1

Overview of Research
A n understanding of the nature of social research is imperative for
anyone interested in designing and conducting a formal research.
This chapter differentiates the formal type of research from an
informal one that is loosely defined and conducted in an ordinary parlance.
It introduces the students to the characteristics and dimensions of social
research. It also explores the different processes that are important in coming
up with a systematic investigation of a problem or problems.
The chapter underscores research methodology as the underlying
philosophy in pursuing a research endeavor. It expounds on the dimensions
of research and their interlocking relationship. The link between research
methodology and research method is also discussed in this chapter.
The classification of research is a means to label the purpose,
application, information, and timing of a research project. It should not be
treated as a rigid demarcation or inflexible categorization of what a
researcher does in real life investigation. The distinguishing marks of each
type of research may overlap with each other. Understandably, a research
~ can have many classifications. - | |
e é ¢
e) ‘After reading this chapter, the students should be able to:
Topic Outline 1. Illustrate the attributes “of a formal research and
distinguish them from those of a loosely defined
research;
1.1 Characteristics of Describe the dimensions of a formal research;
Research
3. Classify formal research according to purpose,
application of results, information type, and time
' ; dimension; ,
1.2 Dimensions of
Research | 4. Compare and contrast the classifications of research;
5. Discuss the elements of a research methodology and
relate them with research method;
1.3 Re h ;
: poe 6. Differentiate the various sources of knowledge and
gy _ evaluate their usefulness;
7. Contrast the two methods of drawing conclusions
1.4 Role of Theory in from research; and ;
Research 8. Explain the nature and components of theory and
analyze its role in research. :
1.1 Characteristics of Research

The word research is used loosely in everyday Conversation

especially among students and teachers. For instance, students are often
advised by their teachers to do a library research about something oy
someone with a written report submitted after the said research. In the new,
products are advertised to have been produced as a result of long years of
research. Polls of people’s opinions are also reported to be a product of
research. It goes without saying that research means a lot of things when
used in ordinary parlance.
These activities could not be considered research in the technical
sense, especially if they were conducted merely to gather facts or information
without clear purpose and without interpretation of the data gathered,
While collecting data may be part of the research process, if it was not
undertaken in a systematic manner and was not analyzed or interpreted
systematically, the act remains to be mere data gathering and not a formal
research. Similarly, mere assembling of data from a variety of sources
without the systematic process of interpretation does not qualify as a
research. )
Moreover, for an activity to be considered as research, it should ente

answering
a question, gaining an understanding of an eventor phenomenon,
or solving
a problem. Leedy and Ormrod (2010) defined research as the
"systematic process of collecting and analyzing information in order to
increase our understanding of the phenomenon with which we are
concerned or interested." Saunders, et al. (2010) defined research as
something that people undertake in order to find out things in a systematic
way, thereby increasing their knowledge. The term "systematic" suggests that
research is based on logical relationships and not just beliefs. "To find out
things" means that there are multiple possible purposes for research:
describing, explaining, understanding, criticizing, and analyzing. Having a
clear purpose such as answering a question or a number of questions is also a
major concern of research.
The characteristics of a formal research are the following:
1. Question or problem as starting point. Research originates with a
problem that should be solved or a question that should be
answered. Such problem or question should be clearly defined in
terms of scope and context. In most cases, it is important to divide
the principal problem or question into more manageable parts OF
components. The problem or question statement should be
 Chapter 1 - Overview of Research | 3
Snr
TTA Shen th states seit Gt TE a

properly contextualized to distinguish the research problem from

other problems in the unit of study such as organization and
group.
2. Clear articulation of a goal. Research requires a clear and
unambiguous statement of the purpose without which the
research is on a shaky ground. Understandably, the purpose sets
the direction for all other steps to be undertaken. Generally, a
research aims to describe, explain, predict, and relate events and
behavior or attributes of the subject of study.
3. Specific plan of procedures. The overall research effort must be
explicitly planned and logically designed. The plan serves as the
roadmap that every entity involved in the research can rely on for
whatever task should be accomplished.
4. Collection and interpretation of data. This attribute makes
research an empirical entity that could afford sufficient basis for
whatever conclusion it advanced and uphold. These two distinct,
yet related tasks should be well-planned and _ properly
implemented to enable reasonable assurance that observations
support the purpose of the study and its intended use.
5. Statement of the study limitations. Since all desired data may not
be completely gathered and all expected procedures may not be
possibly executed, it is necessary that the research discloses the
corresponding restrictions or constraints. The expression of the
research limitations caution the users on the resultant effect of the
findings and conclusions of the study. |
6. Clear presentation of findings and conclusions. The fitidingssands
‘conclusions constitute the value-added characteristics of a formal
research. Since the research recommendations are based on the
findings and conclusions, it is important that they are clearly
presented to enable the users to evaluate or appraise the depth,
feasibility, and practicality of said recommendations.

A comparison of the characteristics of a formal research as espoused

by Leedy and Ormrod (2010) and Cooper and Schindler (2003) is shown in
Table 1-1.
1.2 Dimensions of Research

In addition to the characteristics stated above, formal research, both j

natural and social sciences, has certain dimensions distinguishing it from fic
loosely classified type of research. Four dimensions are dominant s
scientific research: (1) purpose of the research undertaking, (2) application of
the overall research findings or results, (3) type of information gathered and
analyzed, and (4) time element in the conduct of the research. The foy;
dimensions also serve as the bases of classifying research as shown in Table
1-2.

Table 1-1. Comparison of the Characteristics of Research

Characteristics of Formal Research (by Characteristics of Research (by |

Leedy and Ormrod, 2010) Cooper and Schindler, 2003)
1. Research originates with a problem | 1. Purpose is clearly defined.
or question.
2. Research requires a clear 2. Research process is detailed.
articulation of a goal. .
3. Research follows a specific plan of _| 3. Research design is thoroughly
procedures. planned.
4. Research usually divides the 4. High ethical standards are applied.
principal problem into more
manageable sub-problems. :
5. Research is guided by the specific 5. Limitations are frankly revealed.
research problem, question, or
hypothesis.
6. Research requires the collection and | 6. Adequate analysis for decision
interpretation of data in attempting maker’s needs is presented.
to resolve the problems that
_ initiated the research. ee
7. Research is, by its nature, cyclical; 7. Findings are presented
or more exactly, helical. unambiguously. —_———

8. Conclusions are justified. A

9, Researcher's experience is reflected._|

Table 1-2. Dimensions and Classifications of Research

Purpose Application. |. Information Type Time

Descriptive Basic Quantitative Cross-sectional
Explanatory Applied Qualitative ~ Longitudinal
Exploratory
 Chapter 1 - Overview of Research | 5

Research Classification According to Purpose

A formal research is conducted with one purpose or a combination of

the following purposes: (1) description, (2) explanation, and (3) exploration.
Description entails precise measurement and reporting of the
characteristics of some phenomenon or population under study. The type of
research with this purpose is called descriptive research.
_ Descriptive research attempts to describe systematically a situation,
problem, phenomenon, service or program. It provides information about
some conditions and describes attitudes towards an issue. It often uses visual
aids such as graphs and charts to aid the reader in understanding the data
distribution. Since the human mind cannot import fully a large mass of raw
data, descriptive statistics are very important in reducing the data-to
manageable form.
Descriptive research can be either quantitative or qualitativeIt can
involve collections of quantitative information tabulated along a continuum
in numerical form, such as scores on a test or the number of times a person
chooses to use a certain feature of a multimedia program. It can also describe
categories of information such as gender or patterns of interaction when
using technology in a group situation.
Explanation involves the discovery and reporting of relationship
among different aspects of the phenomenon under study. When the
relationship is able to foretell the occurrence of certain aspects of the
phenomenon, the study is capable of making prediction or the estimation of
scores on one variable from information about one or more other variables.
Research with this purpose is called explanatory research.

we:
aspects of a situation
ind 2

category of explanatory research is correlational research—one that

_ emphasizes on the discovery or establishment of the existence of a
relationship, association, or interdependence between two or more aspects of
a situation or phenomenon. In general, a correlational research is a
quantitative study wherein a relationship of two or more variables from the
same group of subjects is determined. Theoretically, any two quantitative
variables can be correlated as long as there are scores on these variables from
the same participants. However, it is a waste of time to collect
and analyze
data when there are slim chances to prove that these
two variables are related
to each other. on
6 | Chapter 1 - Overview of Research ea

Exploration refers to an attempt to develop an initial, ~

understanding of some phenomena. Exploratory research i . a :
research conducted for a problem that has not been clearly de 2a heen zs
determine the best research design, data collection method, — - Sa:
subjects for a problem. It should draw definitive conclusions only
extreme caution.

Exploratory studies are done to satisfy the researcher's curiosity and

desire for better understanding and test the feasibility of undertaking a more
careful study. «
This type of research often relies on reviewing secondary documents
' and other available literature and/or data. Often, it uses qualitative
approaches such as informal discussions with consumers, employees,
management or competitors, and more formal approaches through in-depth
" interviews, focus groups, projective methods, case studies or pilot studies.
°
The results of exploratory research are not usually useful for decision-
making by themselves, but they can provide significant insight into a given
situation. Exploratory research is not typically generalizable to the
population at large.

Research Classification According to Results Application

The second dimension of a formal research is the application of the

findings or results. Research types based on application are basic and
applied.
Basic research, also called pure or theoreti
cal research, is undertaken
to increase one’s knowledge about certain phe
nomenon or behavior but does
» not seek to solve any existing problem. It only seeks new
There,is no immediate or direct bene ways of thinkin
fit as it is a research for the sake
research. Nonetheless, it is the source of many new
of
theories Principles, and
ideas. Indeed, basic research adds to the.body of kno
field or discipline. slain in a- - dil
| ‘
Bailey (1994) quoted that basic research inv olves deve
testing theories and hypotheses that are intellectyally intere loping and
investigator and might have som
sting to the
application to social problems e applications in the future, but ha
ve no
in the present time.
Oftentimes, there is no commercial value to the
discoveries resulting
from basic research. However, - this type of r esearch
may ultimately
contribute directly or indirectly to practical probl
em solutions. Likewise, it i
also possible that basic research forms the basis of another applied
eae
or the development of some commercial products in the long ca 1ed research
 Chapter 1 - Overview of Research | 7

Weirich et al. (2010) cited that in the accountancy profession, basic

(theoretical) research using empirical studies based on experimentation or
observation are frequently reviewed and evaluated by standard-setting
bodies in the process of drafting authoritative accounting and auditing
pronouncements.

