Evaluation of Accounting Research Application
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INTRODUCTION
1.1.
BACKGROUND TO THE STUDY
Research according to Kinney (1986) is “the development and testing of new theories of 'how the world works' or refutation of widely held existing theories”. It is a “careful or diligent search; studious inquiry or examination; especially: investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted Theories or laws in the light of new facts, or practical application of such new or revised theories or laws” (Merriam-Webster online dictionary). These two definitions reveal that research, including accounting research is (i) both an activity and a process (ii) based on pure logic or examination of facts/data; and (ii) aimed at generating new theories, refuting or revising existing theories and practical application of theories. In essence the central aim of research is “theory” 3 (Zimmerman 2001). Empirical research seeks to understand and explain natural phenomena by collecting and analyzing data or facts. The fruit of empirical research is empirical theory but empirical science theory emerges only from empirical science4 research. An empirical research is a scientific research if and only if it fulfils the canons of scientific inquiry5. In accounting literature, the term “empirical research” is sometimes narrowly conceptualized as the application of statistical/mathematical techniques to test theories, based on numerical data6.
Accounting research is often conceived as applied research in that the focus of study is made up of technologies and technical practices used by accounting practitioners in social and organizational settings. This stands in marked contrast to the physical sciences where the focus of study is mainly physical matter. At the international level, research is generally a requirement for accounting career progression, and an important contributor to the development of knowledge economy (Wright and Chalmers, 2010). The impact of research in some disciplines is easy for the lay person to comprehend, such as in medicine, where advances in medical procedures and development of new drugs result in benefits to society. For accounting, this impact is not so easy to discern (Tilt, 2010). For instance, in the field of accounting there have been claims that research has become too far removed from the interests of the profession and practitioners. Researchers in turn point to the shortcomings of current professional practices. Indeed, some in the accounting research community go so far as to consider that many practical issues of concern to professional accountants do not warrant the attention of researchersEssay on financial accounting
Further in the next chapters we will learn:
Essay on accounting analysis
Accounting research is hard to define because it has shifted over time. As a rough overview, early accounting research (pre-1960s) was mostly normative (i.e., argued for the “correct” accounting treatment, or what should be). With the advent of the Journal of Accounting Research, advances in finance such as the efficient market hypothesis, creation of large data sets and the statistical abilities to analyze them (i.e., computers), and the publication of Ball and Brown’s seminal work in 1968, accounting research moved into positive research (i.e., examining what is rather than what should be). Although this change has had its critics, it has resulted in a significant increase in research output (and many new journals). Criticisms range from accounting research being labeled as monolingual in a multilingual world (Chua 1996) to being described as intolerant of other perspectives, irresponsive to the needs of practicing accountants and having little impact on related fields (Reiter & Williams 2002). According to Chua (1996), although the language of numbers as reflected in the empirical/calculative tradition is extremely powerful at overcoming cultural and linguistic boundaries, it is inherently capable of decontexualising the sociocultural and political aspects of the debates represented by these numbers when exclusively or improperly used. Its dominance in accounting graduate education, she argues is due to “(i) the power of inscriptions,
(ii) contradictions in post-modernity, and
(iii) the perceived ‘success’ of allied professionals” (Chua 1996:). Reiter & Williams (2002) measured impact in terms of the extent to which empirical research as published in top accounting journals is cited in top journals of finance and economics. Based on their analysis of 553 articles published in 1990-91, they found that “economics cites itself most, then finance to a very modest extent and accounting virtually not at all” (Reiter & Williams 2002: 588). In other words, accounting imports more than it exports theories and this, the authors attribute to the parochial approach to the question of methodology in accounting research. Also, Arnold (2009) has attributed the failure of accounting academics to anticipate the recent global financial crisis, a crisis partly linked to fair value accounting and that triggered capital adequacy issues among financial institutions, to the over-emphasis on the archival “methodology”, in that the mass of off-balance transactions that fuelled the crisis was not archived in any publicly available database. Arnold has found support in Kaplan (2011) who criticized his academic colleagues for spending so much time investigating how fair value impact on capital market without understanding how fair value is determined. Kaplan was actually speaking in the context of the underrepresentation of field research in accounting journal publications.
