The dubious utility of the value-added concept in higher education: the case of accounting [An article from: Economics of Education Review]

This digital document is a journal article from Economics of Education Review, published by Elsevier in 2005. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
Using data on CPA exam pass rates and various institutional variables, this research examines the potential usefulness of the value-added concept in accounting higher education. For a sample of 548 US colleges and universities, predicted pass rates were computed from regression equations relating observed pass rates to institutional variables. The value-added (or ''adjusted'') pass rate is the difference between the observed (''unadjusted'') pass rate and the predicted pass rate. Because of the low explanatory power of the pass rate regression equations, a strong positive correlation exists between the adjusted pass rate and the unadjusted pass rate. Thus, a ranking of institutions by adjusted pass rate would be very similar to a ranking by unadjusted pass rate. In addition, for conventional levels of statistical confidence, judgments about relative CPA exam pass rate performance based on value-added statistics can only be made for a small number of institutions.