Toward a Successful Model of Recruiting African-American Students into the Accounting Profession
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1 Toward a Successful Model of Recruiting African-American Students into the Accounting Profession Kevin L. James Middle Tennessee State University kjames@mtsu.edu
2 ABSTRACT While the AICPA and accounting firms have recognized that an ethnically diverse profession will be better able to serve its clients, diversity gains have been meager over the last 35 years. This fact may be due in part to career choices made by African-American students. The current study uses social cognitive career theory (SCCT) as a theoretical framework to set forth five propositions for why traditional recruiting of African-American students may not be successful. Research is needed to understand what factors hinder African Americans entrance into the profession so those barriers can be directly addressed by diversity efforts. This paper makes several suggestions for research that may help advance this goal. 1
3 Toward a Successful Model of Recruiting African-American Students into the Accounting Profession INTRODUCTION In the late 1960s the American Institute of Certified Public Accountants undertook national initiatives to increase minority representation in the accounting profession. These initiatives continue today and have included scholarships, doctoral fellowships, and faculty development seminars [13]. In the last 35 years the chief purpose of diversity initiatives has changed from one of providing access to the profession in response to the civil rights movement to recognition that diversity makes good business sense [22]. The AICPA and accounting firms have recognized that an ethnically diverse profession will be better able to serve its clients as minorities grow to comprise a greater percentage of U.S. business owners and of the United States population. Despite this extended effort toward diversification, gains have been meager and some evidence suggests that the profession has even lost ground in recent years with respect to increasing African-American representation. For example, Mitchell and Flintall [35] stated that while the number of African-Americans who achieved CPA certification increased from 1968 to 1989, there was no improvement proportionately, with the overall percentage of African- American CPAs remaining less than 1%. More recently, Hammond and Paige [22] reported that while Hispanic representation in accounting had increased, African-American representation in nonminority-owned CPA firms declined from 1.8% to 1.4% between 1976 and Evidence from Nelson et al. [36] also reflects a decline in the number of African-American students majoring in accounting between 1995 and While Hermanson et al. [24] report the results of a study that suggests ethnic minorities taken as a whole are being hired in proportions consistent with the overall population, a closer look at their sample shows overrepresentation of Asian-American entrants and an underrepresentation of both African-American and Hispanic- American entrants. Baker and Nowak [3] also report data consistent with underrepresentation of African-Americans and Hispanic Americans in accounting compared to their percentages in the U.S. population. Finally, recent data from the AICPA [2] show that African Americans comprised only seven percent of new accounting graduates and only three percent new hires by CPA firms in academic year The purpose of the current paper is to set forth propositions for why recruiting of African-Americans into accounting has not succeeded in hopes that these propositions will be provocative enough to stimulate empirical research of their value. THEORY AND PROPOSITIONS Past studies have examined whether African-Americans are less able to succeed in accounting courses than Caucasian Americans [4][9][21][42]. These studies suggest that African-American students are no less capable of success, but that their success varies with indicators that also affect majority students such as ACT score, high school GPA, and personal expectations of success. Since the lack of recruiting success cannot be traced to lack of ability, it seems likely due to career choices made by African-American students or barriers that restrict entrance into the profession when African Americans choose accounting. The focus of this study is career choice. While restrictive barriers may exist, they are only considered here to the extent that they affect career choice. The current study uses social cognitive career theory (SCCT) as a theoretical framework to set forth five propositions for why traditional recruiting of 2
4 African-American students may not be successful. These propositions are rooted in factors that may differentially affect African-American and Caucasian students career choices. Theoretical Framework SCCT focuses on the interrelationships between key variables involved in students career choices and subsequent career development. Developed by Lent et al. [31], this framework synthesizes and builds conceptual linkages between diverse career theories. A stated purpose in developing the framework is to provide a common conceptual structure for studying and promoting occupational behavior. The framework intends to include development of academic interests as well as subsequent career choices and career development. SCCT contains three interrelated models: an interest development model, a choice model and a performance model. The current study uses the SCCT choice model to develop propositions. The interest model is not explicitly considered here because it is fully incorporated into the choice model. The performance model focuses primarily on achieving performance goals after career choices have been made while this study focuses on processes leading up to career choice. The SCCT choice model has been tested and shown to be a good fit to the career choice process in a variety of contexts. Two studies have examined applicability of the model specifically to African Americans. Gainor and Lent [19] examined the utility of the SCCT choice model in predicting math choice intentions of African American college students. This study was predicated on the idea that students who pursue math courses gain access to a range of desirable careers. Results supported applicability of the model for explaining math-related interests and choices. Lent et al. [32] applied the model in an engineering context at both historically Black and predominantly White universities. The model was found to be predictive across university type suggesting the model is applicable for both African American and Caucasian students. Considering these results, the SCCT choice model seems appropriate for studying African American