Applied research refers to a scientific study that. seeks to solve

practical problems, rather than acquire knowledge for knowledge's sake. In
social sciences, the overarching goal of applied research is to improve the
human condition. For example, applied researchers may investigate ways to
improve agricultural crop production, treat or cure a specific disease, or
improve the energy efficiency of homes, offices, or modes of transportation.

In the business community, applied research may focus on

uncovering what needs are unmet. Such information may be used in
designing products or services that would create demand in the market. This
results in providing better products and services to the existing customers or
generating new customers. For instance, the mobile phone used to be an
expensive and bulky gadget with a short range of coverage. Applied research
foresaw that this product would have a limited market. As a result, the
weight was reduced and the communication sphere had been expanded.
Said measures resulted in a heavy demand for the product.
In the field of accountancy, applied research has been useful in
developing policies on the structure of education, the qualifications of
individuals admitted. for licensing, and the accreditation processes for the
members to engage in professional practice. It has also been instrumental in
addressing regulatory issues, disclosure requirements, and economics of
market regulation. Moreover, large public accountancy firms have research
units that perform applied researches on specific problem areas concerning
the practice of the profession.
Public management and governance, as areas of study, have also
relied on applied researches for reviewing existing laws, rules, regulations,
and policies. Due to the pervasive use of applied research in policy
formulation and analysis, specifically in the government or public sector, it
has also been called policy research. Oftentimes, applied researches are done
for the development, management, monitoring, and . evaluation of
government programs and projects.
Some scientists feel that the time has come for a shift in emphasis
away from purely basic studies to applied researches. This trend is
necessitated by the problems resulting from global overpopulation,
pollution, and the overuse of the earth's natural resources.
A comparison of the nature of basic research and applied research is
shown in Table 1-3.
8 | Chapter 1 - Overview of Research hes

lied Research
Table 1-3. Comparison of Basic and App
oe

Category BASIC RESEARCH APPLIED RESEARCH

(Theoretical Research) (Policy Research)
Purpose Producing knowledge for | Producing knowledge for
prstemtgaeting? action’
Discipline | Usually confined to one Often multidisciplinary

‘Audience | Intended for a scholarly Intended for a public audience

as well as
audienéé or forspecialists’ | of policy makers

Coverage | Often narrow in focus as it | Often comprehensive as it

strives for precision strives for suitable solution to
a real life problem

_ Research Classification According to Information Type

The third dimension of research is the type of information gathered

and analyzed. Based on this dimension, research is classified as quantitative
and qualitative.
Quantitative research refers to the systematic empirical investigation
of the quantitative properties of certain subject matter or phenomenon and
the relationships of these properties. It is primarily concerned with the
measurement of attitudes, behaviors, and perceptions. Usually, its objective

nn
is to develop and employ mathematical models to certain phenomena in

en
order to test hypotheses and generate theories. The process of measurement
is central to quantitative research because it provides the fundamental

Meo
connection between empirical observation and mathematical expression of
quantitative relationships.
Quantitative research is used widely in social sciences such as
economics, psychology, anthropology, and political science. Its mode of
generating data is through large-scale survey, using questionnaires or
structured interviews. These result in a collection of numbers, which can be
subjected to statistical analysis to come up with results. The researcher is
aware of the need to separate things easily so that they can be counted and
modeled statistically. In general, the researcher has a very clear idea on what
is to be measured before the measurement process takes place. To ensure
systematic data collection, a blueprint is always prepared. Oftentimes
controls are in place to minimize any bias in the data gathering. In
conducting quantitative research, many people are usually reached but the
contact with said people is quicker than it is in qualitative research.
 Chapter 1 - Overview of Research | 9
a a a ld

Qualitative research explores attitudes, behavior, and experiences,

through methods as interviews or focus groups. It attempts to get an in-
depth opinion from participants. Fewer people take part in the research, but
contact with them tends to last longer.
This type of research studies the subjects in their natural settings. The
researcher conducts a systematic inquiry into meanings, attempting to
interpret and make sense of phenomena and the meanings that people
attribute to them. The qualitative methods produce information only on the _
particular cases studied, and any general conclusions can be considered only
as hypotheses. Quantitative methods can be used to verify which of these
hypotheses are true.
While qualitative and quantitative researches are often used in
tandem, the benefits and disadvantages of each are hotly debated. In the
‘social sciences, in particular, the merits of both qualitative and quantitative
research are fought over, with intense views held on both sides of the
argument. It is generally agreed upon, however, that there are some phases
of research where one is clearly more useful than the other, and vice versa.

re of t eneubiaae This he es Seti is echgnaas in . situations : where

what is-rs looked for in a study is unclear. In said situations, the
researcher should be alert in determining what data is important and what is
not. While in doing quantitative studies the researcher generally knows
exactly what data are being looked for before the research begins, in
qualitative research the focus of the study may become more apparent as
time progresses.
Bee the data from qualitative researc
vumbe: data eaten, qualitative Cohkeat may swedestories, or phileeran,
or desesiodbae Sat feelings and emotions. The interpretations given by
research subjects are given weight in a qualitative research, so there is no
attempt to limit their bias. At the same time, researchers tend to become more
emotionally attached to qualitative research, and so their own bias may also
become highly evident in the results.
A comparison of the quantitative and qualitative research is shown in.
Table 1-4.
 Table 1-4. Comparison of Quantitative and Qualitative Research

Category Quantitative Research Qualitative Research

Aim The aim is to classify the The aim is to develop a
attributes of the subject of complete or detailed
study, count them, and description of the attributes of
construct statistical models in | the subject of study.
an attempt to explain what is
observed.
Design All aspects of the study are The design emerges as the
carefully designed before the study unfolds.
data are collected.
Data-gathering Researcher uses tools, such as Researcher is the data
instrument questionnaires or instrument | gathering instrument.
to collect numerical data.
| Types of data Data are in the form of Data are in the form of words,
numbers and statistics. pictures or objects.
Degree of It is relatively objective as it It is relatively subjective since
partiality seeks precise measurement the individual’s interpretation
and analysis of target of events is important,
8 concepts. especially when using
. participant observation, in-
depth interviews, and the like.
Use of data Quantitative data is more Qualitative data is richer in
efficient able to test meaning, but time consuming,
hypotheses, but may miss and less able to be generalized.
contextual detail.
Researcher's Researcher tends to remain Researcher tends to become
participation objectively separated from subjectively immersed in the
» the subject matter. subject matter.

Research Classification According to Time Dimension

The fourth dimension of research is time element. In research
nomenclature, cross-sectional research and longitudinal research are used to.
differentiate the point in time the data were gathered.
Cross-sectional research involves observation of the population, ora
representative subset, at a defined time. It is quick by nature since the
researcher does not have to follow the development of each subject studied.
This type of research is designed to look at a variable or relationship of a set
of variables at a particular point in time. The benefit of this type of research
is that it can be done relatively faster as the research data is gathered at the
same time. ;
 Chapter 1 - Overview of Research | 11

A longitudinal research involves repeated observations of the same

variable or set of variables over a period of time. It is often used to study
changes or developmental trends over time. This type of research tracks the
same people or other subjects of the study and observes the differences. Due
to repeated observations, it may have more power and benefit than cross-
sectional studies. However, since most longitudinal studies are
observational, in the sense that they observe the state of the subject without
manipulation, it has been argued that they may have less power to detect
causal relationships. |
This type of research is more costly and time-consuming, especially
when applied to a large group of individuals over an extensive time span.
However, it provides the best information about the continuity or
discontinuity of behavior over time and allows for the tracking of patterns of
behavior, as well as trends of development, within a similar group.

1.3 Research Methodology |

The concept of research methodology has often been confused with

research method. This is the reason why some books directly focus on the
research method without first linking it with the research methodology.
Research methodology refers to the philosophy behind the design
and conduct of research. On the other hand, research method relates
principally to the tools of data collection and techniques of data analysis.
Smith (2007) stated that research methodology is concerned with the
philosophy associated with the choice of research method, while research
methods are concerned with the technical issues associated with the conduct
of research.
Research as a craft should not be considered merely as a set of
methods or techniques of data collection and analysis. Focusing the study of
research on the methods used to gather data provides an incomplete basis to
explain the approach of a particular study.
Research methodology comprises three elements that all pertain to the
views or beliefs of the researcher about the world and with respect to the
subject matter of study (Figure 1-1). Specifically, research methodology is
shaped by (1) ontology or the way a researcher views the nature of reality;
(2) epistemology or the view of the researcher on the nature of knowledge;
and (3) perspective of the researcher with respect to the conduct of the Study.
Certain preconceived notions and assumptions affect the way 2
researcher views the world and what he/she sees as reality. The ontological
view of a person is associated to his epistemological assumptions. Both
12 | Chapter 1 - Overview of Research — oa

pective of ee .
ontological and epistemological viewpoints shape the pers
Indeed, :
All of these taken together constitute the research methodology. logical an
foundations on which scientific researchers work are their onto
epistemological positions.
fs of the
Since research methodology is a reflection of the set of belie
researcher, it is also called the research paradigm. A paradigm is a basic set
of beliefs that guides the action in inquiry or research. It is similar toa pair of
‘eyeglasses in which one sees the world. When conducting a study, a
digm
thoughtful researcher should be able to articulate how his/her para
conforms his/her use of theory and the choice of methods.

