Journal of Scholastic Inquiry: Business, Volume 3, Issue 1, Fall 2014

Journal of Scholastic Inquiry: Business

Volume 3, Page 1

Journal of Scholastic Inquiry:

Business

Business Edition, Volume 3, Issue 1 Fall 2014

Published by: Center for Scholastic Inquiry, LLC ISSN: 2330-6815 (online)

Journal of Scholastic Inquiry: Business

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Journal of Scholastic Inquiry: Business

Fall 2014

Volume 3, Issue 1

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Journal of Scholastic Inquiry: Business The Center for Scholastic Inquiry (CSI) publishes the Journal of Scholastic Inquiry: Business (JOSI: B) to recognize, celebrate, and highlight scholarly research, discovery, and evidence-based practice in the field of business.

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JOURNAL OF SCHOLASTIC INQUIRY: BUSINESS Fall 2014, Volume 3, Issue 1 Managing Editor Dr. Tanya McCoss-Yerigan Editor-in-Chief Dr. Jamal Cooks General Editor & APA Editor Jay Meiners Editorial Advisory Board Shirley Barnes, Alabama State University Joan Berry, University of Mary Hardin-Baylor Brooke Burks, Auburn University at Montgomery Timothy Harrington, Chicago State University Lucinda Woodward, Indiana University Southeast

Peer Reviewers Hugh Sales

Emily Hause

Amy Vandeberg

Ruixie Du

Jeff Harper

John Brozovsky

Steven Lamb

Tom DeBerry

Paul Stock

Brien Smith

Stephanie Hurt

Scott Brooks

Victoria Mantzopoulos

Alice Etim

William Holms

Jierong Chen

Jerry Gilley

 Not all reviewers are utilized in each publication cycle.

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TABLE OF CONTENTS

Publication Agreement and Assurance of Integrity Ethical Standards in Publishing Disclaimer of Liability

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Research Manuscripts

8-70

The Importance of Specifying Academic Discipline in Regression Modeling for Higher Education Compensation Steven W. Lamb, Indiana State University Jeffrey S. Harper, Indiana State University Brien N. Smith, Indiana State University

8

Affecting Philanthropic Propensity Hubert E. Sales, Belmont Abbey College

27

What Can Be Done To Reduce Trade Tensions with China and Improve U.S. National Security?

Ki Hee Kim, William Paterson University of New Jersey

Curriculum Politics and the 150‐Hour Requirement Thomas W. De Berry, Freed‐Hardeman University Amy T. Vandenberg, St. Norbert College

47

57

Manuscript Submission Guide

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The Importance of Specifying Academic Discipline in Regression Modeling for Higher Education Compensation Steven W. Lamb Indiana State University Jeffrey S. Harper Indiana State University Brien N. Smith Indiana State University Abstract The literature is replete with studies and reports that indicate that higher education continues to suffer from gender inequity in compensation. Part of this may be explained through general societal behaviors (Croson & Gneezy, 2009; Konrad, Ritchie, Lieb, & Corrigall, 2000; Barbezat, 1992). Slade (2013), however, postulated that these preferences may be a function of the current distribution of female faculty and gender stereotypes within the profession. Regardless of the reason, gender inequity in compensation among faculty in higher education does, in fact, exist (Lips, 2013). Institutions of higher education continue to attempt to address gender inequity in compensation, often using a dummy variable for gender within regression models, coupled with other recognized determinates of faculty salaries such as department, rank, years in rank, tenure status, college affiliation, productivity, etc. When ordinary least squares regression analysis is applied to faculty salary data, care must be taken to reflect specific market salary information in the model. If a faculty member’s academic department is not included in the regression model, the ratio between men and women working in a given department and the different average salaries from department to department may indicate that gender is a significant explanatory variable within a field when, in fact, it is not. The authors use a realistic but fictitious set of 252 faculty members in six departments to illustrate this phenomenon.

Keywords: higher education compensation, gender salary inequity, faculty salary regression analysis, salary inequity by department

Journal of Scholastic Inquiry: Business

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The presence and impact of the legal environment on institutions of higher learning has steadily increased since the 1960s. Since then, the volume and complexity of litigation involving higher education has risen dramatically (Kaplin, 2006). Owing to the litigious context in which higher education operates, colleges and universities are increasingly establishing centralized compliance offices to mitigate the impact of potentially illegal decisions made by administrators and faculty.

It is common for university governing bodies to establish policies and procedures that prescribe action steps, limit decision authority, and identify problematic behaviors. To assure compliance with state and federal statutes, institutional research officers gather data about current employment demographics and chart institutional trends over time. For example, it is common practice for institutions of higher learning to compute the statistical significance of wage gaps between male and female faculty and among other legally protected groups.

In this paper, the authors will show that poor specification of the regression model can lead to unintended consequences in studies of gender in faculty salaries. The authors will use a simulated data set for a fictitious, but representative, group of faculty, with the assumption that the faculty are at an institution that exhibits societal distribution patterns. A further assumption by the authors is that this institution has been trying to attract women for some time to its faculty, and as a consequence, women in every field at every rank receive a higher salary than men.

Market salary is negative correlated with the proportion of women in these disciplines, yet within every discipline and at every rank, women are paid more than men. Given this scenario the question becomes: May researchers reasonably be led to erroneous conclusions concerning gender inequity when conducting regression modeling? Under what circumstances does this occur?

Review of Literature Social Legislation Proscribing Discrimination Substantial legislation since the 1960s has defined and prohibited illegal discrimination at the state and federal level. Equal Employment Opportunity (EEO) and Affirmative Action (AA) law represent the most important legal encroachment on employers’ rights since the labor legislation of the 1930s. This body of law limits the kinds of discernment that employers can employ when making personnel decisions such as hiring, promotion, or termination. More broadly it may impact any term or condition of employment, including organized labor. EEO and AA law consists of constitutional mandates, federal statutes, and presidential executive orders, but the most significant of these mandates center around four pieces of social legislation.

Title VII of the Civil Rights Act of 1964 precludes employer discrimination on the basis of race, color, religion, sex, and national origin. The Age Discrimination in Employment Act (ADEA) of 1967 forbids discrimination against workers 40 years of age and older. Also, the Americans with

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Disabilities Act (ADA) of 1990 forbids discrimination on the basis of worker disability as defined by the act. Claims of illegal discrimination fall under the purview of the Equal Employment Opportunity Commission (EEOC).

The EEOC also enforces the Equal Pay Act (EPA) of 1963. The act specifically prohibits discrimination in pay between men and women. The act mandates that an employer shall provide equal pay between sexes for an equal amount of work. Equal work is defined as jobs that require skill, effort, and responsibility, and are performed under similar working conditions.

The act would allow disparate pay when such payment is based on a seniority system, a merit system, a system based on the quantity or quality of production, or differential pay on any factor other than sex. Related to the Equal Pay Act are discussions of a “gender wage gap.� Early studies in the 1970s indicated that women, on the whole, were paid about 62.1 cents on the dollar as compared to men (US Department of Labor, 2009). Over time, research has concluded that this gap has narrowed, and as of 2010, the wage gap had shrunk to about 23% (DeNavas-Walt, Proctor, & Smith, 2010). Debate exists as to whether the gender wage gap is due to discrimination, but numerous studies have demonstrated that the gap exists even when controlling for the kind of work performed, education, and experience of the employee (Garcia, Hernandez, & Lopez-Nicolas, 2001). Even within professional occupations, such as research faculty in university settings, the gap is said to persist (Umbach, 2007).

Methods for Testing Legal Compliance Beginning in the early 1970s, the courts have held that even a facially neutral policy or procedure that has disproportionate, unequal impact on protected group members can be considered discriminatory and illegal (Griggs v. Duke Power Co., 1971). Therefore, compliance officials will periodically take stock of current wages, personnel selection, promotion, and termination decisions to uncover disparities between protected groups. For example, linear regression might be used to test for statistically different gaps in wages between men and women. These probative statistics only uncover where adverse impact exists and that there is a potential for discrimination in employment practices. Disparate impact would warrant further close scrutiny and investigation to determine if behavior or practices are illegally discriminatory.

When disparities do exist, the underlying causes may be permissible if they are tied to job related features of the position and consistent with business necessity.

Equity Issues In addition to ensuring legal compliance, most institutions want to foster an environment where employees are motivated to perform, and perceived pay equity plays a role in keeping employees motivated. Researchers in compensation theory have concluded that pay equity is a complex combination of a number of factors including external equity, internal equity, and individual equity (Romanoff, Boehm, & Benson, 1986). External equity is the perception that one’s position is paid fairly as compared to the prevailing wage in the market for similar

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positions. Periodic review of current pay practices safeguards that salaries at the university level, as well as within departments, are keeping pace with the compensation practices in the market.

These reviews often use comprehensive salary surveys conducted by consultants or associations as a point of comparison (Bellas, 1997). This benchmarking against market practices may also lend insight into the levels of pay necessary to retain current faculty, as well as assisting in identifying factors that may lead to poor faculty morale (Johnsrud & Rosser, 2002). Internal equity exists when an employee perceives that their position is paid fairly relative to the value of all jobs within an organization. Many organizations may slot jobs with similar skill, effort, responsibility, and working conditions into pay ranges to assist in balancing internal equity.

Finally, individual equity is an employee’s perception that they are compensated fairly when considering the personal level of performance. Performance evaluation systems used to make personnel decisions may balance individual equity when these systems are valid and reliable. It is important that institutions of higher learning recognize the importance of perceptions of pay equity on performance. This is especially true when assessing whether wage gaps exist within the institution. When gender wage gaps do exist, the possibility of poor job satisfaction is a likely result. Hagedorn (1996) surveyed 5,450 faculty members from 306 institutions to determine the impact of wage differential and a number of institutional variables in global job satisfaction, intent to remain in academe, and stress. She found that female wage differentials led to lower global satisfaction, increased stress, and an increased likelihood of leaving their current institution. Hagedorn urged administrators to determine where wage differentials exist and conduct an institutional audit to determine if such differentials are due to illegal discrimination. She further posited that institutions should take steps to correct any injustices that exist, and that failure to do so would encourage collective bargaining action to their campus (Hagedorn, 1996). Understanding that perceptions of equity play such an important role in organizational performance and success, education institutions should periodically perform audits to ascertain where inequities exist. When potential imbalances exist, it is incumbent on the institution to make prudent decisions to address perceived disparities. These decisions may involve adjustments to performance evaluation practices, changes in promotion standards, or making equity adjustments in pay for affected individuals across the organization.

Problem Environment Quantitative analysis has been used widely in studies of salary variation. Researchers have examined salary data and have proposed models that test for the significance of such variables in the general work force as race, gender, geographic location, and unionization.

Salaries of faculty members in higher education have also received a great deal of attention.

Salary structures differ among academic institutions, but in those without a strict salary scale, compensation may be a function of demographic factors such as rank and experience, performance awards that have become part of the base, historical budget constraints, additional assignments, and market influences. These factors may not be acceptable to all involved, but they are in fact realistic reasons for differences in salary.

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Variations in faculty salaries that are correlated with race and/or gender, however, are not acceptable to institutions. Yet, as indicated in Table 1, when the American Association of University Professors surveyed average salaries over all disciplines by gender (AAUP, 2009), differences are apparent. As institutions strive to examine and address salary differences, they have applied decomposition models, productivity ratios, corporate human relations models, and statistical models that incorporate measurements specific to their own campuses. At the authors’ institution, two sets of outside consultants have developed statistical models of salary issues within the last ten years, and there have been multiple follow-up studies by task forces commissioned by the Office of Academic Affairs. It is institutions’ use of regression models to identify the significance of the gender variable, which the authors will investigate in this paper.

Regression Analysis for the Institution Regression analysis has been used to determine whether gender or racial inequity exists in university faculty salaries. The residuals from the analysis have served to form the basis for determining the overall size (economic impact) of the problem for the institution, thereby estimating the adjustments that might need to be made to individual salaries (Lamb & Moates, 1999).

Although the use of regression analysis has been criticized by some for its difficulty of application and frequent improper specification (Bereman & Scott, 1991; Stewart, Dalton, Dino, & Wilkinson, 1996) it is widely applied by both institutional researchers and university salary consultants. The general process for an institution to determine if a widespread inequity exists has been to use a regression model incorporating demographic values for each faculty member and including dummy variables representing gender (female=1) and race (minority=1). Then, if the coefficient in front of gender, or in front of minority, turns out to be negative and significant, the institution would conclude that it needs to begin to address and alleviate a problem of systemic discrimination. A rough estimate of the overall economic impact of the problem can be found by multiplying the regression coefficient for gender and/or race by the number of faculty in that category. For the purpose of this paper, the term “department” signifies the academic discipline.

This process of using the academic discipline (or department) to signify relevant market value is not universally followed. Often, the college (or academic unit) is used in this capacity.

In a 2002 regression study at The University of North Carolina at Chapel Hill, the authors mention that the control variable used for market at North Caroline State University in the 2000 salary study conducted by Haignere, Inc., was the school within which the faculty were housed (Wilford & Gray-Little, 2002). That public observation did not dissuade North Carolina State University from continuing along the same path in 2006 (NC State faculty salary Equity study, 2006).

In an intermediate approach, Ferreira (2013) combined 21 College of Arts and Sciences departments to create what she called a “discipline” (not to be confused with an academic discipline), and then created nine other disciplines either using individual colleges or

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combination of departments (Business, Continuing Education, the College of Environment and Life Sciences, Engineering, Human Science and Services, Library/Information Studies, Nursing, School of Oceanography, and Pharmacy). Thus, the University of Rhode Island’s 52 academic departments were reduced to nine disciplines in this study.

The University of California in Santa Barbara’s 2010 salary equity analysis used individual linear regression models for the separate academic units (Salary Equity Analysis, 2010). Two years earlier, the University of Hawai’i faculty pay equity study used the term “employment unit” to represent the market. These 13 employment units were usually combinations of individual disciplines, for example, Natural Sciences, Business, or Humanities (Lee, 2008).

Regression Analysis for the Individual Moving from an institution-wide investigation to an analysis of individual salaries requires a second model. In this step, analysts run a regression procedure that derives expected values given specific faculty characteristics, but that omits gender and race, to generate an individual’s expected salary. That is, the generated expected values are gender and race blind. If gender and/or race had been significant then one would expect that the residuals associated with individuals having these characteristics would be dispersed around a negative mean.

It is the negative residuals associated with individual female or minority faculty that are often addressed by analysts with the intent of examining them to see if they are unjustified.

However, in addition to any “red-flagged” negative residuals, positive residuals should also be examined. If gender/racial inequity exists at the institution, it may affect those with positive, as well as negative, residuals. It is conceivable that positive residuals for high-achieving female or minority faculty members should be greater than they are.

Although the use of regression can lead to concerns for the evaluation of both race and gender issues, the authors will illustrate in this paper the problem using gender due to its connection to market forces.

Research Investigation The authors of this article were concerned with the possibility that the gender variable might serve as a surrogate for the market variable in regression modeling, and as a consequence indicate internal gender discrimination when, in fact, there was none. When dealing with gender equity issues, it is important to distinguish between societal gender patterns that have traditionally determined that women work in those disciplines/fields that have lower salaries associated with them, and internal gender discrimination, in which an institution is paying women less than it pays men for performing the same task.

Social discrimination may result in low-paying disciplines having a high proportion of females, and higher-paying disciplines having a low proportion of females. Historically, within

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disciplines that do not enjoy strong market forces, such as Family and Consumer Sciences and Business Education, there is a higher proportion of women. Conversely, within those disciplines that enjoy strong market forces, such as Finance and Microbiology, there is a higher proportion of men.

Method The authors created a deterministic data set. Six departments were fabricated, each with 42 faculty whose gender ratios are typical. These departments were: Adult and Continuing Education, Family and Consumer Sciences, Communication Disorders, Business Education, Microbiology, and Management Information Systems (MIS). Table 2 gives a breakdown of the base salary of a male Associate Professor in each department as well as the number of male and female faculty members in each department.

