprehension, vocabulary and spelling are
predictors of past achievement, which may influence the students choice of major. Using a
sample of 1,700 students, the authors examined through a related assessment their skills and
knowledge and then compared the results with the choice of major of those students. They
found that the previous achievement had strong influence on the students choice of major.
Olitsky (2009) also showed that individual academic achievement plays a significant role in
determining the choice of major among the students. Moreover, Turner and Bowen (1999) and
Montmarquette et al. (2002) used the Scholastic Assessment Test (SAT) as a measurement of
academic achievement to examine its influence on the choice of major among the students.
Personal Interests
Many studies showed that students interest in the subject is one of the significant factors that
influence their choice of major. Dynan and Rouse (1997) and Lewis and Norris (1997) identified
the importance of interest and perceptions of the profession as the factor determining the choice
of economics major, while Easterlin (1995) identified preferences as the key factor in the
generational switch to business studies. Fortin and Amernic (1994) concluded that interest
and aptitude for the subject matter appear to be the driving forces behind the students choice of
accounting as a major intrinsic values such as independence in action and solving
challenging problems (intellectual stimulation) are also the key factors motivating students
choice of concentration. Other studies confirmed that personality plays a key role in the choice
of a major. Lawrence and Taylor (2000) found that students with sensing, thinking and judging
personality types were more likely to select accounting as major. Wolk and Nikolai (1997) also
obtained similar results. Further, Geiger and Ogilby (2000) and Mauldin et al.
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The IUP Journal of Accounting Research &
Audit Practices, Vol. XII, No. 4, 2013
(2000) found that the decision to major in accounting was made in the first accounting
course. Geiger and Ogilbys analyses for selection of accounting as a major indicate that
the decision depended on initially intending to major in accounting, performance in the first
course, and individual instructors, but not on changes in perception regarding the first
course, while Mauldin et al. found that the largest percentage of students (41%) chose
accounting as their major during the first accounting course in college.
Job Prospect
Many studies indicated that students choice of business major is influenced by higher earnings,
prestige and career advancement (Kim and Markham, 2002). Montmarquette et al. (2002)
examined the previous studies on the determinants of the major choice, which linked it to the
expected earnings. Lowe et al. (1994) discovered that compensation, career opportunities and
prestige are significant factors that influence students choice of accounting as their major,
whereas students who choose business major are more influenced by personal and normative
factors. There should be a general awareness among students on the career opportunities
available in Malaysia and overseas and the level of compensation for accountants as it has
been widely publicized in the local newspapers. With the amount of news publicity given to a
particular profession, it would be interesting to find out if these job-related factors are the key
factors influencing students choice of accountancy as a major. Besides, Galotti and Kozberg
(1987) investigated five factors that may influence the choice of major among the students, i.e.,
qualification policies to enter the major field of study, employment opportunities, university or
college reputation, past academic experiences, and the characteristics of the courses. They
found that the job prospect or job opportunity is the most significant factor influencing the choice
of major. The students were aware of the growing salaries and potential in the related field,
which led them to enroll in the related field, i.e., finance.
Furthermore, the studies by Francisco et al. (2003) and Simons et al. (2003) also
concluded that factors such as future job opportunity, income potential, type of
profession, earning perks, bonuses and so on, play the most important role in
determining the major of the students. Tan and Laswad (2006) also inferred that the
choice of students major is significantly influenced by income prospects, prestige and
job advancements due to earning potential and marketability or scope of opportunities.
27
Ogilby, 2000; and Mauldin et al., 2000). Mazzarol and Soutar (2002) concluded that
family members, peers, and advisors such as teachers, agents and seniors may have
an influence in the students choice of the major. On the other hand, Kim and Markham
(2002) confirmed that parents do influence students choice of business major, except
for those who chose accountancy as their major. Moreover, students choice of their
major can also be influenced by their parents occupation.
Media
Macionis (2000), in his study, also included the factor of mass media as a significant agent
influencing the students choice of major. He found that besides the influence of the family
on determining the choice of major among the students, mass media also showed
significant influence. Pearson and Dellmann (1997) also examined the impact of factors,
including parents, relatives, peers, teacher, and media, and found that the mass media has
a positive influence on students choice of major. Linda (2006), in her study explained how
the media influences the students choice of major. She stated that media in the form of
television, advertisement, Internet and so on affects the behavior of students, because the
students usually browse through media to access information about universities, courses
offered and the potential fields before choosing their major.
