A theoretical model for the relationship among: stress, locus of control, and longevity.

Time/budget constraints and the need to reduce costs affect decision making (Mautz and Sharaf 1961). These pressures can cause considerable stress and result in job dissatisfaction, reduced quality of work, and personnel turnover (Collins 1993; Kelley and Cook 1982; Margheim and Pany 1986; Pearson et al. 1985). Kelley and Seiler (1982) found that "The ability to live with ... pressure may be a prerequisite to a long career" when time budgets are imposed.

Stress has been noted as a factor for switching careers (Carcello et al. 1991; Trapp et al. 1989) and locus of control (Rotter, 1966) has been considered in participative budgeting (Murray, 1990; Licata et al. 1986; Brownell, 1981, 1982). While there has been no accounting research that links stress participative budgeting and locus of control, there is extensive research in psychology linking locus of control and stress management. This study theoretically expands the research into stress (Rebele and Michaels 1990) using Snead and Harrell's (1991) job satisfaction model as a structural guide (Figure One).

Theory Development

Motivation and Locus of Control

Psychological Locus of Control (hereafter referred to as locus of control or LOC) conceptualizes how individuals see their own actions affecting the events that surround their lives (Lefcourt, 1982). Locus of control represents individuals' range of beliefs concerning personal control over their environment; the range extends from strong personal control (internal locus of control) to weak or no personal control (external locus of control). External locus-of-control individuals believe that "reinforcements are not under their control but rather are under the control of powerful others, luck, chance, fate, etc." (Rotter, 1966; 618). On the other hand, internal-locus-of-control individuals believe that "reinforcements are contingent upon their own behavior, capacities, or attributes" (Rotter, 1966; 618).

Internal-locus-of-control people accept responsibility for events (Davis and Davis, 1972), and external-locus-of-control individuals blame their environment for failures (Phares et al. 1971). Because internal locus-of-control individuals ("internals") believe they control the events in their lives, they recognize that experiences are related. Given this, internals believe that the probability of goal attainment is directly proportional to their efforts and their ability to learn from repeated experiences (Lefcourt, 1982) and also set more difficult goals for themselves (Yukl and Latham, 1978), which reflect their perception of control (Murray, 1990). Externals do not see the relationship between their efforts and the ultimate results of these efforts (Lefcourt, 1982). External-locus-of-control subjects ("externals") attributed a high probability to luck as a determinant for significant events (Friedland, 1992).

Age, Gender, and Locus of Control

The data in Table One are provided to show that the research cited represents data taken from large-to-very-large samples. Differences in locus of control and in age are correlated. Research shows that locus of control consistently becomes more internal through the seventh grade (Payne and Payne, 1989; Young and Shorr, 1986). Locus of control becomes most internal level at about age 14 to 16 and then reverts to a more external level by age 18 (Crandall et al. 1965; McNulty and Borgen, 1988).

Comparing data for adult age groups, most research finds that locus of control remains relatively constant for some period of time after high school. Evaluating teenagers through 50 year olds, Morganti et al. (1988) and Jensen et al. (1990) found that an individual's locus of control becomes more external as he/she gets older. So that, one would expect that locus of control would gradually become more external as an individual continues in a profession (i.e., becomes older) unless other factors such as stress intervene.

Although both males and females are concerned about their careers, females experience more job-related stress (Collins, 1993). Females indicate that the conflicting responsibilities of home and work magnify the intensity of other time demands. For females, fifty percent of the variation in reported anxiety can be explained by the effect of work on home life and job-performance (Kahn and Cooper, 1992). While the effects of work on home life and job-performance are also important to males, locus of control was a more significant factor when explaining stress for males. This difference may be explained by research that indicates that women are more external in their locus of control than men (Jones and Page, 1986; Linder, 1986; Doherty and Baldwin, 1985; and Roodin et al. 1974).

Stress and Behavior

Multiple job assignments and time/ budget pressures cause stress for both male and female accountants (Pearson et al. 1985). Time pressures can also cause dysfunctional behavior (Kelley and Margheim, 1990; Raghunathan, 1991). Kelley and Margheim (1990) note that the number of quality reduction acts increases significantly when there is time pressure. Tight budgets can also affect perceptions of personal competence. For example, dysfunctional behavior could occur if a time-budget overrun is perceived as being caused by a personal inefficiency (Lightner et al. 1982) or a tight budget (Margheim and Pany, 1986). Time pressure is more prevalent at the lower employment levels than at the upper levels (Kelley and Seiler, 1982). In fact, thirty-two percent of the lower level employees reported dysfunctional behavior, which was associated with their efforts to meet time budget (Kelleyand Seiler, 1982).