The data set contained information for 252 faculty members. Each faculty member’s generated salary was a function of department, rank, gender, chairperson status, and productivity.

To create the data set, five dummy variables were created for department, with Adult and Continuing Education serving as the base case. Two dummy variables were created for rank (Associate and Professor) with Assistant Professor as the base. Two other dummy variables were created, one each for gender (female=1) and chairperson (chairperson=1). Each department was given a chairperson at the Associate or Professor rank. Two interaction dummy variables representing the cross-effect of gender and rank were created. One of these variables took on the value of one if the individual was a female Associate Professor, and the other variable took on the value of one if the individual was a female Professor. A productivity variable that took on the value of one, two, or three was incorporated. Given the construction of this data set, the intercept in linear regression would represent the salary of a male Assistant Professor in Adult and Continuing Education.

Each department/gender combination has an equal number of Assistant Professors, Associate Professors, and Professors. Each faculty member has a score of one, two, or three, dependent upon level of productivity, and the dispersion of these scores was as balanced as possible for each rank, gender and department combination. Table 3 illustrates the deterministic model. Note that, in this fictitious model, a premium of $4,000 was added to all female faculty members illustrating the university’s commitment to attracting and retaining female faculty.

Three distinct regression models were employed. Case 1 used the variables associated with the deterministic data set to ensure that the data were constructed properly, to ensure that all the generated estimates of the parameters were equal to the values used to generate the dependent variable, and to ensure that when the categorical variables representing market were employed, that there would be no contamination of the coefficient in front of gender due to the negative correlation between the number of women in a discipline, and the market value of that discipline.

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Case 2 had two subsets. In the first subset of Case 2, the categorical variables rank and market were removed and the interval variable market that was associated with the discipline at each rank for all males was inserted. Again, the purpose was to ensure that when a properly defined market variable existed for each department and rank, and that there was no crosscontamination of that variable due to the proportion of women in that department, all coefficients would be estimated correctly, and it properly accounted for all variance.

In the second subset of Case 2, again the categorical variables rank and market were removed and the interval variable market was inserted that was associated with the discipline at each rank. In this instance, however, the variable was derived using the salaries weighted by the proportion of men and women in that discipline at that rank. The authors investigated the crosscontamination effect of the weighted variable upon the gender coefficient.

The third case was the primary driver of this research. The categorical market variables associated with each of the six departments were dropped. “College” was used in place of the departmental variable. This model tested our most substantive hypothesis: Because the “market” variable (and thus the market variance) was no longer adequately represented, this variance would now accrue to the gender variable because the proportion of women was inversely correlated with market salaries. The following presents the results of the models. The appendix includes a table of results for each case.

Results Case 1: Categorical Variables for Each Market and for Each Rank To verify that no errors had occurred in the creation of the data set, and to confirm what the regression output would demonstrate if the discipline variable were properly incorporated into the model, a simple linear regression was run using the above set of variables and the 252 cases. Because there was no error variance, the coefficients should equal the parameters. Table 4 illustrates that output.

There were no surprises. The regression coefficients confirm the values used to construct the data set and the standard errors are all equal to zero. All the variance in salaries is completely accounted for. The coefficient in front of female is positive $4,000.

Case 2: Ratio Market Variable for Each Department at Each Rank In Case 2, a market variable by rank is incorporated into the set of independent variables, and discipline and the variables addressing rank are excluded. The simulated values of the dependent variable (salary) which were generated by formula using the independent variables department and rank (among others) are kept the same. If a market variable is properly identified and used in lieu of a discipline-specific dummy variable, will the coefficient in front of gender by disturbed? The authors used two approaches to address this question.

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Case 2, Subset 1: Categorical Variables Associated with Rank and Department Excluded, Ratio Market Variable for Males Included. First, an independent market variable was created by using the assigned male salary (excluding the impact of chairperson service and productivity) for each rank-department combination. Thus, in the regression analysis the categorical independent variables associated with rank and department were excluded since they were included in the market variable. All the variance should be accounted for, since productivity, gender, and chairpersonship (the other independent variables affecting salaries) were included in the model, and the variables rank and market were completely incorporated in the market variable (Table 5).

Again, there were no surprises. The coefficients are equal to the parameters, the standard errors are all equal to zero. Explained variance is equal to total variance. The coefficient in front of female is positive $4,000. No one would be misled.

Case 2, Subset 2: Categorical Variable Associated with Rank and Department Excluded, Weighted Ratio Market Variable Included. The authors created a market variable (excluding the impact of chairperson service and productivity) which was equal to the weighted average (weighted by gender proportion) salary assigned to a specific discipline, at a specific rank. Thus the market value for each individual was rank and department specific, necessitating that these two variables be again eliminated from the regression run. Given that the market salary was influenced by the ratio of men to women (as the proportion of women increases, the department commands a reduced market given societal values), the new independent variable somewhat shares the impact of the variance on salaries due to gender. As students of regression approaches know, when two independent variables share a common source of variance that impacts the dependent variable, that commonality will often result in a balancing act upon the coefficients of those variables.

Table 6 provides the output of that regression using the same data set as previously used.

However, the newly constructed market variable has been included, and again, rank and discipline variables have been excluded.

Given that there is no longer a completely deterministic model, the value of adjusted r2 is no longer quite equal to one (0.9996). The standard error is close to $700. However, researchers would still not be led to the erroneous conclusion that women are paid less than men in their respective fields. The magnitude of that coefficient has been reduced as a result of the incorporation of the market by rank variable, the value of which was affected by the proportion of women at that rank in that department.

Case 3: Department and Market Excluded, “College� Incorporated The next question considers what happens to the model when market salary is not incorporated and/or the faculty member’s specific discipline is replaced by the dummy variable

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representing the School or College location of the department. This was indeed the model that was created by consultants hired to investigate salary issues at the authors’ institution. To consider this question, the six departments were classified into three schools. The School of Education housed the Adult and Continuing Education Department and the Communication Disorder Sciences, and this School was used as the base. The School of Business housed the Business Education Department and the Management Information Systems Department. The College of Arts & Sciences housed the Family and Consumer Sciences Department and the Microbiology Department. Table 7 displays the regression output.

The reader should recognize that the department variable is not adequately identified.

Adjusted r2 has decreased to 0.56. Also, in this case researchers would be led to erroneous conclusions. The coefficient in front of women is a negative $10,256. The institution could spend untold amounts of resources trying to correct a non-existent problem of internal gender discrimination. Notice that the regression model derived reasonable estimates for all regression coefficients that were used in the derivation of the data set, except for the coefficient for gender.

The problem with the gender variable is that it has served as a surrogate for the market variable.

Because market is negatively correlated with the proportion of females employed in that field, and because market was not sufficiently explained by the inclusion of the School or College dummy variables, this huge source of variance was somewhat captured by the gender variable.

Discussion The following are the three main conclusions of this study: Conclusion 1 If department is properly incorporated into the model using categorical variables, even though there is some correlation between the salary level and the proportion of women in the department, regression will correctly derive the coefficients.

Analysts would not come to the erroneous conclusion that within departments and within ranks, females earn less than men. Certainly, if error variance were incorporated into the model, the expected value of the coefficient for gender would still be +$4,000.

Conclusion 2, Subset 1 If department is properly incorporated into the model using a ratio variable reflecting the salaries of men at each rank and at each department, even though there is some correlation between the salary level and the proportion of women in the department, regression will correctly derive the coefficients.

In the second investigation of the use of a market by rank variable, it was recognized that it is not realistic to expect to locate a viable source for market variables by rank and department

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just for men. Therefore, a market by rank variable was created that is similar to the information found in the Oklahoma State University Salary Survey data set (Oklahoma State University, 2012).

Conclusion 2, Subset 2 The statistical coefficients generated by incorporating a market variable that reflects specific department by rank are reasonably close to the parameters of the deterministic model, although some contamination of those coefficients exists due to the correction between the numbers of women in a department and its societal market value.

Analysts would not be led to the erroneous conclusion that females earn less than males within departments by rank.

Conclusion 3 When no department-specific variable is properly included in the model that will properly catch the variance due to market and there is an inverse relationship between the proportion of women and the salary level in a field, regression will not be able to derive the coefficients correctly and erroneous conclusions may be reached.

When a model is incorrectly specified, strange results can and do occur. Unfortunately, the above scenario is realistic. Women have traditionally been employed in those departments that have not enjoyed strong market forces. If market is not properly incorporated into a regression model, then gender can serve as its surrogate variable. This can lead to erroneous conclusions, emotional upheaval, and significant legal, financial, and strategic implications for individuals and institutions. The greatest contributor to the variance of faculty salaries is market.

Market is best incorporated into the model by using categorical variables. Then if the coefficient in front of gender is significantly different from zero, and is meaningful, this will indicate that the institution has a problem that needs to be addressed. That process can then begin by generating expected salaries via regression analysis (while excluding the gender variable), and then calculating residuals using an agreed-upon process to judge whether those values are justifiable.

Limitations This method is only appropriate for the university when a systematic pattern exists. When gender discrimination varies by department the model will not identify it. This model is not intended to capture differences in equitable treatment from discipline to discipline. A significant limitation of this study is that even when the model is correctly specified, the coefficient in front of gender shows up as a constant, which would be most appropriate if all disciplines treated gender in the same manner. However, if different practices exist within the university (such as

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Accounting including an additional $3,000 per year for women, but English actually penalizes its women faculty members by $4,000) then this method does not capture this and, in fact, fails.

Implications for Further Research Several implications for future research are exposed by this work. For example, the question of whether other variables are being specified incorrectly, or whether additional variables might significantly improve the model, could be of value to the body of knowledge in compensation study. Also, the findings of this study might be used as a basis for additional research beyond the borders of academics. Finally, additional simulated datasets could be constructed that would take a more granular look at individual departments (or academic units) and determine which of several regression models would be appropriate for the individual unit, as opposed to this institution-wide approach.

Summary In summary, the incorporation of a categorical independent variable for discipline captures a great deal of market variation and ensures that systematic gender discrimination, if present, will be identified correctly. On the other hand, if the institution uses the larger college or academic unit variable as a surrogate for market, the model will be specified incorrectly resulting in a misstatement of the extent (or lack thereof) of gender discrimination.

Author Biographies Dr. Steven Lamb completed his B.A. at Hastings College and obtained his Ph.D. at Kansas State University. He is Chair and Professor of the Accounting, Finance, Insurance, and Risk Management Department within the Scott College of Business at Indiana State University.

His teaching and research interests include applied statistics as well as the use of simulated data sets to determine properties of statistical procedures. He has also been heavily involved in the University Faculty Senate for much of the past 30 years, serving eight times as Chair while championing the rights of Indiana State University faculty.

Dr. Jeff Harper is Professor of Information Systems and Executive Director of Graduate Programs in the Scott College of Business at Indiana State University. Other appointments include Athens State University, Auburn University, the University of Alabama-Huntsville, and Harvard University. An academic for well over twenty years, Dr. Harper is known as a prolific researcher and consultant, having authored over 50 academic research papers and participated in engagements across the U.S. and in nearly a dozen countries. Consulting clients have included NASA, the US Justice Department, BellSouth Corporation, Monroe Guaranty Insurance, State Farm Insurance, and Union Hospital of Terre Haute, IN.

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Brien Smith is the dean for the Scott College of Business at Indiana State University.

Smith attained his PhD in Industrial/Organizational Psychology in 1989 from Auburn University.

He has 20 years of administrative experience in higher education and has actively participated in university governance. Smith published numerous articles in refereed proceedings and journals, including some of the best journals in his field: Journal of Applied Psychology, Journal of Applied Social Psychology, Group and Organization Management, and Journal of Business and Psychology. He has delivered presentations and speeches at national and international conferences.

References American Association of University Professors (2009). On the brink: The annual report on the economic status of the profession, 2008-2009. March-April 2009.

Ashraf, J. (1996). The influence of gender on faculty salaries in the United States, 1969-89.

Applied Economics, 28(7), 857-865.

Barbezat, D. (1992). The market for new Ph.D. economists. Journal of Economic Education, (Summer), 262-276.

Bellas, M. (1997). Disciplinary differences in faculty salaries: Does gender bias play a role? The Journal of Higher Education, 68(3), 299-323.

Bereman, N., & Scott, J. (1991). Using the compa-ratio to detect gender bias in faculty salaries.

Journal of Higher Education, 62(5), 556-570.

Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic Literature, 47(2), 448-474.

DeNavas-Walt, C., Proctor, B., & Smith, J. (2010). Income, poverty, and health insurance coverage in the United States: 2010. US Department of Commerce.

Ferreira, A. P., (2013) Are all faculty members being compensated equally? A multi-method approach to investigating Faculty Salary. Open Access Dissertations. Paper 18.

Gander, J. (1997). Gender-based faculty pay differences in academe: A reduced form approach.

Journal of Labor Research, 18(3), 451-462.

Garcia, J., Hernandez, P., & Lopez-Nicolas (2001). How wide is the gap? An investigation of gender wage differences using quantile regression. Empirical Economics, 26(1), 149-167.

Gaynor, P., & Durder, G. (1995). Measuring the extent of earnings discrimination: an update.

Applied Economics, 27(8), 669-677.

Griggs v. Duke Power Co., 401 U.S. 424 (1971).

Hagedorn, L. S. (1996). Wage equity and female faculty job satisfaction: The role of wage differentials in a job satisfaction causal model. Research in Higher Education, 37(5), 569-598.

Johnsrud, L. K., & Rosser, V. J. (2002). Faculty members' morale and their intention to leave: A multilevel explanation. The Journal of Higher Education, 73(4), 518-542.

Kaplin, W. A. (2006). The Law of Higher Education. New York, NY: John Wiley & Sons.

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Konrad, A. M., Ritchie, J. E., Jr., Lieb, P., & Corrigall, E. (2000). Sex differences and similarities in job attribute preferences: A meta-analysis. Psychological Bulletin, 126, 593-641, Lamb, S., & Moates, W. (1999). A model to address compression inequities in faculty salaries.

Public Personnel Management, 28(4), 689-701.

Lee, S. (2008). University of Hawai'i faculty pay equity study. White Paper. University of Hawai'i, December.

Lips, H. (2013). Acknowledging gender discrimination as a key to the gender pay gap. Sex Roles, 68, 223-230.

NC State faculty salary Equity study. (2006) White Paper. University Planning and Analysis, North Carolina State University, fall.

Oaxaca, R., & Ransom, M. (1994). On discrimination and the decomposition of wage differentials. Journal of Econometrics. 61(1), 5-22.

Oklahoma State University. (2012). 2011-2012 Faculty Salary Survey by Discipline. Office of Institutional Research, Oklahoma State University.

Robinson, M. (1993). Measuring discrimination against females: Is the "non-discriminatory" wage the male or the female wage? American Economist, 37(1), 45-51.

Romanoff, K., Boehm, K., & Benson, E. (1986). Pay equity: Internal and external considerations. Compensation and Benefits Review, 18(6), 17-25.

Salary equity analysis. (2010) White Paper, Office of the Executive Vice Chancellor, University of California, Santa Barbara.

Slade, M. (2013). Test case for gender pay equity. Business Day, Retrieved from www.stuff.co. nz/business/women-of-influence/8983239/Test-case-for-gender-pay-equity.

Stewart, K., Dalton, M., Dino, G., & Wilkinson, S. (1996). The development of salary goal modeling, from regression analysis to a value-based prescriptive approach. The Journal of Higher Education, 67(5), 555-576.

Umbach, P. (2007). Gender equity in the academic labor market: An analysis of academic disciplines. Research in Higher Education, 48(2), 169-192.

US Department of Labor. (2009). An analysis of the reasons for the disparity in wages between men and women. CONSAD Research Corporation.

Webster, A. (1995). Demographic factors affecting faculty salary. Educational and Psychological Measurement, 55(5), 728-736.

Wilford, L., & Gray-Little, B. (2002). Report on the 2002 faculty salary equity study: A report commissioned by the office of the executive vice-chancellor and provost. White Paper.