Research Methodology ee Research

Methods

Ontology | Epistemology
(Nature of (Nature of
Reality) Knowledge)

Perspective

¢ Positivist
+ Interpretive
* Critical
¢ Postmodern

Figure 1-1. Research Methodology and Research Methods

Ontology and Epistemology

Ontology is a branch of philosophy that is concerned with what one

discerns to be real, that is the structure and categorization of reality. One
in all thi
dominant characterization about reality is the essential duality
reality could be characterized by opposites. For instance, statements about
certain things are generally regarded as either true or false. Obviously, one
would always have belief that is true or false..
of
Like truth and falsity, idealism and realism is another duality
the subject
thoughts. An idealist holds that reality exists within the mind of
The qualities that one perceives, such as color or texture, are mental
 Chapter 1 - Overview of Research | 13

representations of sense-data. On the other hand, a realist believes that

reality subsists within the object and the world is real. He/she suggests that
reality is objective and concrete. Therefore, reality can be socially
constructed. Ryan, et al. (2007) described realism as representative of the
common-sense view that when a person describes something, said thing has
reality which is independent of one’s perception about it.
Other essential ontological questions are focused on certain
dichotomies about reality: (1) objective and subjective; (2) fixed and
changing; (3) universal and particular; (4) abstract and concrete; and (5)
deterministic and nondeterministic.
Epistemology is the branch of philosophy concerned with the nature
and scope of knowledge and how knowledge is acquired. The dominant
schools of thoughts about knowledge are rationalism and empiricism.
Rationalists view that knowledge is accessible through reason. On the other
hand, empiricists believe that knowledge is uniquely determined by
experience. In empiricism, the certainty of knowledge can be derived from
perception through our-senses.
The popular combination of ontological and epistemological
viewpoints created a quadrant of idealism or realism and rationalism or
empiricism (Figure 1-2). Thus, some researchers are regarded as empirical
realists while others are both idealists and rationalists, and so on.

Ontology
Idealism Realism

' Rationalist- Rationalist-

Bs
¢ Rationalism idealist
: — realist

2 god Empiricist- Empiricist-

e Empiricism idealist realist

Figure 1-2. Quadrant of Ontology and Epistemology

Plato. was a rationalist because he held that true belief is accessi

through reason: Nevertheless, he is also.a realist because he ellen that the
world had a real or an objective existence. This part of the quadrant is
exemplified by a perfectly efficient capital market that exists as a real entity,
although it does not exist in space and time. But such existence can be
understood and reflected upon by the exercise of reason alone (Bisman 2010).
14 | Chapter 1 - Overview of Research

was an emp iri cis t) bec aus e he argued that knowledge is

Aristotle he was a realist
ation. Likewise,
gathered by observation and categoriz
(Bisman 2010).
because he challenged the existence of ideal forms
e their epistemological
The researchers’ ontological viewpoints shap can be
of how knowing and understanding reality
beliefs in terms who
d, a researcher
developed. For example, in looking at the social worl
process of knowing
views reality as objective (ontology) would advocate the
this case, the
by means of discovery through senses (epistemology). In
rately described.
researcher believes that reality about the world can be accu
ective (ontology)
On the other hand, a researcher who views reality as subj ce
obtain knowledge through personal investigation and experien
would
(epistemology).
As stated earlier, the ontological viewpoints determine the extent of
generalizations that can be applied to the research results. For instance, a
researcher who views reality as fixed would easily advocate for the
generalization of his/her research findings to some populations that are
comparable to the subjects of his/her study. On the other hand, a researcher
who views that reality is always in flux would find generalization of research
findings and replicating the study problematic since people and their
- understanding of the world are always changing.
The influence of ontological viewpoints was illustrated in the study of
Maines and Daniel (1999). The said study examined whether and how —
alternative presentation formats of financial statements affect the processing |
of comprehensive income information among nonprofessional investors
through an experiment conducted among 95 evening students in the Master
in Business Administration program. Based on the students’ performance, ~
the study concluded that "the financial statement format for presenting
comprehensive income did not significantly affect the acquisition and
evaluation of information among nonprofessional investors, but generally
did significantly influence their information weighting and resulting
performance judgments." The conclusion drawn from an empirical study of
95 students was generalized to include all nonprofessional investors.
In research, epistemology is also concerned with two issues a how
knowledge is acquired: (1) directly or indirectly from the subjects of stud
and (2) with or without the direct participation of the researcher. The cel
s
issue deals with whether the data used in research should bé'g Sthored il
the subjects unmediated (with no interferences) or mediated b ae
person. The second issue deals with whether the researcher x aR er
directly involved and immersed in the activities and culture of the ” be
study. For instance, in accountancy parlance, the term "value" j ae of
be meaningful with respect to a given asset even tho . lieved to.
observation of the value of the asset is being made. Most brdhaat a
asse'
 Chapter 1 - Overview of Research | 15

would only be valued for accounting purposes at each year-end, although no

:direct observation of the value is made when the term is used at intermediate
points during the year. In the same vein, the term value subsumes a variety
of different measurement systems and used in different bases: historical cost,
replacement cost, realizable value, current cost, fair value, carrying value,
and the like.

Research Perspectives

The other aspect of research methodology is the perspective taken by

the researcher. Four perspectives common in social sciences also apply to
accountancy research: positivist, interpretive, criticalist, and post-modernist
perspectives.
Positivist perspective is the oldest perspective. First, it defines reality
as something that can be perceived through the senses and can be realized
through experience. Second, it views reality as objective, rests on order, and
is governed by strict, natural, and unchangeable laws. Third, it assumes that
reality can be described by measurable properties which are independent of
the observer (researcher) and his/her instruments. This last view speaks of
science as a means to explain concrete social events and relationships.
A positivist research generally tests a theory, in an attempt to increase
the predictive understanding of phenomena. It has evidence of formal
propositions, quantifiable measures of variables, hypothesis testing, and the
drawing of inferences about a phenomenon from the sample to a stated
population.
i Hoque (2006) viewed that a research using positivist perspectives sees
reality asa concrete structure and people as adapters, responders, and
.
information processors to achieve efficiency and the goal of an organization
For example, when applied to accountancy, said perspective would view
accounting control systems, such as budgeting, as a means to achieve low
cost, efficient operations.
Positivism is regarded as the precursor of empiricism, a school of
thought that espouses the use of evidence and analytical inquiry to
understand reality. Empiricism emphasizes the role of experience, especially
sensory perception, in the formation of ideas, over the notion of innate ideas
or traditions. It is differentiated from rationalism which relies upon reason
to understand reality.
An empirical research emphasizes the aspects of scientific knowledge
that are closely related to evidence, especially as discovered in experiments.
Fundamental in this type of research is the scientific method where
16 | Chapter1 - Overview of Research cuiaants

i i
observations of the on 1 world,
hypotheses and theories are tested against
n, or reve
rather than resting solely on a priori reasoning, intuitio .
;
Interpr yretive perspective views access to reality through soct ial
consciiousness, and shared m eaningBs.
s.
constructions such as language,
ct interpre
Interpretive studies generally attempt to describe, un derstand, and ae
cone the meanings that people assign to them. The task
affotigh:
Bee
researcher from the interpretive perspective goes beyond
effective ‘f a
developing an understanding of the situation. To do this
require :
participation, rather than detached observation, may be
anding o
perspective also places fundamental emphasis on the underst
process.
This perspective has applications in the work of accountants when
making decisions and advocating certain actions. Understandably, decision-
making process is inextricably bound to facets of human cognition. Thus, the
interpretive perspective would support the study of some specific human
behaviors that are subject to interpretations and a number of behavioral
issues that could explain human behaviors with respect to certain decisions
made in an organization. This perspective is also useful in examining the
role of accounting in the construction of power relationships, lobbying in
financial reporting standards, and political behavior in policy making.
Critical perspective views social reality as historically constituted,
produced, and reproduced by people. It recognizes that people can |
consciously act to change their social and economic circumstances.
Nonetheléss, it also underscores that their ability to do so is constrained by
- various forms of social, cultural, and political domination.
The main task of critical researches is one of a social critique. Studi
es
with this perspective bring to light certain restrictive and
alienating
conditions of the status quo. They focus on the Oppos
itions, conflicts, and
contradictions in contemporary society. They seek to be emancipatory by
helping eliminate the causes of alienation and
domination in society.
In accountancy parlance, a critical perspective offer
s the potential to
examine the economic consequences of accountin g
and the perceptual biases
of accountants, managers, decision-makers, and
othe r stakeholders in their
use of accounting information.
Postmodern perspective involves a
Critical revi
visi
siti inkins c
the past. It does not deny the dominant, liberal,
and ae culture 2
society and the world, but it challeng
es their assumptions fr ithin
Pos tmodernism challenges social and
ae
continuity and structure, the nature of hi re Olitical institut —: e
institutions, ideas of
history writing, narratives, and identiti
es.
SSS
Chapter 1 - Overview of Research | 17

Postmodernism finds a place in the field of accountancy. Apparently,

accountancy, as a discipline, is firmly embedded in a modern view of the
world. For instance, accounting information has become an economic good
that has a demand because of the belief that it reflects reality.. This view
about accounting information can be challenged by a postmodern
perspective since such information is abstract and it is impossible for an
abstraction to reflect the full extent of reality.
Further, the field of accountancy also espouses neutrality, reliability,
and completeness as qualitative characteristics of financial information. At
the same time, accountants and auditors are déemed to come up with fair
presentation and express faithful representation in their work. Using a
postmodern perspective of research, a study can be made to find out the
possibility for accountants and auditors to produce neutral, reliable, and
complete information; come up with fair presentation; and maintain faithful
representation at the same time, knowing the difficulty encountered in the
use of measurement systems and the inherent limitations of accounting
functions to cover all economic realities of a business.
The ontological and epistemological viewpoints taken by the
researcher influence the research perspective. For instance, the ontological
view that the world is objective (realism) together with an epistemological
belief that it can be perceived (empiricism) would take a positivist
perspective since it can be accurately described and causally explained. The
positivist perspective would use quantitative method and would employ
generalization. On the other hand, the ontological view that the world is
non-material (idealism) and constructed by the mind (rationalism) would
take an interpretive perspective. In other words, in order to understand the
social world, the interpretive perspective suggests that the focus of the study
must be on the meanings and perceptions of the people who inhabit it. The
study should aim to understand the shared realities of individuals.

Sources of Knowledge

Another area that has an important bearing on research methodology

pertains to the sources of knowledge, also labeled by Fraenkel and Wallen
(2003) as ways of knowing. These are: (1) sensory experience, (2) agreement
with others, (3) expert opinion, (4) logic, and (5) scientific method.
Figure 1-3 shows that the immediate sources of knowledge of an
individual are the experiences gathered from his/her senses: sight, hearing,
smell, taste, and touch. However, there is no absolute assurance that the data
gathered from one’s senses are completely dependable. In fact, sensory
knowledge might be incomplete and at times undependable. The data taken
18 | Chapter
1- i
range of human knowing.
_ through the senses may not account for all the be
unde rsta ndin g of data taken fro m the senses might not
Similarly, one’s ih safe to rely on
the
accurate since it can be refined. Therefore, it 1s no t entirely
heck what he/she
senses alone to be able to generate knowledge; one mus
thinks or what he/she knows with other sources.