1.2.STATEMENT OF THE PROBLEM
Research according to Kinney (1986) is “the development and testing of new theories of 'how the world works' or refutation of widely held existing theories”. It is a “careful or diligent search; studious inquiry or examination; especially: investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted Theories or laws in the light of new facts, or practical application of such new or revised theories or laws” (Merriam-Webster online dictionary). These two definitions reveal that research, including accounting research is (i) both an activity and a process (ii) based on pure logic or examination of facts/data; and (ii) aimed at generating new theories, refuting or revising existing theories and practical application of theories. In essence the central aim of research is “theory” 3 (Zimmerman 2001). Empirical research seeks to understand and explain natural phenomena by collecting and analyzing data or facts. The fruit of empirical research is empirical theory but empirical science theory emerges only from empirical science4 research. An empirical research is a scientific research if and only if it fulfils the canons of scientific inquiry5. In accounting literature, the term “empirical research” is sometimes narrowly conceptualized as the application of statistical/mathematical techniques to test theories, based on numerical data6.
Accounting research is often conceived as applied research in that the focus of study is made up of technologies and technical practices used by accounting practitioners in social and organizational settings. This stands in marked contrast to the physical sciences where the focus of study is mainly physical matter. At the international level, research is generally a requirement for accounting career progression, and an important contributor to the development of knowledge economy (Wright and Chalmers, 2010). The impact of research in some disciplines is easy for the lay person to comprehend, such as in medicine, where advances in medical procedures and development of new drugs result in benefits to society. For accounting, this impact is not so easy to discern (Tilt, 2010). For instance, in the field of accounting there have been claims that research has become too far removed from the interests of the profession and practitioners. Researchers in turn point to the shortcomings of current professional practices. Indeed, some in the accounting research community go so far as to consider that many practical issues of concern to professional accountants do not warrant the attention of researchersEssay on financial accounting
Further in the next chapters we will learn:
Essay on accounting analysis
Accounting research is hard to define because it has shifted over time. As a rough overview, early accounting research (pre-1960s) was mostly normative (i.e., argued for the “correct” accounting treatment, or what should be). With the advent of the Journal of Accounting Research, advances in finance such as the efficient market hypothesis, creation of large data sets and the statistical abilities to analyze them (i.e., computers), and the publication of Ball and Brown’s seminal work in 1968, accounting research moved into positive research (i.e., examining what is rather than what should be). Although this change has had its critics, it has resulted in a significant increase in research output (and many new journals). Criticisms range from accounting research being labeled as monolingual in a multilingual world (Chua 1996) to being described as intolerant of other perspectives, irresponsive to the needs of practicing accountants and having little impact on related fields (Reiter & Williams 2002). According to Chua (1996), although the language of numbers as reflected in the empirical/calculative tradition is extremely powerful at overcoming cultural and linguistic boundaries, it is inherently capable of decontexualising the sociocultural and political aspects of the debates represented by these numbers when exclusively or improperly used. Its dominance in accounting graduate education, she argues is due to “(i) the power of inscriptions,
(ii) contradictions in post-modernity, and
(iii) the perceived ‘success’ of allied professionals” (Chua 1996:). Reiter & Williams (2002) measured impact in terms of the extent to which empirical research as published in top accounting journals is cited in top journals of finance and economics. Based on their analysis of 553 articles published in 1990-91, they found that “economics cites itself most, then finance to a very modest extent and accounting virtually not at all” (Reiter & Williams 2002: 588). In other words, accounting imports more than it exports theories and this, the authors attribute to the parochial approach to the question of methodology in accounting research. Also, Arnold (2009) has attributed the failure of accounting academics to anticipate the recent global financial crisis, a crisis partly linked to fair value accounting and that triggered capital adequacy issues among financial institutions, to the over-emphasis on the archival “methodology”, in that the mass of off-balance transactions that fuelled the crisis was not archived in any publicly available database. Arnold has found support in Kaplan (2011) who criticized his academic colleagues for spending so much time investigating how fair value impact on capital market without understanding how fair value is determined. Kaplan was actually speaking in the context of the underrepresentation of field research in accounting journal publications.
