TY - JOUR
T1 - Post-Graduate Educational Requirements and Entry into the CPA Profession
AU - Jackson, Robert E.
PY - 2006/3/1
Y1 - 2006/3/1
N2 - Forty-one states require educational requirements for CPA licensure to include 30 credit hours beyond the baccalaureate degree. This study, using state-level panel data of CPA examination pass rates, examines two hypothesized effects of this requirement: one, it improves the quality of new CPAs, and two, it restricts entry into the profession reducing the supply of potential CPAs. Empirical findings reveal that raising minimum educational requirements increases the success rate of first-time CPA exam takers, leading to improved entrant quality. However, increased success rates are associated with significant declines in the number of exam takers and, hence, reduced supply.
AB - Forty-one states require educational requirements for CPA licensure to include 30 credit hours beyond the baccalaureate degree. This study, using state-level panel data of CPA examination pass rates, examines two hypothesized effects of this requirement: one, it improves the quality of new CPAs, and two, it restricts entry into the profession reducing the supply of potential CPAs. Empirical findings reveal that raising minimum educational requirements increases the success rate of first-time CPA exam takers, leading to improved entrant quality. However, increased success rates are associated with significant declines in the number of exam takers and, hence, reduced supply.
KW - Accounting profession
KW - CPA
KW - Certified Public Accountant
KW - Educational requirement
KW - Pass rate
KW - State fixed effect
UR - https://digitalcommons.georgiasouthern.edu/account-facpubs/100
UR - https://doi.org/10.1007/s12122-006-1012-1
U2 - 10.1007/s12122-006-1012-1
DO - 10.1007/s12122-006-1012-1
M3 - Article
SN - 0195-3613
VL - 27
JO - Journal of Labor Research
JF - Journal of Labor Research
ER -