Job or Income
Prospect
Family and Peers
Media
Independent Variable
Students
Perception in
Choosing the
Program
Moderating Variable
Dependent Variable
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The IUP Journal of Accounting Research &
Audit Practices, Vol. XII, No. 4, 2013
29
Pearson Correlation
0.337
Sig. (2-tailed)
0.034
N
AvgPI
AvgFMP
Sig. (2-tailed)
0.008
AvgMP
40
**
Pearson Correlation
0.683
Sig. (2-tailed)
0.000
40
Pearson Correlation
0.075
Sig. (2-tailed)
0.645
N
**
0.412
Dvavg
40
Pearson Correlation
N
AvgJP
Dvavg
40
Pearson Correlation
0.301
Sig. (2-tailed)
0.059
40
Pearson Correlation
Sig. (2-tailed)
N
40
Note: ** Correlation is significant at 0.01 level; and * Correlation is significant at 0.05 level.
PAi
= Past Achievements
PIi
= Personal Interest
Expected Cum.
.Prob
JPi
= Job Prospect
FMP = Family and Peers Figure 2: Normal P-P Plot of Regression Standardized
i
Residual (Dependent Variable: Dvavg)
MPi = Media
= Error term, and
i
the subscript i indexes a particular
1.0
observation
0.8
0.6
0.4
0.2
0
0 0.2 0.4
0.6 0.8
1.0
Sum of Squares
df
Mean Square
Regression
5.658
1.132
Residual
5.666
34
0.167
Total
11.324
39
Note:
F-Statistic
6.790
Sig.
0.000a
Predictors: (Constant), AvgMP, AvgFMP, AvgPI, AvgJP, AvgPA; b Dependent Variable: Dvavg.
Table 3 indicates only job prospect has a significant influence (at p-value = 0.000 < 0.01)
over students accepting the offer of accounting as a major. Each one unit factor change in job
prospect may lead to 4.461 unit significant change in the choice for accounting as a major.
Factors Influencing the Students Choice of
Accounting as a Major
31
Unstandardized Standardized
Coefficients
Coefficients
B
(Constant)
t-Value
Sig.
Collinearity Statistics
Beta
2.147
Tolerance
VIF
4.275 0.000
AvgPA
0.217
0.222
1.251 0.220
0.469
2.132
AvgPI
0.016
0.023
0.136 0.893
0.525
1.903
AvgJP
0.608
0.771
4.461 0.000
0.493
2.030
0.063
0.089
0.677 0.503
0.856
1.168
0.096
0.150
1.035 0.308
0.704
1.421
AvgFMP
AvgMP
Regression Summary
Model
Adjusted-R2
0.707
R2
0.500
0.40822
The correlation analysis (see Table 1) also showed a significant relationship between
job prospect and students accepting the offer of accounting as a major. Thus, the
regression result supports the ANOVA and correlation results. The Variance Inflation
Factor (VIF) of all variables is below 5, implying no collinearity exists among the
independent variables. Thus, the independent variables are considered suitable for the
purpose of estimating the dependent variable.
The R2 (= 0.500) value seems to be reasonable, implying that the independent variables
account for at least 50% of variation in the dependent variable as proxied by the students
accepting the offer in accounting program in UNIMAS, Session 2012-2013, Semester 1.
Reliability Test
Cronbachs is used to measure the reliability. Table 4 shows that the value of Cronbachs
(0.856) is larger than the critical value of 0.5. Thus, the reliability of coefficients is fairly
high. Therefore, the internal measurement is consistent (Hair et al., 2006).
No. of Items
0.856
0.867
25
One-Way ANOVA
The one-way analysis of variance is a technique used to compare means of two or more
samples using the F distribution. This test is conducted as authors are of the opinion that
the students parents educational level may influence the decision-making process. To see
whether the influence is significant or not, ANOVA test is conducted.
It is observed from Table 5 that there is no significant difference between the means of
students parents education and the factors: past achievements (F = 2.087, p = 0.103),
personal interests (F = 1.069, p = 0.386), job prospect (F = 2.130, p = 0.098), family
members and peers (F = 0.629, p = 0.645) and media (F = 0.860, p = 0.497). Thus, from
the above analysis, it is concluded that parents education has no significant influence over
the independent variables influencing students choice for university program.
