The Five-Year Accounting Program as a Quality Signal.

L. S. Rosen; James M. Reeve

doi:10.2308/tar-4486893

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The Five-Year Accounting Program as a Quality Signal.

L. S. Rosen; James M. Reeve¹

¹ Assistant Professor of Accounting, University of Tennessee-Knoxville. 1

The Accounting Review 1983

ABSTRACT: Recently, several state legislators have supported the imposition of a mandatory five-year accounting education requirement for entrance into the public accounting profession. This has occurred despite controversy over the efficacy of such a proposal. This paper explores the economic incentives of accounting labor suppliers in providing an extra year of accounting education, and evaluates the ramifications of an imposed five-year minimum education requirement upon the accounting labor market. Education will be presented as a quality signal from which potential employers can predict employee productivity in markets characterized by information asymmetry.

DOI: 10.2308/tar-4486893
Volume: 58 (3)
Pages: 639-646
Language: en
Export: BibTeX
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