Does Graduate Education Contribute to Professional Accounting Success?

Ben Wier
Virginia Commonwealth University

Dan N. Stone
University of Kentucky

Jim Hunton
Bentley College

Abstract: In this paper, we present among the first large sample studies of the effect of graduate business education on accountants’ professional success. Using archival (n = 5,932) and survey (n = 2,941) data, we investigate four models of the processes whereby a Masters degree may contribute to professional accountants’ success. Investigated models include the: (1) “Halo” model, which predicts that the credential, but not the content, of a Masters degree will increase performance evaluations (PEs) at the time of obtaining a Masters degree, (2) “selection” model, which predicts higher performance evaluations among masters graduates due to higher initial ability and selection processes, (3) “learned knowledge” model, which predicts higher PEs among masters graduates due to specific knowledge learned, and (4) “life-long learning” model, which predicts higher PEs among masters graduates due to superior life-long learning processes.

Survey, and twenty years of archival PE (1976–1995), data from managerial accountants employed at 2,525 companies in three industries (publishing, paper, and chemical) provide some support for the life-long learning model, and, to a lesser extent, the learned knowledge model. Our results suggest that Masters degrees add value to professional accountants, but that Master of Accountancy (MAccy) and Master of Business Administration (MBA) degrees may provide greater benefits at differing career stages (i.e., MAccy earlier, MBA later).

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