Professional Documents
Culture Documents
of Accounting as a Major
Sharifah Sabrina Syed Ali*and Michael Tinggi**
Universiti Malaysia Sarawak (UNIMAS) introduced a new program named Bachelor of
Accountancy in September 2012. It would be interesting to find out what had influenced
the students to accept the offer of accounting as a major. Thus, the objective of this study
is to identify the factors related to the choice of students in accepting the offer of
accounting program in UNIMAS. The study examines the influence of variables such as
past achievements, personal interest, job prospect, family members and peers, and media
on students decision to accept the offer of accounting program, by analyzing the first
batch of accounting students in UNIMAS. The findings reveal that only job prospect has
a significant influence over the students decision to opt for accounting as a major.
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.
The Universiti Malaysia Sarawak (UNIMAS) introduced Accounting program in September
2012. This study examines the impact of factors like past achievements, personal interests, job
prospect, media, family members and peers on the choice of students in accepting the offer of
Accounting as a major in UNIMAS.
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.
*
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
**
Lecturer, Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak,
Malaysia. E-mail: tmichael@feb.unimas.my
Factors
2013 Influencing
IUP. All Rights
the Students
Reserved.Choice of Accounting as a Major
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.
Accepting the
Offer in Accounting
Program
Job or Income
Prospect
Family and Peers
Media
Students
Perception in
Choosing the
Program
Independent Variable
28
Moderating Variable
Dependent Variable
The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, 2013
The following hypotheses were formulated to identify the factors influencing students
decision to accept the offer of accounting as a major.
Hypothesis 1:
H01: Past achievements do not have a significant impact on students choice of accounting
major.
Ha1: Past achievements have a significant impact on students choice of accounting
major.
Hypothesis 2:
H02: Personal interests do not have a significant impact on students choice of accounting
major.
Ha2: Personal interests have a significant impact on students choice of accounting
major.
Hypothesis 3:
H03: Job prospect does not have a significant impact on students choice of accounting
major.
Ha3: Job prospect has a significant impact on students choice of accounting major.
Hypothesis 4:
H04: Family members and peers do not have a significant impact on students choice of
accounting major.
Ha4: Family members and peers have a significant impact on students choice of
accounting major.
Hypothesis 5:
H05: Media does not have a significant impact on students choice of accounting major.
Ha5: Media has a significant impact on students choice of accounting major.
29
Part B Factors Influencing Choice of Accounting as a Major: These factors are measured by
means of Likert scale, ranging from the lowest scale 1 (strongly disagree) to the highest scale 5
(strongly agree). Five factors were identified and tested to determine whether they can influence
the enrollment of students in accounting program, i.e., past achievement, personal interest,
job prospect, family and peers, and media.
Part C Students Perception in Accepting the Offer of Accounting Major: These factors are
also measured using the Likert scale ranging from 1 to 5 to indicate the respondents interest
that led them to accept the accounting program.
Pearson Correlation
0.337
Sig. (2-tailed)
0.034
N
AvgPI
Pearson Correlation
N
AvgFMP
Pearson Correlation
AvgMP
0.008
0.683
**
0.000
40
Pearson Correlation
0.075
Sig. (2-tailed)
0.645
0.412**
40
Sig. (2-tailed)
Note:
Dvavg
40
Sig. (2-tailed)
AvgJP
Dvavg
40
Pearson Correlation
0.301
Sig. (2-tailed)
0.059
40
Pearson Correlation
Sig. (2-tailed)
N
40
The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, 2013
PAi
= Past Achievements
PIi
= Personal Interest
JPi
= Job Prospect
MPi
= Media
i
= Error term, and
the subscript i indexes a particular
observation
The results of the regression
analysis show that there is a fairly
strong linear relationship (Figure 2)
between the independent variables
and the dependent variable.
Table 2 shows that overall, there
is significant influence of the
independent variables on the
dependent variable as depicted by the
F-statistic (6.790, p= 0.000 < 0.01).
1.0
Expected Cum. Prob.
