Research Methods PDF

Research Methods Research methods are the strategies, processes or techniques utilized in the collection of data or evidence for analysis in order to uncover new information or create better understanding of a topic There are different types of research methods which use different tool...

Research Methods Research methods are the strategies, processes or techniques utilized in the collection of data or evidence for analysis in order to uncover new information or create better understanding of a topic There are different types of research methods which use different tools for data collection  Qualitative Research Qualitative Research gathers data about lived experiences, emotions or behaviours, and the meanings individuals attach to them assists in enabling researchers to gain a better understanding of complex concepts, social interactions or cultural phenomena is useful in the exploration of how or why things have occurred, interpreting events and describing actions  Quantitative Research Quantitative Research gathers numerical data which can be ranked, measured or categorised through statistical analysis assists with uncovering patterns or relationships, and for making generalisations is useful for finding out how many, how much, how often, or to what extent  Data collection tools Tools or techniques used for gathering research data include: Qualitative (interviews, focus groups, observation, case studies, ethnography..) Quantitative (surveys or questionnaires, experiments, documents screening..) Accounting Research Accounting research development Accounting=body of practices which have been developed in response to practical needs rather than by deliberate and systematic thinking Accounting prescriptions developed to resolve problems as they arose The inconsistency problem The objective problem  Accounting research development 1800-1955 general scientific period: research based upon observation of practice (no critical of current practices, focus on the use of historical cost and the conservatism principle) Until 1930s research developed to justify particular practices 1930s critics towards accounting write up practices in US; accounting publications (AAA, AICPA) In 1959 AICPA appointed a director of A/C research  Normative research 1956-70 The normative period Research is less concerned about what actually happens in practice and more concerned about developing theories that prescribe what should happen It seeks to derive and prescribe optimal accounting solutions Debate was predominantly about measurement  Normative research Two groups dominate: – The critics of historical cost accounting – The conceptual framework proponents Major criticisms – No empirical hypothesis testing – Based con value judgments  Positive research 1970- the positive era begins The specific scientific period (application of financial economic principles, increased supply of data and testing methods) Research seeks to explain and predict accounting practices, giving order to the confusion associated with the choice of accounting techniques  Positive research Positive research explains: – the economic effects of accounting (bonus plan) – why accounting is important to various parties, like investors, creditors… (whose personal wealth is affected by accounting decisions) – why accounting is important in assisting the design of contracts based on accounting numbers  Positive research Explaining and predicting accounting practices, gives order to the confusion associated with the choice of accounting techniques Helps predict the reactions of investors in the market to the action of management and to reported accounting information Enables regulators to assess the economic consequences of various accounting practices  Positive research Wealth maximization becomes the answer to every question Whatever the observed practice, it could be interpreted as a means of maximizing wealth Positive research involves developing hypothesis about reality which are subsequently tested by observation of impact based upon assumptions of wealth maximisation  Positive research Criticisms based on the seemingly narrow approach that concentrates on agency theories and assumptions about the efficiency of markets  Behavioural research Behavioural research is concerned with the broader sociological implication of accounting numbers and the associated actions of key partecipants such as managers, shareholders, creditors and the government as they react to accounting information It focuses on psycological and sociological influences on individuals in their use and/or preparation of A/C  Recent research Academic research emphasis remains in the area of capital market, agency theory, and behavioural impacts Professional research takes a more normative approach Positive and normative approaches are not incompatible: an understanding of the impact of A/C is taken into account by standard setters and regulators