students choices of accounting as a college major and career. The SCCT choice model is depicted in Figure 1 at the end of this paper. The model contains two key personal variables that help determine career choice: self-efficacy and outcome expectations. These personal variables develop from collective learning experiences throughout childhood and adolescence and up to the point of decision. Self-efficacy refers to a person s beliefs about their ability to attain certain career-related achievements. These beliefs are specific to particular performance domains and depend heavily on success and failure experiences within each domain. Outcome expectations are personal beliefs about the consequences of performing certain behaviors. This construct can be viewed as having two components: a person s work values and his or her perceptions of the likely outcomes of a career choice. Thus, a person is likely to develop interests in a particular career if there is a match between the perceived outcomes of choosing a particular career and the outcomes he or she highly values in a work context. Thus, SCCT posits that people will develop lasting interest in a career when they view the career as leading to valued outcomes and they view themselves as competent at the required skills. Interest in turn promotes development of goals to become involved in the particular activity. These goals then lead to the selection and practice of a career. In addition to key variables, SCCT proposes that contextual influences may impact key variables and relationships within the model. These contextual influences can be divided into two broad categories. Distal influences are those more distant from the decision point which shape learning experiences, social cognitions and, ultimately, interests. These influences may include 3
5 factors like early skill development and cultural socialization. Proximal influences are near the decision point and may moderate the relationship between career interests, goals and choice. These influences may include factors like job availability or financial support for a particular career option. Theoretical Propositions The following theoretical propositions incorporate both key variables and contextual influences. The predicted effect of these propositions on the SCCT choice model is shown in Figure 2 at the end of this paper. The first two propositions are based on the key variables of selfefficacy and outcome expectations. The remaining propositions are based on specific contextual influences that are expected to impact African-American students decisions of whether to pursue accounting as a career. Propositions Based on Key Variables Proposition 1: Low self-efficacy for the perceived skills necessary for accounting may cause African-American students to avoid accounting as a career. As noted above, self-efficacy is domain-specific. A person may have high self-efficacy for some possible career choices and low self-efficacy for others. No research has examined the self-efficacy of Black students in the accounting domain. However, the broader construct of personal efficacy may have implications for self-efficacy in accounting. Personal efficacy is a general feeling of competence, personal control and confidence in managing one s life. This construct is similar to self-efficacy but related to life in general rather than a specific performance domain. As such, personal efficacy may impact self-efficacy in a number of different occupational domains. Sociology literature has found that African Americans score lower than Caucasians on personal efficacy measures [27]. Similar to self-efficacy, development of high personal efficacy depends greatly on successful performance experiences. Research suggests that institutional inequality may deprive African Americans of the opportunities for successful experiences that would enable them to feel efficacious. Institutional inequality does not denote intentional racism but perpetuation of institutional systems that, whether intentionally or unintentionally, have discriminatory impact. This institutional discrimination leaves many African Americans with very limited opportunity to feel powerful and autonomous such that efficacy will develop [20][27]. Low personal efficacy may cause African Americans to have low self-efficacy in a number of occupational domains, particularly domains that are perceived to be challenging or those with low African American representation. While personal efficacy research suggests African Americans may have low self-efficacy for accounting, additional research creates some ambiguity about whether to expect low selfefficacy. Results from Ellis and Ryan [15], which studies race and self-efficacy in the context of cognitive ability test performance, show higher self-efficacy among African Americans than Caucasians. The authors propose this result may be driven by differences in self-esteem. Interestingly, while African Americans score low on personal efficacy compared to Caucasians, they tend to score higher than Caucasians on self-esteem measures. Self-esteem is a distinct construct which denotes one s belief in his/her own virtue or one s satisfaction with himself/herself. Measures on this construct normally correlate with personal efficacy but do not 4
6 for African Americans. This appears to be because appraisals important to African American self-esteem are those of family, friends and community members as opposed to institutional factors important to personal efficacy [27]. Ellis and Ryan propose that cognitive ability scores may be highly connected to one s sense of self-worth resulting in self-efficacy in this particular domain being driven by self esteem levels. If this is the case, such an effect seems more likely to occur in a general cognitive ability context than in a specific occupational domain such as accounting. While it seems inconsistent to have a high assessment of one s worth but a low expectation of overall cognitive ability, it is not necessarily inconsistent to have a high evaluation of one s worth and not feel capable in certain occupations. In other words, a person with high self-esteem is unlikely to say, I m not very smart, but may say I m not smart at accounting, but I am smart in many other areas. Gaffney et al. [18] measure expectations of accounting career success among Black accounting majors and find them more optimistic than White accounting majors. This result appears to suggest that self-efficacy for African-Americans in accounting may be high. However, 70% of the African American participants in this study were from a predominantly African American university. Because efficacy is strongly linked to institutional experiences, sample selection may have affected students expectations. Specifically, if