1.1.

REVIEW OF RELATED LITRATURE

1.1.1 THEORIES OF CAREER CHOICE

Career choice is a lifelong process of decision-making for those who seek major

satisfactions from their work. His theory said that people make their career decisions

which balance their interests and values with the opportunities and talents available,

as well as the cost of pursuing the opportunities. There are some theories in relation to

career choice, for example, social cognitive theory says that family and relative have

influences on students’ career choice. According to the Parsons' theory, individuals

should consider their skills and abilities how they may fit with a particular occupation.

In addition, individuals need knowledge of jobs, the labor market and compensation

which includes salary and benefits (Bandura, 1986). Socioeconomic theory said that

Social conditions include parent influence, friends and teachers’ influences, social

status and economic conditions include job opportunity, salary amount, and the likes

have an impact on students’ career choice. ( Venable, 2011). In general, it's important

to understand that career choice is not made based on any one factor. Our choices are

subject to many influences – individual, cultural, social, and environmental. The

combination and interaction of various influences on individual decision-making are

unique to their situation (Venable, 2011).

1.1.2 RELATED EMPIRICAL STUDIES

The above theories were supported by different empirical studies. For example, the

finding of Uyar, & Kuzey, (2011), Zakaria, et.al, (2012), Jackling and Calero (2006),

Yuen & Law, (2012) and Edwards & Quinter, (2011) shows that interest has a

significant positive effect on choosing accounting as a career. Because students are

more likely to choose accounting major when they considered accounting is

interesting and enjoyable. The finding of Britt, (2012), and Uyar, & Kuzey, (2011)
shows that good fit with the respondent's ability (skill) significantly positively affect

students’ career choice in accounting. Because students believe that now a day due to

the change in world business, the activities of accountants also changed. The internet

and technological tools have placed accountants as a problem solver by using

advanced information system and programs. They should have to be also possessing

strong communication skills with good thinking creatively, and in making ethical

decisions. But the finding of McDowall, & Jackling, (2010), and Rkein, (2012) show

that skill or ability has a significant negative effect on choosing accounting as a

career. Students are associated accounting with good numerical ability. In addition,

the finding of Uyar, & Kuzey, (2011) shows that desire to run a business has no

significant effect on students’ choice of accounting. A study conducted by Hujra,

et.al, (2010) shows that the difficulty of the course has a significant negative effect on

students’ choice of accounting. Due to accounting and finance courses are the

combination of heavily theoretical and quantitative, most students is believed that

these courses are difficult. As a result, most students have withdrawn from the course

because their quality does not match with the skills which are required by these

courses. But Study conducted by Uyar, & Kuzey, (2011) shows that the difficulty of

the course has no significant effect on students’ choice of accounting. According to

the finding of Tan and Laswad, (2009), the need for dynamic and challenging

environment has a positive significant effect on students’ choice accounting. But the

finding of Wells and Fieger, (2005) contradict Tan and Laswad finding who found

that need for dynamic and challenging environment has a significant negative effect

on students' choice of accounting. Because the society viewed that accounting is not

an excellent career for honors students who needs challenging work environment. The

study conducted by Jones and Wright, (2011) shows on their study that those students
taken accounting in high school had a significant positive effect on the initial decision

to major in accounting. Byrne, Willis, &Burke, (2012) also shows that students begin

to make their career choices during their secondary education and for many their

educational and occupational aspirations are quite fixed by the time they enter their

final school year. According to the finding of Azevedo, & Sugahara, (2012) creativity

has a significant negative effect on students’ choice of accounting. It shows that

students who have strong creativity are not willing to join the accounting profession

because they are looking that accounting is less creative than other professions,

however, the finding of Britt, (2012) shows that creativity has a significant positive

effect on students’ choice of accounting as a career. The finding of Ahinful, Paintsil,

& Danquah, (2012), Uyar, & Kuzey, (2011), Britt, (2012), U.S. Bureau of Labor

Statistics (2012), and Gabriel, et.al, (2012) show that job opportunity has a significant

positive effect on choosing accounting as a career. Students are choosing accounting

as a profession due to its high job opportunity. In addition to these according to the

U.S. Bureau of Labor Statistics, accountants are expected to experience much faster

than average employment growth through 2018. Research Journal of Finance and

Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.6,

No.5, 2015 148 According to the finding of Uyar, & Kuzey, (2011), and Zakaria,

et.al, (2012) suitability for independent work has a positive significant effect on

choosing accounting as a career. The reason is that introverted students are more

suited for becoming the accounting professionals. It has been proved that because of

their introvert nature, they prefer to work individually rather working in the groups.