Scientific method

Logic
Expert opinion

Agreement with others

Sensory experience

Figure 1-3. Fraenkel and Wallen’s Ways of Knowing

The second source of knowledge is the opinion of others. By getting

feedback from another person, the accuracy and authenticity of the
information generated from the senses can be checked. Apparently, the
degree of reliance that can be placed upon the sensory information can be
more intense with the opinion of another person. Thus, any information that
is believed to be untrue can be discarded.
However, opinion of other people can also be wrong.
For instance, a
majority vote in an issue is not a guarantee of the
truth. It is also common
that two groups of eye witnesses to the same incident
may differ as to the
details of the said incident. Thus, it is necessary
to consider the opinion of |
an expert. This is the reason why medical
doctors are consulted on matters
related to health and illness; in the same way
that lawyers are sought for
legal advice. These speci alists have the expert opinion. In
management and leadership, this is know the study of
n as the knowledge power. *
Nevertheless, what the experts can do
is plainly to give their
based on their own knowledge. Opinion
Obviously, what they kn
primarily on their own efforts to read ow is based ~
and lea ™ as well as
experience. Further, experts, as human beings, on their own
can be mistaken. No
has studied or experienced all ther € Is to ex
know in a given field.
experts can never be totally sure. Ther Thus, a
efore, it is essential
Undoubtedly, the capability to reaso Nn out to use logic
would allow a Pers
on to make a
 Chapter 1 - Overview of Research | 19
ee

is based on the two premises that "the cat is in the basket" and "the basket is
on the table." It goes to show that logical reasoning may not hold valid if
certain premises in the syllogism is not true. This is the fundamental ‘danger
in logical reasoning. Thus, it is time to turn to the scientific method.
Science is a tremendous body of knowledge. Hence, science is a
source of knowledge and the scientific method is a way of knowing. The
scientific method essentially involves the testing of knowledge or ideas in the
public arena. It places guesses and hunches to a careful and thorough test to
be able to come up with conclusions that are reliable. Said conclusions can be
the basis to reach an intelligent decision about a problem or a dependable
answer to a question.
What makes scientific method the most concrete way of knowing and
science the most reliable source of knowledge? The scientific method ‘has the
following characteristics: empirical, systematic, objective, replicable, and
self-correcting. |
e The empirical characteristic refers to the insistence on the
demonstration of evidence to validate whatever theoretical and
speculative work has been advanced.
e The systematic attribute pertains to the use of processes including
conceptual schemes and theoretical structures that are tested for
internal consistency and subjected to empirical tests. All aspects
of the scientific method are carefully planned in advance and
nothing is done in a casual and haphazard fashion.
Objectivity refers to the ability of the scientist to see and accept
facts as they are and not as one might wish them to be. Scientists
attempt to remove their biases, beliefs, preferences, wishes, and
values from their scientific researches.
e Replication involves repeating the study a number of times to
determine if the same results will be obtained.
e Self-correction entails a process where findings are held as
tentative until they are replaced by better-established knowledge
claims.

Antirivestigation is not-csi ientifi it i ic

that is, all aspects of the investigation are described in sufficient
detail so that
the study can be repeated by anyone who questions the results, provided
he/she has the competence and resources. Hence, private procedures
Dictate liestinecetinial _— 1clusion
S1Ar ; are Cy ‘ONncide: lus 10 i i unt
 ;
- In research, conclusions are drawn using two methods of reas onin
ee tg:
deduction and induction. These methods assist the researcher to un ,
explain, and predict events or phenomena.
Deduction follows a "top-down" approach which is "from general to
specific." On the other hand, induction is "bottom-up" in nature or from
specific to general.In deduction, one starts from a theory and tries to prove it
right with the help of available information. In induction, one observes some
happenings, deducts a pattern, and draws conclusion.
In deductive reasoning, one starts with a theory about an area of
interest (Figure 1-4). The theory is narrowed down into more specific
hypotheses that are tested. To gather evidence necessary for testing the
hypotheses, an observation is conducted. Ultimately, the specific data
gathered will enable the testing of hypotheses in order to confirm or refute
the original theory.
Inductive reasoning works the other way around starting from
specific observations to broader generalizations and theories (Figu
re 1-5). The
process begins with specific observations and measures whic
h enable the
discovery of certain patterns and regularities. Based
on the observation,
some tentative hypotheses are formulated and later on explo
red. All of these
end up in some general conclusions or theories.
In research, deductive reasoning is used to
test or confirm hypotheses,
As such, it is narrower in nature. On the other hand, inductive reas
oning, by
its very nature, is more open-ended and exploratory. Many social researches
involve both inductive and deductive reasoning proc
esses at some time. In
fact, the flow from theory to observation and back to theory again depicts an
iterative process.
 Chapter 1 - Overview of Research | 21

Hy potheses

Observation

Confirmation

Figure 1-4. Processes in Deductive Reasoning

Hypotheses

Observation

Figure 1-5. Processes in Inductive Reasoning

 Normative Dichotomy

The positive-normative dichotomy, applicable to both theory and

Tesearch, has also gained me
recognition as thodological approaches,
Economists have found the positive-normative distSis inct
hs eful because jt
ion ussandagdaieeal
helps people with very different views abou
communicate with each other. -
Positive economics has to do with "what 1S, oe pa
economics has to do with "what ought to be." Positive aa bet ae
science, and is subject to the same checks on the basis 0 . ame me
science. By contrast, normative economics has a moral or e -, pect, an
goes beyond what science can say. A normative Statemen expresses a
judgment on whether a situation is desirable or undesirable.
The fundamental distinction between the two approaches is focused
on the fact-based statement of the positive approach and the value-based
statement of the normative approach. A research is positive if the
_ Tesearcher’s overall research objective is to describe and explain
reality. In
contrast, normative research is characterized by the researcher’s
desire to
make policy recommendations and improvement (what shou
ld be).
The "is-ought" dichotomy was also transmuted
to the "science-art."
Some clai m that normative research is unscient
ific.

14 Role of Theory in Research —

two worlds: the world of ideas, th

observation and experience eories,
,
. This led to tw
theory-then-research and research-then-theory. Asie 2 ae
controversy as to which strategy most fruitfully e hie ug there is a lively
it is well settled that theory and Tesearch should es Ces scientific re
the contrast between the two strategies is more app cnet tena and tha
real.
 Chapter 1 - Overview of Research | 23
SS
: Theory within a research would define the boundaries of the
phenomena as well as what data should be collected and the corresponding
methodology. Hence, theory and research should be coherent and dialectic,
meaning, both serveasmeansandend.
g Without theories, social scientists would find it difficult to carry out
empirical research. Scientists use theories to help them define what should
be studied, and to guide them in sharpening research questions and in
deciding what evidence is necessary to support their arguments. In this
respect, theories are very powerful research tools that can shape researchers’
thinking processes, lay their foundation for analytical frameworks, and set
their research agenda. In addition, theories lead researchers to adopt certain
methodologies, attract them to examine certain data sets, and influence them
to draw certain conclusions and policy implications.
Emory and Cooper (1993) cited that it is important for researchers to
recognize the pervasiveness and value of theory. As orientation, it narrows
the range of facts to be studied. Any problem may be studied in a number of
different ways, and theory suggests which ways are likely to yield the
greatest meaning. Theory may also suggest a system for the researcher to
impose on data in order to classify them in the most meaningful way. Theory
also summarizes what is known about an object of study and states the
uniformities that lie beyond the immediate observation. When it does, theory
can also be used to predict further facts which should be found.

Components of Theory

The basic components of a theory are concepts and variables, which

called propositions.
are usually related in statement forms that are generally
one
A concept is simply a mental image or perception. A theory would have
ered as the building
or more concepts. In that sense, concepts are consid
blocks of theory.
in the case of
Concepts may be impossible to observe directly as
ents that are readily
"iustice" and "love." But they may also have refer
"table."
observable as in the case of a "tree" or
have only two possible
Some concepts are dichotomous, that is, they
r hand, some
values like gender, which is either male or female. On the othe
epts, often falling
concepts contain several values, categories, or sub-conc ance, age is a
a recognizable dimension or continuum. For inst
along
as one year
continuum containing many different values or categories, such
one person
old, ten years old, and so on. Population density can vary from
Concepts, such as age and
per square mile to many persons per square mile.
continuum,
population density that can take on more than one value along a
are called variables. A concept that has only a single, never changing value is
constan:

Variables are the empirical counterparts of concepts. While concepts

are in the domain of theory, variables are matters of observation and

In theory construction, after the basic concepts are formulated, the

next step is to write one or more propositions. A proposition is simply a
statement about one or more concepts or variables. A proposition that
discusses a single variable is called univariate. A bivariate proposition is one
that relates two variables, while a proposition relating more than two
variables is called multivariate. An example of each type of proposition
follows:
Univariate : Forty five percent of married couples in the
Philippines have used contraceptives at least once.
Bivariate : The higher the level of density in a city, the higher
the rate of crime in that city.
Multivariate : The higher the level of density in a city, the higher
| the rates of illiteracy and drug addiction in that
city.

The types of variables and the manner by which their relationships

are established are discussed in Chapter 5.
 2
Nature of Accountancy Researc.
ccountancy research is the source of many standards that continue to
influence the practice of the accountancy profession. In like manner,
the professional practice has been the subject of a number of studies
in the field of accountancy. This two-fold relationship between research and
practice rationalized the conduct of research and established its significance
in the profession.
This chapter underscores accountancy research as a system in itself
which scope covers a wide array of functions and sectors in the profession.
Nonetheless, accountancy research derives its disciplinary configurations
from other social sciences. 7

The need to progress the predicament of accountancy research

remains to be an agenda of professional organizations and academic
institutions. In addressing this concern, a number of initiatives and
interventions are undertaken anywhere in the globe. An individual
researcher has to be knowledgeable and alert on the many challenging
opportunities that continue to emerge in various occasions and avenues
within the professional circle.

