James M. Kohlmeyer

Online Versus Traditional Accounting Degrees: Perceptions of Public Accounting Professionals

Online education may meet the needs of students who do not want to attend classes or of working adults who want to obtain a college degree. Yet an open question is whether online (OL) degrees meet the needs of employers (Adams & DeFleur, 2006; Columbaro & Monaghan, 2009). Specifically, our exploratory study investigates how professionals in public accounting firms perceive OL accounting degrees as compared to accounting degrees earned in the traditional face-to-face (FTF) environment relative to a hiring decision. To examine these issues, a survey was administered to accountants of small- and large-sized public accounting firms located in the southeast United States. Our results revealed that public accounting professionals, in general, indicate a strong preference to hire students with a traditional FTF accounting degree as opposed to a candidate with an OL accounting degree. Even when both candidates (traditional vs. OL accounting degrees) had passed the CPA examination, public accounting firm professionals still prefer the traditional accounting degree. Yet public accounting firms were more willing to hire a candidate with an OL accounting degree from an Association to Advance Collegiate Schools of Business (AACSB) accredited university than a candidate with an OL accounting degree from a non-AACSB accredited university. Lastly, we found that the preferences for traditional accounting degrees existed across different job titles (e.g. partner, manager, senior) and different sized public accounting firms.

Performance Standards and Managers’ Adoption of Risky Projects

Innovation is the key to competitive advantage, and attaining innovation often requires taking on higher-than-usual levels of risk. Yet, while managers commonly profess support for efforts in innovation, they often emphasize safe, short-term results over more risky, long-term outcomes. As a result, a major challenge to firms is increasing employees’ willingness to adopt risky yet more profitable alternatives. This study uses an experiment to test how the level of performance standard, per se, affect employees’ propensity to take on (more) risky projects. Using participants from the U.S. and Taiwan to represent higher versus lower individualism national cultures, it also examines the effects of national culture on employee actions. The findings are consistent with expectations from combining goal and prospect theories that a specific high standard motivates greater risk taking than a low standard. We find only limited difference between the U.S. and Taiwanese samples’ individualism/collectivism scores, which may help to explain the lack of significant differences between their reactions to the performance standard treatment.

Online Accounting Degrees: Hiring Perceptions of Accounting Professionals

Abstract Purpose Examine hiring preferences of nonpublic accounting professionals when selecting candidates with online versus traditional face-to-face (FTF) accounting degrees. Methodology/approach Surveys. Findings Consistent with Kohlmeyer, Seese, and Sincich (2011), this study revealed that accounting professionals, in general, indicated a strong preference to hire students with a FTF accounting degree as compared to a candidate with an online (OL) accounting degree. However, there were two significant departures from the results of Kohlmeyer et al. (2011). AACSB accreditation did help mitigate the respondents’ reluctance to hire students with OL degrees. In addition, nonpublic accounting professionals were neutral as to whether they would hire someone with an online accounting degree in the next three years. Public accounting professionals opposed hiring someone with an online accounting degree in the next three years (Kohlmeyer et al., 2011). Practical implications Online programs are going to have to be more proactive in persuading accounting professionals that an online and FTF accounting degree are equally desirable for hiring purposes. Social implications Students need to be aware of accounting professionals’ hiring concerns in regard to candidates with online accounting degrees. Originality/value Little research has examined the hiring preferences of accounting professionals in selecting candidates with either an online or FTF accounting degree.

Procedural Justice and Information Sharing During the Budgeting Process

Abstract Purpose Prior studies in accounting argue that subordinates have private information about their areas of responsibility and that revelation of such information benefits the organization. This study investigates factors that encourage subordinates to share this information with their superiors during the budgeting process. According to the proposed theory, the fairness of the budgeting system, specifically its procedural justice, influences the degree of information sharing. If the subordinate believes that budgeting procedures are fair, the subordinate is more likely to disclose private information during the budgeting process. Design/methodology/approach We conduct an anonymous survey of supervisors and managers in four companies. Regression model is developed with information sharing as the dependent variable. Independent variables include procedural justice of budgeting system and also budget participation and organizational commitment, variables that prior studies have identified as important in information sharing. Findings Results support the proposed model in general. The three independent variables (procedural justice, budget participation, commitment) interact in their effect on information sharing. Research limitations/implications Results suggest that companies that seek the private information of subordinates should consider the fairness of the budgeting system. Fair procedures encourage information exchange.

Leadership, Budget Participation, Budgetary Fairness, and Organizational Commitment

This study examines how leadership style, budget participation, and perceptions of budgetary fairness influence an important employee outcome, organizational commitment. In the proposed model, the leadership style of the superior, specifically consideration, is linked to subordinate participation in the budgeting process. Both leadership style and budget participation, in turn, influence employee beliefs about budgetary fairness, that is, beliefs concerning the procedural and distributive justice of the budgeting system. Finally, the justice of the budgeting system and its antecedents (leadership and budget participation) affect organizational commitment. Results from a survey of supervisors and managers in several firms support the proposed model.