CHAPTER I

INTRODUCTION

The Problem: Rationale and Background

The Bachelor of Science in Accountancy program is a rigorous course of

study that prepares students for a variety of careers in the field of accounting. This

program is being offered at Phinma- Cagayan de Oro College under the guidance of the

College of Management and Accountancy department, this program offers a lot to

students such as but not limited to accounting. As defined by the American Association

of Accountants, Accounting is the process of identifying, measuring, and communicating

economic information to permit informed judgments and decisions by users of the

information. A degree in accountancy can open up a wide range of career opportunities,

not just in accounting firms but also in corporate finance, government agencies, non-

profit organizations, and more. Baysa and Lupisan (2011) also defined accounting as a

service activity and its main function is to provide quantitative information, primarily

financial in nature, about economic entities that is intended to be useful in making

economic decisions. Furthermore, there are four (4) major fields of accountancy that a

BSA graduate can pursue as a career, namely: public accounting, private accounting,

government accounting and accounting education (academe). This makes

Accountancy one of the most in demand profession in today’s fast pacing and

globalized world.

The current Bachelor of Science in Accountancy (BSA) curriculum adopts the

latest CHED MEMORANDUM ORDER NO. 27 Series of 2017, based on the

International Education Standards which focuses on equipping students to

meet the competencies required in the workplace of such profession within or

outside the Philippines. For some universities in the country, it is a 4 – year course

program or an 11-trimester course (3 years plus 2 semesters) that is equivalent to a 5-

year course in a semestral setting. The prestigious program prepares students to be

disciplined and educated accountants by taking the Certified Public Accountants

Licensure Examination (CPALE).

The complexity of accounting tasks requires a high level of knowledge and skill.

In essence, the rigorous standards in accountancy are there to ensure that accountants

are well-prepared to handle the complexities and responsibilities of their role. As

mentioned, accounting is a challenging course that requires a high level of precision,

understanding of complex concepts, and a strong mathematical foundation. Some

students might find the difficulty level more than they anticipated. Hence, this and along

with other factors could be the reason why accountancy students tend to shift to other

programs. There are variety of reasons why Bachelor of Science in Accountancy

students shift to other programs contrary to their original one. The challenges in the

accounting program are not purely on the struggles of the students. There are other

factors worth considering. A few common factors in relation to this are academic

burnout, financial challenges, the retention policy set by the school, and the course

difficulties. By tackling this issue within the accountancy program, we can guarantee

that students receive the necessary assistance for their success. Hence, the

researchers took an interest in conducting this research to delve into this topic and run
down the problem to unravel the factors and reasons why there is a concerning

decrease in the number of students enrolled in Bachelor of Science in Accountancy.

One factor to look into is the Academic Burnout. It is used in the study of Rana,

H. (2016) that burnout pressure leads to frustration and students become emotionally

exhausted and inefficient which lowers their academic performance. This can make

students feel like they are not suited to their current degree, prompting them to switch to

a different field where they believe they might perform better. Another factor worth

considering is the financial challenges. When entering educational institutions

particularly the private colleges and universities, costs are highly anticipated to the point

that finishing degree/s on time is ultimately a goal. The difficulty of the course makes

students end up shifting to another program because they cannot withstand the

demands of accountancy or if they decide to continue, they incur additional cost &

additional years to retake the subjects that did not meet the required range of grades

and this affects the students' time to finish college. Northern, O’Brien, & Goetz (2010),

together with the academic workloads faced by students, pressure put by financial

problems is a serious problem in a student's decision-making process. Furthermore,

retention policies could also be an underlying reason why accountancy students tend to

shift to other degree. The Retention policy is a set of guidelines by the department of a

course program usually for major subjects in order for students to comply with such

requirements and thrive to stay and to maintain one’s self in the program. Dr. Robert

Jones (April 2008) states that “Student retention refers to the extent to which learners

remain within a higher education institution, and complete a program of study in a

predetermined time-period.” The students’ decision to shift to other programs is driven

by the fact that the retention policy can create a sense of stagnation and a desire for a

change of environment. Retention policies may prompt students to reassess their career

or academic interests. Lastly and probably the most obvious factor is the course

difficulties. As cited by Uy,Alenton, Zanoria & Etulle (2014) accountancy students have

to endure four to five years of highly technical groundwork and skills development in

preparation for an exhaustingly difficult licensure examination. Many students decide to

switch their courses mainly because they find it tough to meet academic requirements,

especially struggling to pass their subjects. The difficulty of academic subjects is a big

reason why students leave a particular program.

With this information and the alarming low number of graduates of PHINMA-

Cagayan de Oro College and the rest of educational institution within the country, the

researchers decided to conduct a study of the factors that influence the decisions of

BSA students to shift to other programs. By giving attention to this, it allows for a closer

examination of factors that contribute to shifting and potential improvements that can be

made.

