A Shortage of Accounting Ph.D. Candidates and its Effect on Universities

Abstract

According to The Pathways Commission’s (sponsored by the American Accounting Association (AAA) and the American Institute of Certified Public Accountants (AICPA)) July 2012 report, the shortage in tenure-track accounting faculty continues to be well documented and has become a concern. Based on various studies conducted, there is substantial evidence that a shortage of Ph.D. faculty does exist and that this shortage may continue to increase. In addition, authors Ruff, Thibodeau, Bedard, and The Pathways Commission report, document that, as a result of the average full-time faculty members’ age, rate of retirements has been increasing while the accounting Ph.D. graduates is moving at a slower pace. Due to the low supply of potential faculty members, studies show that there has been a substantial increase in salary. Given these conditions, why is there is a shortage and is this shortage really considered an opportunity or predicament for potential accounting Ph.D. candidates? The incentives, benefits, difficulties, and students’ perception of obtaining a Ph.D. in accounting and the various uncertainties Ph.D. candidates in an accounting program face will be the focus of this paper. In addition, this paper will examine costs to both universities as well as potential Ph.D. candidates. Proposals and recommendations addressing these challenges will also be addressed.