Information Systems/Artificial Intelligence and Emerging

Technologies SectionsJanuary 11, 2008 – Redondo Beach, CA

Sue Haka, President-elect (suehaka@msu.edu )

Challenges & Opportunities• Lack of adequate data about accounting programs & faculty, about

the profession, and for purposes of research;

• Decrease in full-time faculty positions in accounting and PhD shortage;

• Increased challenges to accounting as an academic discipline

• Impact of technology on development and distribution of intellectual property, teaching, and conducting scholarship

• Globalization, associated regulations, and impact on accounting

Future of Accounting Faculty and Programs Project

• Data collection project on the accounting academic workforce– Status and comparisons

• Partnership with the AICPA• Final report – January 2008• Based on data from National Study of Postsecondary

Faculty (NSOPF)• Next steps – information on programs, curricula, faculty

AAA and AICPA commissioned research by David Leslie using the National Study of Postsecondary Faculty (NSOPF) data base shows:

• The total number of accounting faculty (all institutions, all ranks) declined an estimated 13.3% between 1993 and 2004.

• Most serious loss of full-time faculty has occurred at 4-year, non-doctoral-granting universities – amounting to 31% of the 1993 total.

• Student (undergraduate) enrollment has increased 12.33% over the same period.

(Based on testimony by David Leslie at Treasury Department Hearings December 2, 2007 http://www.treas.gov/offices/domestic-finance/acap/submissions/12032007/ )

Table 3: Number of all accounting faculty at all types of institutions (including 2-year) by tenure status, and percent change from 1993 to 2004.

-13.3%17,61017,40020,321Total

-9.8%10,92211,10012,112Not Eligible

-19.9%1,9091,4002,384On-Track

-18.0%4,7794,9005,825Tenured

% Change

200419991993

Table 1: NSOPF estimated number of full-time, tenure eligible faculty in accounting and all other business fields, 1993 – 2004. (Institutions offering baccalaureate degrees and higher.)

+20.20%20,35216,02716,933

All other business

fields.

-19.11%512145556331Accounting

% Change

200419991993

In contrast, business fields other than accounting have added substantial numbers during the same period (also see Fogarty & Markarian, IAE, 2007).

Table 4: Estimated (total) undergraduate enrollment in accounting (AICPA) and net change, 1999-00 to 2003-04.

12.33%143,735 141,175133,435134,775127,960Estimated (total) under-graduate enrollment

% Change

2003-04 2002-032001-022000-011999-00Year

During the same time, the aggregate number of students per faculty member in accounting has increased from 20.5:1 to over 28:1.

Does Your Classroom Look Like This??????????—mine is packed!

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25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79

U.S. Accounting Academics -- 53.4% are 55 or older

Per birth date estimate analysis – J.R. Hasselback 2007

(n = 3082 represented in this data analysis exercise)

Figure 8: NSOPF estimated number (1000's) of male accounting faculty under age 40 and over age 55, 1993 - 2004

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Linear (Over age 55)

Figure 9: NSOPF estimated number (1000's) of female accounting faculty under age 40 and over age 55, 1993 - 2004.

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Demographics of Professoriate Show:

• The number of accounting faculty are declining

• A large majority of current faculty are near retirement

• The number of students enrolled in accounting is increasing

• What about the supply side of the professoriate

Figure 10: Average annual production of Ph.D.'s in accounting

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1980-84 1985-89 1990-94 1995-99 2000-04 2005

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Ph.D. production has remained relatively steady at roughly 140 per year (with annual fluctuations) over the past 10 years.

Additional data from (Fogarty & Markarian, IAE, 2007, 153)

Conclusion by David Leslie to Treasury committee:

Demand for replacement faculty in accounting is estimated at roughly 500 per year for the next 5 – 10 years, while available supply is estimated to be about half of that.

• Accounting’s place in the academy is in question--Tuttle and Dillard (2007, p. 396, Accounting Horizons) show a drop in diversity of accounting research:

• More evidence (2007, p. 398)

“Publishing in the Majors…” Swanson (Contemporary Accounting Research 2007 p. 247) shows accounting research productivity is lower than other disciplines

Other Related Business School Issues:

• Dominance of the MBA

• Accounting’s role in the MBA

• Financial pressures (and accounting salaries are relatively high)

• Minimization of PhD support (Fogarty & Markarian 2007)

Faculty Demographics

PhD Demographics

Business School Factors

Accounting Research Issues

• How to move forward?

