Antecedents and consequences of perceived job security of professional accountants

Abstract

Purpose

The purpose of this study is to develop and empirically test a theoretical model of antecedents and consequences of perceived job security of professional accountants. This study contributes to the literature by examining the mediating role of perceived job security between the reward management system and the ethical job performance of professional accountants.

Design/methodology/approach

A survey was used to collect responses from professional accountants at small- and medium-tier accounting firms in Pakistan. Of the total 313 circulated research instruments, 270 were completed producing a response rate of 86%. The hypotheses were tested by performing structural equation modeling, confirmatory factor analysis and correlation using SPSS 24 and AMOS 25.

Findings

Findings specify that the perceived job security of professional accountants partially and fully mediates the relationship between their ethical job performance and intrinsic and rewards, respectively. Additionally, reward management systems including intrinsic and extrinsic rewards have a significant impact on the ethical job performance of professional accountants.

Practical implications

The findings of this study may have significant implications for researchers for examining the subjects' perceived job security in enhancing the overall performance of the firms. The findings may also benefit domestic and international accounting firms for recognizing the importance of rewards and job security for enhancing the ethical performance of accountants.

Originality/value

This study is the first to provide empirical evidence for the importance of perceived job security for professional accountants in Pakistan. The current research also provides sharper insights into establishing the direct impact of both extrinsic and intrinsic rewards on professional accountants' ethical job performance.

Citation

Shahid, A.U., Tufail, H.S., Shahid, J. and Ismail, A. (2021), "Antecedents and consequences of perceived job security of professional accountants", Asian Review of Accounting, Vol. 29 No. 5, pp. 601-616. https://doi.org/10.1108/ARA-09-2020-0146