1.2.STATEMENT OF THE PROBLEM
1.2.
Accounting firms are knowledge-based
professional service firms for which the management of expertise is critical to
success (Davenport, 1997). The application of expertise in the accounting
profession, however, has not been examined in the academic. As accounting
research plays an essential part in creating new knowledge. 1.3OBJECTIVES OF
THE STUDY
The major purpose of the study was to evaluate the application of accounting research among medium accounting firm in Nigeria. • Ascertained the types of accounting application available to medium accounting firm. • Ascertained the type of accounting application used by the medium accounting firm. • Determined the extent the accounting research can enhance the performance of medium accounting firm. • Ascertained the problems that hinder the application of accounting research by medium accounting firm in Nigeria.
1.4.RESEARCH QUESTIONS
The following research questions guided the study:
• What are the types of accounting application available to medium account firm? • What are the types of accounting application used by the medium account firm? • To what extent does the use of accounting research can enhance the performance of medium accounting firm? • What are the problems that hinder the application of accounting research by medium accounting firm in Nigeria?
1.5.RESEARCH HYPOTHESES
Based on the research questions, the following hypotheses were tested during the course of the study: H0I: The utilization of the accounting systems does not significantly influence the profitability of the small scale enterprises
1.6. RELEVANCE OF THE STUDY
Accounting has been defined as the process of identifying, measuring and communicating accounting information to permit informed judgment and decisions by users of the information. Information from accounting system is presented usually in a very technical manner such that other users who are not knowledgeable in it may find it difficult to understand. It is hoped that this work will be able to simplify these Information and educate its users. Since accounting research is dynamic and full of potentials not yet tapped, application of this work will, hopefully, assist medium accounting firm and all businesses to improve on their accounting research and practices.
1.7.SCOPE OF THE STUDY
This study is within the Nigerian economy and it focused on few selected medium accounting firm in Lagos Nigeria in relation to their application of accounting research.
1.8DEFINITION OF TERMS
EVALUATION: is a systematic determination of a subject's merit, worth and significance, using criteria governed by a set of standards. It can assist an organization, program, project or any other intervention or initiative to assess any aim, realizable concept/proposal, or any alternative, to help in decision-making; or to ascertain the degree of achievement or value in regard to the aim and objectives and results of any such action that has been completed APPLICATION: The act of applying something applied, such as a cosmetic or curative agent or The act of putting something to a special use or purpose ACCOUNTING: advising on taxation matters. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity FIRM: A commercial partnership of two or more persons, especially when unincorporated. The name or designation under which a company transacts business. RESEARCH: and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications
Essay on why we use accounting
REFERENCE
Tavakolian, H, (1995), PC-Based financial Software: Emerging Options, Industrial Management & Data Systems, 95(10), pp. 19-24.
Stefanou, C., (2006), The Complexity and the Research Area of AIS, Journal of Enterprise Information Management, 19(1), pp. 9-12.
Chua, W.F. 1996. Teaching and learning only the language of numbers - monolingualism in a multilingual world. Critical Perspectives in Accounting. 7: 129-156.
Reiter, S.A and P.F. Williams. 2002. The structure and progressivity of accounting research: the crisis in the academy revisited. Accounting, Organizations and Society. 27 : 575-607.
Kaplan, R.S. 2011. Accounting Scholarship that Advances Professional Knowledge and Practice. The Accounting Review. 86(2): 367-383
Arnold, P. J. 2009. Global financial crisis: the challenge to accounting research. Accounting, Organizations and Society. 34: 803-809.