The findings reveal that there is a significant relationship between job prospect and
students choice of accounting program. The Pearson correlation test results, however,
show that other than job prospect, factors such as past achievements and personal interest
also have a strong and significant relationship with students choice of accounting program.
Based on the results of hypotheses testing, job prospect is found to be the only factor
influencing students decision to accept the offer of accounting as a major. Thus, except
null hypothesis H03, we fail to reject the remaining null hypotheses. The findings of the
present study is consistent with that of Giladi et al. (2001).
AvgPA
AvgPI
AvgJP
AvgFMP
AvgMP
Sum of Squares
df
Mean Square
F-Value
Sig.
Between Groups
2.265
0.566
2.087
0.103
Within Groups
9.494
35
0.271
Total
11.759
39
Between Groups
2.343
0.586
1.069
0.386
Within Groups
19.173
35
0.548
Total
21.516
39
Between Groups
3.563
0.891
2.130
0.098
Within Groups
14.641
35
0.418
Total
18.204
39
Between Groups
1.517
0.379
0.629
0.645
Within Groups
21.114
35
0.603
Total
22.631
39
Between Groups
2.449
0.612
0.860
0.497
Within Groups
24.907
35
0.712
Total
27.356
39
Accounting as a Major
33
Conclusion
The objective of this paper was to identify the factors influencing the decision of the students of
UNIMAS to accept the offer of accounting as a major. Apart from this, it also examined whether
parents education influences the factors influencing the students decision to accept the offer
accounting as a major. The findings reveal that there is no significant difference between the
means of students parents educational level and the factorspast achievements, personal
interest, job prospect, family members and peers and media. Thus, parents education does not
have a significant influence on the students decision to accept the offer of accounting as a
major. The regression analysis shows that overall, there is a fairly strong relationship between
the independent variables and the dependent variable as evident from the R2 value. Among the
independent variables, only job prospect has the highest and significant influence on the
students choice of accepting the offer of accounting as a major. However, other factors, tested
by previous researchers such as Sabot and Wakeman (1991), Dynan and Rouse (1997) and
Worthington and Higgs (2004), also obtained high reliability factor. Perhaps due to the limited
sample size of this study, which specifically examined the accounting students in a public
university, UNIMAS, the result is different slightly. The result might not be the same if the study
is extended taking into account other non-accounting major students in this university or other
private universities. Furthermore, there are other variables that influence students decision to
accept the offer of accounting as a major, such as the reputation of the university or college,
nature of the courses, parents income and government policy. Therefore, future research can
be done by considering increased sample size as well as various other kinds of variables in
order to get a more accurate result.
Besides, based on the results of Pearson correlation test which clearly show that media
and publicity do not have a significant relationship with the students accepting the offer in
accounting program, the government particularly for this university can play a role in order
to help improve advertising by using intense publicity or media campaign to encourage
students to enrol in accounting program. Road show and other types of promotion may
also be useful in attracting students to this new accounting program. Further, the industry
can be involved in recruiting strategies, giving scholarship and other incentives to students
who are qualified for this program.
References
1. Albrecht W S and Sack R J (2000), Accounting Education: Charting the Course
Through a Perilous Future, Accounting Education Series, Vol. 16, American
Accounting Association, Sarasota, FL.
4.
Didia D and Hasnat B (1998), The Determinants of Performance in the University Introductory
Finance Course, Financial Practice and Education, Vol. 8, No. 1, pp. 102-107.
5.
6.
42. 1-34.
7.
42. 21-73.
8. Francisco W H, Thomas G N and Kelly J A (2003), Why Dont Students Major in
Accounting?, Southern Business Review, Vol. 29, No. 1.
10. Geiger M A and Ogilby S M (2000), The First Course in Accounting: Students
Perceptions and their Effect on the Decision to Major in Accounting, Journal of
Accounting Education, Vol. 18, pp. 63-78.
12. Hair J F, Black W C, Babin B J et al. (2006), Multivariate Data Analysis, Pearson
Prentice Hall, NJ.
14.
15. Kim D and Markham F S (2002), Why Students Pursue the Business Degree: A
Comparison of Business Majors Across Universities, The Journal of Education
for Business, Vol. 78, No. 1, pp. 28-32.