University of North Carolina at Chapel Hill.

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Table 1 AAUP Average Salary for Men and Women Faculty 2008-2009 (Dollars)

Table 2 Department Characteristics for Simulated University

*The numbers following the discipline name are the codes used within the Oklahoma State University Faculty Salary Survey (2012) to signify the specific discipline. These salaries were the base salaries used in the construction of the deterministic data set.

Journal of Scholastic Inquiry: Business Table 3 Faculty Characteristics for Simulated University

Table 4 Regression Results (Categorical Variable for Each Market at Each Rank)

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Table 5 Regression Results (Categorical Variable Assigned with Rank and Department Excluded, Ratio Market Variable for Males Included

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Table 6 Regression Results (Categorical Variable Associated with Rank and Department Excluded, Weighted Ratio Market Variable Included

Regression Statistics

Multiple R

0.9996

R Square

0.9992

Adjusted R Square

0.9992

Standard Error

699.11

Observations

252

ANOVA

df

SS

MS

F

Significance F

4

1.451E+11

3.63E+10

74202.31

0.0000

Residual

247

1.207E+08

488758.3

Total

251

1.452E+11

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

-3816.1

229.7

-16.6

0.0000

-4268

-3364

Female Variable

3341.9

93.9

35.6

0.0000

3157

3527

Productivity Variable

2509.4

56.3

44.6

0.0000

2399

2620

Chairperson Variable

14513.8

292.8

49.6

0.0000

13937

15090

Market Variable

1.0211

0.001982

515.2

0.0000

1.0172

1.0250

Regression

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Table 7 Regression Results (Department and Market Excluded, “College” Incorporated) Regression Statistics R Square

0.580

Adjusted R Square

0.564

Standard Error Observations

15877.9041 252

ANOVA df

SS

Regression

MS

9

84,178,616,991.1

9.35E+09

Residual

242

61,010,097,294.7

2.52E+08

Total

251

145,188,714,285.7

F 37.10

Significance F 0.0000

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

70127.49

4082.00

17.180

0.00

62087

78168

Female Variable

-10255.95

3549.44

-2.889

0.00

-17248

-3264

Productivity Variable

2528.50

1277.90

1.979

0.05

11

5046

Chairperson Variable

13158.22

6771.95

1.996

0.05

179

26858

School of Business

18461.44

2467.85

7.481

0.00

13600

23323

Arts & Sciences

1442.17

2489.97

0.579

0.56

-3463

6347

Associate

12000.0

3850.96

3.116

0.00

4414

19586

Professor

35130.75

3897.04

9.015

0.00

27454

42807

Female Associate

0.0

4991.41

0.000

1.00

-9832

9832

Female Professor

-41.8

4995.07

-0.008

0.99

-9881

9798

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Affecting Philanthropic Propensity Hubert E. Sales Belmont Abbey College Abstract The emergence in the recent past of the “new philanthropists,” those characterized by a businesssavvy, results-oriented, strategic mindset and a desire to be fully engaged in the nonprofits they support, was heralded in the both the popular and academic literature. While the movement towards a new paradigm of philanthropy has fostered changes in traditional funding organizations and nonprofit agencies, what has not been fully investigated is the efficacy of membership in the new philanthropy on the philanthropist. This study questions how being a member of a specific venture philanthropy organization meets the motivations of the philanthropist, and whether an outcome of being a member is a future of increased propensity to philanthropic activity. This case study explores longitudinally how the variables of motivation, participatory activities, and organizational and economic changes impact the philanthropic growth of the subjects. The findings suggest that within the context of this case study, membership positively affects philanthropic propensity – propelling “new philanthropists” on a course of engaged charitable activity. This study lends empirical grounding to the initial descriptive literature of the new philanthropy. Practical applications can be far-reaching. While the recent economic downturn has dampened the new philanthropy movement, the coming intergenerational wealth transfer from the Baby Boomers may cause a new surge in charitable activity. If such a shift should occur, it is important to understand how best to sustain and develop the philanthropic motivations of these emergent leaders in the nonprofit sector for the benefit not only of the mission, but also the philanthropist.

Keywords: Philanthropy, venture philanthropy, social ventures, charitable giving Introduction Over the past 20 years, a new form of philanthropy has emerged. Initially driven by newfound wealth generated in the telecommunications and “dot-com” industries, it was sustained by a booming economy in the 1990s and early 2000s. A key characteristic of the new philanthropy is the business mindset many of these philanthropists bring to their charitable activities (Wagner, 2002). These philanthropists want to do more than just have a one-way transfer of funds; through the lens of their business mindset they want to be strategically involved, see measureable returns, and know their “investment” is having an impact (Hero, 2001). Even though the recent economic situation has dampened the growth of this new philanthropy, many researchers believe the intergenerational wealth transfer that will occur over the next few decades will spur a

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renewed escalation (James, 2008; Schervish, 2006; Schervish & Havens, 2001; Wilhelm, Brown, Rodney, & Steinberg, 2008).

Examinations have been undertaken by researchers on the new philanthropy and the many forms it has taken (Eikenberry, 2008; Frumkin, 2003; Moody, 2008). Further research has begun to examine the contextual relationships of the new philanthropy within the nonprofit agency and philanthropic foundation participants (Andersson, 2011; Ostrander, 2007; Worth, 2009). These studies have been mainly concerned with content and description; what has been lacking is an empirical grounding of the effects of the new philanthropy on the actors involved.

This study lends understanding to this area by investigating the new philanthropists involved with a specific organization within the new philanthropy field, Dallas Social Venture Partners (DSVP).

DSVP is part of an international affiliation of Social Venture Partners (SVP) headquartered in Seattle, WA, in what has been recognized as a model and exemplification of a higher order of the new philanthropy, e.g., venture philanthropy. This organization is an excellent site for investigation since it is highly representative of the venture philanthropy model, has been in existence for an optimal time period allowing for longitudinal analysis, is limited in mission and membership to a local geographic area, and the staff and board leadership have been receptive and open to a study of this type.

The strategic objectives of DSVP are two-fold. First, DSVP seeks to build the organizational capacity of the nonprofits in which it invests. Secondly, DSVP seeks to promote philanthropy of its members (the partners) through donor education and engagement activities.

DSVP accomplishes these objectives by operating in multiple areas of philanthropic activity: donor recruitment, donor education, volunteer matching, grant-making, multi-level engagement with grant recipients, and networked philanthropy with other grant-making organizations.

The study focused on the 343 partners of DSVP, past and current, who have been in the partnership. The objective of the study was to gain understanding of the effectiveness of the organization in achieving its second objective of promoting philanthropy of the partners. To meet the objective of this study, an explanatory case study was designed to develop an answer to the question, “How does membership in Dallas Social Venture Partners affect the philanthropic propensity of the partner?�

Review of Literature A review of the relevant academic literature provided the background information, underlying concepts, and framework for this investigation. The four main areas of review of the literature are giving theory, venture capitalism, the New Philanthropy, and donor socialization through education.

Giving theory, defined by Ott (2001) as an umbrella term consisting of altruism, philanthropy, charity, and volunteerism (p. 312), suggests the possible motivations for charitable activity. These motivations can be captured in two main categories, the economic and the

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psycho-sociological. Investigators point out that economic motivation for giving is found in the utility gained from resultant benefits of giving found in favorable tax benefits and public goods consumption (Andreoni, 1990; Keating & Keating, 2009; Sargeant & Woodliffe, 2007). The psycho-sociological motivations for giving are mainly altruistic and egoistic. Work published by Batson described the human capacity for altruism (Batson, 1987, 1990), with Andreoni (1989) providing additional insights on the “impurity” of altruism. Egoism as a motivation for giving was posited by Clohesy (2000) when he outlined motivations for giving that addressed the need for prestige, recognition, and social identification. Tying both the economic and psychosociological threads together is social exchange theory as first discussed by Homans (1958) with following work by Emerson (1976) and Lawler (2001).

Venture capitalism is a private sector financing arrangement described in a seminal article on the subject as having four main components: (1) selection of the organization to be financed, (2) the intrusion into the financed organization, (3) the effect of financial autonomy and security, and (4) the declaration of victory (Janeway, 1986). Guthrie, Preston, and Bernholz (2003) caution that the first three of these characteristics may be transferable to the nonprofit sector, but the end-game of the private sector venture capitalist (the victory) is generally not applicable due to the ongoing nature of the nonprofit’s mission. Venture capitalism is the model followed by many venture philanthropy organizations, including DSVP (Crutchfield & Grant, 2008; Eikenberry, 2007; Moody, 2008).

The literature on New Philanthropy describe it as “supply side” donors who are seeking to support causes they feel passionately about (Frumkin, 2003; Hall, 2010; Larson, 2002; Wagner, 2002; Worth, 2009). Another author portrays the business mindset and lexicon used by these new philanthropists (Hero, 2001). Specific articles on content, as well as descriptive articles, have been published on venture philanthropy first by Cobb (2002) followed by the work of Moody (2008), Eikenberry (2006, 2007, 2008) and others. Literature on donor education and donor motivations within the field of venture philanthropy were examined for this study. Most of the literature is descriptive in nature, and lacks longitudinal analysis. The leading authors in this area are Wagner (2002), Moody (2008), and Ostrander (2007).

Research Methodology The methodology for the study was an explanatory case study of Dallas Social Venture Partners. The case study was grounded in multiple methods of data gathering including in-depth semi-structured interviews to 12 key informants, field observation at two DSVP sponsored events, informal interviews conducted during 12 months of DSVP events and other research meetings, secondary data source review including electronic and archival data, and a final validating partner on-line survey. All data-gathering instruments were authoritatively reviewed for validity and reliability construct soundness. This methodology was rigorous enough to give experimental isolation and an accurate depiction of the process of how membership in DSVP affects philanthropic propensity of the partner within the social context of the organization. To

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ensure construct validity, member checking was performed prior to and during preparation of the final study document.

A major threat to the trustworthiness of a qualitative research study is respondent bias (Bowen, 2005). It can be assumed that members of the organization are positively predisposed to represent it in the best possible light. To reduce the threat of this respondent bias, interviews were conducted with past and dissident partners who would presumably not paint an untrue positive picture. As a further bias-reducing measure, the informal interviews were sometimes carried out without the respondent being aware of the nature or purpose of the conversation.

Further, the partner survey gave anonymity to the respondents to allow for unbiased response.

These devices lend confidence to the accuracy of the conclusions.

Results The results of the primary research methodology were supported by secondary data source review including printed and electronic archival data. The documents supplied were incomplete, as most hard-copy records from the formation of DSVP in 2000 through its incorporation in 2005 were not made available. Electronic records from that period were also mainly non-existent. The records available post-2005 were useful and apparently complete, offering an informative behind-the-scenes look at the organization and its processes. Since the majority of the interview data concerned partner’s perceptions, the reviewed documents, even though not historically complete, supplemented the interview data and was useful to the research.

While only five former partners were interviewed (three in-depth, two informally), an additional 22 answered the partner survey. The five interviewed ex-partners all claimed to be still involved in organized philanthropy. The partner survey asked former partners their reason for leaving DSVP. The most frequent response given, by eight of the 22 (36.4%) was “Involvement with Other Philanthropy.� The 22 former partner survey respondents represent a sample of only 9.8% of all former partners. This low response rate precludes drawing firm conclusions of the responses from Former Partners; however it is useful for directional pointing and for indicating areas for future research.

The validating online partner survey had a response rate of 44% (42/96) of the Current Partners. This is a robust response rate for a survey of this kind Being a partner in DSVP meets the motivational requirements the partners had prior to joining. This first step is crucial because giving theory informs us that meeting giving motivations is critical in donor retention (Sargeant, 2008; Schervish, 2000). The primary motivating factors for joining DSVP are psychological rather than economic, with a desire to be involved in the community being the dominant factor. This was determined by the discussions during the in-person interviews and supported by the responses of the current and former partners surveyed as shown in Figure 1. Schervish and Havens (1997) describe this motivation as being a summation of feelings of gratitude and social identification. Many interviewees related deeply felt feelings of how DSVP had changed their lives for the better, and had done

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more for them than they had dreamed possible. Former partners interviewed declared that failure to meet initial joining motivations was not a factor in their decision to leave the organization.

The study defined two markers for identifying rising philanthropic propensity: (1) increases in charitable giving, and (2) increases in organized philanthropic activity.

Philanthropic activity is, as suggested by Ott (2001) and Worth (2009, p. 7), a more long-term and rational giving process than charity, so this study did not address changes in charitable activity that does not fit this definition (such as crisis-motivated, single-time donations).

Charitable giving by most partners in DSVP increases during membership. Well over half of the partners claimed during interviews that their annual giving rose while they were members of DSVP. A lesser amount reported their giving had stayed the same, and none admitted to a decrease in giving. The anonymity of the partner survey corroborated what was said in person with over 70% of the survey responses of current and former partners claiming increased giving, and fewer than 30% reporting no change. A cross-tabulation of charitable giving changes and tenure in the organization lends support to this conclusion by drawing attention to the fact that almost 72% of the survey responses of current and former partners with over five years tenure showed increased annual giving, and 70% of that number had increased their giving by over 50%. Interview data suggests that the combination of in-depth nonprofit education and involvement were most impactful on their decision to increase giving. The specific activity that led to the greatest nonprofit education was being a member of the DSVP Board of Directors Investment Committee. M. Miller, a 10 year partner, described it as the “greatest immersion into the nonprofit world there could be.” When asked to explain she said, “You see multiple nonprofits and what challenges they have. You learn about grants and assessment and evaluation; outputs and outcomes. It’s a requirement to commit, to learn, and have in-depth site visit” (personal communication, June 12, 2011). The partner survey was also helpful in determining specific activities that led to increases in charitable giving. Table 1 crosstabulates increased giving and involvement in specific activities of the current partners who responded. The top four activities that correlate to an increase in giving are (1) providing business expertise to investees, (2) attending at least one donor education event annually, (3) volunteering with an investee, and (4) serving on the Grant (Investment) Committee. These were also the activities in which the partners who showed the greatest percentage increase in giving were involved.

It is important to note that these claims covered the period of the economic “Great Recession” of 2008-2010. While it could be theorized that the greater need and lowered financial support to nonprofit organizations were a factor in the increase, the study finds support for this only as a secondary factor. Partners did describe how during this time they felt the agencies needed them more than ever, because of the “double whammy” of decreased funding and increasing need. Others felt that even though it “might hurt a little more” they were still “blessed” by giving. However, relating these feelings directly to DSVP membership were comments such as one made by Partner K. Akins, “I never really understood or thought much about how nonprofits function in a down economy. I thought the government would just step in

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– being in DSVP opened my eyes to how things really work” (personal communication, October 22, 2011).

Investigating increases in charitable giving uncovered over 80% of those asked during inperson interviews give DSVP credit for the increase. Support for the conclusion that DSVP membership is significant in increasing charitable donations comes from the partner survey where 88% of the respondent current partners who claimed to increase their charitable giving agree that DSVP had impact, with 60% saying the impact was “significant” or “primary.” For the full 88% who claimed membership had at least some impact, the components of DSVP involvement that had the greatest weight are shown on Figure 2 to be the educational “Serving on the Grant Committee” and the experiential “Engaging with an Investee.” When the amount of increase in giving is cross-tabulated with the perceived level of impact DSVP has had on the increase, the data from the partner survey shows the greater the impact, the greater the giving increase. In order to validate the responses and avoid having the question determine the answer, the 25 current partner responses indicating an increase in charitable giving were cross-tabulated with primary and secondary influencing factors. Involvement with DSVP was selected overall by 80% of these respondents, and as the primary factor by 68%. Not surprisingly, given the recent economic downturn, a change in personal income or assets is listed as a secondary factor by 44% and a primary factor by 16% of these respondents.

