Research Methods Overview

Research Methods

• Research methods are strategies, processes, or techniques used to collect data and evidence for analysis, leading to new information and a deeper understanding of a topic.
• Various types of research methods exist, each employing different tools for data collection.

Qualitative Research

• Qualitative research gathers data about lived experiences, emotions, and behaviors, focusing on the meanings individuals attribute to them.
• It helps researchers understand complex concepts, social interactions, and cultural phenomena.
• Qualitative research is useful in exploring how and why events occurred, interpreting events, and describing actions.

Quantitative Research

• Quantitative research gathers numerical data that can be categorized, measured, or ranked through statistical analysis.
• It helps identify patterns and relationships, and allows for generalizations.
• Quantitative research is helpful in determining how many, how much, how often, or the extent of occurrences.

Data Collection Tools

• Tools or techniques for gathering research data include:
  • Qualitative: interviews, focus groups, observation, case studies, ethnography
  • Quantitative: surveys/questionnaires, experiments, document screening

Accounting Research

• Accounting is a body of practices developed in response to practical needs, rather than systematic thinking.
• Prescriptions for accounting problems emerge as needed.
• Key areas of concern in accounting research include inconsistency and objectivity problems.

Accounting Research Development

• From 1800 to 1955, accounting research was primarily focused on observation of practice, focusing on historical cost and conservatism principles.
• From the 1930s onwards, research aimed to justify accounting practices, with increasing criticism about US practices and the rise of accounting publications like AAA and AICPA.
• In 1959, the AICPA appointed a director for accounting and control research.

Normative Research

• (1956-1970) Normative research is less concerned with what happens in practice and more focused on developing theories about what should happen.
• It aims to derive and prescribe optimal accounting solutions.
• Measurement of accounting was a key debate during this period.
• Two prominent groups are critics of historical cost accounting and proponents of the conceptual framework.
• Major criticisms included lack of empirical hypothesis testing and the reliance on value judgments.

Positive Research

• (1970-present) Positive research is a scientific approach applying financial economic principles, increasing data supply, and testing methods.
• The goal is to explain and predict accounting practices, addressing the confusion around accounting techniques.
• Positive research explores how accounting information impacts various stakeholders, including investors' reactions, creditor's decisions, and design of contracts.
• Wealth maximization is the fundamental driver.
• Accounting is crucial in explaining economic consequences of accounting.
• Critics view the approach of focusing on narrow agency theories and market efficiency as problematic.

Behavioural Research

• Behavioral research examines how individuals react to accounting numbers and information.
• It investigates psychological and sociological influences on accounting practice by managers, shareholders, creditors and the government.
• A broader sociological exploration of how accounting numbers impact stakeholders.

Recent Research

• Current academic research emphasizes capital markets, agency theory, and behavioural impacts.
• Professional research often takes a normative approach.
• Positive and normative approaches are not incompatible; standard setters and regulators consider the implications of accounting information.