Wright S, Chalmers K. The future for accounting academics in Australia. In Evans E, Burritt R, Guthrie J (editors). Accounting education at a cross road in 2010. Sydney: Centre of Accounting, Governance and Sustainability/Institute of Chartered Accountants in Australia; 2010. p. 72-79. Tilt C. The impact of academic accounting research on professional practice. In Evans E, Burritt R, Guthrie J (editors). Accounting education at a cross road in 2010. Sydney: Centre of Accounting, Governance and Sustainability/Institute of Chartered Accountants in Australia; 2010. p. 35-41.
The major purpose of the study was to evaluate the application of accounting research among medium accounting firm in Nigeria. • Ascertained the types of accounting application available to medium accounting firm. • Ascertained the type of accounting application used by the medium accounting firm. • Determined the extent the accounting research can enhance the performance of medium accounting firm. • Ascertained the problems that hinder the application of accounting research by medium accounting firm in Nigeria.
1.4.RESEARCH QUESTIONS
The following research questions guided the study:
• What are the types of accounting application available to medium account firm? • What are the types of accounting application used by the medium account firm? • To what extent does the use of accounting research can enhance the performance of medium accounting firm? • What are the problems that hinder the application of accounting research by medium accounting firm in Nigeria?
1.5.RESEARCH HYPOTHESES
Based on the research questions, the following hypotheses were tested during the course of the study: H0I: The utilization of the accounting systems does not significantly influence the profitability of the small scale enterprises
1.6. RELEVANCE OF THE STUDY
Accounting has been defined as the process of identifying, measuring and communicating accounting information to permit informed judgment and decisions by users of the information. Information from accounting system is presented usually in a very technical manner such that other users who are not knowledgeable in it may find it difficult to understand. It is hoped that this work will be able to simplify these Information and educate its users. Since accounting research is dynamic and full of potentials not yet tapped, application of this work will, hopefully, assist medium accounting firm and all businesses to improve on their accounting research and practices.
1.7.SCOPE OF THE STUDY
This study is within the Nigerian economy and it focused on few selected medium accounting firm in Lagos Nigeria in relation to their application of accounting research.
1.8DEFINITION OF TERMS
EVALUATION: is a systematic determination of a subject's merit, worth and significance, using criteria governed by a set of standards. It can assist an organization, program, project or any other intervention or initiative to assess any aim, realizable concept/proposal, or any alternative, to help in decision-making; or to ascertain the degree of achievement or value in regard to the aim and objectives and results of any such action that has been completed APPLICATION: The act of applying something applied, such as a cosmetic or curative agent or The act of putting something to a special use or purpose ACCOUNTING: advising on taxation matters. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity FIRM: A commercial partnership of two or more persons, especially when unincorporated. The name or designation under which a company transacts business. RESEARCH: and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications
Essay on why we use accounting
REFERENCE
Tavakolian, H, (1995), PC-Based financial Software: Emerging Options, Industrial Management & Data Systems, 95(10), pp. 19-24.
Stefanou, C., (2006), The Complexity and the Research Area of AIS, Journal of Enterprise Information Management, 19(1), pp. 9-12.
Chua, W.F. 1996. Teaching and learning only the language of numbers - monolingualism in a multilingual world. Critical Perspectives in Accounting. 7: 129-156.
Reiter, S.A and P.F. Williams. 2002. The structure and progressivity of accounting research: the crisis in the academy revisited. Accounting, Organizations and Society. 27 : 575-607.
Kaplan, R.S. 2011. Accounting Scholarship that Advances Professional Knowledge and Practice. The Accounting Review. 86(2): 367-383
Arnold, P. J. 2009. Global financial crisis: the challenge to accounting research. Accounting, Organizations and Society. 34: 803-809.
Wright S, Chalmers K. The future for accounting academics in Australia. In Evans E, Burritt R, Guthrie J (editors). Accounting education at a cross road in 2010. Sydney: Centre of Accounting, Governance and Sustainability/Institute of Chartered Accountants in Australia; 2010. p. 72-79. Tilt C. The impact of academic accounting research on professional practice. In Evans E, Burritt R, Guthrie J (editors). Accounting education at a cross road in 2010. Sydney: Centre of Accounting, Governance and Sustainability/Institute of Chartered Accountants in Australia; 2010. p. 35-41.
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