Stress and Locus of Control

Table Two shows that several studies link stress and locus of control. Chan, (1977, 93) suggests that when an individual perceives that they are in control of a situation "the probability is that he will be less likely to perceive the situation as threatening or stress-inducing". Ivancevich and Matteson (1980) also believe that the type of locus of control and adaptation to stress are related. Jennings (1990) finds associations among overall stress, locus of control and nonwork stress (e.g., environmental stressors such as finances or parenting). Externality (i.e., more fate, chance, luck, or powerful others oriented) is positively correlated with general life stress (DiMatteo et al. 1993) and job stress (Evans and Coman, 1993). Since internal-locus-of-control individuals ("internals") experience lower anxiety (Torestand et a]. 1989; Jones and Page, 1986), internal locus of control may act as a stress buffer (Daniels and Guppy, 1992).

Some individuals are either not affected by or thrive in an environment of stress. While more internally-oriented individuals are challenged by stressors, externals are more likely to be threatened by these stressors (Vitaliano et al. 1987). One's sense of locus of control affects the degree of perceived stress (Pilisuk et al. 1993; Schafer and McKenna, 1991). For example, while internal-locus-of-control students are able to work despite attempts at distracting them, the performance of external-locus-of-control students de creases when the same stressors are present (Wolk and Bloom, 1978).

How individuals deal with stress (i.e., cope with the stress in their lives) also affects their perceptions of stress. As an example, while internal-locus-of-control individuals use solution oriented coping, external-locus-of-control individuals tend to either ignore or to give in to problems (Rees and Cooper, 1992; Schill and Beyler, 1992; Wells-Parker et al. 1990). Smith and Everly (1990) find that individuals who practice adaptive coping report lower levels of environmental stress; so these accountants are demonstrating the type of behavior one would expect from an internal-locus-of-control individual. Grannis (1992) finds that internal locus of control acts as a stress moderator; students reporting lower levels of stress have had higher grade point averages. Stress management and adaptive coping can be learned. After participating in a stress-management program, students' sense of control was not only more internal, but they also took greater responsibility for their academic achievement, were more confident, and reported more appropriate coping skills (Henderson et al. 1992).

Participation, Satisfaction, and Accomplishments

External locus of control is negatively correlated to feelings of personal accomplishment (Lunenburg and Cadavid, 1992) and job satisfaction is negatively correlated to stress (Blegen, 1993). Therefore, it is not surprising that a positive correlation exists between external locus of control and emotional exhaustion (St.-Yves et al. 1989). By contrast, internal locus of control has been shown to be positively associated with job satisfaction and lower perceived stress (Rees and Cooper, 1992; Schafer and McKenna, 1991). This is because internals feel they have input into their work environment, perceive less emotional exhaustion, and receive higher job satisfaction (Fuqua and Couture, 1986; Whitebook et al. 1982).

Proposed Model

Snead and Harrell's (1991) model (see Figure One) indicates that job satisfaction is positively correlated with one's influence orientation and the total hours one is willing to work. From the research cited, individuals who see a direct relationship between their efforts and their accomplishments (i.e., internal locus of control) should be willing to work longer hours (i.e., be more motivated). This relationship should also positively affect one's willingness to work towards harder goals (Murray, 1990; Yukl and Latham, 1978) and should enhance one's sense of achievement. Snead and Harrell find that sense of achievement is negatively associated with work stress and job dissatisfaction. Since internal-locus-of-control individuals perceive less stress, these individuals should be more satisfied with their jobs and retention should increase. If this is the case, Snead and Harrell's job-satisfaction model can be modified to reflect these relationships. Figure Two shows the relationships between locus of control and the factors discussed in this review. In addition to the several locus-of-control tests used, the extent and currency of the research, most after 1990, make a compelling argument for the effects of locus of control on motivation, stress, job satisfaction, and retention.

