Article Review Of Half Defense Positive Accounting Research

Summary

Discuss about the Article Review of Half Defense Positive Accounting Research.

This report discusses research paper on the half a defense positive accounting research. Positive accounting research is the research to test the positive accounting theory. Watts and Zimmerman state that the contract between parties in different organizations leads the accounting to be emerged. The scientific research is called to be positive accounting research when the non rational elements of human behavior cause accounting. Along with this, the main aims this report is to analyze the phenomena of the accounting research. The main aim of the research paper was to analyze the positive accounting research in intellectual project in scientific research with a view to identify the cause and effect relationship in the world. The report will include the critical argument on ontology and epistemology, research methodology used in the article, hypothesis set out in the paper, and hypothesis testing with recommendation provided in the article. The main focus of the report is to identify the cause and effect relationship in accounting. The article is focused on the review of epistemological and ontological hypothesis of the intellectual project to understand and gain insight into the deficiencies and importance of positive accounting research.

This article analyzes and discusses Positive Accounting Theory. It compares two different theories positive accounting theory and normative accounting theory to identify the best one theory. It assesses the development of Positive Accounting Theory and puts in comparison with three standard account of science Lakatos, Kuhn, and Popper. This article demonstrates that rather positive Accounting Theory comprises of elements of all the three standards of science however methodological status of the Positive Accounting Theory does not fit any of three fully. Along with this, the article found that development of Positive Accounting Theory characterized normal science over the decades by Kuhn.

This article aims to identify that how the current accounting research practices are below to whatever required conducting the research successfully. It also assesses two aspects epistemology and ontology of the positive research. Along with this, the article shows that Watts and Zimmerman devised a term Positive Accounting Theory for their theory of accounting. Along with this, the epistemology and ontology of the research programs of positive accounting have been examined. This paper identified that positivist research programs are very effective and powerful, however due to some deficiencies in the research practices it losing its value. This paper identified that casually development of theoretical models, dully reliance of research on the rational of hypothesis testing, no interest in the quantitative parametrical values, and analysis of qualitative data using theories exist. Different competing theories should be tested comparatively to ensure the critical qualitative research. According to this paper, the positive research in accounting is not able to attain scientific objectives of the research. However, normal science defined by Kuhn is best suited to the positive research in accounting than actual science.

Hypothesis

Apart from this, the article devised some suggestion such as better theoretical model for positive accounting research, better measurement of the theoretical models, and shifting the focus to anticipation of the parameters from testing the formed hypothesis.

There are following working hypothesis made in this paper. These hypotheses are

• The world is not depending on human imaginations. It is not made up by human beings and the events in the world are not under the control of human desires.
• Events in the world are neither consequence of the intervention for outside nor are duly random.
• Is it possible for any normal person to gather information with fair reliability about the events by observation?
• The goal of the intellectual enquire is to observe for gaining and developing the knowledge of the world.
• There is great complexity and difficulty in assessing the corporate directors’ social world than wolf pack.

These hypotheses were developed based on the understanding and knowledge gained by the researcher from the literature review. The researcher did not assert for the hypothesis and revealed the general agreed explanation that the living being outside the world intervene in the world that causes the events in the world.

In this paper, theoretical framework has been used to conduct the qualitative positive research of accounting. This paper includes theoretical framework that defines the hypothesis, data collection, hypothesis testing, how the existing theories are falsified and proved, research approach, philosophy, and other research methods and methodologies for the qualitative and quantitative positive accounting research program. The epistemology, ontology and research methods are the part of interpretive research paradigm.

Positive accounting research is the testing of the positive accounting theory. According to Watts and Zimmerman, implied or express contract between parties in the different kinds of organization and the rational in their self interest may cause accounting. The positive accounting theory carries choice for managers, auditors’ decision for reporting and pricing, politicians and regulators’ decision regarding accounting standards, expert advice, and various other phenomena of accounting. Some kinds of accounting researches assess the human behavior without considering the rationality and self interest of the parties. Thus, the positive accounting research is broader than the positive accounting theory. This may be called as scientific accounting research as the non-rational elements of the human behavior cause the phenomena of accounting.

Positive accounting research is just different from the accounting research. Ontology states that the knowledge developed by the contextual and social understanding of the accounting. At the same time, epistemology aspect of the interpretivist paradigm states that how does one get to know about the worldview of a person. The positive accounting research is interpretivist research pursuing some of the question such as what, why, when, and how to develop the contextual understanding of the research topic or problem. The world does not object the nature of the persons consisted of their role, practices, relationships, and conducts. The events or contract between parties may be without following any rational aspects. The self interest as recited above should comprise of the experience gained by the social actor or person and the meaning he or she gives to his or her life and acts. Both of the elements of self interest give the sense of the subjectivity but they form an objective reality during the social interaction process among parties.

