Is Accounting Education Valued by the Stock Market? Evidence from Corporate Controller Appointments

This paper examines whether the stock market values accounting education. Studying 616 controller appointments between 1993 and 2005 and using event study methodology, I find evidence that the appointment of controllers with an accounting degree elicits a more favorable stock market response than does the appointment of controllers without an accounting degree. This effect stems from outside appointments. Among accounting graduates, the market reacts more favorably when the degree is awarded from a highly rated accounting program. I discuss several interesting implications of these results.