In addition to increased charitable giving, the second marker of philanthropic propensity is participation in other forms of organized philanthropy besides DSVP. Ten of the 12 key informants who were given in-depth interviews remarked on their involvement in other forms of philanthropic organizations. Most of these informants had been with DSVP longer than four years, so the question was also asked on the partner survey in order to get a better understanding of tenure as it relates to other philanthropic organization participation. For these current partner survey respondents, as the length of time in DSVP increases beyond two years, respondents report increasingly greater participation in other forms of philanthropic organizations. The biggest impediment for those who do not participate in other forms of organized philanthropy, as reported during interviews and responses to open-ended survey questions, is time availability.

The activities associated with increasing participation in other organized forms of philanthropic organizations are heavily weighted toward service on the Grant (Investment) Committee and Engaging with an Investee. These two activities were mentioned most frequently during the partner interviews, being referred to as a causal factor more than 70% of the time.

The partner survey lends support to this as well, as shown on Table 2 that cross-tabulates the activities with participation in other philanthropic entities for those current partners who responded affirmatively. In that table, 14 of the 22 (64%) respondents identify Serving on the Grant Committee or Engaging with an Investee. During interviews, partners commented about “having my eyes opened to all the other avenues” and “I have a great passion to be involved in women’s issues. DSVP taught me how to get involved in the most strategic way – so I joined the Texas….” When cross-tabulated, DSVP Involvement Impact and Participation in Other Philanthropy for current partner respondents indicates 22 of the 25 relevant respondents asserted

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DSVP involvement as having at least “some” impact. A total of 15 of the 25 (60%) reported that their DSVP involvement had either a “Significant” impact or was the “Primary Factor.”

In an attempt to tie both markers of positive philanthropic propensity (i.e., increased charitable giving and increased participation in other forms of organized philanthropic activity) together, a cross-tabulation of the responses given on the partner survey by all current partners to the questions of non-DSVP philanthropic activity and increased charitable giving was performed.

Table 3 reveals that 12 of the 17 (70%) respondents who reported “No Change” in charitable giving are not active in any philanthropic activities beyond DSVP. An almost identical percentage of respondents, 68% (17 out of 25), who reported increased giving are engaged in other forms of organized philanthropy. Six of the seven longest-tenured partners interviewed indepth participate in other forms of organized philanthropy, as well as claiming to have increased their giving substantially over their membership period. Several of the informal interviewees discussed other philanthropic activity at length (changes to charitable giving was not discussed during informal interviews for propriety reasons).

Conclusions The major hypothesis generated from this qualitative analysis is that membership in DSVP does have a positive effect on the philanthropic propensity of the partner. While other alternative theories may be consistent with the data gathered in this study, the results of the study suggest that for this population of Partners of DSVP, at this point in time, the following conclusions may be drawn in support of this hypothesis.

The results of the investigation reveal that both the amount of charitable giving and the percentage increase in charitable giving rise with membership in DSVP. This supports the first marker of increased philanthropic propensity. Partners interviewed are generally very positive about the impact membership in DSVP has had on their charitable giving increases. Support is given that participating in the highly educational Grant (Investment) Committee as well has high-level engagement at the investee were most impactful on their decision to increase giving.

A conclusion is also drawn that increases in charitable giving, both in absolute and percentage terms, are positively correlated to time in the organization, with longer tenured partners being more likely to (1) increase their charitable giving and (2) do so at a greater percentage from the previous level.

In addition to increased charitable giving, the second marker of philanthropic propensity is participation in other forms of organized philanthropy besides DSVP. Findings from the study lead to the conclusion that this indicator of philanthropic propensity is also positively impacted by membership in DSVP. As seen with increases in charitable giving, DSVP involvement at the Board level, as well as high-level investee engagement, is a significant factor in the increased participation in other forms of organized philanthropy. Support is also given to the conclusion that as time in DSVP increases, participation in these two activities has a significant positive effect on becoming a participant in other forms of organized philanthropy, supporting the second

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marker of increased philanthropic propensity. The results of the study also uncovered that tenure with DSVP was positively correlated to increased participation in other forms of philanthropy.

Since, as summarized above, being active in other forms of organized activity as well as increases in charitable giving are tied to tenure in DSVP, one can draw the conclusion that, for a significant majority (>67%) of partners who have been with DSVP for longer than two years, both component markers of positive philanthropic propensity are present. This conclusion is strongly supported by the responses to both in-depth and informal interviews.

Four additional conclusions are suggested by the data, but without the same strength as the aforementioned. First, the positive affect membership in DSVP has on the philanthropic propensity of the partner appears to be resistant to changes in the economy. A close analysis of the data show an apparent trend of decreasing income and decreasing household wealth between the past partners and the current partners during the years immediately prior the time of the research (2012-2013). This trending is also supported by statements made by partners during interviews when comments on the effect of the economic downturn were made. However, during this same time charitable giving and participation in other forms of organized philanthropy both increased.

Secondly, the statements made by the partners during interviews support the conclusion that without education from DSVP on the nonprofit sector, partners might not know about the effects of an economic downturn on a nonprofit agency.

A third conclusion only weakly supported is that the positive affect membership in DSVP has on the philanthropic propensity of the partner appears to last beyond membership in DSVP. Even with the addition of the in-person interviews, the total sample is too small, and the questioning in this area too vague, to draw a definite conclusion. Authors commenting on venture philanthropy have pointed out that a significant dissimilarity between venture capitalism in the private sector and venture philanthropy is the lack of an “exiting victory” for the venture philanthropist (Frumkin, 2003; Locke & Roberson, 1997). If the conclusion of positive philanthropic propensity lasting post-DSVP membership is valid, it refutes the position of the authors in that, while the exit may not be accompanied by a fiscal return on investment, there is a social return on investment to the philanthropist. This would make the model of venture capitalism even more relevant.

Finally, while SVP’s may now be understood to be at the “top of the hierarchy” as Moody (2008) and Eikenberry (2008) have posited, another higher level of organization is emerging. This study reveals that DSVP is apparently a first step in a longer high-engagement philanthropic path. Former partners describe their time with DSVP as an “entry-point” or “training ground” or “laboratory.” Partners with long tenure in the organization detail in interviews the next stages that they see for new philanthropy, including “networked philanthropy” and “strategic facilitation.” While these formative concepts lack clarity and definition, the concept described is one of diverse, thought-leading organizations pooling resources, knowledge, and analytic reviews to address fundamental root issues within the nonprofit sector. Figure 3 is illustrative of this conclusion. Partners drop out of DSVP because

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of dissatisfaction with the organization or lack of interest in the activities offered, but they go on to involvement in other philanthropy. The data also revealed a high proportion would consider returning to DSVP as it, too, matures. Partners refer to this metaphorically as “leaving the nest”, implying moving on to a higher plane of venture philanthropy.

In summary, the findings of the study confirm that membership in DSVP affects positively the philanthropic propensity of the partners by active inculcation into in-depth education (specifically by membership on the Investment Committee) and intensive high-level involvement with investees. These effects are strengthened through length of involvement with DSVP, and there is a weaker suggestion of the effects lasting beyond the membership period and without regard to external economic conditions. Finally, the study supplies evidence for the recent emergence of new, higher-order forms of venture philanthropy.

Discussion of Practical Implications After a two year reduction in charitable giving as a percent of U.S. Gross Domestic Product during 2008 and 2009, charitable giving has resumed its decades-long annual growth rate of between 1-2% (GivingUSA Foundation, 2014). The expected scope of the intergenerational wealth transfer over the next several decades is unprecedented and will greatly expand the number of new philanthropists (Schervish & Havens, 2001). Many of these new philanthropists are expected to display the characteristics of high-engagement, resultsorientation, strategic giving, and passion found in venture philanthropy (Backer, 2006; Eikenberry, 2006; James, 2008; Moody, 2008; Morino, 2011; Schervish, 2000). To satisfy the motivations of these new philanthropists and retain them within the nonprofit sector, especially in the social welfare subset, this research suggests at least two practical applications that warrant further investigation.

First, as theorized by social exchange theory, in-depth education and socialization into the nonprofit sector and within specific agencies is important for increasing philanthropic propensity. Agencies should encourage new philanthropists to become involved in not only experiential or volunteer activities, but educational as well. Typical Board-level activity such as strategic planning, mission direction, and service provisioning and expansion should be opened up to non-Board “working groups” made up of key donors. These activities should be structured as vehicles to inform new philanthropists on the nonprofit sector in general as well as provide indepth education on the specific agency. Involvement in activities such as these may circumvent the potential donor perception that only the donation matters, keeping engagement high.

Second, the field of venture philanthropy is still growing and evolving. While some may still describe it as a “fetish” (Andersson, 2011), new forms and structures will emerge, and existing high level organizations such as Social Venture Partners will need to either recast themselves according to the emerging paradigms or remain as currently configured. Neither option is necessarily better or worse; however, having a foot in both was shown in this study to be seriously disruptive to the DSVP Partnership and was a factor in retention of partners.

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Redefining the mission to clarify that the organization is an “entry point” or “training ground” into venture philanthropy is warranted, if that is the model selected. If the organization wishes to become more than this entry-level model, evolving into a model of multi-organizational facilitation or some other emergent higher form of venture philanthropy, then the mission needs to be altered to reflect that new state.

Recommendations for Future Research This study is only concerned with one topic that emerged from the data: how membership in DSVP affects the philanthropic propensity of the partner. Several other topics should be explored in this field.

Venture philanthropy is still an emerging process within the nonprofit sector. While the “buzz” and publicity that surrounded its inception may have been tempered and reduced during the recent economic downturn, the significant influx of new philanthropic dollars predicted through inter-generational wealth transfer suggest a recurrence of consequence. Basic research into the structure, forms, diffusion, and effectiveness of the field of venture philanthropy needs to be continued. What this study found lacking was accurate measures on the number of organizations or amount of dollars represented, and rate of actual growth of venture philanthropy relative to philanthropy in toto. Gathering evidence within venture philanthropy, as well as externally from traditional philanthropic organizations and nonprofit agencies, could answer questions on the size and impact of this new field.

Research on the other stakeholders in venture philanthropic organizations is a necessary complement to this study of the partners. Studies on the effects on the staff and the mission of the nonprofit agency of venture philanthropic characteristic requirements such as complex grant application, intensive donor control, involvement, training, and performance and outcome measurements could build on the work of other researchers (e.g., Barman, 2008; Cobb, 2002; McDonald & Warburton, 2003; Ostrander, 2007).

This study focused on a very specific group of individuals. This research could be expanded to include different locations within the Social Venture Partners sphere, and other venture philanthropic organizations beyond Social Venture Partners. Expanding the research in this way would increase the population under study allowing for analysis of the effects of different socio-economic variables such as age, gender, occupation, income, wealth, and education. Longitudinal research into the tenure of the members of these organizations could better examine how long the effects last post-membership and the effects of environmental factors such as the economy, state of the nonprofit sector and charitable activity in general, and organizational life stage. Further understanding of the education and socialization of the donors into these organizations could perhaps lead to recommendations for practice that improves donor retention and engagement levels. Research such as this could also provide insights into the processes of other emerging and divergent innovative fields in other disciplines.

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Limitations of the Study Qualitative research considers the meaning of phenomena and the lived experiences of the subjects studied (Padgett, 1998, pp. 2-4). The naturalistic setting demands attention to the point of view of the participants and the social context in which events occur (Labushagne, 2003). Reliability criteria of the study are focused on the identification and documentation of homogenous, accurate themes that can be replicated (Yin, 2009, p. 40). While every effort was made to ensure the trustworthiness of this case study through validity and reliability testing, certain limitations were beyond the control of the research and therefore impact the transferability or generalizability of the study.

The population of partners of DSVP is local, few in number, and very sociodemographically homogenous. Partners of SVPs located in different communities may have significantly different socio-demographics that may affect the outcome of any replicating research. Like the other SVP affiliates, DSVP has a very structured socialization process for partners with the development of engaged philanthropists being one of the strategic goals of the organization. Other venture philanthropy organizations may have different processes and goals that could yield different conclusions. The small number of current and former DSVP partners may make generalizing to a larger population unrealistic. Generalizing is further complicated by the fact that in total, the voices of less than one-third of the total DSVP partner population were heard either through interview or survey.

The limitations should not be seen as contradicting the conclusions or implications of the study. The study expands on the knowledge of the field of venture philanthropy and how being a venture philanthropist in this specific instance under these specific conditions affects their philanthropic propensity.

Summary This study builds on the contextual and descriptive research already done on venture philanthropy by examining the effects on a largely forgotten actor – the philanthropist. The question examined was how membership in a venture philanthropic setting affected the philanthropic propensity of the philanthropist. The literature gave a theoretical framework for motivations to become a philanthropist, the decision making process involved in strategic charitable activity, the model from the private sector followed in venture philanthropy, and the contextual underpinnings for venture philanthropy and donor socialization.

Using a multi-methods data gathering approach within a case study of Dallas Social Venture Partners, the findings revealed that certain partner activities in the areas of gaining indepth nonprofit sector knowledge and intensive engagement with nonprofit agencies, over time, were correlated to an increase in charitable giving and increased philanthropic activity, the two markers of philanthropic propensity. The findings indicated that involvement with DSVP had an

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impact on these increases. The conclusion drawn from the findings is that membership in DSVP, especially beyond two years tenure, positively affects philanthropic propensity of the partner.

The findings produced four themes that revealed philanthropic propensity determinants: a) meeting initial motivations, b) joint in-depth education and agency involvement, c) tenure in the organization, and d) organization life stage. Recommendations invite nonprofit agencies and other charitable institutions to intensively engage key donor / emergent philanthropists in education as well as hands-on involvement in order to build philanthropic sustainability, and to further suggest additional research into the diffusion of venture philanthropy and the potential effects it has on the agencies supported and the philanthropists involved. Â

Author Biography Hubert (Hugh) Sales completed undergraduate studies at the University of Illinois at Chicago and Trinity Christian College, and received an MBA from Indiana Wesleyan University.

Following a successful 35 year business management and executive career he earned his Ph.D. in Public Affairs from the University of Texas at Dallas in 2012. Dr. Sales is currently Assistant Professor of Business at Belmont Abbey College in Belmont, North Carolina, where he also serves as Director of the Entrepreneurship Program. His research interests lies in uncovering causes and effects of collisions at the boundaries of the Public, Private, and Citizen Sectors of American society. Â References Andersson, F. (2011). Social enterprise as fetish. Nonprofit Quarterly, June 28, 2011. Retrieved from http://www.nonprofitquarterly.org/index.php?option=com_content&view=article &id=13566&catid=281 Andreoni, J. (1989). Giving with impure altruism: Applications to charity and Ricardian equivalence. Journal of Political Economy, 97(7), 1447-1458.

Andreoni, J. (1990). Impure altruism and donations to public goods: A theory of warm-glow giving. The Economics Journal, 100 (June), 464-477.

Backer, T. (2006). Nurturing high-impact philanthropists: Learning groups for donors and small foundations. Human Interaction Research Institute. Retrieved from http://www.humaninteract.org/images/caseynurturing-doc.pdf .

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Nonprofit and Voluntary Sector Quarterly, 37(1), 39-56.

Batson, C. D. (1987). Prosocial motivation: Is it ever truly altruistic? In L. Berkowitz (Ed.), Advances in Experimental Social Pyschology, Vol. 20. New York, NY: Academic Press.

Batson, C. D. (1990). How social an animal? The human capacity for caring. American Psychologist, 45(3), 336-346.

Bowen, G. (2005). Preparing a qualitative research-based dissertation: Lessons learned. The

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Qualitative Report, 10(2), 208-222. Retrieved from http://www.nova.edu/ssss/QR/ QR102/bowen.pdf Clohesy, W. (2000). Altruism and the endurance of good. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 11(3), 237-253.

Cobb, N. (2002). The new philanthropy: Its impact on funding arts and culture. Journal of Arts Management, Law, and Society, 32(2), 125-143.

Crutchfield, L., & Grant, H. (2008). Forces for good: The six practices of high-impact nonprofits. San Francisco, CA: Jossey-Bass; A Wiley Imprint.