Theoretical Framework

Due to the logical difficulties between ontological and epistemological aspects of positive accounting research, the positive research programs are futile as they aims at developing the objective understanding of the factors causing phenomena of accounting.  The ontology here has defined the reality of the social interaction between human beings and epistemology has defined that how the research can discover the meaning behind the activities and events took place.

The research asks open questions rather than close ending questions to know about the viewpoints of the persons. The researcher decides about the questions to be asked from the participants. The manager controls over the research through the budgetary system. The key problem has to be identified for furthering the research process. It may be that the positive epistemology and ontology are not correct but they cannot be said illogical and absurd. 

Methodology is the third element of the research paradigm. The methodology states that methods used in the research. The methodology used in the article given below:

Research philosophy and research approach: The interpretivist research philosophy has been used in this paper to discover the causes of accounting phenomenon without non rational assumptions. The researcher used some questions such as what, why, when, and how regarding the relationship between positive and interpretive accounting research as that between humanity and science. At the same time, here inductive approach was used to prove the theories. Inductive approach has been used to gather the qualitative data to test the cause and effect relation between human behavior and accounting.

The research design is the types of research to be used for solving the problem. The research design may be of two types such as quantitative research and qualitative research. The qualitative research has been conducted using inductive approach to gather the huge data regarding positive accounting research in organizations. The qualitative research methods include interview, narrative, observation, case study, ethnography, and others. Here the researcher has used qualitative research to test the theories. The qualitative research is used to test whether the nature of reality which is socially framed is not an insuperable issue, and is there a difficulty in observation of the corporate directors’ social world than the same of the wolf.

The survey has been used to know the human behavior in the group.  Survey is the method in which the information about behavior of the human in organizations is gathered through asking some question or observation.

Positive Research in Accounting

There are some steps of the Poppers theory that should be followed while testing the theories. This process includes four steps which are

1. Carefully observation of the research objective and development of the ideas and viewpoints about that
2. Development of theories including predictions in harmonious to reliable and relevant empirical evidences
3. Testing the predictions of new theories and old existing theories in same situation and rejecting the theory fails in test
4. Replication of step 2 and step 3 always

The Popper’s criterion may not be falsified and disapproved because many of the assumption are decided theoretically so falsification of that prediction does not show the assumption which is actually wrong. At the same time, the testing of hypothesis by the observation is not the scientific research therefore the Popper’ criterion cannot be disproved.

The observation cannot help in measuring a single theory but in case of two or more theories the observation might be selected. A decisive observation can disapprove the theories which are incorrect but at the same time it would have to support to the competing theories or theory.  The qualitative accounting research fails in solving the question whether theory of Foucault is applicable in situation of the adoption of the strategic system approach in auditing and whether the application technology of self devised by Foucault to ensure the compliance by front line auditors is an empirical question or not. The theoretical frameworks used are assertion that leads the failure of the qualitative accounting research.

 The paper provided includes some recommendation for effective positive research programs. A specific vulnerable model should be utilized with carefully entering the variables in model for mathematical measurement. Analytical modeling of the theoretical models to effectively test the theoretical prediction should be. In accounting research, the researcher should develop a theoretical model accordingly that may support in collection, validation and analysis of data. The main focus of the research should be on the measurement rather than testing. The measurement supports in developing the conceptual understanding.

This paper identified that gap between positive accounting research programs and requirements to make it more effective for contributing in intellectual programs. This limitation affects the significance of the article. Improper selection of the research methods leads to ineffective research and testing of the theories that leads to incorrect consequences. These limitations put impact on the quality of the article and its contribution. The scientific research hypothesis set out the researchers was not accepted by the Kuhn theory. The article focuses on the Kuhn theory which is not accepted by other most of the scientists.

Conclusion:

From the above analysis, it can be concluded that the report defined the topic of the paper, hypothesis, theoretical framework of the research elements such as ontology and epistemology, research philosophy, research approach, research design, and data collection methods. It is found that the qualitative research is not able to addressing the research question related to the positive accounting research and positive accounting theory. There is some suggestion provided for the effective positive accounting research. The critical analysis in the paper has implication on the positive accounting research programs. The analysis suggested some recommendation that may help in improving the positive accounting research.

References:

Dunmore, P. (2009) Half a Defence of Positive Accounting Research. Retrieved from https://www.massey.ac.nz/~pvdunmor/HalfaDefence.pdf