Accounting PhD shortage

Discussion in 'General Distance Learning Discussions' started by macattack, Jul 1, 2007.

Loading...
  1. macattack

    macattack New Member

    As many of you know there is a high demand for accounting faculty.

    According to this new article from The CPA Journal, it is "estimated that, from 2005 to 2008, the overall supply of new accounting PhDs will meet only 49.9% of the demand. The study found that the supply of new PhDs specializing in audit and tax will meet only 22.8% and 27.1% needed in these disciplines, respectively."

    The articles confirms what I have heard, that there is a large cohort of older faculty retiring soon, which is increasing the need for new faculty.

    This article states that the AACSB "estimates a shortage of 1,000 Ph.D.s in the U.S. this year that will grow to 2,400 by 2012" and that "the accounting field is especially feeling the supply-demand pinch."

    I'm starting to think maybe I will have to go for the DBA??
     
    Last edited by a moderator: Jul 1, 2007
  2. AV8R

    AV8R Active Member

    I've heard the same thing....all the more reason for schools to get some high-quality DL Ph.D. programs in accounting going.
     
  3. macattack

    macattack New Member

    You know, I was thinking the same thing.

    Does anyone know of a website that lists of all accounting doctoral degrees, DL and in-residence?

    Also, how do you think a Nova grad would make out in this job market?
     
    Last edited by a moderator: Jul 2, 2007
  4. Vincey37

    Vincey37 New Member

    For tax, a JD and LLM seems to be perceived as the highest level of qualification for an instructor. I don’t think an individual holding a doctorate alone would be seen as an attractive candidate.

    As for the MS accounting side of things, a very high percentage of degrees are just undergraduate level work wrapped up in a new name. See the recent thread about teaching accounting. In my opinion, graduates of most of those programs would be less qualified to teach than those from a top quality undergraduate curriculum!

    Considering these two factors, I don’t see accounting PhDs as being necessary for quality education. Just credential inflation.
     
  5. AV8R

    AV8R Active Member

    I'm sure they're not necessary at all...but that IS what the market is demanding.
     
  6. MrLazy

    MrLazy New Member

    There may be a shortage of PhDs in accounting, but it is not going to get any better unless the state schools start admitting more students. Current policy at University of Florida is THREE students a year into the FIVE year doctoral program. It is the same at Florida State University. University of Georgia only admits TWO per year.
     
  7. macattack

    macattack New Member

    There are MS Tax programs as well. Besides, I think anyone with 18 semester hours in tax and an advanced degree is an attractive candidate right now.


    There are programs that require an undergrad in accounting like this one, which I am considering, or to some degree over here. Golden Gate has a plethora of courses to take as part of their masters degrees, which would certainly make you a better instructor.
     
  8. AV8R

    AV8R Active Member

    I think it would do fine....IF they would just go for AACSB accreditation. I don't know what they're waiting on.
     
  9. AV8R

    AV8R Active Member

    Here's a VERY interesting article I found on AACSB's web site on the Ph.D. shortage in accounting...

    http://online.wsj.com/article_email/SB116830887516070925-lMyQjAxMDE3NjA4OTMwMDk4Wj.html

    This passage REALLY caught my attention:

    According to AACSB, newly hired professors with doctorates commanded average salaries of $137,400 in 2006, up from $113,400 in 2000. But those are just the averages; some faculty stars may fetch salaries of $250,000 or more.
     
  10. Vinipink

    Vinipink Accounting Monster

    Sure thing! I can expected that and jump right in to DBA in Accounting, As babyboomers are retiring the hole will be felt, good for me though :D
    Good find thanks for the heads up!
     
  11. Vinipink

    Vinipink Accounting Monster

    Sweet!!!! :D
     
  12. foobar

    foobar Member

    While it is true that most tax professors have a J.D. or an LL.M., it would be a mistake, especially where the J.D. is concerned, to believe that these are the highest level of qualification. A Ph.D. in accounting with a tax specializtion is usually preferred at the better institutions because of the closer link to academic research and publishing. Legal research is a somewhat different animal than academic research. On the other side of the coin, there are programs where tax is treated as a poor stepchild ("not really accounting") and the department would prefer to "check off the box" in terms of the credentials of the faculty they hire to teach tax and not have to pretend to treat such faculty as equals.

    The J.D. and LL.M. are prevalent on accounting faculties because there have never been sufficient numbers of Ph.D. faculty specializing in tax.

    Most AACSB-accredited MS accounting programs have some type of leveling requirement that may be satisfied through undergraduate prerequisites. Generally, they require 48-to-60+ hours of leveling coursework for a non-accounting undergraduate degree and 30-to-36 hours for accounting undergrads. Non-AACSB MS Accounting degrees? There are programs like you describe, but I believe that they are in the minority.
     