Eikenberry, A. (2006). Giving circles: Growing grassroots philanthropy. Nonprofit and Voluntary Sector Quarterly, 35(3), 517-532.

Eikenberry, A. (2007). Philanthropy, voluntary association, and governance beyond the state: Giving circles and challenges for democracy. Administration & Society, 39(7), 857-882.

Eikenberry, A. (2008). Fundraising in the new philanthropy environment: The benefits and challenges of working in giving circles. Nonprofit Management and Leadership, 19(2), 141-151.

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Frumkin, P. (2003, March 6-7). Inside venture philanthropy. Paper presented at the Symposium: The Third Sector in Transition Conference. Boston University, Boston, MA. GivingUSA Foundation. (2014). GivingUSA 2013 Executive Summary. Retrieved from http://www.givingusareports.org/products/GivingUSA_2014_ExecSummary_Print.pdf Guthrie, K., Preston, A., & Bernholz,L. (2003). Transforming philanthropic transactions: An evaluation of the first five years at Social Venture Partners Seattle. Document of Social Venture Partners Seattle. Retrieved from http://www.svpseattle.org/ourimpact/advancing-nonprofits/Transforming%20Philanthropic%20Transactions%20%20Final.pdf.

Hall, P. (2010). Historical perspectives on nonprofit organizations in the United States. In D. Renz (Ed.), The Jossey-Bass Handbook of Nonprofit Leadership and Management (3rd ed.), San Francisco, CA: Jossey-Bass; A Wiley Imprint.

Hero, P. (2001). Giving back the Silicon Valley way: Emerging patterns of a new philanthropy. New Directions for Philanthropic Fundraising, 32(Summer), 47-57.

Homans, G. (1958). Social behavior as exchange. American Journal of Sociology, 63(6), 597-606.

James III, R. (2008). Charitable giving and the financial planner: Theories, findings, and implications. Journal of Personal Finance, 6(4), 98-117.

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Keating, B., & Keating, M. A. (2009). Microeconomics for Public Managers. Malden, MA: Wiley-Blackwell.

Labuschagne, A. (2003). Qualitative research: Airy, fairy, or fundamental? Qualitative Report,

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8(1), 100-103. Retrieved from http://www.nova.edu/ssss/QR/QR8-1/labuschagne.pdf.

Larson, B. (2002). The new entrepreneurs: New philanthropy or not? New Directions for Philanthropic Fundraising, 17(Fall), 79-84.

Lawler, E. (2001). An affect theory of social exchange. American Journal of Sociology 107(2), 321-352.

Locke, E., & Roberson, D. (1997). Virtuous capital. Harvard Business Review, MayJune, 180-181.

McDonald, C., & Warburton, J. (2003). Stability and change in nonprofit organizations: The volunteer contribution. International Journal of Voluntary and Nonprofit Organizations, 14(4), 381-399.

Moody, M. (2008). Building a culture: The construction and evolution of venture philanthropy as a new organizational field. Nonprofit and Voluntary Sector Quarterly, 37(2), 324-352.

Morino, M. (2011). Leap of reason: Managing to outcomes in an era of scarcity. Washington, DC: Venture Philanthropy Partners, Inc. Ostrander, S. (2007). The growth of donor control: Revisiting the social relations of philanthropy. Nonprofit and Voluntary Sector Quarterly, 36(2), 356-372.

Ott, J. S. (2001). The nature of the nonprofit sector. Boulder, CO: Westview Press.

Padgett, D. (1998). Qualitative methods in social work research: Challenges and rewards.

Thousand Oaks, CA: Sage Publications, Inc. Sargeant, A. (2008). Donor retention: What do we know and what can we do about it?

Arlington, VA: Association of Fundraising Professionals. Retrieved from https://afpdc. afpnet.org/files/ContentDocuments/Donor_Retention_What_Do_We_Know.pdf Sargeant, A., & Woodliffe, L. (2007). Gift giving: An interdisciplinary review.

International Journal of Nonprofit and Voluntary Sector Marketing, 12(November), 275-307.

Schervish, P., & Havens, J. (1997). Social participation and charitable giving: A multivariate analysis. Voluntas, 8(3), 235-260.

Schervish, P. (2000). The modern Medici: Patterns, motivations, and giving strategies of the wealthy. Los Angeles, CA: The Center on Philanthropy and Public Policy; University of Southern California. Retrieved from http://cppp.usc.edu/doc/RP5.pdf .

Schervish, P., & Havens, J. (2001). Wealth and the commonwealth: New findings on wherewithal and philanthropy. Nonprofit and Voluntary Sector Quarterly, 30(1), 5-25.

Schervish, P. (2006). The moral biography of wealth: Philosophical reflections on the foundation of philanthropy. Nonprofit and Voluntary Sector Quarterly, 35(3), 477-492.

Wagner, L. (2002). The “new� donor: Creation or evolution? International Journal of Nonprofit and Voluntary Sector Marketing, 7(4), 343-352.

Wilhelm, M., Brown, E., Rodney, P., & Steinberg, R. (2008). The intergenerational transmission of generosity. Journal of Public Economics, 92(10-11), 2146-2156.

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Worth, M. (2009). Nonprofit management: Principles and practice. Los Angeles, CA: Sage Publications, Inc. Yin, R. (2009). Case study research: Designs and methods (4th ed.). Los Angeles, CA: Sage Publications, Inc.

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Table 1 Cross-tabulation of increased giving with Partner activity involvement

N=42 Sample Size Volunteering with Investee Providing business expertise to Investee Serving on Grant Committee Serving on Portfolio Review Committee Serving on Advocacy or Policy Committee Serving on Board or internal committee Attending at least one annual education event No involvement in DSVP beyond financial required Other DSVP sponsored Activities not listed Â

No Increased Increased Increased Increased Increased Change 0-9% 10-24% 25-49% 50-100% >100% 17

3

11

2

2

7

58.8% (10) 76.5% (13) 58.8% (10) 35.3% (6) 11.8% (2) 47.1% (7) 64.7% (11) 0.0%

33.3% (1) 100% (3) 33.3% (1) 0.0%

72.7% (8) 54.5% (6) 54.5% (6) 45.5% (5) 9.1% (1) 54.5% (6) 54.5% (6) 0.0%

50% (1) 50% (1) 50% (1) 0.0%

50% (1) 100% (2) 0.0%

100% (2) 100% (2) 100% (2) 50.0% (1) 50.0% (1) 100% (2) 100% (2) 0.0%

85.7% (6) 100% (7) 100% (7) 57.1% (4) 28.6% (2) 85.7% (6) 100% (8) 0.0%

23.5% (4)

0.0%

0.0%

0.0%

0.0%

0.0% 100% (3) 100% (3) 0.0%

9.1% (1)

0.0%

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Sample Size Interacting with other Partners Engaging with an Investee Attending Partner education events Serving on DSVP Board or working committees Serving on the Grant Committee Other

Other

No - DSVP is my only form of organized philanthropy

Participating in a giving circle (outside DSVP)

Maintaining a charitable gift fund with a commercial firm

Total

N = 22

Holding a donor advised account at a community foundation

On the board of your own (or family's) foundation

Table 2 Cross-tabulation of Partner’s activity with participation in other philanthropy

22

4

6

3

7

7

5

3

0

0

0

0

2

1

6

1

1

0

2

3

1

1

0

1

0

1

0

0

2

0

0

1

1

0

1

8

3

4

1

1

2

2

2

0

0

1

2

0

0

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Table 3 Cross-tabulation of other philanthropic activity with increased charitable giving

N=42 Sample Size Managing or sitting on board of own foundation Holding a donor-advised account at a local community foundation Maintaining a charitable gift fund with a commercial firm Participating in a giving circle outside of DSVP None – DSVP is my only form of organized philanthropy Other charitable, nonphilanthropic activity

No Change 17 0.0%

Increased 0 – 9% 3 33.3% (1) 0.0%

Increased 10 – 24% 11 0.0%

Increased 25 – 49% 2 0.0%

18.2% (2)

0.0%

0.0%

33.3% (1)

9.1% (1)

0.0%

100.0% (3) 0.0%

27.3% (3) 36.4% (4)

50.0% (1)

0.0%

36.4% (4)

50.0% (1)

0.0%

70.6% (12) 29.4% (5)

Figure 1. DSVP Partner motivations for joining.

Increased 50–100% 2 50.0% (1) 50.0% (1)

Increased >100% 7 28.6% (2) 42.9% (3)

0.0%

0.0%

14.9% (1)

0.0%

50.0% (1) 0.0%

0.0%

0.0%

42.9% (3) 28.6% (2)

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N = 25

Figure 2. DSVP component that had greatest impact on increased charitable giving.

Figure 3. Reasons given by former Partners for leaving DSVP.

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What Can Be Done To Reduce Trade Tensions with China and Improve U.S. National Security?

Ki Hee Kim William Paterson University of New Jersey

Abstract China has experienced a phenomenal economic success in the last 25 years, and it has had a significant impact on China’s often competitive, and occasionally cooperative, relationship with the United States. A strengthened economy has allowed China to modernize its military and increase its influence in the world (Bolt & Gray, 2007). In the U.S., Globalization, China’s rise in the international community, the prospect of an unsustainable debt burden, unprecedented federal budget deficits in the federal budget, the success of mixed economies with both stateowned businesses and private businesses, huge imbalances in international trade and capital flows, and high unemployment rates have brought economics more into play in considerations of national security (Nanto, 2011). Although many Americans view strong Chinese-U.S. relations as positive for the United States, they perceive barriers to these relations and express concerns over a number of issues that will impact this relationship, including China’s growing military, a general lack of trust between the two countries, and concerns about human rights. Americans are slightly more likely to say relations between the United States and China have improved or stayed the same in the last 10 years than to say relations have declined (English, 2012). China’s rise brought economics more into play in consideration of national security (Congress Research Service, 2011). This paper identifies major causes influencing trade tensions with China and their impact on U.S. national security, and it examines feasible strategies for the U.S. government and companies to reduce trade tensions with China and improve U.S. national security.

Keywords: Globalization, National Security, Trade Disputes, Relations, and Tensions Introduction China’s unprecedented industrial growth over the last two decades has raised the question of whether it now poses a threat to the security of the United States either economically or militarily. U.S. national security underpins the system Americans live in. National security is essential to an environment and geographical space people can reside in without fear. It consists of the physical security in a country’s international and domestic arenas. Today the debate over

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national security seems to be intensifying and broadening. Americans are becoming increasingly disturbed by the growing economic clout of China. The bilateral trade imbalance (Tables 1 and 2) is creating tension between China and the United States (Pettis, 2010). China is the largest foreign holder of U.S. debt (with estimated holdings of $1.6 trillion), and this constitutes a national security concern for the United States (Lennard, 2011). The United States now faces a threat to its national security through China’s economic and military capabilities. It is extremely important that the United States and China continue to use their combined efforts to bring light and hope to people around the world.

Review of the Literature Given the increasing amount of literature on trade tension and its impact on U.S. national security, many scholars, private organizations, and U.S. government agencies have published articles on this topic over the past 10 years. Generally speaking, the bulk of the past research on this topic has focused on trade relations with China. Limited research has been done on trade conflicts with China and its impact on U.S. national security. Interest in trade with China has been heightened in recent years as evidenced by the flow of articles that have tackled the various trade issues, tensions, threats, and disputes between the United States and China. This research will focus on the current trade tension between the United States and China, its impact on U.S. national security, and the development of feasible strategies to reduce tensions between the two countries and improve U.S. national security. This paper makes its contribution to existing studies by analyzing and developing multidimensional strategies to solve trade tensions and improve U.S. national security.

Method This study is based on existing articles and research published by major sources such as U.S. government agencies, global organizations, private research organizations, and individual scholars. The methods include an overview of trade relations, sources that influence trade and national security, strategies to reduce trade tensions, and limitations of this study.

Overview of Chinese-U.S. Trade Relations The relationship between China and the United States may be the world’s most complicated relationship between two countries because their two economies desperately need each other (Schuman, 2009). China’s incomplete transition to a free-market economy and its use of distortive economic policies, including China’s refusal to allow its currency to appreciate to market levels, have contributed to the growing trade friction with the United States (Morrison, 2011). Since China joined the World Trade Organization (WTO) in 2001, trade between the United States and China has grown rapidly, but this growth has been very unbalanced (Table 1)

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with the United States running record trade deficits. China’s export-led growth strategy requires China to continue running large trade surpluses with the United States and recycle its accumulated dollars through the purchase of U.S. dollar-denominated securities (U.S.-China Economic and Security Review Commission, 2010).

The rapid pace of economic integration between China and the United States, while benefiting both sides overall, has made the trade relationship increasingly complex. China’s large population and booming economy have made it a large and growing market for U.S. exports. Over the past decade, one-third of the trade deficit in goods was with communist China (Rohrabacher, 2011). The U.S. trade deficit with China has surged over the past two decades because U.S. imports from China have grown much faster than U.S. exports to China. That deficit rose from $10 billion in 1990 to $266 billion in 2008, fell to $227 billion in 2009, and rose to $273 billion in 2010. The U.S. trade deficit with China severely obstructs the U.S. economy. China views the United States as a declining power, but at the same time, it believes that the U.S. government is trying to undermine China's economic and military growth to prevent it from becoming the world’s most powerful country (Perlez, 2012). If a true trade war with China ensues, China has the ability to sell its reserves, which would push U.S. interest rates to relatively high levels (Haltman, 2010). The Chinese Government is prepared to wage economic warfare in ways the Obama administration and most of Congress cannot even bring themselves to consider (Rohrabacher, 2011).

A widening trade dispute threatens to ratchet up tension in the Chinese-U.S. relationship with potential consequences for the global economy (Barboza, 2011). China’s strategy to achieve this objective appears to include biding its time by avoiding confrontation with the United States while gaining access to American investment, technology, and know-how. At the same time, China is working to counter American influences and competition by preparing, if needed, to subdue American forces via military modernization, including asymmetrical means of warfare. Although globalization is generating integration between the United States and China, it also poses new threats and disruptions that must be managed (Frost & Kugler, 2001). Many Americans fear that China’s displacement of the United States as the world’s largest economy will swiftly be followed by its rise to the status of military superpower (“The summit; America and China”, 2013). While only 15% of Americans and only 12% of the Chinese consider the United States and China to be enemies (Table 2), there is a strong sense that they are competitors and not partners. If a clash is to be averted, the United States and China must find a way to make the Strategic Economic Dialogue and other discussions more productive (Scissors, 2011).

Sources of Trade Tensions There are countless sources influencing the trade tensions and disputes between the United States and China, and the following are some of the most significant sources:

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        





China’s Role in the proliferation of weapons of mass destruction and other weapons (U.S.China Economic and Security Review Commission, 2012).

The United States and China have accused each other of commerce dumping for years (Hays, 2012).

China’s economic power (Rampell, 2012).

China’s military power (Payne, 2009).

Americans’ lack of trust of regarding the trade relationship with China (Tables 2, 3, & 4).

China’s threat to U.S. hegemony in politics (Watson, 2008).

The unbalanced trade relationship with China (Pennington, 2012).

Massive transfer of wealth and power to China (Rohrabacher, 2011).

Underhanded Chinese practices, including currency manipulation, dumping subsidization, intellectual property theft, forced technology transfer, discriminatory “indigenous innovation” practices, export restrictions, industrial espionage, and other ad hoc impediments to U.S. investments and exports (Ikenson, 2012).

U.S. unemployment issues. Happenings around the world have continued to show that national security cannot be divorced from developmental issues. Poverty, joblessness, diseases and exploitation are the real causes of insecurity, not of the conflicts that have bedeviled states (Akor, 2011). The United States has lost more than 10 million jobs to China over the past decade. Unemployment, especially among youth, is a serious national problem that requires major attention by the U.S. government and U.S. citizens.

The purchase of U.S. securities by U.S. treasuries. The People’s Bank of China holds an estimated 70%, or $1.85 trillion, of its self-reported $2.65 trillion in foreign exchange reserves (U.S.-China Economic and Security Review Commission, 2011).