0.8
0.6
0.4
0.2
0
0.2
0.4
0.6
0.8
1.0
Sum of Squares
df
Mean Square
F-Statistic
Sig.
Regression
5.658
1.132
6.790
0.000a
Residual
5.666
34
0.167
Total
11.324
39
Note:
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
Model
Coefficients
Coefficients
Beta
(Constant)
2.147
Sig.
4.275
0.000
Collinearity Statistics
Tolerance
VIF
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
AvgFMP
0.063
0.089
0.677
0.503
0.856
1.168
AvgMP
0.096
0.150
1.035
0.308
0.704
1.421
Regression Summary
Model
Adjusted-R2
R2
0.707
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).
Table 4: Reliability Statistics
Cronbachs Alpha
0.856
32
No. of Items
0.867
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The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, 2013
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).
Table 5: Results of ANOVA Between Parents Educational Level
and the Independent Variables
AvgPA
AvgPI
AvgJP
AvgFMP
AvgMP
Sum of Squares
df
Between Groups
2.265
0.566
Within Groups
9.494
35
0.271
Total
11.759
39
Between Groups
2.343
0.586
Within Groups
19.173
35
0.548
Total
21.516
39
Between Groups
3.563
0.891
Within Groups
14.641
35
0.418
Total
18.204
39
Between Groups
1.517
0.379
Within Groups
21.114
35
0.603
Total
22.631
39
Between Groups
2.449
0.612
Within Groups
24.907
35
0.712
Total
27.356
39
Sig.
2.087
0.103
1.069
0.386
2.130
0.098
0.629
0.645
0.860
0.497
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.
2.
3.
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The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, 2013
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.
Easterlin R A (1995), Preferences and Prices in Choice of Career: The Switch to Business,
1972-87, Journal of Economic Behavior and Organization, Vol. 27, No. 1,
pp. 1-34.
7.
8.
9.
Galotti Kathleen M and Kozberg Steven F (1987), Older Adolescents Thinking About
Academic/Vocational and Interpersonal Commitments, Journal of Youth and
Adolescence, Vol. 16, 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.
11.
12.
13.
14.
Kenny M E, Blustein D L, Chaves A et al. (2003), The Role of Perceived Barriers and
Relational Support in the Educational and Vocational Lives of Urban High School
Students, Journal of Counseling Psychology, Vol. 50, pp. 142-155.
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.
17.
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.
35
20.
Macionis John J (2000), Society: The Basics, Prentice Hall, Upper Saddle River,
New Jersey.
21.
22.
23.
24.
Olitsky N H (2009), Academic Achievement and the College Major Earnings, University
of Massachusetts Dartmouth.
25.
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.
27.
28.
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,
pp. 167-187.
30.
31.
32.
33.
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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.
Part A: Demographic Profile
2.
Gender
( ) Male
( ) Female
3.
Age
( ) 18-19
( ) 20-21
( ) 21 and Above
4.
Race
( ) Malay
( ) Chinese
( ) Indian
( ) Other, please specify: __________
37
Appendix (Cont.)
5.
6.
Fathers Occupation
( ) Own Business
( ) Private Sector Employee
( ) Government Servant
( ) Other, please specify: __________
7.
Mothers Occupation
( ) Own Business
( ) Private Sector Employee
( ) Government Servant
( ) Housewife or other, please specify: __________
8.
9.
38
The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, 2013
Appendix (Cont.)
Part B: Factors Influencing Choice of Accounting as a Major
Please circle the appropriate number that indicates your level of agreement.
1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
I chose accounting as my major because:
Strongly
Disagree
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.
40
The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, 2013
Appendix (Cont.)
Strongly
Disagree
Disagree
Neutral
Agree Strongly
Agree
Part C: Students Perception with Regard to Accepting the Offer of Accountancy Program
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
41
Appendix (Cont.)
Strongly
Disagree
Disagree
Neutral
Agree Strongly
Agree
Reference # 09J-2013-10-02-01
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The IUP Journal of Accounting Research & Audit Practices, Vol. XII, No. 4, 2013
Reproduced with permission of the copyright owner. Further reproduction prohibited without
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