Predicting Success in Graduate Financial Statement Analysis Courses – Do Traditional Predictors of Accounting Success Apply?

Abstract

This study addresses whether the traditional predictors of success in graduate accounting classes apply to Financial Statement Analysis (FSA). FSA is being offered at an increasing number of schools, yet its content and student population differ from that of traditional upper-level graduate accounting courses. Previous studies have shown that GMAT scores, and in some cases, previous accounting work experience are associated with success in the introductory graduate accounting class. This study evaluates the relationship between these factors, as well as other previously untested variables, and performance in FSA. The results suggest that different factors are associated with success in FSA. The grade in the required graduate introductory accounting class is the only variable significantly associated with performance in FSA. These findings may have implications for introducing other broadening courses in the graduate accounting curriculum, as well as policies that limit access to upper-level accounting classes on the basis of introductory accounting grades.