Strategies to Reduce Trade Tensions and Improve U.S. National Security There are many important strategies that the U.S. government and companies can implement to reduce trade tensions and improve national security. The following are the most important strategies the U.S. government and companies can implement:  The United States should promote a better investment environment through positive media reports to improve the image of Chinese investment in the United States for Chinese companies. Many Chinese companies are hesitant to invest in the United States because media reports on national security reviews of foreign investment have given the impression that the United States is hostile to foreign investment from China (Burke, 2011).  In order to build an America that is stronger, more secure, and able to overcome challenges while appealing to the aspirations of people around the world, the United States must foster economic growth, reduce its federal national debt, educate its people, develop clean energy alternatives, and build alliances to pursue interests it shares with other countries.

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

  

  

  

The United States should seek cooperation with other nations that will counter violent extremism and insurgency, stop the spread of nuclear weapons, sustain global growth, and help countries feed themselves.

The United States should continue to advocate for and advance human rights, economic development, and democracy as a bulwark against aggression and injustice (Nanto, 2011).

The United States should improve its physical security in both the international and domestic arenas (Nanto, 2011).

There should be more effective collective decision-making process in the political realm.

The most attractive possibility is the Group of Eight, whose governments have the influence and resources to act preventively and seriously (Davis, 2003).

The United States should rebalance its strategy toward Asia and convince China that it is serious, capable, and determined to be a long-term leader in Asia (Lieberthal, 2013).

The United States must increase its efforts to promote international education and exchange in order to succeed in the global economy (Nanto, 2011).

President Obama should pursue a diplomatic strategy that minimizes conflict, emphasizes peaceful coexistence, and significantly expands trade and investment between the two countries (Gross, 2012).

More cooperation with large-economy countries in the Group of Twenty (Nanto, 2011).

Develop common goals that unite the United States and China where there is fundamental divergence (Kitfield, 2011).

More aggressive use of World Trade Organization for dispute settlement procedures to address China’s unfair trade policies (Morrison, 2011).

Limitations and Recommendations for Further Research This research is based on secondary data that was previously published and collected by other authors, government agencies, private research groups, and other interested organizations.

Previous research has been focused more on trade tensions with China, instead of its impact on U.S. national security. Therefore, not enough information was available to complete this study.

A comprehensive empirical focus is essential to increase this research’s reliability and generalization. In addition, more reliable and adequate studies will be needed from the Chinese government, Chinese authors, and other interested groups in China to support this research project.

Conclusion The world has changed and with it so have the challenges of providing U.S. national security. Threats to America’s economy and security need to be taken seriously. As a result of trading with China, economic interactions and national security are now more intertwined than

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ever. The many dimensions of trade tensions all for a new way of approaching security in the coming decades. The United States can no longer safely assume that a whole range of problems far away will not affect it. The economies of China and the United States have become interdependent and inseparable (Pennington, 2012). The two sides need to alleviate the giant economic imbalances of the excessive deficit in the United States and the excessive savings in China to restore the world economy to a more sustainable growth path (Schuman, 2009). Trade wars between the two largest economies will likely continue, and it is urgent for both sides to resolve trade tensions.

Author Biography

Dr. Ki Hee Kim earned his Ph. D at the University of Texas, Austin, Texas in 1975.

Currently he is a Professor of International Business at William Paterson University of New Jersey. He was a former Kellogg Foundation Research Fellow, Oxford Round Table participant, and a consultant to many multinational corporations. He has published numerous journal articles and presented papers at various regional, national, and global conferences. He received many awards and citations. He served in the Vietnam War as a captain of the Korean Marine Corps.

References Akor, C. (2011, December 9). Unemployment and national security. Sahara Reporters.

Retrieved from http://saharareporters.com/article/unemployment-and-national-security Associated Press. (2012, December 19). US seeks 'balanced' trade relationship with China.

Yahoo!News. Retrieved from http://news.yahoo.com/us-seeks-balanced-traderelationship-china-194101462.html Baker, D. (2011, July 26). Will the debt ceiling battle educate China? China – US Focus.

Retrieved from http://www.chinausfocus.com/slider/will-the-debt-ceiling-battle-educatechina/ Barboza, D. (2011, May 4). As China invests, U.S. could lose. The New York Times. Retrieved from http://www.nytimes.com/2011/05/04/business/global/04yuan.html?pagewanted=all&_r=0 Bolt, P. J., & Gray, A. K. (2007). China’s national security strategy. Retrieved from http://www.usafa.edu/df/inss/Research%20Papers/2007/CHINAS%20NATIONAL%20S ECURITY%20STRATEGY.pdf Burke, J. J. (2011, May 27). National security and Chinese investment in the United States [Web log post]. Retrieved from http://www.chinaustradelawblog.com/2011/05/articles/investment/national-security-andchinese-investment-in-the-united-states/

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Bush, G. W. (2002). The national security strategy of the United States of America. Retrieved from http://www.state.gov/documents/organization/63562.pdf Capozzola, S. (2011, November 10). China trade deficit is growing threat to economy [Web log post]. Retrieved from http://americanmanufacturing.org/blog/china-trade-deficitgrowing-threat-economy China at a crossroads: Trade tensions vie with consumer needs. (2011, January 12).

Knowledge@Wharton. Retrieved from http://knowledge.wharton.upenn.edu/article/chinaat-a-crossroads-trade-tensions-vie-with-consumer-needs/ Davis, L. E. (2003). Globalization’s security implications. (Issue Paper No. 245). Santa Monica, CA: Rand.

English, C. (2012, April 17). Americans split on whether China's economy is good for U.S. trade imbalance seen as a major barrier to strong U.S.-China relations. Gallup Poll News Service. http://www.thefreelibrary.com/Americans+Split+on+Whether+China's+Economy+Is+Go od+for+U.S.+Trade...-a0287626822 English, C. (2012). “Americans See Benefits of Close U.S.-China Relations” , Gallup Organization, April 17, 2012, http://www.gallup.com/poll/153911/americans-benefitsclose-china-relations.aspx Frost, E. L., & Kugler, R. L. (2001). The global century: Globalization and national security. Washington, DC: National Defense University Press.

Gross, D. (2012, December 17). Seizing the opportunity to improve US–China relations. East Asia Forum. Retrieved from http://www.eastasiaforum.org/2012/12/17/seizing-theopportunity-to-improve-us-china-relations/ Haltman, M. (2010, September 15). U.S. – China nuclear (economic) war. Retrieved from http://www.examiner.com/article/u-s-china-nuclear-economic-war Hughes, N. C. (2005). A trade war with China? Foreign Affairs, 84(4), 94-106.

Ikenson, D. J. (2012, February 14). No winners in U.S.-China trade war [Web log post].

Retrieved from http://www.cato.org/blog/no-winners-us-china-trade-war Ikenson, D. J. (2012, March 5). Trade policy priority one: Averting a U.S.-China “trade war” (Free Trade Bulletin No. 47). Retrieved from CATO Institute website: http://www.cato.org/publications/free-trade-bulletin/trade-policy-priority-one-avertinguschina-trade-war Kitfield, J. (2011, January 3). U.S. and China: Partners or rivals? [Web log post]. Retrieved from http://security.nationaljournal.com/2011/01/us-and-china-partners-or-rival.php Krause, K. (2007, March 12). National security in an age of globalization: A brainstorming note [Web log post]. Retrieved from http://www.regjeringen.no/en/dep/ud/kampanjer/refleks/innspill/sikkerhet/krause.html?id =493206 Lennard, N. (2011, May 10). Is our debt to China a national security risk? Salon. Retrieved from http://www.salon.com/2011/05/10/china_debt_national_security/

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Lieberthal, K. G. (2013, January 17). Bringing Beijing back in. In M. Indyk, T. Madan, & T. Wright (Eds.), Big bets and black swans – A Presidential briefing book (pp. 5-8).

Washington, DC: Brookings Institution.

Marchick, D. (2012, February). Fostering greater Chinese investment in the United States (Policy Innovation Memorandum No. 13). Retrieved from Council on Foreign Relations website: http://www.cfr.org/china/fostering-greater-chinese-investment-unitedstates/p27310# Mearsheimer, J. J. (2010). The gathering storm: China’s challenge to US power in Asia. Chinese Journal of International Politics, 3(4), 381-396. doi: 0.1093/cjip/poq016 Morrison, W. M. (2011, September 30). China-U.S. trade issues (CRS Report No. RL33536).

Retrieved from Congressional Research Service website: https://opencrs.com/document/RL33536/ Morrison, W. M. (2013, December 16). China-U.S. trade issues. CRS Report for Congress – December 16, 2013, Congressional Research Service, p. 3 Nanto, D. K. (2011, January 4). Economics and national security: Issues and implications for U.S. policy (CRS Report No. R41589). Retrieved from Congressional Research Service website: http://assets.opencrs.com/rpts/R41589_20110104.pdf Nash-Hoff, M. (2011, November 29). Viewpoint: China poses increasing threat to U.S. economy and national security. Retrieved from http://www.industryweek.com/globaleconomy/viewpoint-china-poses-increasing-threat-us-economy-and-national-security National Security Strategy. (2010). The White House. Retrieved from http://www.whitehouse.gov/sites/default/files/rss_viewer/national_security_strategy.pdf Payne, M. (2009, November 22). China vs. U.S.: Economic power vs. military might; Which will prevail?. Retrieved from http://www.opednews.com/articles/China-vs-U-S--economic-pby-michael-payne-091120-313.html Pennington, M. (2012, December 19). US, China economies 'inseparable': China official.

Associated Press. Retrieved from http://bigstory.ap.org/article/us-seeks-balanced-traderelationship-china Perlez, J. (2012, April 2). Chinese insider offers rare glimpse of U.S.-China frictions. The New York Times. Retrieved from http://www.nytimes.com/2012/04/03/world/asia/chineseinsider-offers-rare-glimpse-of-us-china-frictions.html?_r=0 Pettis, M. (2010, February 17). U.S.-China trade relations—The next dispute?. Retrieved from http://carnegieendowment.org/2010/02/17/u.s.-china-trade-relations-next-dispute/1l8j Rampell, C. (2012, June 15). Putting China’s economic power in perspective [Web log post].

Retrieved from http://economix.blogs.nytimes.com/2012/06/15/putting-chinas-economicpower-in-perspective/ Rohrabacher, D. (2011, October 5). China undermining economic recovery and U.S. security.

The Washington Times. Retrieved from http://www.washingtontimes.com/news/2011/oct/5/china-undermining-economicrecovery-and-us-securit/

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Rohrabacher, D. (2011, October 11). Trade with China and our national security. Retrieved from http://www.tothepointnews.com/content/view/4701/87/ Rapoza, K. (2013, January 23). Is China's ownership of U.S. debt a national security threat?

Forbes. Retrieved from http://www.forbes.com/sites/kenrapoza/2013/01/23/is-chinasownership-of-u-s-debt-a-national-security-threat/ Schuman, M. (2009, September 14). Why the China-U.S. trade dispute is heating up. Time, 174(10). Retrieved from http://content.time.com/time/business/article/0,8599,1922155,00.html Scissors, D. (2011, April 14). The United States vs. China—Which economy is bigger, which is better. Retrieved from http://www.heritage.org/research/reports/2011/04/the-unitedstates-vs-china-which-economy-is-bigger-which-is-better The summit; America and China. (2013, June 8). The Economist, 407(8839), 11.

The US-China Business Council. (2013). China and the U.S. economy: Advancing a winning trade agenda. Retrieved from http://www.uschina.org/sites/default/files/USCBC-TradeAgenda-Report.pdfU.S.-China Economic and Security Review Commission. (2011).

2011 Report to Congress. Washington, DC: Government Printing Office.

U.S.-China Economic and Security Review Commission. (2012). 2012 Report to Congress.

Washington, DC: Government Printing Office.

Watson, J. (2008, December 28). China: The greatest threat to US hegemony. Retrieved from http://newsflavor.com/politics/international-relations/china-the-greatest-threat-to-ushegemony/

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Appendix Table 1 U.S. Merchandise Trade with China; 1980 – 2013 (billions) Year U.S. Exports U.S. Imports U.S. Trade Balance 1980 3.8 1.1 2.7 1985 3.9 3.9 0.0 1990 4.8 15.2 -10.4 1995 11.7 45.6 -33.8 2000 16.3 100.1 -83.8 2005 41.8 243.5 -201.6 2006 55.2 287.8 -232.5 2007 65.2 321.5 -256.3 2008 71.5 337.8 -266.3 2009 69.6 296.4 -226.8 2010 91.9 364.9 -273.1 2011 103.9 393.3 -289.4 2012 110.6 425.6 -315.0 2013 (projected) 114.6 438.8 -324.2 Note: Projections based on actual data for January – May 2013

Table 2 Opinion Survey by Gallup Poll (April 17, 2012) Good Thing Bad Thing Having a close relationship with China U.S. Adults 81% 16% U.S. Opinion Leaders 88% 9%

China's growing influence in the world U.S. Adults U.S. Opinion Leaders

32% 28%

61% 63%

Notes: Interviews were conducted No.30-Dec 18, 2011, for 2,007 U.S. adults Interviews were conducted Dec. 1-2, for 250 U.S. opinion leaders

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Table 3 Major Barriers to Strong U.S.-China Relations Major Barriers Minor Barriers Not a Barrier at All Lack of trust 76% 17% 5% Increasing demand for national resources 66% 22% 8% Different political systems 59% 29% 8% Cultural misunderstandings 48% 41% 9% China's growing impact in Asia 46% 36% 11% Note: Interviews were conducted Nov, 30-Dec. 18, 2011, for 2,007 U.S. adults Table 4 China’s Military is a Threat to U.S. National Security

U.S. Adults U.S. Opinion Leaders Strongly Agree/Agree 51% 60% Neither Agree nor Disagree 17% 20% Strongly Disagree/Disagree 18% 17% Don't Know 14% 4% Notes: Interviews were conducted Nov. 30-Dec 18, 2011, for 2,007 U.S. adults Interviews were conducted Dec. 1-2, for 250 U.S. opinion leaders

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Curriculum Politics and the 150-Hour Requirement Thomas W. De Berry Freed-Hardeman University Amy T. Vandenberg St. Norbert College

Abstract One of the most significant changes to the accounting profession, certainly to accounting education, has been legislation requiring 150 semester hours to become a Certified Public Accountant (CPA). That change has been controversial and slow in completing. The interrelated questions about this issue for the research being presented by these authors include whether the widespread existence of a 150-hour education requirement demonstrates that sufficient support existed among CPAs working in the profession to justify its implementation in each state, whether sufficient support exists among those CPAs now, after living with the requirement, to justify its continuation, and whether the accounting profession is willing to listen to on-going feedback of the profession in objectively evaluating the viability of the requirement.

As a follow-up study on earlier published research, the authors further explored empirically the perceptions of CPAs working in the profession regarding the accomplishment of several original objectives of 150-hour requirements. However, it is the detailed chronicling of events surrounding the authors’ attempts to publish those empirical results that provide the methods and results reported here. These events are discussed as reason for readers to consider whether legislation and implementation of the 150-hour requirement occurred in the past, and continue to exist in the present, due to a sustained belief in the attainability of its objectives through the existing model and a widespread approval of its results, or due to something else.

Keywords: accounting education, CPA, 150-hour requirement One of the most significant changes to the accounting profession, specifically for accounting education, has been the addition of law requiring 150 semester hours of college credit for becoming a Certified Public Accountant (CPA). That change has been slow to accomplish on a nationwide basis, and has not occurred without controversy. What beneficial objectives were purported for implementing a 150-hour requirement, and have these objectives been met by legislation enacted? What have been the actual reasons that the various states have adopted such legislation? Are the answers to these questions the same? Does virtually unanimous adoption of a version of 150-hour legislation signal unanimous or even widespread majority approval and support for it among CPAs “in the trenches” of the profession? These questions are not

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necessarily answered by the analysis of somewhat easily quantified data such as CPA exam pass rates and numbers of exam participants—measures that have been researched on a relatively thorough basis. Less extensively researched have been the accomplishments of more qualitative objectives of the 150-hour requirement and the perceptions of CPAs at a grassroots level about that accomplishment, as well as the perceptions of these CPAs regarding the various 150-hour laws themselves. Perhaps even less has been published about any linkages between these grassroots level CPA perceptions and the enactment of legislation and continuation of 150-hour education laws. The study reported here seeks to shine light on what might be insights for less published and perhaps less officially championed answers to such questions and topics.