According to the finding of Byrne, et.al (2012), Ahinful, Paintsil, & Danquah, (2012),

and McDowall, & Jackling, (2010) shows that level of earning has a positive

significant effect on students’ choice of accounting as a career. So it shows that

finding of Uyar, & Kuzey, (2011) show that level of earning has no significant effect

on students’ choice of accounting as a career. Because students believed that other

fields offer higher earnings than accounting. According to the finding of Byrne et.al

(2012), and Wells and Fieger, (2005) social status has a significant negative effect on

choosing accounting as a career. The society viewed that accounting is not an

excellent career for honors students because they believe that it has a lower social

status, having relatively easy entry requirements, not requiring excellent

communication skills and as providing less challenging and less interesting work.

They suggest that the most able students with better communication skills are likely to

be guided to professions other than accounting. The finding of Demagalhaes, et.al,

(2011), Jakling & Kenely (2007) and Zakaria, et.al, (2012) states that opportunity for

advancement and job experience one can take elsewhere has a significant positive

effect on students’ choice of accounting. The finding of McDowall & Jackling, (2010)

shows that workload has a significant negative effect on students’ choice of

accounting as a career. Therefore, the workload in accounting profession could hinder

students to shift into other professions. US based studies on the perceptions of tertiary

students identified that many perceive accounting has high workload, a focus on

numbers and precision. The finding of McDowall, & Jackling, (2010) and Byrne &

Willis, (2005) show that students’ perception of accounting following established rule

than new ideas has a negative significant effect on choosing accounting as a career.

Their finding supports the view that exposure to accounting at university does not

enhance positive attitudes about accounting as a discipline, but reinforces rule-

memorization, and lack of involvement with conceptual skills or judgment. The

reason was students viewed accounting as a rule-based type of educational experience

finding of Wells, (2010) shows that Perceptions of accountants have been found to be

an over-generalization which derives from the perceptions of accounting as a

repetitive, which in the opinions of accountants and researchers does not reflect

current-day duties of accountants. According to Wells, (2010), decision making

ability has a significant negative effect on choosing accounting as a career. Since the

activity of students is usually limited to scorekeeping which involves the processing

and recording of transactions in a structured and repetitive manner. In addition the

lack of readily available information on the actual duties performed by accountants

ensures that accounting remains a mystery to many. Accountants are to blame for the

misconceptions as they have never attempted to correct the ‘scorekeeping’ image

which is widely held. Empirical evidence regarding the influence of referents, other

than the instructors, was also inconclusive. Because the finding of Tan and Laswad,

(2006) cited in McDowall & Jackling, (2010), Philip K. Law, (2010), Byrne, et.al

(2012), and Uyar & Kuzay, (2011) shows that family influences have a significant

positive effect on choosing accounting as a career. It shows that students’ career

choice decision is affected not only by their own interest, but also affected by family.

But the findings of Paolillo and Estes (1982), as cited in Tan and Laswad, (2009)

shows that family influences have no significant effect on choosing accounting as a

career. A study conducted by Uyar & Kuzay, (2011) shows that the influence of

relatives has no significant effect on choosing accounting as a career. Note that

friends and relative influences are not a significant factor in students’ discipline

choice decisions.
Gender

Some of the related studies found that both female and male students perceived

accounting profession similarly. Because the finding of Edwards & Quinter, (2011) a

study revealed that there is no significant difference between males and females in

addressing their attitudes towards the profession that is most respondents did not

consider gender as an influential factor in their career choice. In summary, this study

investigates the various influences on undergraduate students’ decisions to undertake

an accounting major and their perception of the accounting profession, taking into

account the issues addressed in prior literature as outlined above.

STATEMENT OF THE PROBLEM

Globalization and internationalization have broadened the economic landscape into

impropriety, complexity and volatility. To keep abreast with the current development,

the world seriously needs more experts for the resolution, knowledge and innovation.