After reading this chapter, the students should be able to:

TOP Coline 1. Explain the meaning of accountancy research and its
2.1 Meaning of properties as a system; at
Accountancy 2. Differentiate the functional and sectoral classifications of
Research accountancy research;

2.2 Accountancy
3. Illustrate the different perspectives in research and how
: y they become applicable to accountancy research;
Research as a
System 4. Appraise the current state and attributes of accountancy
research, both in the international and local settings ;
2.3 Landscape of 5. Assess the motivational factors in the conduct of research
Contemporary in the profession;
Accountancy . ap he
Riesearth 6. Identify the initiatives undertaken by the different
professional organizations and academic institutions; and
2.4 Motivations
for | 7 Evaluate the contributions of the various initiatives
Accountancy undertaken for the advancement of research.
Research
 of Ac co un ta ncy Research
2.1 Me an in g
interchangeably with
accountancy is used
Ordinarily, the term e concept,
te ch ni ca ll y, ac co un ta nc y '© narya e e pr of ession
accounting r
oe. H 110 ee s ord Engl is h Di ct io
unre
as th
y ig defined by the Oxt the di sc ipline or the branch of
aca! It ref ers to
as Ss
an ac co un ta nt . Sa id duties include
of
ale dealing with the duties ts has
oun tin g, aud iti ng, and tax ser vic es. Recently, the work of accountan
acc nce services and certain
of assura
expanded to include the whole gamut tancy.
areas of management consul
finance-related
concept of accounting research,
Most of the current literature uses the This book
goes beyond accounting.
although the coverage of said research g
earch, rather than plainly accountin
deems it fit to use accountancy res tancy research
ountants. Accoun
research to cover all the works of the acc and
assurance, taxation,
therefore covers accounting, auditing and
accountant.
management services performed by the professional

row
Accounting
Oler, et al. (2009) indicated in the paper "Characterizing
neighboring
Research" that accounting research intersects with a number of
disciplines primarily in finance, economics, psychology, and management.
They also categorized accounting papers into six: financial accounting,
managerial accounting, auditing, tax, governance, and other topics. Clearly,

«x
they were referring to accountancy, and not accounting, research in this
paper.
Following the definition of research by Leedy and Ormrod (2010) and
Saunders, et al. (2010), accountancy research is the systematic process of
collecting and analyzing information in order to increase one’s
understanding of the functions of a professional accountant and contribute to
the solution of problems besetting the practice of the profession.

Accountancy research can be classified into functional classification

and sectoral classification. The mainstream accountancy research is
primarily concerned with the functioning of accountancy. Thus, the most
rationale classification of accountanc
: y research is based on the functional
areas of the profession t
, RTE namely: financial accounting,
_ 3 man ermen
manage tun
accounting, auditing and assurance, tax, and cee

sect oral classification edu

practice which are: educatorio co merce
acadneme,eme, com BO S IEStancy
is based on the sectors of professioneal, al laacc coun
and industry, public
om
practice, and government.
Finaote:
ncial accounti
i ng 7 research
ten is
js concerned: 7 primari ith study ying
the collection, recording, and reporting. of Senda eal
business entity or other forms of Organizations.
‘about @
It looks into the effect of
momaunetititaienis Chapter 2 - Nature of Accountancy Research | 31

economic events on the process of summarizing, analyzing, verify

ing, and
reporting standardized financial information, and on the effects
of reported
information on economic events. It examines the essential characteristics of
accounting, specifically the identification and measurement of financial
information about economic entities and the communication of the
information to interested parties.
_ Management accounting research is a systematic inquiry on the
provision and use of accounting information to managers within
organizations. It delves into how managers are provided with the basis to
make informed business decisions and how they are better equipped in their
management and control functions. It examines the role of financial
information in determining the changes an organization implements and the
decisions it makes. This type of research could look at the impact of
organizational change on accounting practices, or the interaction between
management accounting techniques and functional strategies, such as total
quality management and lean inventory production.
Auditing research examines the systematic process performed by
auditors to objectively gather and evaluate evidence related to certain
assertions about economic actions and events. It investigates the manner by
which auditors establish the degree of correspondence between the client's
assertions and the established criteria. It looks into the means by which
auditors communicate the audit results to users of the reports. Overall, it
looks at the quality of audit services and the value-adding functions of audit.
This type of research can be expanded to include assurance and attestation
services.

Tax research has a broad scope and can be at the macro or micro
level. At the macro level, the research can be an objective, sound, and clear
analysis of assessing taxation proposals; evaluating fiscal policy issues based
on the principles of equity, efficiency, and adequacy; and other revenue-
level, the
raising powers of the government. At the micro or organizational
research can be about the income tax expense reported for financial
accounting; corporate tax avoidance; tax-related decisions on investment,
capital structure, and organizational form; and taxes and asset pricing. The
tax code is a complicated menagerie of rules and regulations that researchers
must navigate periodically.
The other functional areas of accountancy relate to specific functions
such as fraud prevention and investigation, corporate governance, internal
and the like.
auditing, risk management, sustainability reporting,
mutua
ot mith
Cias Si 1 Ca tion of aCC OUTTA ney rese arch. 1S 1s not
Hi pares as

ith
The func

exclusive. Researches that are dominant in one function are intertwined w

other function(s).
32 | Chapter 2 - Nature of Accountancy Research LT
ducation
The sectoral classification of accountancy _— Se idles val
academe, commerce and industry, public practice, 3 Saath findings and
either as the subject of research or the context wherein f venteantinum atte 4
recommendations will be useful. For instance, a number E and efficiency
of
improve quality of instruction and to enhance competen tats Menpaittkes
faculty members in academic institutions. Improving g°V° a aes
and compliance to financial reporting standards are research ag ee
entities in the commerce and industry. Quality AGES ooh :
compliance are also current concerns of individuals in public accountancy.
The government sector is bent on improving accountability and control
systems.
There are researches in other disciplines that cut across the
accountancy profession, and provide hints of accountancy research character.
For instance, Bailey (1994) cited social research an area that helps answer
questions about society and enables understanding of societal structure and
processes. Yet, it may also deal with capital markets and social enterprises
that entail connections with financial reporting and controls. Social auditing
also has the blend of both social science and auditing doctrines. Cooper and
Schindler (2003) defined business research as a disciplined process of
conducting an inquiry on a management dilemma. Nonetheless, this type of
research may also require relevant financial information to strengthen the
inputs to management decisions. Malhotra (2007) defined marketing
research as the systematic and objective identification, collection, analysis,
dissemination, and use of information to improve decision-making and solve
problems in marketing. However, it may require costing and pricing which
are both within the realm of accountancy. It goes without saying
that
accountancy research does not exist in isolation. It is connected and related to
research activities in other disciplines. Thus, the boundary
ofaccountancy

The classification of research into basic an . :

discussed in Chapter 1, is another pragmatic way of oe ee poe was
research. Basic accountancy researches are geared toward at ake
knowledge, and generally initiated by academic institutions, re generation 0
professional associations, and academic societies or acting search centers,
usually conducted by educators and scholars with ees ae They are
conferences and academic forums. Research Teports are us ults presented in
technical or professional journals. Oftentimes, the mci ne
journals are determined by an organization Or associat Pics in the
:
depend on the choice and interest of the Slee ots and the topics
" usually distributed or published. 7S: Call for papers are
 Chapter 2 - Nature of Accountancy Research | 33 /

Applied accountancy researches are intended to solve problems,

clarify issues or gray areas, and provide inputs to policy development and
decision-making. These are primarily conducted by public accountancy
firms as dictated by the needs encountered in the delivery of professional
services. These are also triggered by the desire of some public accountancy
firms to improve their own administrative and operating systems and
establish their own internal rules and procedures. It is also ordinary for some
of their client businesses to engage them for research services in some ——
of the client’s operational systems and processes. As a result, amumber of
public accountancy firms have research units in their own structure
to
perform this type of research.
Applied accountancy researches can also be initiated by authoritative
bodies and international funding institutions primarily to provide inputs to
regulation and legislation. Usually, these are macro in scope and have far-
reaching effects in terms of persons.and institutions affected by the research
outputs. ;

Business entities, nonprofit. organizations, and government also

engage the services of researchers to evaluate certain aspects of their —
programs and projects; document best practices; serve as basis for strategy
development; analyze business proposals and alternatives; and advance their
assumptions for planning and budgeting. These studies are all applied
researches. The preparation of- pre-feasibility and feasibility studies that —
follow the systematic process of data collection and analysis is also a form of
applied research.
The processes and mechanics of preparing the basic accountancy
research are discussed in Chapters 4 to 6 of this book. The applied
accountancy research is presentediin Chapter 7.

2.2 Accountancy Research as a System

Accountancy research, as a disciplinary activity, is also a system. This

point of view is parallel with the systems thinking that originated in the
general systems theory in the natural sciences. A syste m i
interacting elements or assemblage of interdependent objects that form a
TY.

unified or organized whole and function to achieve predetermined goals. The

significant properties of a system, which h sogpeneniey research also has,
(1) hier 2) en (3) boundary, and (4) relevance.
The ieemecin of a system refers to the arrangement of its parts as
oe

determined by the order of their importance to a particular purpose or goal.

The concept of hierarchy allows for the leveling of the components in a
ee

system. In other words, while accountancy research is the focal system, it has
34 | Chapter 2 - Nature of Accountancy Research

both suprasystems and subsystems. The suprasystem is the next higher ley]
wherethe focal system operates while the subsystem consists of the
component parts which the focal system can directly influence. Accountancy
research (focal system) is basically within the umbrella of social science
research (suprasystem). To a large extent, the trends and directions in social
sciences influence the success of systematic change effort or track in
accountancy research. The subsystems consist of the functional areas of
accountancy research: financial accounting, management accounting,
auditing, tax, and other functional areas (Figure 2-1).
The environment of a system refers to entities (individuals, groups,
and organizations) and other systems (events, situations, artifacts)
surrounding the focal system which regularly or occasionally interact with —
the focal system by way of exchange of activities or other types of linkages.
Generally, the environment is also regarded as the publics of the system. The
environment of accountancy research consists of the enabling, functional,
normative, and diffuse environments.

|
Social Science
Research
(Supra-system)