Statement of the Problem

With the current development of the economy with many emerging businesses

that thrive for a large standing on the market and the business industry, accountants

play a very big role on helping companies on how they work well with their resources

and the assessment of their performances. With this, it makes accountant one of the

highest demand jobs that the companies sought for. According to the article entitled

Numbers that Count by Torres (2018), among the students in the Philippines, many

students show great interest in pursuing accountancy, data showed that in the span of
years from 2015-2017, there were about 160,622 enrollees in the Accountancy program

under the CHED-registered institutions. Sadly, on this the same period, only 23,225

students or roughly 14.46% of these enrollees graduated. According to a report

published by CNN News Philippines (2023), a group of certified public accountants

stated that the nation is experiencing a scarcity of accountants as college enrollment in

this field of study has decreased and those who are credentialed have chosen to work

overseas. The Philippine Institute of Certified Public Accountants (PICPA) claimed that

non-certified public accountants were being hired by local accounting firms to address

the growing gap that began five years ago after they reached a tipping point. However,

why is the scarcity of accountants concerning? Accountants oversee financial reporting

and procedures while making sure regulations are followed and business ethics and

accountability may suffer if this workforce scarcity persists. As quoted by Kachelmeier

(2023) that lack of accountants is like playing sports without a referee, what those in

black-and-white striped jerseys are to sports, accountants and auditors are to business.

Accountants serve as the industry referees. The game has no rules without accounting

and finance, it's like playing a game where you make up the rules as you go along. With

the decreasing number of graduates and enrollees of the accountancy program all

across the Philippines and the alarming shortage of accountants in the country, this

study aims to sight factors and their influences on why accountancy student's decision

to shift to another programs. The study specifically identifies the following:

1. Which factor (personal and academic demand) have more significant effect in

student’s decision in shifting?

 2. What subfactor (academic burnout, peer and parental pressure, financial

challenges, retention policy, frequent testing and course difficulties) has a

major influence on students in deciding to change their program?

Hypotheses

The hypotheses in the problems stated above are tested at 0.05 level of

significance.

H01: Academic burnout does not significantly affect the likelihood of accountancy

students shifting to another program.

H02: Peer and parental pressure do not significantly affect the likelihood of accountancy

students shifting to another program

H03: Financial challenges do not significantly affect the likelihood of accountancy

students shifting to another program.

H04: Retention policy does not significantly affect the likelihood of accountancy students

shifting to another program.

H05: Frequent testing does not significantly affect the likelihood of accountancy students

shifting to another program.

H06: Course difficulties do not significantly affect the likelihood of accountancy students

shifting to another program.

Ha1: Academic burnout significantly affects the likelihood of accountancy students

shifting to another program

Ha2: Peer and parental pressure significantly affect the likelihood of accountancy

students shifting to another program.

Ha3: Financial challenges significantly affect the likelihood of accountancy students

shifting to another program.

Ha4: Retention policy significantly affects the likelihood of accountancy students shifting

to another program.

Ha5: Frequent testing significantly affects the likelihood of accountancy students shifting

to another program.

Ha6: Course difficulties significantly affect the likelihood of accountancy students shifting

to another program.

Theoretical Framework

The researchers would be utilizing the existing studies of Charles A. Malgwi,

Martha A. Howe and Priscilla A. Burnaby entitled "Influences on Students' Choice of

College Major" (2005), and the study conducted by Maram Jaradat, Ed.D named

"Reasons Influence Students' Decision to Change College Majors" (2017). The

researchers will be maximizing the data presented on these studies as a guide on

formulating the framework and the relevant survey questionnaires. The studies

mentioned above presented 3 factors (Personal and Course Preferences, Influential

Issues, and Job Issues) and with this, the researchers extracted relevant factors to use

in this study's own framework. Under these 3 factors presented, the researchers

formulated two relevant factors which is personal and academic demand factors that

includes 3 subfactors each. After the presentation of the 2 factors extracted from the
existing framework, the researchers would survey the student respondents on

discovering the weight of these factors on their decision to shift to another program by

using a Likert Scale. After these procedures, it will then be arranged from least

influential to most influential factor and subfactors (see chart 1.0 for visualization).
 Academic Burnout

What Factors that  Loss of

influence students in interest/motivation
shifting programs?  Introductory Courses

Peer and Parental Pressure

 Parent/Guardian Influence
PERSONAL
 Discussion with other
FACTORS Students

Financial Challenges
 Presence of Job
Opportunities
 Family’s Financial Capacity Rank
factors to
Retention Policy most to
least
 Comprehensive Examination Influential
 Cut-off grades

ACADEMIC Frequent Testing

DEMAND
FACTORS  Timing of Assessments

Course Difficulties
 Level of difficulty
 Influence of Instructors

CHART 1.0
Conceptual Framework

PERSONAL

 Burnout
1. Loss of
Interest/Motivation
2. Introductory Courses
 Peer and Parental Pressure
1. Parent/Guardian
Influence
2. Discussion with other
students
 Financial Challenges
1. Presence of Job
Opportunities
2. Family’s Financial
Capacity
Student’s decision to shift to another
program.