Thus, accountants who are integral to business and economies are seen to be the best

profession able to face these new challenges. This scenario therefore raises

tremendous demand for accountants. However, the existing number of qualified

accountants is far behind the required number (Zakaria, et.al, 2012). Currently

Ethiopia is one of the world’s countries that are on the way of development. The

Government of Ethiopia is committed to increasing the role of private investment in

the economy and in relation to this the demand for the best and brightest accountant is

also increasing. However, the number of professional accountants in Ethiopia is rather

low in relation to the size of the economy. Due to shortage of professional

accountants’ there are positions in the private and public sector that are filled by

persons with lower qualifications (World Bank and IMF, 2007). In addition the
absence of accountants and ACCA students in the country is a part of the problem for

the delay of the establishment of the capital market (Meron Tekleberhan, 2012).

1.4. OBJECTIVES OF THE STUDY

General objective

The general objective of this study is to examine the students’ choice of accounting as

a career option and ascertain the main factors that affect such decision.

Specific objectives

To examine the extent to which students choose accounting as a career option and the

strength of factors that affect such decision.

To identify the effect of intrinsic, extrinsic, perception towards accounting, and other

social factors on students' choice of Accounting as a career option.

Source: www.iiste.org/Journals/index.php/RJFA/article/download/20781/21372
PRIOR LITERATURE

A significant number of studies have been conducted to address various aspects of the

introductory accounting course. Among other things, these studies have examined the

determinants of student performance in the first accounting course (Eskew & Faley,

1988; Doran, Bouillon and Smith, 1991; Wooten, 1998), the possible effect of gender

on accounting course performance (Buckless, Lipe and Ravenscroft, 1991) and the

prediction of student performance in upper-level accounting courses based, in part, on

performance in the introductory courses (Danko, Duke and Franz, 1992; Bernardi and

Bean, 1999). There has also been a sizable amount of research and discussion on the

appropriate content of the first accounting course (e.g., Cherry and Reckers, 1983;

Baldwin and Ingram, 1991; AECC, 1992; Cherry and Mintz, 1996; Pincus, 1997;

Vangermeersch, 1997). The summaries of accounting education research presented by

Williams et al. (1988) and Rebele et al. (1991, 1998), however, reveal that no

empirical study has performed a direct assessment of accounting students’ perceptions

regarding any individual accounting course. Nor has any study performed an

assessment of the relationship between course perceptions and major selection. A

study by Friedlan (1995) asked Canadian accounting students both at the beginning

and end of the course the perceived importance of 12 skills on their ability to perform

well in introductory accounting, and the importance of 13 skills for performance as

accounting practitioners. While the Friedlan study assessed students’ perceptions of

the skills needed to perform well academically and professionally, it did not directly

assess students’ perceptions of the introductory accounting course itself. There has

also been some empirical research concerning how various categories of instructors

(e.g., accounting, business) view the first course in accounting (e.g., Cherry and

Mintz, 1996) and on students’ general perception of accounting, accountants, and the
accounting profession (e.g., Paolillo and Estes, 1982; Cory, 1992; Cohen and Hanno,

1993). However, studies involving student perception in accounting typically ask

students one or only a few attitudinal/perceptual questions at the end of the course.

These studies then compare responses to these few items across groups of students

exposed to different pedagogy during the course (e.g., Daroca and Nourayi, 1994;

Saudagaran, 1996; Hill, 1998). Accordingly, these prior studies have incorporated

attitudinal questions, but have not adequately addressed student attitudes.

Additionally, there have been several studies that have attempted to examine whether

the introductory accounting course has the ability to attract “the best and the

brightest” students to accounting (e.g., Inman, Wentzler, and Wicker, 1989; Baldwin

and Ingram, 1991; Adams, Pryor, and Adams, 1994; Nelson and Deines, 1995;

Riordan, St. Pierre, and Matoney, 1996). Riordan, et al. (1996) examined whether the

introductory course appeared to attract or retain quality students (as measured by

GPA). They found that the mean GPA of intended accounting majors was higher than

that of non-accounting students before the introductory course, and that students

transferring into accounting after the course had higher GPAs than those transferring

out. These 4 results suggest that the introductory course may retain quality students

and may actually attract higher performing students to major in accounting. A study

by Cohen and Hanno (1993) used the theory of planned behavior to predict and

explain the choice of accounting as a major. Their results indicate that students chose

not to major in accounting because they perceived it to be too number-oriented and

boring. Intended accounting majors were also found to place more emphasis than

intended non-accounting majors on high performance in the introductory courses in

their selection of a major. In a related study, Stice et al. (1997) categorized students as

being “qualified” or “unqualified” to major in accounting based on performance in the

significantly related to the decision to major in accounting when examining just the

