Making a Difference: Careers in Academia

Presented by: Nancy Bagranoff, Dean, Old Dominion

UniversityStephanie Bryant, Incoming President-Elect

BAΨ Annual Meeting Friday, August 4, 2006, 9:00-10:15 a.m.

Welcome—We’re Glad You’re here!!

• Nancy Bagranoff, Dean, Old Dominion University, BAΨ Forum

• Stephanie Bryant, Johnson Distinguished Professor, University of South Florida, Incoming International President-Elect of BAΨ

Objectives of This Session

• To let you know what being a professor is like

• To tell you how you can plan for a career in academia

Sources for Information Contained in this Presentation

• “Assessing the Shortage of Accounting Faculty,” Plumlee, et al. (2006) Issues in Accounting Education 21 (2): 113-125.

• Report of the AAA/APLG Ad Hoc Committee to Assess the Supply and Demand of Accounting Ph.D.’s (2005) Available at: (http://aaahq.org/about/reports/FINAL_PhD_Report.pdf)

• “Teaching for the Love of It,” Myers (June 2006), Journal of Accountancy.

• “Accounting in College Lures More Students,” Wall Street Journal, July 29, 2004.

The Shortage of Business Faculty

• A recent report predicts a major shortage of all business faculty with Ph.D.’s over the next ten years.

• The number of business doctorates is at a 17-year low

• We will focus in this presentation on a career in accounting, though much of the presentation translates to other areas of specialty as well

Supply of New Ph.D.’s as a Percent of Demand over 2005-2008

(Source: AAA/APLG 2005, 11)

0

10

20

30

40

50

60

70

80

90

100

Audit Cost Fin Tax Sys Other

Percent

Two Ways to Join Academia

• As a professionally qualified faculty member– Minimum requirements are:

• Master’s degree (MBA ok)• 18 hours of graduate accounting (or IS/finance)

• As an academically qualified faculty member– Minimum requirement is:

• Ph.D. in accounting (IS/finance) from an AACSB-accredited institution

Getting a Doctorate

• The doctorate largely prepares you for a career in research

• The doctoral program consists of courses in:– Accounting research– Economics– Statistics– Econometrics– Finance

Getting a Doctorate (Cont’d)

• A doctorate involves– Coursework– Written and oral general examination– Dissertation

Some Things to Consider in Getting a Doctorate

• How long does it take?

• How much does it cost?

• How do I figure out where to go to school?

• How hard is it to get in?

• When is the right time to apply?

• How much can I expect to earn with a doctorate?

How Long Does it Take to Get a Ph.D.?

• Average is 4 years, though some do it a little faster or a little slower– 2-3 years coursework– 1-4 years on doctoral dissertation

• To some extent you set the pace

• The more focused you are, the faster you will finish the program

How Much Does it Cost?

• Tuition is generally waived for doctoral students

• Doctoral student stipend is generally $16-$24k for 9 months

• Health insurance sometimes provided (varies from school to school)

• Opportunity cost

How Do I Figure Out Where to Go to School?

• This is a very important decision• Target a school that supports your area of

interest– Methodologically– Functionally

• AACSB website has list of AACSB-accredited institutions with Ph.D. programs– www.aacsb.edu/publications/dfc/phd-schools.

asp

How Hard is it to Get In?

• Most Ph.D.-granting schools admit 1-4 doctoral students each year or every other year– Check with the school(s) you are interested in

to determine their schedule

• Ask to meet with the Ph.D. program director and possibly some Ph.D. students

• GMAT score is the primary determinant• Secondarily is GPA and work experience

Getting In (Cont’d)

• GMAT scores– Minimum is usually 600, but can be higher for

very selective schools– You can retake the GMAT if you don’t score

high enough the first time– Consider a GMAT review course to help raise

your score

When Should I Apply?

• Most schools take applications in early spring

• Check with the schools you are interested in to determine deadlines– Websites are usually very good

• Very important to have a complete and professional application

Financial Rewards

• Accounting, IS, and Finance are all high-paying professions, including academic positions for Ph.D.’s

• Salary depends on the type of institution you are hired by

Financial Rewards (Cont’d)

Type of School Starting Salary for New Ph.D.’s

Undergraduate $45,000-$105,000

Master’s $50,000-$135,000

Ph.D. $90,000-$160,000

Financial Rewards (Cont’d)

• Salaries for Professionally Qualified faculty are considerably less– Adjuncts (Master’s degrees with 18 hours of graduate

accounting) usually earn $3,000-$5,000 per course– Permanent instructors with Master’s degrees in

accounting usually earn from $50,000-$60,000 on average for teaching 3-4 courses per semester.

– PQ people do not have research requirements

How Many Hours a Week Can I Expect to Work?

• This depends on the type of school you are hired at, and the promotion and tenure standards

• The higher the promotion and tenure standards, the more hours a week you can generally expect to work

• The BIG DIFFERENCE here is autonomy– You largely get to set your schedule

Bottom Line

• If you expect to go into academia because you don’t want the hours of public accounting, you will likely be disappointed

• The financial rewards can be very significant

• More importantly, you have a chance to give back to the profession and your community by choosing a career in academia

Bottom Line (Cont’d)

• Though you may still work lots of hours, YOU CHOOSE when and where to work

• Other advantages include travel and getting to know people from all over

• Intellectually stimulating

Q&A

Questions?