  13. foobar

    foobar Member

    Rest assured, these salaries are at AACSB accredited institutions for tenure-track faculty with doctorates from AACSB institutions. Even with the shortage, it is very difficult to get hired on a tenure-track faculty line with a non-AACSB doctorate.
     
  14. macattack

    macattack New Member

    Agreed, for instance try a search for "Nova" over here. People have less than flattering things to say about non-traditional doctorates. With that said, I think accounting maybe one loophole as I have heard of schools canceling their search for faculty due to lack of applicants. You'll just have to deal with the snickering behind your back if you make it in.

    Are there any reputable part-time accounting doctorates which are AACSB? Although, I think it may take a decade to finish one, if they exist.

    It would be interesting to see a study of accounting salaries at Non-AACSB schools, anyone have any data?
     
    Last edited by a moderator: Jul 2, 2007
  15. macattack

    macattack New Member

    Sorry, I have to post another new article Vanishing profession

    "Over the next three years, US and Canadian universities will need to hire 942 new PhDs, but will have only 621 graduates to choose from. Which brings to light a simple truth: The number of graduating PhDs are insufficient to replace the number of professors who are due to retire over the next decade, according to research conducted by the American Accounting Association.

    “This is terribly serious,” says Paul Sharman, president and CEO of the Institute of Management Accountants, (IMA) based in Montvale, New Jersey. “There are 50-percent fewer PhDs in academia than there were 10 years ago; and given the number of PhD students now, that number will likely be halved in another decade,” he contends. “The problem is growing increasingly acute.”
     
  16. macattack

    macattack New Member

    Just what I wanted to hear: Emerging Opportunities for Professionally Qualified Faculty (scroll down a little).

    AACSB International accreditation standards focus on the central role played by faculty for the design, development and delivery of high-quality degree programs. The standards identify two types of faculty members: academically qualified (AQ) and professionally qualified (PQ). AQ faculty normally have a doctorate in the field of teaching; PQ faculty are expected to have a master’s degree. The standards require AQ faculty to constitute at least 50% of total faculty resources; this percentage increases as graduate programs are added. Nevertheless, there is an important role for PQ faculty, who bring significant professional experience to the classroom and can represent up to 50% of the total faculty resources.

    It is likely that opportunities for PQ faculty from the accounting field will grow. The AACSB has documented the increasing shortage of doctorates in accounting against a backdrop of burgeoning enrollments and significant retirements over the next several years. The AACSB study says, “It is inevitable that many faculties—traditional research and others—will resolve their PhD shortages by recruiting more professionally qualified faculty….For schools that have a teaching and practice mission, it is legitimate to skew the faculty complement toward practice-oriented faculty, including those who do not have a doctoral degree, provided these faculty have expertise as teachers and as practicing professionals.”

    The current and expected shortages in doctorates in accounting enhance opportunities for PQ faculty in either full- or part-time roles. Facing the potential shortages in new doctorates for AQ faculty positions, AACSB is taking seriously the recommendation that PQ faculty should have expertise as teachers as well as professional expertise.
     
  17. AV8R

    AV8R Active Member

    I think the designation "Professionally Qualified," as indicated on the AACSB website requires a masters degree in accounting as well as graduating from their new program. They call it a "bridge program." It's a one week program to supposedly train professionals to be academics. Oh, and the tuition is $5,000 for that ONE WEEK. Here's what I'm talking about...

    http://www.aacsb.edu/bridge/default.asp
     
  18. foobar

    foobar Member

    Bear in mind that on average, full-time PQ faculty make 40 to 50 percent of AQ salaries. At research universities, this percentage can be even lower.

    These bridge programs are a recent development. Because of the salaries,the people in these bridge programs aren't doing it for the money. Typically, they are retired executives trying to "give something back," or "make a difference." In many cases, they donate their faculty salaries back to the department or business school.

    Most of the non-tenure track faculty at AACSB schools are PQ, including the adjuncts. Very few (and none at my institution) have completed a bridge program.
     
  19. edowave

    edowave Active Member

    If there was one department at UF that I simply can't stand, it would have to be accounting. They make even basic accounting classes that non-accounting majors take notoriously difficult.

    A local tutoring company hired some experienced CPAs to help tutor students outside the classroom. When accounting faculty at UF found out about this, they told students anyone who used outside tutoring would be considered cheating and sued the tutoring company for "stealing intellectual property." The tutoring company won in court, but because of money spent on lawyers and legal fees, they had to shut down.
     
  20. AV8R

    AV8R Active Member


    That's just insane. I don't understand why some schools do these things.
     

Share This Page