16. Lawrence R and Taylor L W (2000), Student Personality Type Versus Grading
Procedures in Intermediate Accounting Courses, Journal of Education for
Business, Vol. 76, No. 1 (September/October), pp. 28-35.
18.
Linda A (2006), How to Choose a College Major, The McGraw-Hill Companies, Inc.
19.
Lowe D R, Lowe L S and Simons K (1994), Criteria for Selection of an Academic Major:
Accounting and Gender Differences, Psychological Reports, Vol. 75, pp. 1169-1170.
Factors Influencing the Students Choice of
Accounting as a Major
35
20. Macionis John J (2000), Society: The Basics, Prentice Hall, Upper Saddle River,
New Jersey.
23.
42.543-556.
24. Olitsky N H (2009), Academic Achievement and the College Major Earnings,
University of Massachusetts Dartmouth.
26. Sabot R E and Wakeman L J (1991), Grade Inflation and Course Choice, The
Journal of Economic Education, Vol. 34, No. 4, pp. 323-343.
29.
Tan L M and Laswad F (2006), Students Beliefs, Attitudes and Intentions to Major in
Accounting, Accounting Education: An International Journal, Vol. 15, No. 2,
42.167-187.
30.
32. Wolk C M and Nikolai L A (1997), Personality Types of Accounting Students and
Faculty: Comparisons and Implications, Journal of Accounting Education, Vol.
15, No. 1, Winter, pp. 1-17.
33.
Worthington A and Higgs H (2004), Factors Explaining the Choice of an Economics Major: The
Role of Student Characteristics, Personality and Perceptions of the Profession,
International Journal of Social Economics, Vol. 31, No. 5/6, pp. 593-613.
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The IUP Journal of Accounting Research &
Audit Practices, Vol. XII, No. 4, 2013
Appendix
Questionnaire
The purpose of this questionnaire is to collect information. The information collected is
absolutely confidential and only used for academic purpose. Your cooperation in completing
this questionnaire is very much appreciated. This questionnaire consists of three parts: Part
A: Demographic profile; Part B : Factors influencing choice of accounting as a major; and
Part C : Students perception in accepting the offer of accountancy program.
1.
Highest
qualification
before
enrolling
into
UNIMAS ( ) Matriculation
( ) STPM
( ) Diploma
( ) Other, please specify:______________
2.
Gender
( ) Male
( ) Female
3.
Age
( ) 18-19
( ) 20-21
( ) 21 and Above
4.
Race
( ) Malay
( ) Chinese
( ) Indian
37
Appendix (Cont.)
5.
( ) Master or Higher
6.
Fathers Occupation
( ) Own Business
( ) Private Sector Employee (
) Government Servant
7.
Mothers Occupation
( ) Own Business
( ) Private Sector Employee (
) Government Servant
8.
9.
Financing
for
tuition
fees
in
the
university ( ) Parent(s)
( ) PTPTN Loan (
) Self Financing
Appendix (Cont.)
Disagree
Neutral
Agree
Strongly
Agree
It is my ambition to become an
accountant/auditor.
1. Past Achievements
I always get good marks in Math
or Accounting.
or courses.
My foundation studies are related
to business or accounting subjects.
My previous achievements led
me to my future choice.
2. Personal Interests
I like calculation-based subjects rather
than memorization-based for subjects.
39
Appendix (Cont.)
Strongly
Disagree
Disagree
Neutral
Agree Strongly
Agree
3. Job Prospect
I expect my degree is marketable after
I graduate from this university.
I expect to earn high income after
I graduate in Bachelor of
Accountancy program.
I believe accounting field is in demand
these days.
I will not be exposed to danger
(physical) if I work in
accounting field.
I would like to create my own business,
and majoring in accounting may help
me in this regard.
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The IUP Journal of Accounting Research &
Audit Practices, Vol. XII, No. 4, 2013
Appendix (Cont.)
Strongly Disagree
Disagree
Major in accountancy is encouraged
Please circle the appropriate number that indicates your level of agreement with
each statement for Accounting program in Universiti Malaysia Sarawak (UNIMAS).
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
Factors Influencing the Students Choice of
Accounting as a Major
41
Appendix (Cont.)
Strongly
Disagree
Reference # 09J-2013-10-02-01
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The IUP Journal of Accounting Research &
Audit Practices, Vol. XII, No. 4, 2013