This paper is different from many. It takes an unconventional approach in identifying the research question, methods, and results. Readers who perceive a need for numerical data to signal the existence of such methods and results are urged to contact the authors to request and receive a copy of the unpublished paper that presents empirical results and discussion of these.

Indeed, the unpublished paper reports valuable information about perceptions of CPAs regarding the 150-hour requirement. However, the body of the paper being published here utilizes nonquantitative language to communicate the nature of the research being reported. Specifically, the following are the interrelated research questions for this study and its reported results:  Does the virtually unanimous existence of a legal requirement for 150 hours of education demonstrate that sufficient support existed among CPAs working in the profession to justify the implementation of such requirements?  Does sufficient support among CPAs working in the profession exist now, after varying lengths of time living with those 150-hour requirements, to demonstrate their viability and to justify their continuation?  Is the accounting profession willing to listen to on-going feedback of the profession in honestly and objectively analyzing the viability of the 150-hour requirements by evaluating their effectiveness in achieving their originally purported objectives?

A detailed chronicling of events provides the methods and results for researching the questions identified above.

Review of Literature The state of Florida passed legislation in 1979 establishing the first 150-hour education requirement for individuals to become CPAs, thus beginning a movement toward a nationwide requirement for this quantity of education for CPAs. Some would characterize this movement that has followed as a steady march forward; others would consider it more as being dragged, kicking and screaming. It is noteworthy that it has taken the accounting profession approximately 35 years to reach this point of (almost) unanimous requirement among the states of this level of education for CPAs. Also, even after legislating a 150-hour requirement, some

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states have afterwards modified that requirement. Most states did not follow suit with Florida until at least the 1990s, and three states have not yet implemented their 150-hour requirement.

Population and financial powerhouse California only implemented the requirement January 1, 2014. Of 54 jurisdictions reported by the American Institute of Certified Public Accountants (AICPA) on its website, 53 have passed legislation for such a requirement. Only the U.S. Virgin Islands has not passed such legislation (American Institute of Certified Public Accountants [AICPA], 2012).

In considering questions identified in this paper’s introduction, one author of this paper began considering a research project in late 2001, largely as a result of hearing a paper presented at a national meeting of accounting educators and practitioners that seemed to be focusing greatly on CPA exam pass rates for the answer to the paper’s stated question: “Are there benefits?” A paper by the same authors with a similar discussion was published in the CPA Journal (Read, Raghunandan, & Brown, 2001). Remembering personally that the oft-stated proposed benefits for the 150-hour requirement among the profession’s institutional proponents in the “early years” focused on producing accounting graduates who were more broadly educated in important fields besides “pure accounting,” this author researched published statements by various authorities in the profession about the objectives for the 150-hour requirement.

For example, in 1989, the Journal of Accountancy published an interview of Rick Elam, then vice-president—education of the AICPA regarding “Meeting the New 150-hour Standard.”

This article noted that the profession had overwhelmingly approved a proposal in 1988 that would require, beginning in 2000, AICPA members to have completed 150 college-level semester hours, including a bachelor’s degree. The article also stated that the profession needs more “broadly educated professionals who are technically knowledgeable and have analytical and communication skills and a greater cultural awareness” (Collins, 1989, p. 55). The article further summarized that, “while the Institute advocates more education to be accountants, we don’t mean more accounting education” (Collins, 1989, p. 56). The article also quoted Dr. Elam as saying that, “the Institute strongly advocates that CPA candidates take more liberal arts courses because those with a broad education are much more likely to have long-term success” (Collins, 1989, p. 56). Subsequent articles and position papers through the 1990s added elements of specificity to these identified objectives, and these seemed to evolve somewhat to recognize more professional practice attributes. Meanwhile, many accounting education programs developed to satisfy 150-hour requirements seemed to gravitate toward more accounting.

Recognizing that CPA exam pass rates are relatively easily quantified for research studies while some of the more qualitative objectives for the 150-hour requirement are not, this author considered the accomplishment of these more qualitative proposed benefits to be, for many working in the profession, the real story for this significant change in the profession and the success of legislation that requires it. In an effort to get at this real story, this author surveyed veteran observers of the educational requirement for preparing CPAs—accountants in public practice, industry, and government. He researched perceptions of practitioners themselves about whether or not new hires who had recently gained the required education to take the CPA exam

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were more prepared and capable in the attributes identified as objectives of the 150-hour requirement than new hires that were eligible to take the exam had been before the implementation of the requirement. This author surveyed approximately 3,000 CPAs in what was then his home state of Georgia about these perceptions, and published his results in 2003 in the CPA Journal (De Berry, 2003).

CPAs surveyed in late 2001 in Georgia were in the profession in a jurisdiction that had implemented the 150-hour requirement in 1998; this had provided enough time for CPAs to begin seeing actual results of the additional education requirement, but not enough time for memories to fade about how things had been prior to the requirement and the benefits for it that had been purported. When the author attempted to secure documentation of the objectives for legislating the 150-hour requirement in Georgia, specifically by contacting that state’s board of public accountancy, he was unsuccessful in obtaining such documentation due to the length of time since the legislation and the board’s records retention policies. It is noteworthy for this current paper that he did however obtain the perception from conversations that the lobbying in favor of the legislation at the time was based, at least somewhat, on the fact that adjacent states had already passed the legislation for the 150-hour requirement. Florida, as already noted, adopted in 1979, Tennessee adopted in 1987, and Alabama adopted in 1989 (AICPA, 2012).

This orally gained perception included the idea that, had Georgia not followed suit, it likely would have found itself flooded with “immigrant” exam candidates. Also noteworthy for this current paper is that the state of New York—with the CPA Journal historically associated with the accounting profession in that state—had still not implemented the 150-hour requirement when that journal published the De Berry research in 2003. New York implemented its 150-hour requirement in 2009 (AICPA, 2012).

In the “In Brief” summary of that 2003 CPA Journal article, the CPA Journal noted the objectives of the requirement and asked “But is it working?” The CPA Journal assigned the sidebar title for this article “Time to evaluate effectiveness” (De Berry, 2003, p. 26). In the concluding section of that article, the author stated the following: CPAs continue to be sharply divided about the value of the 150-hour requirement, with impassioned opinions on each side. Evidence of success or failure of the requirement in meeting its objectives is only beginning to become available. Much more evidence is needed before the profession congratulates itself or considers a return to the drawing board…. While perception is clearly subjective, it is the perception of those in the profession that will ultimately judge the value of the 150-hour CPA exam requirement and determine its success in meeting its objectives. (De Berry, 2003, p. 30) Methods In 2009, Vandenberg contacted De Berry indicating that she had interest in the question of the effectiveness of the 150-hour requirement, that she had read his previously published work in this subject, and that she would like to collaborate in a follow-up study. With some

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jurisdictions having still not adopted 150-hour requirement legislation, others having already modified their 150-hour requirements, and with discussions of further modifications and even repealing existing 150-hour requirements in some states, these authors considered it to perhaps be “time to” (again) “evaluate effectiveness” (De Berry, 2003, p. 26). The geographic, economic, and cultural differences between Georgia, the focus in the previous research, and Wisconsin, promised to add value for such a follow-up by expanding the knowledge to be gained about perceptions of CPAs regarding the effectiveness of the 150-hour requirement.

Accordingly, the survey instrument utilized for the Wisconsin study was intentionally almost identical to that used earlier in Georgia in order to facilitate the comparability needed to expand this knowledge of the perceptions of CPAs. In this follow-up study, over 6,000 CPAs in Wisconsin were surveyed regarding their perceptions about changes in the capabilities of new staff accountants eligible to take the CPA exam, comparing those hired prior to the 150-hour requirement to those hired after its implementation (as the Georgia study had done). These perceived capabilities of CPA-ready employees focused on an almost identical list of qualitative characteristics as had the earlier Georgia study; this list was originally developed by analyzing the objectives for the 150-hour requirement stated by its proponents in the early years of the 150-hour “movement.” The results were analyzed regarding the many similarities and the few differences as compared to those of the earlier Georgia study. Even more than with the Georgia study, the most insightful information from the Wisconsin study came via feedback from CPAs that was not easily quantified. Just as most CPAs know that the most interesting story in a firm’s financial statements is often in the footnotes, the most interesting story in the research results of perceptions of Wisconsin CPAs about the 150-hour requirement was perhaps in the open comments. The fact that almost exactly one-half of the Wisconsin CPAs who participated in this research chose to add comments to their survey responses illustrates the level of interest that still existed in the topic of the 150-hour requirement and quality of accounting hires. One hundred and forty-five Wisconsin CPAs eagerly provided statements that ranged from terse one-liners to detailed theses.

Without trying to advance any personal agenda, the authors objectively evaluated these open comments from the Wisconsin CPAs, grouped them into categories, and summarized them as they wrote the paper reporting their research results. In many cases, direct (anonymous) quotes were provided, since these CPAs said better than anything the authors could have substituted the perceptions they held about the 150-hour requirement and quality of exameligible employees. The authors provided the following conclusion in their unpublished research paper: Comments from Georgia CPAs in 2001 revealed sharply divided positions with impassioned opinions on each side about the effects of the 150-hour requirement; comments from Wisconsin CPAs in 2009 provided no exception to this pattern, and even emphasized it. While open comments from research results defy quantification and are therefore susceptible to a criticism of being “only anecdotal” and clearly subjective, it is

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from reading these comments that one can see clear pictures of the perceptions of CPAs about the 150-hour requirement. Arguably, the prolific and often pointed comments from the Wisconsin CPAs are the most enlightening results from this research. As the dust continues to settle following the implementation in most states of some version of the 150-hour requirement, it is this perception about its costs and benefits that will determine its success in meeting its objectives and its viability for the future of the profession.

These authors submitted their research paper for publication consideration to a wellknown and well-respected accounting journal on June 2, 2010. The submitted paper provided an updated and expanded “re-evaluation” of CPAs’ perceptions about the effectiveness of the 150hour requirement on quality. At that point, the authors gave no consideration of the fact that the state in which the publisher of this journal (“Publisher A”) was located was one that had implemented a 150-hour requirement prior to the authors’ submission.

Results On June 24, 2010, Publisher A emailed the contact author acknowledging receipt of the submission, and stating that it would be “reviewed promptly by the Editorial Board.” On September 22, 2010, Publisher A emailed the contact author with the two reviewers’ comments, stating “our editors and reviewers believe the manuscript needs to be revised along the lines of such comments before it can be considered for publication.”

Having some experience with “revise and resubmits,” the authors carefully analyzed the comments by the two reviewers to ascertain what input for improvements or identification of flaws in the research or writing had damaged their product. Unfortunately, such analysis revealed virtually no such opportunities for improvement. Rather than constructive criticism about how the manuscript about that research project was written and presented, the two reviewers offered instead strewn musing about other research studies that they “would like to see.” Many of the reviewers’ comments were couched in language that revealed a thinly veiled emotional reaction to research that the reviewers personally would like to see go away— that they personally did not like. The authors recognize and accept that there is a burden of proof and an assumption of guilt when they seek to convince current readers that they are doing more than seeking absolution for their failed publication attempt. Consequently, the authors provide the reviewers’ comments in their entirety, followed by explanations and rebuttals from the authors, and invite the readers of this current paper to judge for themselves.

Reviewer 1 comments follow: This article compares perceptions of Georgia CPAs taken in 2001 with more current perceptions of Wisconsin CPAs on the 150 hour [sic] education issue. The results indicate that both groups have surprisingly similar perceptions of the value of 150 hours of education. That perceptions are not favorable [sic].

A problem in publishing such an article is that both of those states have, according to a cursory review of CPA pass rates, fairly good results on the exam. It is possible that in

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those states there was not much value added. (personal communication, September 22, 2010) The reviewer seems here to be indicating that research results from two very dissimilar states, yielding very similar results, should be discounted or discredited because one thing that the two states did share was a relatively high pass rate for the CPA exam. However, the question researched and reported by these authors was not CPA exam pass rates; in fact, the submitted manuscript explicitly stated this while identifying what characteristics were instead being researched. It is possible that this reviewer was saying that Georgia and Wisconsin had relatively high CPA exam pass rates before their enactments of the 150-hour requirements because the qualities of their CPA candidates were superior to the norm—leaving little room for improvement following their increases in required education. Whether or not this was the reviewer’s point is unclear to these authors, and that point seems unconvincing regardless.

Another variable is that the states have varied requirements within the 150 hour [sic] parameter. Some states would allow candidates to take the other 30 hours at a community college. Some candidates have masters [sic] degrees. I’d like to see an article that looks at different states and shows which variety of 150 hour requirement work best [sic]. (personal communication, September 22, 2010) The remainder of this reviewer’s comments seems to the authors to be a description of an alternative study that he/she would like to see. While the authors agree that such research might be a worthwhile but entirely different study, it provided no identification of a flaw in the submitted research or manuscript, or an opportunity for beneficial improvement of either.

Reviewer 2 comments follow: The 150-hour requirement was first enacted in Florida in 1979, over 30 years ago. With California finally adopting it (effective 2014 as I recall), there are only a very few minor states [emphasis added] without this requirement. (personal communication, September 22, 2010) With the central research question of both the Georgia study and the Wisconsin study being the perceptions of CPAs about the effectiveness of the 150-hour requirement, the authors wonder if CPAs in those states without a 150-hour requirement consider themselves, their states, and their views to be “minor.”

It isn’t going away. Yet we continue to have these debates about it. It’s time to move on, to no longer debate the past, but to seek continuing improvement in the profession for the future. This paper is competently done, although getting 300 responses to 6,000 questionnaires is hardly a great response rate. (personal communication, September 22, 2010) The authors were well aware of the duration of the profession’s struggle with the 150-hour requirement, and had and have still no particular personal agenda to advance with their research.

However, the authors were, and still are, aware anecdotally of strenuous and common discontent among accounting professionals with the requirement. What this reviewer seems to have wanted to be gained from the longevity of the 150-hour requirement in some states is that it makes it the

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status quo and, as such, inappropriate to “debate.” However, a legal or regulatory mandate having been in existence for over 30 years in some states, while still not even implemented in others, does not make that mandate popular, successful, or appropriate. It does not mean that the profession being legislated or regulated cannot benefit from hearing from critics of that mandate.

In the earlier Georgia study, the author addressed the response rate in his original manuscript, and applied statistical methods to answer the possible criticism that the results were not representative of the entire population. Those methods indicated that the results were sufficiently representative of the entire population as to be significant, and the authors note that a response rate of 300 (5%) for an electronically received questionnaire, without incentives for participation, for 6,000 busy professionals seems reasonable. The CPA Journal chose to omit in its 2003 publication the details of those statistical methods as being not of general interest to the readers. With a response rate in the 2010 Wisconsin study that was almost identical to that of the published 2003 Georgia study, and with a larger absolute number of respondents in the Wisconsin study, the authors considered the relative strength of the 5% response rate to not be something that should be pursued for purposes of the submitted manuscript.

However, its findings don’t really come through. Exhibit 2 has some interesting results.

