Statistical Choices and Apparent Work Outcomes in Auditing

Journal of Managerial Psychology, Vol. 18 No. 2, pp. 105-125, 2003

Pace University Accounting Research Paper No. 2013/10

Posted: 14 Dec 2013

See all articles by Picheng Lee

Picheng Lee

Pace University - Department of Accounting

Gary Kleinman

Montclair State University

Date Written: November 12, 2002

Abstract

The public accounting sector of the accounting profession has long been very concerned with the problem of employee recruitment and retention. As early as the 1970’s, the then Big 8 firms funded extensive studies of the determinants of employee turnover. The problem is no less real today. Indeed, much has been written about the problem of the vanishing accounting student. If reducing employee turnover and dissatisfaction becomes important in order for the public accounting firms to fulfill their mission of helping to assure the quality of information that investors receive, then having tools that foster an understanding of the determinants of employee dissatisfaction, stress, and turnover is vital. This paper sheds light on these issues by demonstrating how sophisticated statistical techniques can illuminate the underlying determinants of employee turnover and other important job attitudes. We apply structural equation modeling to Collins and Killough's (1992) dataset in order to demonstrate how structural equation modeling can provide important additional substantive insights about relationships between the stressors and job outcomes in public accounting. This important interpretive information is not available, or is available in only limited fashion, in the comparison method of canonical correlation analysis.

Keywords: Job Stress, Employee Turnover, Job Dissatisfaction, Structural Equation Modeling

JEL Classification: M40, M41

Suggested Citation

Lee, Picheng and Kleinman, Gary, Statistical Choices and Apparent Work Outcomes in Auditing (November 12, 2002). Journal of Managerial Psychology, Vol. 18 No. 2, pp. 105-125, 2003 ; Pace University Accounting Research Paper No. 2013/10. Available at SSRN: https://ssrn.com/abstract=2366964

Picheng Lee (Contact Author)

Pace University - Department of Accounting ( email )

1 Pace Plaza
New York, NY 10038-1502
United States

Gary Kleinman

Montclair State University ( email )

NJ 07043
United States

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