ACADEMIC

 Retention Policy
1. Comprehensive
Examinations
2. Cut-off Grades
 Frequent Examination
1. Timing of Assessments
 Course Difficulty
1. Level of Difficulty
2. Influence of Instructors

CHART 1.1

The figure above showcases the relationship of the variables of the study. It

interpreted the researchers' hypothesis regarding the causes and influencing factors

behind students' decisions to transition from Accountancy to other programs in college.

The conceptual framework draws inspiration from prior studies conducted by by Malgwi

et al. (2005) and Jaradat (2017), as cited in the study of Buenaventura et.al (2022),
which incorporated factors impacting students' decision to shift to another program.

Additionally, the researchers structured the factors into two categories: personal and

academic. These factors were further detailed into three subfactors each. Within the

personal factors category, the elements include burnout, peer and parental pressure,

and financial challenges. On the academic front, the factors encompass retention policy,

frequent examinations, and course difficulty. These considerations collectively

contributed to students' decision-making processes when contemplating a change in

their college program.

Significance of the Study

The researchers' main goal of this study is to examine the factors affecting the

change of program of the BSA students of PHINMA- Cagayan de Oro College. The BSA

students' perspective, experiences, and sentiments are highly valued. The outcome of

this study is relevant to the following:

Incoming freshmen students - The results of the study will give them background

before pursuing the BSA program. It may aid their decisions and perspective about the

BSA program and will avoid them being indecisive of choosing the said program. This

study can also help them in adjusting in the first year of their college lives.

School administration - The results of the study will provide reasons as to where and

what aspect can the school help to support students in the Accountancy program to

produce more competent accounting professionals in the future.

The Researchers - The outcome of the study will serve them as guidance to enlighten

their knowledge about the BSA/BSMA program. It will also give them a grasp as to why
their fellow students and batchmates tend to shift and can also compare if the variables

presented are applicable to the BSMA researchers.

Future Researchers - The outcome of the study will be beneficial to the future

researchers. This study could be used as their basis for their literature review and future

variables and questions to be considered.

Scope and Limitations of the Study

This research will be focusing on former Bachelor of Science in Accountancy

students of PHINMA-Cagayan de Oro College- Carmen Campus who transferred to

Bachelor of Science in Management Accounting. The research is limited and will only

focus to those enrolled 3rd year to 4th year former accountancy students of academic

year 2023-2024 who transferred to Bachelor of Science in Management Accounting

program. This limitation was applied considering the limited or declined access of data

from the PHINMA-COC registrar's office that can provide the whereabouts of those

shiftees outside the accountancy department. Due to the lack of first-year BS

Management Accounting students and the extremely low number of second-year

shiftees, first and second year shiftees are likewise not included in the target

respondents. Hence, the survey may or may not reach the whole population.

Additionally, as this research is conducted in PHINMA-Cagayan de Oro College, the

data and results from this study may or may not be the same to other academic

programs from the different academic institutions within the Philippines.

Definition of Terms

To have a better comprehension of the terms used in this research, The

operational definitions of the following terms are provided.

Academic burnout- it happens when students are suffering from many problems in

their institutes, due to the burden of work and technological changes they are getting

stressed and facing burnout syndrome. (Rana, 2016)

Academic Performance - Academic performance is described as the academic grades

and performance of students in exams. (Martha, 2005)

Board of Accountancy (BoA) - The government office of the accountancy profession

in the Philippines tasked to regulate the profession, that includes the accounting and

auditing standard setting. The Professional Regulatory Board of Accountancy,

hereinafter referred to as Board, under the supervision and administrative control of the

Professional Regulation Commission. (R.A. 9298)

Course- A course is a collection of topics that forms a coherent whole, intended to be

taught by a faculty member within a specific number of hours in a semester. A subject is

also referred to as a course. (University of the Philippines Academic Information)

Financial Factors - this term refers to the economic considerations that might influence

a student's decision to shift programs, such as tuition fees, living expenses, and

potential future earnings. (Scholarship America, 2019)

Opportunity cost - is the value of what you give up when you choose one option over

another. It's the benefits you could have had from the next best alternative. (Managerial

Accounting by Hansen and Mowen, 8th edition)

Peer and Parental pressure- Students were shifting programs because of their

discussions with other students and parents about their current majors. (Jaradat, 2017)

Program- The name or title of a program consists of the degree (e.g., BS) and the

discipline or field of study (e.g., Business Administration). It is also called an academic

program, degree program, or curricular program. (University of the Philippines

Academic Information)

Retention policy- These are the required grades that need to be maintained.

Otherwise, the course subject will have to be retaken. (Lyceum of the Philippines, 2010)

Testing- It is termed as quizzes, assessments and examinations. An application of a

standard scale or measuring tool to determine the degree to which educationally

valuable knowledge, skills, and abilities have been acquired. (Zapata-Rivera, 2010)

Zero-based grading system - In zero-based grading, students start with a grade of

zero and must demonstrate their mastery of the material through assessments and

assignments. (The EduTinker, 2023)