Accountancy Other Types of

Research Social Science
(Focal System) 3 Research

(Fees we

Bee
L. Subsystems
aay
aes onan
J

Financ ial Management

Accounting Accounting
Research Research

Auditing Tax
Research Research

Other Other
Accountancy Accountancy
Researches Researches

Figure 2-1. Hierarchy of Accountancy Research

 Chapter 2 - Nature of Accountancy Research ‘| 35

The enabling environment refers to entities and other systems that

provide the power or authority as well as opportunities and resources so that
the system can continue to perform its functions. In accountancy research,
this environment consists of the regulatory bodies and standard-setting
organizations. Their corresponding processes of legislation, regulation,
standard-setting, and policy-making provide both rationale and
opportunities for the accountancy research to thrive. Indeed, these are the
impetus to conduct research of various types.
The functional environment refers to entities and systems that
perform complementary functions and services, supply the inputs, and use
the outputs of the focal system. These include educational institutions, public
accountancy firms, business entities, and government agencies. Educational
, institutions are supposed to do a trilogy of functions: instruction, research,
and extension. In that sense, they perform functions that are complementary
to research. Public accountancy firms primarily render audit services to
» clients. In doing so, they may also be required to conduct research so as to
_ complement the provision of the primary services.
The normative environment includes entities and systems that share
he

an interest in social purposes by way of incorporating norms and values

relevant to the doctrine and philosophy of the system. These include the
professional organizations, sectoral associations, industry groups, and
business interest groups. They have special interest in the trends and
directions of accountancy research and its contribution to the major users of
research results. .
Diffuse environment covers entities and systems not associated in
formal organizations such as opinion groups and the larger public. This.
environment includes every accountant, researcher, educator, businessman,
public servant, and other individuals.
To establish what is and what is not covered by the scope of functions
and extent of activities, the system has to establish its boundaries (Reyes and
Talatala, 1994). The boundaries make the system distinct from other systems
and from its environment. The boundaries of a system are defined in terms of
its scope of functions and extent of coverage of activities. The functional areas
of accountancy research are clearly defined to include financial accounting,
management accounting, auditing and assurance, taxation, and management
consulting. On the other hand, the activities cover the four sectors of the
profession: education or academe, commerce and industry, public practice,
a

and government. These two criteria provide boundaries with respect to the
conduct of accountancy research. 7
er
 countancy Research
36 | Chapter 2 - Nature of Ac
rch may deal With
However, it it should be noted that accountancy resea
, Thus,
some conditions and p rocesses that are beyond its internal boundaries
it is necessary for accountancy research to
remain interconnected with othe;
disciplines and endeavors. The affinity of the system boundaries to
accountancy research is the need for it to maintain interaction and exchange
of matter with its environment. If accountancy research does it, then it
follows an open system. Otherwise, it will be engaged aA closed system
where it contains itself, suspends transactions with the environment, and
limits its exchange.
As a system, accountancy research will survive as a disciplinary entity
if it stays relevant to the environment. Relevance is the ability of the system
to produce outputs that are needed as inputs by other systems (Reyes and
Talatala, 1994). Accountancy research will lose relevance if it fails to listen
and respond to feedback from its environment. Clearly, accountancy research
should be of value to individuals, groups, organizations, and the society at
large. To achieve relevance, the persons or entities engaged in accountancy
research should be sensitive and alert to environmental signals and should
treat these signals as important inputs to improve quality of service delivery.
Feedbacks from the environment of a system should also be used to make the
necessary internal adjustments in accountancy research and to build up
specific outputs that are useful and necessary.

2.3 Landscape of Contemporary Accountancy Research

Research is often classified by fields of study such as physic

al
sciences, life sciences, and social sciences. These fields consist of a numbe
r of
disciplines. Accountancy research largely falls into the category of social
sciences because it deals with the study of people, social groups, and
institutions and their relationships and processes of interactions. The
landscape of present-day research in Accountancy is chara
cterized in terms
of the research perspectives, trends, and functional thrust
s and directions.

Perspectives in Accountancy Research

Fuelbier and Sellhorn (2006) cited ‘that

accountancy the starting point of
research seemed to be normative. Said
ee
characteristic was
primarily in the Federal Republic of
Germany during the end of the
19 century and at the beginning of the 20h century.
times dealt ey with the fundamental normative questi
Researche
s in those —
teports such as "What ought to be the conten ons about financial
ts of the balance sheets and
income statements?" and “How should
the elements be measured”
 Chapter 2 - Nature of Accountancy Research | 37
ananassae

Literatures also classified researches as deductive since they derived specific

recognition and measurement rules from superior accounting objectives.
Understandably, the contributions of accountancy research in Germany
gained remarkable international acknowledgment.
|
In the second half of the 20th century, the leadership in accountancy
research was overtaken by English language literature, particularly by
researchers from the United States. After World War II, normative research
continued to influence professional scenario. In Germany, research
continued to be normative despite its focus on interpreting the broad
terminology in the codified, principles-based accounting legislations deduced
from the country’s Stock Corporation Act and later the Commercial Code.
The normative attribute remained since the objective of the studies was to
provide preparers of reports and judges with guidelines on how to properly
apply the laws. 7,
Clearly, the normative approach seeks to develop and implement
specific accounting practices that the proponents argue to be superior to
existing practices.
In the last two decades of the 20t century, the act of deriving precise
accounting guidelines in the United States was increasingly accompanied by
microeconomic approaches to accounting research which entailed analytical
information content perspective. This resulted in the analysis of accounting
with combined normative and positive approaches. Subsequently, a shift
towards a positive research and empirical approach took place. The rise of
the positive accountancy research started in the 1960s when accountancy
research started to focus on the impact of accounting especially on capital
markers. Soon enough, researches employed sophisticated financial and
statistical methods. | Analytical researches insinuated the general
impossibility of normative accountancy research. Until recently, specific
accounting regulations such as the generally accepted accounting prin ciples
(GAAP) of the United States and the International Financial Reporting
Standards (IFRS) which originated in European countries. have elicited
positive research approach.
The distinction between normative and positive research became
more glaring with the establishment of the "positive accounting theory’
brand name for an approach in the conduct of accounting research. It also
brought some deal of stigma to the claim that normative research is
unscientific. On a methodological perspective, claims were made that
positive research is purely scientific and normative research constitutes an
art.
 of Accountancy Research
38 | Chapter 2 - Nature
ing
ues tio ns ide nti fied by Christenson (2001) follow
A list of sample q f accountancy research is shown in
and pos iti ve typ es ©
both the normative
Table 2-1.
itive Research Questions
Table 2-1. Sample Normative and Pos

Sample Normative Research Questions Sample Positive Research Questions

Why do most firms continue to
1. How should leases be treated on the | 1. to
allocate overhead charges
statement of financial position?
performance centers?
2. Should replacement or liquidation | 2. Why do firms change accounting
values be used in financial reporting? techniques?
3. How should changing price levels be | 3. Why do firms change auditors?
accounted for? |
4. How should changes in foreign | 4. How have court regulation and
exchange rates be accounted for by rulings influenced accounting
firms with foreign interests? practice?
5. How should inventories be valued? 5. Why do firms continue to use
- historical cost depreciation?
6. What should be reported in the annual | 6. Why are public accountancy firms
financial statements? organized as partnerships?
7. Should interim financial statements be | 7. Why is fund accounting different
audited? from corporate accounting?
8. How should minority interests in | 8. What impact has the CPA
subsidiaries be treated in consolidated certification procedure had on the
statements? practice of accounting and on the
research in accounting?

As mentioned in Chapter 1, , th there are other iti :

that
eee are applic able to acco untancy r a y Posipo sttive
. perspe
ee e ctives
y research: interpretive, criticalist, and

The . interpretive account an

nature of acco untancy cy research seeks to understand the socia: l
Gidiicwobeimenes: Practice. It makes sense of the social character of the
individuals ee rote ene 0 explaine-thte actions or behaviors of
functioning of thediffers oe the human interactions in line with the
At the organizational ss thi policy directions in the profession.
plurality of stru ctures and©» pro ts type of research identifies S and and ines
examines th the
 Chapter 2 - Nature of Accountancy Research | 39
SS

The interpretive perspective considers how the practice of

accountancy could be modified to take into account some social and
environmental aspects of an organization’s activities and operations. It
ponders on how accountancy regulations, principles, and rules could make
an impact on the different areas within an organization and the outside
capital market. For instance, the practice of political lobbying among
audit
firms with Tespect to standard-setting could be a subject of interpretive
research, since political endeavor is poorly understood and has not been
studied. How the management accounting and control systems function in
the midst of a number of financial scandals both in the international and local
scene is also a good subject of interpretive research.
The critical accountancy research provides a position on the status
quo. It is an approach that focuses on the role of accountancy in sustaining
the privileged position of the individuals in control of particular resources
while undermining or restraining the access and voice of those without
capital. Clearly, this approach goes beyond questioning whether particular
methods of accountancy should be employed. It extends up to how the
practice of accountancy tends to support particular economic and social
structures, and reinforces unequal distributions of power and wealth across -
society.
Criticalists aim to stimulate progressive change within the conceptual,
institutional, practical, and political territories of accountancy. They believe
that there is a two-way relationship between accountancy theory and
practice, whereby accountancy theory influences the practice, and
accountancy practice influences the development of theory. The implication
of this belief is that when social conditions depicted in the practice of
accountancy change, the theories based on these conditions also need to
, dev lop
the dadeveiopment
change. In like manner ofof didifferent tical | Ww
7) ©

