An Academic Accountant is Hard to Find...
posted: 5th August 2009. by Elvira Bobekova, Senior Consultant
Universities are increasingly facing difficulties attracting top calibre academics in the field of accounting and finance. During the course of various ASI searches we have received feedback from academics giving anecdotal evidence of a worldwide shortage of qualified people in these areas. This shortage is due to fewer people choosing a career in academia coupled with a sharp decline in the number of students enrolled in PhD programmes.
Some research shows that while the number of people graduating with higher degrees in accounting has decreased the proportion of faculty close to retirement has increased.
According to a study conducted by the American Accounting Association and the Accounting Programs Leadership Group in 2005, only 49.9% of the demand for accounting PhDs will be met. This study also shows that the new supply of PhDs in audit and tax will meet only 22.8% and 27.1% of demand respectively. For instance, fewer than 100 PhDs were granted annually in the calendar years 2002 to 2004, with a low of 69 in 2003, according to the 2006–2007 Hasselback Accounting Faculty Directory.
The majority of finance and accounting graduates appear to choose to work instead of pursuing PhD because of opportunity costs and relative ease in finding employment in business.
This shortage of accounting professors in the USA has led to a substantial increase in salaries. American universities, in an attempt to attract new doctorates, have significantly increased salaries for junior faculty. The salaries of new doctorates are sometimes higher than those of incumbent assistant and associate professors.
Given the recent financial crisis, it would be interesting to know how this situation has changed and what the trends will be in the future.