low personal efficacy is caused by institutional inequality, predominately African American institutions may negate feelings of low efficacy by providing an institutional environment where African Americans have greater opportunity for successful experiences that lead to efficacy. Hence, high selfefficacy in this study may not indicate high self-efficacy for accounting in the general Black student population. Additional research is needed to more fully understand this construct as it applies to African-American students. Proposition 2: Differences in the extent to which work values match perceived outcomes may lead African-American students to choose careers other than accounting. Outcome expectations are personal beliefs about the consequences of pursuing a particular career. This construct can be viewed as having two components: a person s work values and his or her perceptions of the likely outcomes of a career choice. A person is likely to develop interests in a particular career if there is a match between work values and the perceived outcomes of choosing a particular career. Research suggests that African Americans and Caucasians may hold different work values, or they may prioritize work values differently [8]. These differences may affect the likelihood of choosing accounting as a career. Alternatively, differences may exist in the perceived outcomes of a career in accounting each race holds which may also affect career choice. Both work values and perceptions accounting of are discussed further below. Work values are beliefs about work that a person holds as standards that guide how he or she should function. These may include values such as the level of financial prosperity, altruism and independence that should accompany one s work. While work values are cognitive structures, they have behavioral and affective dimensions and serve the purpose of meeting felt needs of the person who holds them. Hence, work values play a major role in setting professional goals [8][25]. Roe and Ester [37] propose three levels at which values exist: individuals, groups and countries. One parameter that may define a group is race. Thus, values shared among a racial group can motivate individual action and guide collective action. The greatest determinant of 5
7 such values is personal experiences which primarily shape values development in two ways. First, children receive thousands of values-laden messages in their day-to-day lives which come from people with whom they have personal contact like parents, siblings, and other adults and children at school, church, etc. Second, the mass media is an important source of values messages as children are exposed to television, radio and print media [28][7]. On both dimensions, children raised in African American homes may have personal experiences that are different from those raised in Caucasian homes. These differences may lead to differences in values that affect career interest development. Two studies have surveyed African American and Caucasian populations for differences in work values. Brenner and Tomkiewicz [5] surveyed business students while Brenner et al. [6] surveyed utility firm managers. Both studies found that African Americans scored higher on most tested job values. Little research exists to give an indication of whether African American and Caucasian students differ significantly in their perceptions of accounting, the second component of outcome expectations. Only one study, Lieberman and Marquette [33], compares student perceptions by race. In their survey of 700 high school students, African Americans held more favorable perceptions of accounting than Caucasians. Propositions Based on Contextual Variables Proposition 3: Cultural differences in social values may lead African-American students to choose careers other than accounting. Separate from research on work values, psychology and sociology researchers have developed a broader theory of value-orientations. Value-orientation theory contains five dimensions: human nature, person/nature relationships, traditional vs. future time focus, doing vs. being activity focus, and social relations [30]. To the extent that members of a group evaluate the dimensions similarly, their evaluations form the basis of group norms that guide group members lifestyles and decision-making. When the group is a race or culture, these guiding principles are termed cultural values [29]. The value dimension most directly related to the current study is social relations. This value dimension measures whether a group tends to hold group goals or individual goals as more important. Research suggests that Caucasian Americans tend to value individual goals more highly than group goals and, hence, tend to be individualistic in their decision-making [30][8]. This perspective is consistent with seeing choice of a career as one s own personal right such that parents and other relatives should have little or no influence [44]. In African-American culture, values tend to dictate a more collective decision making process consistent with subordinating one s individual goals to the goals of the group [10]. Ethnic groups with more individualistic social values are more likely to choose careers consistent with their personal work values. When more collective social values are held, choice of career will depend heavily on the values of parents and other important parties, altering the extent to which personal work values will lead to choice of a career consistent with those work values [8][39]. Hence, while career interests may develop, social values may moderate the relationship between African- American students career interests and their ultimate career choices making this a potential proximal contextual influence. If social values do have a moderating effect, the lack of effectiveness in recruiting African-American students may be due in part to recruiting strategies. Much recruiting effort is 6