“qualified” (i.e. high performing) students. That is, just because a student performs

well in introductory accounting does not mean that they will choose to major in

accounting. Their results are consistent with those of Adams et al. (1994) who found

that students’ responses to the item “genuine interest in the field,” as opposed to

actual course performance, was the most significant factor in deciding to major in

accounting. However, none of these prior studies present a direct examination of

student perceptions toward the introductory accounting course and how these

perceptions relate to the decision to major in accounting. Stice et al. (1997) argue that

while performance may serve as a screening device, future research should focus on

identifying non-performance factors that affect the decision to major in accounting.

Further, no study in accounting has examined the possible differential effect of

individual instructors on students’ decisions to major in accounting. Although prior

researchers (e.g., Daroca and Nourayi, 1994) have inferred that there may be a

differential impact of individual faculty members on introductory accounting students,

this conjecture has not been tested empirically.

Source: http://citeseerx.ist.psu.edu/viewdoc/download?

doi=10.1.1.197.3538&rep=rep1&type=pdf

Literature review
According to a research report commissioned by the South African Institute of

Chartered Accountants (SAICA 2008a), South Africa’s financial management and

auditing sector is searching in vain for 22 000 qualified accountants with the situation

forecasted to deteriorate in the years ahead. One of the reasons cited for this shortage

is that higher education is not producing enough graduates to meet the market demand

for new entrants. This is further aggravated by the fact that the input into the pipeline

of qualified accountantsislimitedtomatriculantswithaspecificinterestinmathematics.

The perception that matriculants have of accountants and whether the profession

matches their personal styles, is therefore one of the critical factors in determining

whether they pursue a career in accounting (Jacking & Calero 2006; White & White

2006:72).

Professional accountancy bodies have long been advocating that in order to become a

member of that profession, specific skills should be acquired.

History

Stereotypical images of accountants still abound some 50 years after O’Dowd and

Beardslee (1960) provided evidence of the existence of a derogatory view of

accountants. According to Hunt, Anthony and Intrieri(2004),

accountantswerewidelyseenasbeing skilled in maths and tax work and attentivete

detail,but they were not considered particularly admirable,exciting,outgoing,versatile

or strong in leadership capabilities. Research conducted by Mladenovic(2000:142)

showed that students tend to perceive accounting as primarily numerical, objective

and non-controversial, and are less able to perceive the importance of creative

judgment and communication skills for accountants. Students are also more inclined

to perceive accounting as having an affinity with subjects like mathematics and

statistics. In the last few years, researchers have noted a world wide decline in the
number of students choosing to becom e accountants

(Marriott&Marriott2003:113).Albrechtand Sack (2000) listed five reasons for the

decline in student interest in the accounting profession in the USA: low starting

salaries, more attractive career choices, a willingness to choose risky majors, a

misconception of accountants and the accounting profession. Byrne and Willis

(2005:368) argue that although perceptions play a critical role in career decisions, few

studies have explored this issue in the field of accounting. They also point out that

most of these studies focused on tertiary students in the USA. No specific prior

research on students’ perceptions of accountants in South Africa could be identified

other than a study by Myburgh (2005) who examined the career choices of students to

identify the factors motivating accountancy students to become chartered accountants.

Research problem

Many students decide on a career before they enter university (Sale 2001; Hunt et al.

2004:143; Ferreira & Santoso 2008:210). In a survey conducted in South Africa,

Myburgh(2005:43) concluded that 52% of the respondents chose their careers during

their final three years at school. Heiat etal. (2007:96)report that a large majority of

students in their survey selected their degree programme before entering tertiary

institutions (41%)or during their first year of study(30%).Perceptions about

accountants will influence who is attracted to the profession

(White&White2006:72).If students have the wrong perception of an accountant’s

work, the wrong type of person could be attracted to study accounting (Heiat at al.

2007:95).

Source: www. An investigation into students’ perceptions of accountants.com