Who Aspires to be a Partner in a CPA firm? A Study of Individual Characteristics and Gender Differences

• In Event: Comparability, Investment Banking Networks & Debt Contracting

Abstract

The purpose of this research is to identify common characteristics influencing aspirations to be a partner in a CPA firm with a special emphasis on gaining an understanding of gender differences. The American Institute of Certified Public Accountants (AICPA) reports that only about two percent of entrants will ultimately become partners (AICPA 2017a). Although, firms have responded to job stressors with more programs offering flexibility and alternative work environments, it appears that the changing nature of the workforce has resulted in a remarkably low number of public accountants aspiring to be partners, especially women.
For many years, women have comprised approximately half of those entering public accounting, but only about 22% of public accounting firm equity partners are female (AICPA 2017b). Two different perspectives, have emerged to explain gender differences in top positions of organizations (Lupu 2012). Preference Theory (Hakim (2000, 2006) focuses on individual preferences and choice and seeks to explain gender differences as an outcome of lifestyle preferences. The other perspective alludes to structural constraints as the primary reason for the inability of women to move up in the organizations (Walby 1997; Hooks 1998).
Our study includes a wide selection of relevant variables for a large sample of women (n=567) and men (n=521), allowing us to analyze career aspirations and compare between genders. Results show that a significantly higher percentage of males aspire to become partners compared to female employees, however, most of the factors that relate to aspirations are common for both males and females. Both genders agree that the ability to bring in new clients and developing other new business opportunities is a very important factor to be considered for partnership. Our results concerning aspirations and advancement of women in the public accounting profession should be relevant to professional women in general.

Authors

• Ambrose Jones, University of North Carolina-Greensboro

• Venkataraman M Iyer, University of North Carolina at Greensboro