The Joint Effects of Work Content and Work Context on Valuation Specialists’ Perceptions of Organizational-Professional Conflict

Abstract

Despite valuation specialists’ integral role in preparing and auditing fair value measurements (FVMs), they often encounter tensions leading to conflict between professional and organizational demands. We surveyed 222 experienced specialists to examine how the FVMs they primarily value (work content) and their employer type (work context) influence perceived organizational-professional conflict (OPC). First, we find that specialists primarily valuing financial instruments report lower professional identification, while specialists employed by corporate in-house valuation groups report lower organizational commitment. Second, specialists who primarily value financial instruments and work in corporate in-house valuation groups report significantly higher OPC levels (higher conflict), lower job satisfaction, and, in turn, higher turnover intentions. Next, prior experience in an organization like the specialist’s current employer mitigates their current perceived OPC level. Lastly, specialists employed by professional services firms report higher OPC levels when they spend more time evaluating FVMs for auditors than they do preparing them for management.

Keywords: valuation specialists, fair value measurements, role theory, organizational-professional conflict, work content, work context

JEL Classification: M41, M42, M54