8 focused on shaping students perceptions of perceived outcomes of choosing accounting as a career. This model is more likely to be effective with Caucasians who research shows to be more individualistic in their career decision-making. For a typical African-American student, however, successes in convincing the student that choosing accounting will result in desirable outcomes may be negated by the perceptions of parents and others who may be less aware of the benefits of the profession. More successful minority recruiting in areas like law and medicine suggest that African-American students may be steered toward careers with which their parents and other adult relatives are more familiar [26][23]. Thus, if this proposition is true, an effective model for recruiting African-American students may require more attention to enhancing perceptions of African-American parents and other community members toward accounting. Proposition 4: Perceptions of discrimination may lead African-American students to choose careers other than accounting. The fact that racial discrimination persists and is a major quality of life issue for African- Americans is well-documented. Researchers have noted the existence of such discrimination in public places including the workplace and have studied its effects on life satisfaction, mental health, self-esteem and coping strategies [16][38][41]. Racial discrimination has been pervasive enough and permanent enough that most African-Americans have likely experienced it in some way. Brown [8] suggests that this condition might lead minorities to avoid professions in which they perceive a likelihood that they will be discriminated against, making this a proximal contextual influence. Consistent with this idea, Tracey and Hopkins [40] found that ethnicity moderated the relationship between interest and abilities and occupational choice. Specifically, the extent to which interest and abilities lead to career choice appears to be lower for African-Americans than for other races included in the study. Research suggests reasons for this result might include career barriers such as perceived discrimination [11][34]. A meta-analysis by Fouad and Byers- Winston [17] draws similar conclusions finding that race/ethnicity did not play a role in expressed career interest but appeared strongly related to perceived occupational opportunities and perceived career barriers. Hence, there is evidence that even if African-American students develop an interest in accounting, perceptions of limited opportunity or the perceived existence of barriers may prevent them from pursuing accounting as a career. Weisenfeld and Robinson-Backmon [43] study discrimination specifically in an accounting context and find that African Americans in the profession do perceive discrimination. In this survey study, 48.5% of respondents agreed that they had faced racial discrimination in their jobs. Twenty-six percent reported the belief that their career advancement had been curtailed due to discrimination. As discussed below, many students who choose to major in accounting are influenced by current or former practitioners. Results of Weisenfeld and Robinson-Backmon suggest that past or present African-American accountants who influence students choices may often feel they were subjected to discrimination in the profession. Thus, such perceptions of discrimination may be passed on to students which may discourage them from choosing accounting as a career. This is especially true considering the fact that African-Americans tend toward collective decision-making. Proposition 5: Lack of access to information about accounting may lead African-Americans to be less likely to choose accounting as a career. 7
9 Research suggests that African-Americans have less access to information about careers than Caucasians [8], which may create a distal contextual influence. The AICPA [1] reports that students have many negative misconceptions about accounting as a career. These misconceptions reduce the likelihood that students will choose accounting as a major. To the extent that African-American students have less access to information about accounting, they will also have less opportunity to have their misperceptions corrected. Moreover, research suggests that access to career information often comes through a personal contact. Nelson et al. [36] analyze characteristics of college students majoring in accounting. A vast majority (85%) of these accounting students personally know someone who is an accountant, suggesting that a student may be more likely to choose accounting if they know an accountant who can inform, advise and mentor them. For a Caucasian student, this would often be a parent, aunt, uncle or other close relative. However, due to the current underrepresentation of African-Americans in accounting it seems unlikely that the typical African-American student will have a close relative in accounting who can serve as such a mentor. Exacerbating the problem is the fact that research on mentoring suggests that when nonfamilial mentoring relationships naturally form, race differences cause the relationship to be much less likely to occur [14][12]. People naturally tend to form mentoring relationships with people they perceive as younger versions of themselves. Consequently, African-American students are less likely to form advising or mentoring relationships with someone in accounting which, in turn, decreases the likelihood that they will have access to information and choose accounting as a career. In this way, underrepresentation of African Americans in accounting may be a self-perpetuating cycle or a form of institutional inequality. CONCLUSION The career choice process of African American students has largely gone unaddressed in accounting research. Limited gains in diversifying the profession can likely be attributed in part to a failure to understand factors that lead these students to avoid accounting as a major. Research is needed to understand what factors hinder African Americans entrance into the profession so those barriers can be directly addressed by diversification efforts. This paper has made several suggestions for research that may help advance this goal. Note that future research may lead to a more complex model than the one specified in this paper. Specifically, the current model specifies contextual influences that prior literature suggests are most likely to have impact and places them where that impact is most likely to occur. However, more contextual influences may exist. Likewise, the influences specified may have impact in multiple places. For example, a tendency by African Americans toward group decision making may shape learning experiences when a student looks to family members for initial guidance in learning about careers. This would give the social values dimension distal as well as contextual influence. Finding additional influences and relationships should enhance future understanding of the likelihood that African Americans will choose accounting careers. 8
10 FIGURE 1: SCCT Theory Career Choice Model Proximal Contextual Influences Self-Efficacy Distal Contextual Influences Learning Experiences Career Interests Career Choice Goals Career Choice Actions Outcome Expectations
11 FIGURE 2: Effect of Theoretical Propositions on the SCCT Choice Model Social Values (P3) Perceived Discrimination (P4) Self-Efficacy (P1) Access to Information (P5) Learning Experiences Career Interests Career Choice Goals Career Choice Actions Outcome Expectations (P2) 10
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