If we combine “somewhat” stronger/weaker and “much” stronger/weaker, we find the following are perceived to be stronger post-150:  Maturity and professional judgment, 28.7%  Competency with complex accounting, 25.4%  Communication skills, 23%  Analytical abilities, 22%  Understanding of other business fields, 21.7% On the other hand, the following are found to be weaker post-150:  Commitment to the employer, 31.5%  Commitment to the profession, 16.1%  Productivity, 15.7% The items listed on the somewhat/much stronger side are certainly outcomes that would be hoped for as a result of the increased education. The outcomes on the somewhat/much weaker side, however, seem to me to be more reflective of the times rather than outcomes of more education. We’ve seen many articles on the attitudes and work ethic of millenials [sic] and generation X. Just about everyone is less committed to employers today, just as employers are less committed to their people. I don’t think you can blame this on 150 hours. (personal communication, September 22, 2010) This point by this reviewer seems to the authors as perhaps the only clear and specific suggestion provided by reviewers for improving the manuscript. However, the reviewer seems to be suggesting an aggregation of data that are reported in Exhibit 2 of the manuscript—implying that the combining of data for “somewhat stronger” with that for “much stronger” and the combining of data for “somewhat weaker” with that for “much weaker” provide better insight. It seems

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counter-intuitive to the authors that providing less detail about the results would provide better insight. The authors assume that readers of the manuscript could, if they choose, add the two numbers for each qualitative measure for the “somewhat” and “much” responses. More pointedly, the reviewer seems to be skirting the fact that the vast majority of respondents for these qualitative measures chose the response of “no difference,” stating that they perceived no difference before and after the 150-hour requirement. Also, in the manuscript, under the subtitle “Analysis of Change in Quality Results,” the authors discussed noteworthy examples of possible interpretations of results when “weaker” and “much weaker” were combined and when “stronger” and “much stronger” were combined. Nevertheless, the authors offered in their fivepage response to reviewers’ comments to happily provide this aggregation in Exhibit 2 or as a separate additional exhibit if Publisher A considered this beneficial. Publisher A instructed the authors to “include with any submission a memo outlining your response to the reviewers’ suggestions or comments point-by-point, as well as an explanation of any comments with which you disagree or the reasoning behind any changes you have made.” A final note is that nothing in the conduct of the research or the reporting of results with the manuscript revealed an intent or effort by the authors to “blame” anything on the 150-hour requirement, but rather simply to report research results. This reviewer’s apparent sensitivity to the perceived “blame … on 150 hours” seems, especially in the context of his/her entirety of comments, to reveal a dislike for data that challenge his/her desire to protect the status quo of the existence of a 150-hour requirement.

I’m not surprised that salary differentials have disappeared. In the Georgia study the 150 was newer; some candidates had it, some didn’t, and a salary differential would be expected. Now virtually everyone has the 150, so it is harder to see a salary effect (to say nothing about the effects of current employment markets). (personal communication, September 22, 2010) This point by this reviewer references a feature of the research with both studies that has not been discussed thus far in this current paper; the authors invite readers interested in this additional dimension of the research to consider it in the earlier published Georgia study and the unpublished Wisconsin study.

Continuing to carp about the 150-hour requirement is unproductive, adds nothing new, and is getting tiresome. I don’t think we need another paper to add to the many already in existence on this topic.

Having said that, I think a reformulated paper could make a contribution. We need proposals for the future, not a rehashing of the past. Clearly the 150 has been less than an overwhelming success, [emphasis added] though the “stronger” data above suggests it has helped. Can this data be a springboard for the author to propose what the profession needs to do next to improve both the reality and the perception of the preparation of entry-level candidates? We do not move forward by moving backward; continuing allusions to rescinding the 150-hour requirement are not helpful. It’s solidly in place, but

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very much in need of continuous improvement. The data and commentaries in this paper could provide some ideas.

I would not recommend publication of the paper in its current form, as I do not think it makes a contribution. I would encourage a major revision along the lines suggested above, leading to proposals for strengthening the profession. (personal communication, September 22, 2010) In essence, what this reviewer suggested was not a revision of the authors’ manuscript but rather a totally different manuscript, likely based on a totally different research project. It is very important to notice that the specific comments from respondents in the research, comments that comprised a major part of the manuscript, do provide much insight into the views of respondents about how this preparation of CPA candidates could and should be improved. The larger message of Reviewer 2’s comments seems to be the reviewer’s presupposition that the impact of the 150-hour requirement on the quality of new CPAs, as perceived by individuals working in the profession, is a dead issue. The consideration of quantitative data and the even more insightful extensive comments from respondents in this research was labeled “carping,” “unproductive,” “adding nothing new,” “tiresome,” and “moving backward.” The reviewer seems to have been saying that the fact that the 150-hour requirement exists on a widespread basis and has existed in some jurisdictions for many years guarantees that it is and should be here to stay. Implied with this is that the authors were trying to foment debate with an issue that is settled.

As mentioned earlier, the authors submitted, as instructed by Publisher A, a five-page response to the reviewers’ comments on a point-by-point basis and the explanation of any comments with which they disagreed, including much of the reasoning offered in the preceding paragraphs; this was submitted on October 20, 2010. Having heard no reply to this response of the authors to the reviewer comments, the contact author inquired to Publisher A on March 10, 2011 with the following: “Please tell me the status of our manuscript submission and subsequent response to reviewers' comments. Is our manuscript still under consideration by (Publisher A) for publication?”

The emailed reply the next day from Publisher A indicated that they had indeed received the authors’ submission. Citing a “staffing issue” that they were “going through,” it was noted that the authors likely did not receive an acknowledgement notice in October, along with an apology for this. It was further stated that the authors’ manuscript “seemed to just fall through the cracks.” This message concluded with the promise for an expedited process from that point. Five days (three business days) later, the contact author received an email from Publisher A informing him that it was their opinion that “completely or substantially addressing the reviewer’s comments would make for an improved submission,” and stating “we’re prepared to either withdraw this manuscripts from consideration or consider a ‘new’ submission informed by the reviewer’s comments.” Not knowing how to more “completely or substantially address the reviewers’ comments” than with the five-page response already submitted almost five months prior, the authors withdrew the manuscript for consideration by Publisher A on March

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20, 2011. Perhaps more to the point, the authors were discouraged by the series of events, and questioned themselves about whether they had indeed heard what they heard about perceptions of CPAs regarding the effectiveness of the 150-hour requirement and about whether or not the profession did indeed still care about the question of its effectiveness. The authors found it almost impossible to reconcile the evidence with this conclusion, but nevertheless considered the possibility that this issue was indeed dead—one whose time had passed.

Seeking to salvage some value from the research done, the authors contacted the publication of a state society of CPAs (“Publisher B”) on May 5, 2011 to see if perhaps that magazine would be interested in publishing the research results. The authors provided a brief abstract of the paper, along with a brief explanation of the context about the previously published Georgia study and the follow-up study. The reply the next day from that magazine indicated willingness to publish a greatly reduced length article, which would require the authors to drastically cut the manuscript from approximately 3,800 words to a maximum of 1,000 words.

Due to the considerations identified at the end of the previous paragraph, the task of cutting a manuscript to approximately one-fourth its original size and reformatting the paper to also otherwise match the requirements of Publisher B’s magazine, while still communicating some essence of its information and conclusions, was completed. The constricted paper was submitted to the magazine on June 24, 2011. On June 27th, the magazine asked for a brief bio and headshot for each of the authors, which were submitted promptly. On July 14, 2011, the editor of the magazine emailed the contact author seeking clarification of the fact that percentage data in one exhibit did not sum to 100% (99.9% instead). This was corrected on July 18th. The magazine editor asked a few other minor questions on August 9, 2011; these were answered in detail on that same date. It was at this point that communication from Publisher B to the authors stopped.

It had been the understanding of the authors that the paper would be published in the next issue of the magazine. When that did not occur, and the article also did not appear in the following issue either, the contact author asked Publisher B the following: “Can you tell me your estimate of when (which issue of (magazine name)) the article by Professor Vandenberg and I will be published? Thanks.”

The following is the reply that was received on November 7, 2011: Hello, Our CEO and Board of Directors have decided that I shouldn’t include your article in our magazine. The topic of 150-hour requirement has been a very sensitive topic for many years, a fact that I wasn’t knowledgeable about when I accepted your article.

Several (abbreviation for state society) past presidents would be very upset if the (abbreviation for state society) were to publish an article that included emotional rhetoric that is diametrically opposed to (abbreviation for state society) advocacy efforts. Thanks for sending your article, and my apologies for not getting back to you earlier.

The reader of this current paper may call it naiveté, but the authors were shocked. That shock, adding to the discouragement that the authors had already felt following the response to their manuscript from Publisher A and especially its reviewers, led to dormancy with this

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research project. This was exacerbated by a change already in process with De Berry’s employment, in which he was increasingly busy with more administrative duties, with less time for scholarship. In a nutshell, the authors stopped.

Conversation in mid-2013 about the nature of this research and the chronicling of its publication attempts with an unnamed award winning and highly published professor with a prestigious university in California started the authors again. In that conversation, one author questioned whether in fact the nature of the research had been unproductive—researching a dead issue, as the Publisher A reviewer charged. The reply from this California educator and CPA, whose state was scheduled to implement a 150-hour requirement in 2014, was that it was far, far from a dead issue. Noting the bewilderment that the authors experienced when, within the length of about a year, they were told first that the research was with an issue that had grown cold in timeliness and then secondly that it was too hot to handle, the author asked the California CPA and educator whether the research was indeed publishable. The reply was that peers in that state had felt that the 150-hour requirement had been somewhat pushed upon them, and that the trick would be finding a source that would be willing to handle the paper.

Discussion This paper is not about authors seeking to vindicate themselves for a previously failed publication attempt. The research questions for this study are identified in the introduction section of this paper; the paper seeks to highlight questions and answers about the status of the 150-hour education requirement for CPAs in this country. It does so by chronicling an experience of research and response to those research results that perhaps shine light on that status. Even more so, the experience chronicled in this paper begs, and perhaps helps to answer, the greater question of whether the widespread education requirement’s success and therefore continuation in its current status should be decided more by politics than by a continuing assessment of the fulfillment of the objectives that it purports to accomplish.

As noted earlier, the authors suggest that interested readers request and receive a copy of the unpublished manuscript reporting the results of the Wisconsin study, as it was submitted to Publisher A. However, the questions being researched in this current paper are not about the value per se of this unpublished manuscript. The questions being considered in this current paper are more about the success of the 150-hour requirement for CPAs, as perceived by CPAs themselves, and about whether legislation and implementation of the requirement occurred in the past and continue to exist in the present due to a belief in the attainability through the 150-hour education model of its objectives and a widespread approval of its results, or due to something else. Readers are urged to connect the dots, using the chronicling of the Wisconsin study and publication attempts for its results, which are the real Methods and Results for this current paper.

Dots that the authors note include:

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

how long it has taken the near-unanimous adoption of the 150-hour requirement to occur  the reasons informally communicated for why Georgia enacted its legislation  the nature informally communicated about how California finally enacted its legislation  the amendment of existing 150-hour requirements in some states  the timing of publication of research results on this topic, or timing for refusal to publish such, relative to the publisher state’s status in this lengthy 150-hour movement  the nature of comments critical about such research in contrast to comments gained by such research  the reasons offered for why research would not be published (after communicating that it would be) in contrast to comments critical of such research painting a picture of the topic being a dead issue  the reference communicated informally by a soon-to-implement California educator and CPA about the trick being finding a publication source willing to handle the paper Perhaps the most telling dot of all, one that proved to be indeed prophetic but whose weightiness the authors unfortunately failed to recognize at the time, came from the comment offered by one Wisconsin study respondent in which he/she hinted that it would be unlikely that the authors would be allowed opportunity to use results of the survey to make changes he/she hoped would be made to the 150-hour requirement.

The authors note that steamrollers do not have rearview mirrors or ambient temperature gauges. The phrase about not being able to fight City Hall comes to the authors’ minds, but the pathetic irony is that the authors were not engaged in a fight as they conducted and reported their research, and had no intention of so engaging. The authors believe that protecting the status quo of the existence of the 150-hour requirement will not help the profession “move forward.” It is interesting that in a 1989 Journal of Accountancy article considering what “revolutionary changes” (Nelson, 1989, p. 47) must be adopted in accounting education in order to correct its declining enrollment, it was quipped that “it is easier to move a mountain than to change a college curriculum” (Nelson, 1989, p. 48). The article postulated, “universities are steeped in tradition and buried in rules to protect the status quo”[emphasis added] (Nelson, 1989, p. 50).

The authors of this current paper consider it perhaps ironic that, after a “revolutionary change” in accounting education that took decades to almost fully implement, the possibility of protecting the status quo could again, in a reverse manner, be present in the profession. The profession sticking its head in the sand or shouting down dissenters does not make the matter of questions about the success and continuation of 150-hour requirements go away. The authors understand that decisions about the profession must be made at corporate levels of the profession, but they

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question whom better than individual practicing CPAs themselves know what “is working” (DeBerry, 2003, p. 26) and why the voices of those individual CPAs should be ignored. When members of a profession periodically (not constantly) re-evaluate the accomplishment of intended objectives by a decision or course of action, all gain from the conversation. If the 150hour requirement is solidly in place, it does not mean that accounting professionals believe that it should be. Sometimes, the path to improving the profession is to listen to those who are working in the profession instead of simply dismissing their discontent by labeling it with negative terms and squelching the voicing of it. Even if one takes the position that some version of a 150-hour or other “beyond the baccalaureate” educational requirement for CPAs should continue to exist, how can the profession ascertain the ways in which that requirement should be improved (if it should be) without hearing what accounting professionals report is currently faulty about that requirement? Saying to certified public accountants working in the accounting profession that they should, in effect, get over it and learn to live with it regarding the 150-hour requirement does not seem to these authors to be an appropriate path for improving the profession. The authors hope that their research in some small way helps to move forward that improving of the profession.

Author Biographies Tom De Berry is a Professor of Accounting and Economics at Freed-Hardeman University. He earned his PhD in economics from Texas Tech University in 1994, his MS in accounting from Texas Tech in 1979, and his BS in accounting from Lubbock Christian University in 1978. He has been a Certified Public Accountant since 1980 and a Certified Fraud Examiner since 2007. His career has been in university education and industry accounting, and has articles in such publications as The CPA Journal, Business Horizons, and the Journal of Forensic Accounting.

Amy Vandenberg is an Assistant Professor of Business Administration at St. Norbert College.

She earned her MS in tax from the University of Milwaukee in 1992, and her BS in accounting from St. Norbert College in 1985. She has been a Certified Public Accountant since 1988. Her career has been in college education and industry accounting. She teaches courses in financial accounting, business consolidations, and federal income tax and has presented at numerous national conferences and published in conference proceedings. She has articles in such publications as The Journal of Behavioral Studies and The Research in Higher Education Journal.

Readers are invited to contact either of the authors (tdeberry@fhu.edu or amy.vandenberg@snc.edu) to receive a copy of the unpublished paper reporting the empirical Wisconsin study, as it was submitted to Publisher A. References American Institute of Certified Public Accountants [AICPA] (2012). Summary of jurisdictions that have passed the 150-hour requirement. Retrieved from http://www.aicpa.org/advocacy/state/downloadabledocuments/sumstate150req.pdf

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Collins, S. (1989). Meeting the new 150-hour standard: What CPAs should know about the new requirement. Journal of Accountancy, 168(2), 55-57.

De Berry, T. (2003). The 150-hour requirement and CPA quality. The CPA Journal, 73(8), 26-30.

Nelson, A. (1989). The human resource dilemma in accounting. Journal of Accountancy, 168(2), 46-52.

Read, W., Raghunandan, K., & Brown, C. (2001). 150-hour preparation improves CPA exam performance. The CPA Journal, 71(3), 30-34.

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The Importance of Specifying Academic Discipline in Regression Modeling for Higher Education Compensation Steven W. Lamb, Indiana State University Jeffrey S. Harper, Indiana State University Brien N. Smith, Indiana State University Affecting Philanthropic Propensity Hubert E. Sales, Belmont Abbey College What Can Be Done To Reduce Trade Tensions with China and Improve U.S. National Security?

Ki Hee Kim, William Paterson University of New Jersey

Curriculum Politics and the 150‐Hour Requirement Thomas W. De Berry, Freed‐Hardeman University Amy T. Vandenberg, St. Norbert College

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