, and can lead to the changes i

Ss ne ¢€ LO

While the normative\/approacH focuses on the specific technical

the broader level of society. Considered as a radical stand, the broader idea
behind critical accountancy research is to study and influence the role of free-
creative activity in changing and shaping ethical, social, political, and
economic life. The criticalists argue that the role of theory in changing social
practices is more important than the role of changed social practices in
modifying theories.
The similarity of the interpretive and critical perspective is the
subjective value of the social world. However, interpretive perspective
focuses more on how accountancy is socially constructed and how the
 countancy Research
40 | Chapter 2 - Nature of Ac
quo. On the other hand, the
ve the status
perceptions attache d to it preser wh ich ideological Pressure
jg
foc use s on exp lai nin g
critical researcher by ac countancy regulations. The
gro up inte rest 1s met
influential and which
dif fer enc e bet wee n the two per spec tives is the willingness of the critica]
other
on on the nature and purpose of research
researcher to take a particular positi The interpretive researcher
ations.
and its political and societal implic
contends to take a neutral stand.
toll in
The time has come for the critical perspective to take its
involving certain audit
accountancy research. Various financial debacles
firms have resulted in some form of embarrassment to the accountancy
profession. Thus, it is important to do critical studies on the functioning of
audit and its role in financial failures.
The move to fair value accounting, the subject of intense debate,
should be studied using the critical perspective. It is done by looking at the
policy direction and examining closely how the inherent ambiguities in
valuation are being operationalized. The audit craft itself should be a serious
subject of critical research.
The postmodern thought is deeply indebted to the ideals of the
modern age. However, it goes beyond modernity. It argues that everyone
constructs his/her own reality and it is not possible to compare the various
realities because there are no independent criteria on which to base such
comparison. This perspective believes that problems can only be addressed
through discourse and communication. In fact, for the postmodernists, the
real task of inquiry is to keep the conversation about a particular subject
matter going within a tradition or discipline and across traditions or
disciplines. Thus, postmodernists encourage debunking of old systems and
_ theories, and then creating new ones. :
*.
In business sense, the rise of subcontracting as a business
» decentralization method and the upsurge of networking as an inform
al and
flexible organizational structure were results of the postmodern perspective.
Similarly, the concept and practice of globalization, liberalization, knowledge
work, just-in-time orientation, and virtual organizations all have
postmodern
connotations. In accountancy, the increasing disclosures of non-financial
_ information, environmental indicators,
social impact of
and P business events
busines
have postmodern orientation.
: The postmodern perspective Suggests that the tech
niques used in
a a should be reexamined and assessed over time.
The same is true
with the accountancy education whose curricul
um is committed to
objectivity, correct classifications, and sta
ndardization (of costs, for example).
This school of thought highlights that the goal of postmo
dern education
 Chapter 2 - Nature of Accountancy Research | 41

should be the diffusion or dissemination of knowledge, and not its control, as

this is a move towards more pragmatism.
The trend towards subcontracting, as mentioned earlier, also points to
an increased decentralization in collecting and summarizing information on
accounting. It also implies the slant towards free access to the information
online and on real time among key stakeholders. In essence, it suggests the
need for a flexible accounting system that will meet the real needs of the
_ business. Debunking or demeaning traditional systems are postmode
thoughts.
Pursuing the idea of triple-entry bookkeeping in lieu of the double-
entry bookkeeping that has been in practice for centuries would entail a
postmodern perspective. The other example of postmodern perspective in
accountancy is debunking the current practice of automatic delegation of the
choice of financial accounting methods of companies to their managers
instead of establishing the sufficient conditions that could give the need to
delegate the said choice to managers. Exploring the suitability of public
disclosure of internal control deficiencies of publicly-listed companies is also
a postmodern outlook.

Trends in Accountancy Research

Contemporary accountancy research is strongly interdisciplinary in

orientation. Researches on capital markets with an accountancy orientation
often emerge at the interface of finance, economics, and statistics. Studies on
cost behaviors and organizational performance with accountancy orientation
are conducted in tandem with insights and approaches from social
psychology and organizational studies.
Accountancy research has remained to beevolving. Hopwood (2007)
concluded that accounting and accounting research have repeatedly changed
across time, adopting new forms, methods, and roles. He stated that the very
role of accounting research is in part to make both accounting and the
knowledge of it different—to move forward the understanding of accounting
and at times the practice of accounting itself.

should 2» ccnigtenite Pcimpited, rpcesenninal interrogated, and criticized

within the world of knowledge (Hopwood, 2007). Rather than being a
discipline in its own right, accountancy needs to draw on a variety of sources
of illumination and progress. It has been and must continue to be a site for
interdisciplinary inquiry. _In the same manner, accountancy research must
follow the path of dynam ism in accountancy practice.
 countancy Research
42 | Chapter 2 - Nature of Ac

countancy Research
Functional Characterization of Ac
started to embrace the study of not only
Accountancy research
and the modes of its
financial accounting itself, but also the consequences
1s part of a
functioning in wider institutional setting. Indeed, accounting
whole; it is an integral component of an information market on
wider
business enterprises and economy in which it operates. Hence, to
» understand accounting, one needs to understand the wider whole and its
implications for information requirements. Therefore, a more global form of
inquiry could shape the accountancy research landscape.
A rapid rise in regulation and the associated pressures for greater
standardization also characterize financial accounting nowadays. These
prompted the need for dialogues or forums among all sectors of the
profession. Clearly, a new institutional realm of accounting regulation has
taken its toll. In like manner, the harmonization and convergence of
standards in financial reporting have created a domain of policy-making or
standard-setting that is as grand as the professional practice itself. Recently,
the term "condorsement" has been coined to refer to an approach between
convergence and endorsement of the international financial reporting
standards in the United States of America. These developments should
alarm the research community with respect to the needs of the professional
practitioners. . :
_ In management accounting, the new direction is towards practice-
oriented research. Selto and Widener (2002) disclosed that the motivation
among researchers toward this trend include the desire to (1) gain
increased
understanding of why organizations use certain tech
niques and practices; (2)
gain increased understa nding of how and which techniques
practice impact organizational performa are ee in
nce; (3) inform practitioners; (4)
increase the applicability of acco
unting textbooks, coursework ‘and
programs; (5) satisfy personal taste;
and (6) increase consulting opportunitie
s.
In managemen t accounting, there has been a
functi‘ ons of cost reporting and budgeting to duties shifwit}t fe
from thé tradititiional
at 2 Like
visory. Accountants also find themselve
s

accountants eme
are left in gement Accountants study that no
management
accountant and management accountant had pea practice. ; “4
nen Se eee
 Chapter 2 - Nature of Accountancy Research | 43

Selto and Widener (2002) identified 17 major topics as indicative of

a new directions in management accounting research. These topics are as
ollows:
e Accounting software e Effects of information technology
° Budgeting on internal systems
e Business process improvement ¢ Improving profits
e Cash management e Internal control
: Compensation plans e Management accounting practices
e Cost accounting e Outsourcing
e Cost management e Performance measurement
e Effects of financial reporting on ¢ Research methods
internal systems © Shareholder value
Both financial and management accounting have to cope with a more
complex commercial and institutional environment. Both should meet the
demands of the changing practices in employment and forms of
remuneration, more complex organizational forms and designs, changing
configurations of organizational relationships, and knowledge management.
Corporate accounting is often multinational in nature. Furthermore, it has
become embedded in massive and more generic systems like the enterprise
risk management system.
The profound changes in the profession include the diminishing
scope of service over time. Certain functions of accounting, specifically
bookkeeping, are also being practiced now by non-accountants. Economic
calculation has been diffused to other functional areas of operations,
marketing, and administration.
Certain fundamental changes have also affected the auditing
functions. Public accountancy firms are not only international in practice but
have explicitly become commercial in orientation. Quality assurance
measures and ethical standards in the practice of auditing are increasingly
required.
Recent research in 1 the field of eer can be divided into aie
categories the int nd their exte

| Research areas 5 that have produced

interesting results igs e role of the auditor, reporting audit results, the
use of audit risk and decision models, internal control models, audit
judgments, and the use of statistical sampling in auditing.
A typology of research themes in auditing has been developed by
Lesage and Wechlter (undated) in their study "Typology of Research Topics
in Audit: A Content Analysis." The said typology identified 17 themes,
specifically the following:
 e Audit engagement e Auditor's judgment
e Audit education e Corporate governance
e Audit markets :. Earnings quality
e Audit procedures Information processing
e Audit report and going- Internal auditing
concern opinion e International regulation
e Audit review ¢ Liability fraud and litigation
e Audit sampling e Profession and regulation
e Auditor behavior e Tax audit

The focus of contemporary accountancy research varies amon

nations and cultures. For instance, Chen and Schipper (2008) cited that
Chinese research has relatively greater focus on’ auditing, earnings
management, and corporate government. This is believed to imply a
relatively weaker focus on purely capital market questions that involve the

~ 2
use of stock prices and stock returns for large samples over long periods,

SE
Recent Chinese publications addressed the cause and consequences of issues
pertaining to auditor independence, related party transactions, earnings

SM
management, governance and ownership structure, and executive turnover.

ag ee
In terms of pu or; cou search remains to

poe cietli 7 oie

ao ‘iptive and explanatory; that is, it aims to describe and explain

BS
realities in the field of accountancy. However, it goes beyond description and
e. It attempts to make poli
recommendations to practitioners of the profession.
é i
In view of the complex landscape of accountancy research, it is also
imperative that alternative methods be explored to meet the changing needs
analytical modeling using the tools of economics, mathematics

The state of accountanc :

accountancy research has progressed ee
and many cou in the United St
ntries in Europe, it has not
Philippines. taken muc
It goes without saying that accountar
a
$
 Chapter 2 - Nature of Accountancy Research | 45

infancy stage in the country. Not much attention is given by both the
academic institutions and entities engaged in the practice of public
accountancy. Even the Philippine Institute of Certified Public Accountants
(PICPA), which is supposed to lead the initiative of promoting and pursuing
accountancy research, has neither developed a research framework for the
profession nor the research agenda that can guide the other related sectoral
associations of Certified Public Accountants (CPAs) in the country. As a
result of this frailty, there is no common direction among individuals and
organizations conducting research.
The level of production of research outputs is influenced collectively
by a number of factors such as (1) the research mandates of educational
institutions, (2) publication of professional journals, and (3) conduct of
conferences on various areas of accountancy.

