The Joint Effects of Valuation Focus and Employer Type on Valuation Specialists’ Perceptions of Organizational-Professional Conflict

Abstract

Valuation specialists play a crucial role in preparing and auditing fair value measurements (FVMs) but often face conflicts between professional and organizational demands. We surveyed 222 experienced specialists to understand how their primary valuation focus (financial versus nonfinancial instruments) and employer type (professional services firms (PSFs) versus non-PSFs) impact perceived organizational-professional conflict (OPC). Results suggest that financial instrument specialists employed by non-PSFs report higher OPC levels, lower job satisfaction, and increased turnover intentions. However, prior experience in similar organizations appears to mitigate perceived OPC. Further, PSF specialists report higher OPC when they evaluate more FVMs for auditors than they prepare for management. These findings underscore the need for organizations to address role-specific conflicts to improve the retention of specialists in a severely constrained market for their expertise. Results also have implications for the reliability of FVMs in practice.