A new AAA long-run strategic initiative starting with a

common vision

Our mission is straightforward. . .

We bring together the academic community to further accounting education and to advance the discipline and profession of accounting.

Developing a Shared VisionAAA Executive Committee

Council/Section/Region Leadership

We achieve our mission through four focused areas of activity

Expanding Knowledge and Idea

Development

Expanding Knowledge and Idea

Development

Promoting Effective Learning

Promoting Effective Learning

Informing and Influencing

Policy & Practice

Informing and Influencing

Policy & Practice

Advancing Faculty Careers

Advancing Faculty Careers

Three Related Major Strategic Initiatives:

• Membership Growth

• Member Value Proposition

• AAACommons Platform

Member Group / Area of Focus

PhD Students They are the future of the AAA and critical for its growth.

Faculty at institutions with fewer graduate programs

Colleagues with workloads more heavily focused in teaching than research.

Non-tenure track faculty

They are growing in numbers and currently have many unmet needs.

High Growth

Potential

International Members International members can provide significant value to AAA. Potential is high, particularly in emerging economies.

Supporting discovery development and dissemination of knowledge and ideas through scholarship

Advocating innovation and development in accounting education

Using ideas and knowledge to inform and influence policy and practice

Support and Foster the Origination of Ideas and

Knowledge

Teaching

Research

Administration

Interaction with Practice

Principal Sources for Member and Institution Development and Career

Success

AAACommonsIntegrated Platform Plans

AAAJournals AAAPubs AccountingCommons

AAA Journals Assoc-wide & Section

New journals – CIIA and MAS Cases

Experimental journals

Proceedings Podcasts

Working papers Collaborative tools MySpace for Faculty

Case database Teaching materials database

Interactive Social Networking Platform

Connecting the accounting education community

Full AAA brand Active AAA brand Variable brand “In partnership with the AAA”

Su

bsc

rip

tio

nO

pen

Access

From publications to interactive platform

• Three Association-wide journals• Electronic access now AAA member default• 10 Section journals (3 electronic only)• Renewing monograph series (Studies in Accounting

Research-contact Arnie Wright a.wright@neu.edu )• New journal platform launched in 2006• Launch of new format electronic journal

Current Issues in Auditing – Auditing Section partnership

• Advancing dialogue between academics and practitioners on current issues facing the auditing practice community.

•Short papers authored by academics, practitioners, and regulators

•Addressing timely, substantive, relevant issues

•Maximum 2,500 words of text and should not include complex statistics or models.

•Effective, concise writing style

More strategic projects• Environmental Scanning Task Force-

focusing on International Issues• Joint FSA/AAA Subcommittee to develop

financial valuation teaching materials– Chaired by Mary Stone

• Expanding Placement services• Developing relationships to secure access to

data for research • Research Impact Task Force

1500

1700

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3100

2004 2005 2006 2007

Annual Meeting Attendance Growth Trend

Orlando San Francisco Washington DC Chicago

Breadth in the AnnualMeeting Program Sessions

2002San Ant.

2003Hawai’i

2004ORL

2005SF

2006DC

2007CHI

Papers X X X X X XPanels X X X X X XCPE X X X X X XResearch Forum* X X X X X XEffective LearningStrategies Forum

X X X X X

New Scholars Concurrents

X X X

Ed Comm Sessions X X X

E&I Research Forum X XExpanded

practice/educ. panelsX X

You Can Make A Difference• The strategy is intended to benefit current members of

the AAA and those who will join us in the future (http://aaahq.org/about/AAAShareVisionDocumentJan08fnl_4_.pdf )

• Its ultimate success will depend on you to: – Share ideas– Contribute to the strategic initiatives– Support and drive implementation– If you are asked to participate, please do. Better yet, volunteer to

help where you have the interest and the skills to make a contribution.

• How to get involved:– Contact your Section or Region leadership– Contact AAA Headquarters– Contact any member of the Executive Committee