Research in Educational Institutions —

Research is a core function of any institution of higher learning in the

Philippines. The type of research, which academic institutions can engage in,
may range from pure academic research that is designed primarily to
generate knowledge or encourage disciplinary contributions, to applied
research. This could help organizations and communities solve specific
problem areas. .
Recently, the conduct of research among high educationa
_ institutions (HEI) in the country had been a basic oat to gee
accreditation of programs by private accrediting bodies under the umbrella
of the Federation of Accrediting Agencies in the Philippines. As a result of
this accreditation requirement, faculty members are now required to produce
research outputs on a regular basis.
On the part of the government, the Commissio: High
(CHED) is mandated to enhance the inviciinieesiaiaiianes HEIs in the
country. This is accomplished through the National Higher Education
Research Agenda, which embodies program thrusts envisioned to creat ay
genuine research culture in higher education.
In accountancy education, the requirement for research is embodied

| These Gian policies are

a1 e intended to Race ie? the siete
Accounting Education Standards, _ as prescribed by the International
Federation of Accountants, to keep the country’ sgraduates competitive in the
global workplace. The CHED Memorandum requires schools of accountancy
to have competent and qualified research staff, undertake research, and —
 earch
46 | Chapter 2 - Nature of Accountancy Res

of research. Research findin

support faculty and students in the conduct
improve teaching methodology, education, and
should be utilized to
accounting practices.
Thus, schools have two-fold expectations from accounting educators;
to come up with research outputs by themselves and at the same time to
teach students to conduct research. These expectations can be met only if
accounting educators are capable of producing quality research outputs. At
the same time, it is important that the research agenda of the school are
leveled off with the research interest of the teachers. Thus, there is a need to —
develop a concrete framework that will serve as a guide to both educational—
institutions and individual researchers. It is also important that professional
organizations involved in accounting education tie their efforts and pris a
common goal to enhance research in accounAng. SFO

AES ee SE ees

se Capacity Building Programs _ in Research for Accounting

ease OS Spe A oc
 Chapter 2 - Nature of Accountancy Research | 47

Core Research Competency Identification. As a preliminary

intervention in the development of research in accounting
education, it is mandatory that a list of core competencies
applicable to the conduct of research be prepared. The processes
identified in this study can serve as a ready reference in the
competency identification.
4. Research as a Component of the Accreditation of Accounting
Educators. The proposed accreditation of accounting educators
should include the conduct of research as a criterion for
accreditation. It is important to note that research and teaching
are mutually beneficial to each other.
5. Research as a Component of Accreditation of Programs. The
accreditation bodies under the Federation of Accrediting Agencies
in the Philippines should concretize the research compliance of
the HEIs by coming up with a scoring system based on the level of
maturity of the research program. Mere production of research
output by teachers for internal use of the HEI cannot be equated
with a more advanced level of research program where the HEI
can already accept research projects from funding institutions and
thus, offer research services to the public.
6. Institutional. Research Program and Agenda Institutions of
higher learning should formalize their research program and
identify their research agenda. They should put in place the
necessary facilities required to progress research activities in the
‘school by (a) rationalizing the compensation for researchers and
teachers engaged in research undertakings (b) providing capacity
enhancement (c) integrating research output in the promotion
system of employees (d) establishing mechanisms by which
research outputs are disseminated and (e) providing rewards to ;
eee research ais ce and poe

CHED should isaiiiale ‘alien eel ards the develo

research in accounting education. It shoul Tien a inghadie
_ of research in the agenda of the different committees io cater to
accounting cmceak in ome

eGo oriaam ae PCPA aah eam lll EE the

jasipbreo® of research by including topics in ik_ technical
sessions of its conferences and conventions.
 untancy Research
48 | Chapter 2 - Nature of Acco

Professional Journals in Accountancy

rese arc h ma nd at es am on g educational institutions,

In addition to the
professional journals of
the conduct of research is also motivated by the
Clearly, the
accountancy that are published by international institutions.
following professional journals influence the conduct of accountancy
the
research in the international scene. A description of these journals and
corresponding topical focus are shown in Appendix A.
e Academy of ManagementJournal e European Accounting Review
e Academy of Management Review ¢ Issue in Accounting Education
e Accounting and Business Research International Journal of
e Accounting and Finance Accounting
e. Accounting, Auditing, and e International Journal of Auditing
Accountability Journal e Journal of Accounting, Auditing—
e Accounting, Business, and and Finance ae
- Financial History e Journal of Accounting and
_¢ Accounting Horizons _ Economics
o- Accounting, Organizations paid ya 98: Journal of Accounting and
- “Sodety- = ae 43 PED Ee Ghee .
Advances in Accounting, Vijacao*:. JOupaLoe Accounting. Litera
¢ Advances in Management - @ ‘Journal of Accounting
Accounting — ne ite Journal of Business, 3
_¢ Auditing: A Journal of Practice and
eG Theory “3 Pte ae
° Behavioral Research in Accounting rat
Lo, 2 British Accounting Review = = =e
_e. Contemporary DEP IENE
ee‘ae
Research |
o ‘Critical Perspectives on ee

= Accounting _
 Chapter 2 - Nature of Accountancy Research | 49
aes

Some of the major conferences in Year 2010 and 2011 are listed below:,
Accounting Renaissance: Arising from the Crisis and Looking to the
Future (November 4-5, 2011, Venice, Italy) - The Conference intends to
build on the awareness that the global financial crisis has challenged the
accounting and auditing realm from many points of views. Contributions
are invited from authors who wish to investigate from a variety of
perspectives (including that of policy-making) and with different
methodologies, the relationships between financial crisis and accounting
and auditing. The study may be from the point of view of specific
national or local contexts, as well as from a global standpoint. It should
also address the ways for the accounting domain to move forward in a
complex world where corporate information of financial and non-
financial nature could play a more and more important role.
International Workshop on Accounting for Cooperatives (September
29-30, 2011, Valencia, Spain) - The Workshop seeks to promote the
interest of academics on accounting for cooperatives as well as to serve as
a meeting point between academics and accounting professionals of any
type of organization concerned with accounting for cooperatives and
reinforcing their activities. It counts the participation of prestigious
academicians and dignitaries and provides a round table discussion
formed by representatives of the main associations and committees of
cooperative accounting. .

and Bus juato State, Mexico) -

The Congress provides an opportunity for faculty and practitioners
interested in accounting and business to learn about innovations in the
curricula, to exchange information on teaching experiences, and to
discuss interesting issues about innovations in teaching.
re SAM ( _ 5 CL J | Pac ry earl eH
Leal D) -1 C ran i undation

‘Conference (July 5-6, to2011,

excellent opportunity gainSwitzerland) - The conference provides an
an understanding of the thinking behind
the projects in the agenda of the International Accounting Standards
Board (IASB), and to hear about the future direction of financial
reporting from the persons responsible for setting it. i

une 25-29, 2011, George, South Africa) - The conference provides a

achieve the objectives of the
forum for accounting educatorsinto toaccounting
association to (1) initiate research and related subjects, (2)
gs, (3)
encourage and assist in the publication of research findin
disciplines,
disseminate relevant information on accounting and related
and (4) continuously identify and address contemporary questions
arising from the environment within which accountancy is practiced,
 Research seatattieaasia
0 | Chapter 2 - Nature of Accountancy
a A

to inform educators of relevant trends in

The conference also aims
accounting and related disciplines and developments in the various
professional accounting qualifications, which form the focus of the
academic programs offered at higher education institutions,
Furthermore, the conference aspires to share research findings and to
provide critical guidance on taking the research forward. The conference
includes a workshop on IFRS Teaching and Research, which is co-hosted
by International Accounting Standards Committee Foundation and
IAAER.
e 17th Annual International Symposium on Audit Research (June 13-14,
2011, Québec City, Canada) - The symposium is hosted by Université
Laval in Québec City, Canada. The scope of the symposium is broad and
includes research papers and panel discussion dealing with economic
and behavioral aspects of auditing, attestation, and assurance. |
* 6th International Conference on Accounting and Management
Information Systems (June 8-9, 2011, Bucharest Academy of Economic
Studies) - The conference is conducted by the Faculty of Accounting and
Management Information Systems of the Bucharest Academy of
Economic Studies, Romania, in collaboration with the IAAER and the: 9%
Association of Chartered Certified Accountants. Papers are invited inthe
broad areas of financial accounting, managerial accounting, auditing,
financial analysis, management information systems and business law.
Authors are invited to submit theoretical and empirical-contributions and
all submissions will be double-blind refereed. ; |
¢ IFRS Taxonomy Annual Convention (March 29, 2011, Renaissance
Chancery Court Hotel, London, United Kingdom (UK) - This focuses on
the exposure draft of the IFRS Taxonomy 2011 just published for public
comment. It brings representatives from government agencies,
financial
institutions, and other key projects and organizations: : gigas 7. &
International. Conference on ncial Criminology (December
14-1!
2010, Kuala, Lumpur) - This conference presents k eynote address a
guest lectures by professionals with experiences in investigat
forensic accounting, internal control, audit and commercial cri
4

an emphasis in Financial Criminology and Islamic Finance. It;

fer significant discourse forthe interaction of ideas ad ex
_ information among academics and practitioners alike.
the risks of white collar crime across various: Pee. ie 8 a3 x

of Islamic finance practices around the globe, t

_ create "vibration" in this area, particularly in Rie sy?
Shes
git

fraud within a system, {7 90

iy

nk Kerala, ;
 Chapter 2 - Nature of Accountancy Research | 51

and The Kerala Branch of Indian Accounting Association consider it as a

privilege and matter of great pride to host the XXXIII Al India
Accounting Conference. It is a forum for interaction on issues related to
accounting policies and standards, besides providing vital inputs for
research in accounting. It would create an interface among professionals,
academicians, and experts in the field of accounting education from India
and abroad. The conference would have an international seminar on
accounting education and research followed by three concurrent
technical sessions on Convergence of Accounting Standards; Goods and
Services Tax; and Corporate Governance and Business Ethics.

11th IAAER World Congress of Accounting Educators and Researchers

(November 4-6, 2010, Singapore) - The conference is a two day event with
plenary sessions and concurrent paper sessions which include refereed
paper presentations, panel sessions, and a paper forum. Papers in the
following areas are accepted: financial accounting, auditing, taxation,
performance measurement, international accounting, information
systems, accounting education, training, and more.
Meet The Experts 2010 (November 1-2, 2010, Hilton London Metropole,
London) - This remains the single biggest conference in Europe devoted
to addressing the latest developments in international financial reporting.
Now in its 12th successive year, it is firmly established as Europe's
longest running annual event of its type. é
has sLe ee
pe a
on Teaching and Learning
in Accounting (CTLA) (July 31 - August 1,
2010, San Francisco, California) - This conference themeis founded upon
"Global Thought Leadership." It is geared toward teaching-focused
faculty, new faculty, and practitioners who want to teach accounting. The
CTLA ‘surrounds the Annual Meéting to offer 16 hours of teaching-
oriented continuing professional education and an Insider’s Guide — a.
kind of "road map" — to sessions on teaching and curriculum-related
topics throughout the Annual Meeting program. bs
_ IASC Foundation: IFRS Conference (July 28-29, 2010, Mandarin Oriental
Tokyo, Japan) - Convergence in global accounting standards is widely
considered to be a major component of global financial reform.
Encouraged by the G20 and others, the IASB has re-doubled its efforts to
complete its convergence program with both the US Financial
Accounting Standards Board (FASB) and the Accounting Standards
Board of Japan by June 2011. This ambitious work program would be
helpful for all involved in financial reporting. The conference provides °
an update on the IASB’s response to the financial crisis and the major
convergence projects currently being undertaken. It also provides
insights into the IASB’s plans beyond 2011. “