Whether a school is private or
Whether a school is private or public may also be an indicator of its quality. In general, private schools have smaller class sizes which may provide a better learning environment. Lindquist and Smith (2013) state that smaller class sizes provide more opportunities for students to interact with professors. Trinkle et al. (2016) found that students from private schools outperformed their public school counterparts on the CPA exam. Based on these findings, the following 8-pCPT-2-O-Me-cAMP-AM is proposed:
Results and discussion Table 2 contains the descriptive statistics for the overall sample (panel A), by degree type (panel B), and by accreditation (panel C). As reported in panel B, graduate degree holders outperformed bachelor’s degree holders on the exam. Schools reporting graduate degree results were more likely to hold AACSB accounting or business accreditation, have a greater proportion of doctorate-holding faculty and a higher research ranking compared to schools not reporting graduate degree results. In contrast, the proportion of faculty with a CPA license was higher for schools only reporting undergraduate results, and the mean sections attempted was almost twice as great for candidates without a graduate degree. This latter result may be due in part to the manner in which NASBA reports exam performance data. The performance for candidates who attempt the exam while enrolled in a graduate program was included in the bachelor’s degree results as this reflects the highest degree earned at the time of registering for the exam. As reported in panel C of Table 2, graduates from AACSB accounting accredited institutions outperformed those from AACSB business only accredited institutions. Graduates from unaccredited schools exhibited the lowest performance. Of the schools in the sample, those with AACSB accounting accreditation were more selective than those with only AACSB business accreditation. As might be expected, unaccredited schools were the least selective. The proportion of doctoral-holding faculty and research rank likely reflect AACSB’s accreditation standards as the unaccredited schools had the lowest proportion of terminal degrees and research rankings. However, unaccredited schools had the highest proportion of CPA-licensed faculty which likely reflects their prioritization of professional credentials over an earned doctorate in their hiring decisions. AACSB accounting accredited schools reported the highest mean sections attempted while unaccredited programs reported the lowest. This may be an indication that accounting accredited schools were on average larger programs. The correlations between each of the variables are presented in Table 3. The regression results for the main variables of interest are presented in Table 4 and the year and state control variables are reported in the Appendix A. The results indicate a significant association between degree type (GRAD) and pass rate (PASS%). As mentioned earlier, Panel B of Table 2 shows that graduate degree holders outperformed (mean = 0.583) bachelor’s degree holders (mean = 0.495) on the exam (p < .001) providing support for H1. An important motivation for this study is to gain a better understanding of whether fulfilling the 150-hour requirement by pursuing a graduate degree enhances the likelihood of candidates passing the exam. Is the potential improvement on the CPA exam significant enough to justify the increased costs of completing a graduate degree? While a complete answer to that question is beyond the scope of this paper, the results are clear and strongly significant that candidates who completed a graduate degree performed significantly better on the CPA exam. Both accreditation variables, AACC and BACC, were also significant (p < .001 and p < .01, respectively) providing support for H2 and H3. Institutional exam pass rates are significantly lower for non-AACSB accredited schools (mean = 0.441) compared to AACSB business schools (mean = 0.513) and even more dramatically when considering the AACSB accounting schools (mean = 0.595). Pair-wise comparison t-tests of mean pass rates for the three accreditation classifications were all significant (p < .001) in the predicted direction. These results support the AACSB’s claim that its accredited institutions provide a higher quality of education. While these findings are similar to prior studies, placenta advance the literature by utilizing institutional performance measures for both bachelor’s degree and graduate degree pass rates.