The Effects of Financial Reporting Irregularity on University Major Choices
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Authors
He, Wei
Date
Type
thesis
Language
eng
Keyword
Financial Fraud, Accounting Education
Alternative Title
Abstract
I examine whether financial reporting irregularity in the form of financial fraud leads to a decline in the enrollment of accounting programs in U.S. colleges. I find that the percentage of students awarded a bachelor’s degree in accounting decreases after the revelation of financial fraud for colleges geographically close to the fraud firms. The enrollment of female students declines more than that of male students. These effects persist for at least two years after the regulatory authorities reveal the fraud to the public. In addition, while financial fraud events lead to a decrease of enrollment in accounting programs, they do not have a similar negative impact on other business majors. In the cross-sectional analysis, I show that students who hold moral values—such as fairness and justice—in high regard are more likely to choose other disciplines. Further analysis reveals that financial fraud involving top management, such as the CEO or CFO, causes a more significant decline in accounting program enrollment than do fraud cases not involving top management. Finally, I find that the decrease in accounting program enrollment is greater when the fraud is perceived to be more severe by the students. These findings extend our understanding of the negative societal impact of financial reporting irregularity. They also highlight the importance of accountants holding high moral values in promoting the long-term sustainable development of economics and the profession.
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Queen's University's Thesis/Dissertation Non-Exclusive License for Deposit to QSpace and Library and Archives Canada
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Copying and Preserving Your Thesis
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ProQuest PhD and Master's Theses International Dissemination Agreement
Intellectual Property Guidelines at Queen's University
Copying and Preserving Your Thesis
This publication is made available by the authority of the copyright owner solely for the purpose of private study and research and may not be copied or reproduced except as permitted by the copyright laws without written authority from the copyright owner.