Future Research

While only about a third of the research cited in this review was in accounting, the relationship among stress, retention, and locus of control have been demonstrated in research outside of accounting. In a sense, this research indicated that internal locus of control can act as a filter for what could otherwise be perceived as an unpleasant work environment. Given this, one would expect internal-locus-of-control individuals to be more prevalent in the upper-staff levels of public accounting.

Figure Two provides an agenda for future research. One line of research should follow a group for several years to determine whether the issues posited by this research do have an impact on retention. This research should use new hires to determine whether or not these individuals represent a full range of locus of control or whether the sorting process only admits more internal-locus-of-control individuals. Other research should explore the impact of perceived stress on individual performance in both college and on the job. This research could determine whether attitudes about stress are brought into the work place from college. Table One Age, Gender, and Locus of Control

Sample Used in the Studies Research Author(s) Year Size Characteristics Crandel, et al. 1965 923 Grade and High Schools:

(104 3rd, (103 4th,

(99) 5th, (166) 6th,

(109) 12th Doherty and Baldwin 1985 13,000 NLS data:

(3,534)MM, (3,226) MF

(3,118) YM, (3,122)YF Jenson et al. 1990 11,729 Adults ages:

18-24

35-54

55+ McNulty and Borgen 1988 500 Grades 8 to 12 Morganti et al. 1988 450 (60) ages 14 to 16

(60) ages 25 to 34

(60) ages 45 to 54

(270) ages 55+ Payne and Payne 1989 643 Grade School:

(134) kid, (134) 1st,

(103) 2nd, (109) 3rd,

(73) 4th, (90) 5th Young and Shorr 1986 1,899 Grade and Middle School:

(651) 4th, (649) 5th,

(599) 7th

Locus of Control Test Research Author(s) Author(s) Year Crandel, et al. Crandall et al. 1965 Doherty and Baldwin Rotter (modified) 1966 Jenson et al. Jenson et al. 1990 McNulty and Borgen Rotter 1966 Morganti et al. Rotter 1966 Payne and Payne Nowicki and Strickland 1988 Young and Shorr Cleary and Cleary 1972 MM = Mature Males YM = Young Males NLS = National Longitudinal Survey MF = Mature Females YF = Young Females Table Two Age, Gender, and Locus of Control

Sample Used in the Studies Research Author(s) Year Size Characteristics Daniels and Gyppy 1992 221 University employees DiMatteo et al. 1993 108 Dentists Evans and Coman 1993 271 Police officers Henderson et al. 1992 65 3rd graders Jennings 1990 300 Head nurses Jones and Page 1986 222 Undergraduates Kahn and Cooper 1992 225 Money market dealers Pilisuk et al. 1993 91 Senior citizens Rees and Cooper 1992 1,176 Health service workers Schafer and McKenna 1991 219 City managers Schill and Beyler 1992 117 Undergraduates Smith and Everly 1990 229 Accounting academicians

309 Accounting practitioners Torestad et al. 1989 452 17-year olds Vitaliano et al. 1987 443 Medical students Wells-Parker et al. 1990 203 Women

Locus of Control Test Research Author(s) Author(s) Year Daniels and Gyppy Spector 1986 DiMatteo et al. Rotter 1966 Evans and Coman Levinson 1988 Henderson et al. Crandall et al. 1965 Jennings Rotter 1966 Jones and Page Rotter 1966 Kahn and Cooper Cooper et al. 1988 Pilisuk et al. Nowicki and Duke 1973 Rees and Cooper Cooper et al. 1988 Schafer and McKenna Unspecified n/a Schill and Beyler Rotter 1966 Smith and Everly not used n/a Torestad et al. Rotter 1966 Vitaliano et al. Mirels 1970 Wells-Parker et al. Rotter 1966

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Richard A. Bernardi, Ph.D., CPA is a Professor of Accounting and the Gabelli School of Business, Roger Williams University in Bristol, Rhode Island. Dr. Bernardi received his Ph.D. from Union College in 1992 and was a Professor of National Security Affairs at the United States Naval War College during 1997-1998. His primary research interests concern fraud detection, ethics, and audit judgment. His fraud detection research resulted in articles in Auditing: A Journal of Practice and Theory; International Journal of Auditing; the Irish Accounting Review; Managerial Finance; and Research on Accounting Ethics. During 1996, he served as an external reviewer on KPMG Peat Marwick's Fraud Detection Task Force. He is currently the ethics editor of the Journal of Applied Business Research.