UNIVERSITY OF LAGOSSCHOOL OF POSTGRADUATE STUDIES

ACCOUNTING DEPARTMENTACC 804: RESEARCH METHODOLOGY

NAME: OLADELE FRIDAY ADEYEMI

MATRIC NO: 119021039

PROGRAMME: M.Sc. FULL-TIME

LECTURER: DR S.B. ADEYEMI

DATE: 7TH DECEMBER 2011

THE ROLE OF RESEARCH IN THE FIELD OF ACCOUNTINGAnswer: Before we can give a clear meaning to the question above, there

is the need for us to understand the meaning or definition of Research.

Therefore Research in common parlance refers to a search for knowledge.

One can also define research as a scientific and systematic search for

pertinent information on a specific topic. In fact, research is an art of

scientific investigation. The Advanced Learner’s Dictionary of Current

English lays down the meaning of research as “a careful investigation or

inquiry specially through search for new facts in any branch of

knowledge.”1 Redman and Mory define research as a “systematized effort

to gain new knowledge.”2 Some people consider research as a

movement, a movement from the known to the unknown. It is actually a

voyage of discovery. We all possess the vital instinct of inquisitiveness for,

when the unknown confronts us, we wonder and our inquisitiveness

makes us probe and attain full and fuller understanding of the unknown.

This inquisitiveness is the mother of all knowledge and the method, which

man employs for obtaining the knowledge of whatever the unknown, can

be termed as research.

Research is an academic activity and as such the term should be used in a

technical sense. According to Clifford Woody research comprises defining

and redefining problems, formulating hypothesis or suggested solutions;

collecting, organising and evaluating data; making deductions and

reaching conclusions; and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis. D. Slesinger and

M. Stephenson in the Encyclopaedia of Social Sciences define research as

“the manipulation of things, concepts or symbols for the purpose of

generalising to extend, correct or verify knowledge, whether that

knowledge aids in construction of theory or in the practice of an art.”3

Research is, thus, an original contribution to the existing stock of

knowledge making for its advancement. It is the pursuit of truth with the

help of study, observation, comparison and experiment. In short, the

search for knowledge through objective and systematic method of finding

solution to a problem is research. The systematic approach concerning

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generalisation and the formulation of a theory is also research. As such

the term ‘research’ refers to the systematic method.

The role of research in the field of Accounting

According to Inanga in Anao and Uche (2002:9-10), the place of research

in accounting practice has no linkage and as such the relationship is said

to be disjointed. This, they identified, has resulted from lack of

conceptualization of the primary objectives of the study of accounting ,

which in time past , has viewed the accounting practice in terms of

information preparation only. However, the reaction of stakeholders such

as investors, creditors and others to the need for historical facts and

figures in terms of profit made on investment and revenue generation

analysis to be published, has geared the Accountants to be involved more

in research. Bearing this inter-relationship in mind, the researcher should

select and expand his research question with a view to controlling the

empirical system within which accounting is practised. Research,

according to Inanga, aids in improving the behaviour of the practice and

makes it relevant to the society. More so, research will help to develop

the accounting standards of system in such a way that it will move

towards intended goals.

Types of Research

Research can be classified by purpose or by method. If we categorise it by

purpose, it would fall into two major categories: Basic Research and

Applied Research, while in case of method, it would be deductive research

and inductive research.

BASIC RESEARCH

Also called Pure or fundamental Research, it is undertaken for increase in

knowledge. There is no direct benefit as it is a research for the sake of

research. It is conducted to satisfy any curiosity such as: (a) what makes

things happen, (b) why society changes and (c) why social relations are in

a certain way. In fact, it is the source of most new theories, principles and

ideas. Basic research rarely helps anyone directly. It only stimulates new

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ways of thinking. The main motivation is to expand man's knowledge.

There is absolutely no commercial value to the discoveries resulting from

such research.

However, in the long run, it forms the basis of applied research or

development commercial products. If basic work is done first, then applied

spin-offs often eventually result from this research. As Dr. George Smoot

of LBNL says, "People cannot foresee the future well enough to predict

what's going to develop from basic research. If we only did "applied

research", we would still be making better spears."

To sum up, basic research is purely theoretical to increase our

understanding of certain phenomena or behaviour but does not seek to

solve any existing problem.

Applied research

It is use of basic research or past theories, knowledge and methods for

solving an existing problem. It deals with practical problems. It is opposed

to pure research which is not problem-oriented but for the increase in

knowledge which may or may not be used in future.

In the present world situation, more emphasis is being given to applied

research to solve problems arising out of overpopulation and scarcity of

natural resources.

Applied research should not be treated the same as Research &

Development (R&D) which is involved in developing products demanded

by the existing clients. Applied Research, on the other hand, focuses on

uncovering what needs are not being met and use that information in

designing products or services that would create their own demand. Thus,

applied research brings in new customers and also provides better

products and services to the existing customers. In old days, the mobile

phone was expensive, bulky and had a short range. Applied Research

foresaw that this product would have a limited market and stressed on

cost-cutting, reduced weight and long-distance communication. Such

measures caused a heavy demand.

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METHODS or APPROACHES

In research, conclusions are based two methods known as the deduction

and induction. Both are widely used in research projects. This helps the

researchers to understand, explain, or predict business phenomena.

Deduction follows an approach which is “top-down” or “from general to

specific.” On the other hand, induction is “bottom-up” in nature or from

specific to general. In deduction, we start from a theory and try to prove it

right with the help of available information. In induction, we observe some

happening, deduct a pattern and draw conclusion.

EXAMPLE OF DEDUCTION

1. All men are mortal. (General and no specific to one man)

2. Socrates is a man

3. (Therefore,) Socrates is mortal ( specific)

EXAMPLE OF INDUCTION

This ice is cold. (Specific, based on a direct observation.)

All ice is cold. (General, can be applied to any ice)

Take another example:  3 + 5 = 8 and eight is an even number.

Therefore, an odd number added to another odd number will result in an

even number.

EXAMPLE OF BOTH DEDUCTION AND INDUCTION

1 You push the light switch and find no light

2 You ask the question, Why no light? (induction)

3 You infer a conclusion (hypotheses) to answer the question and explain

the fact that the bulb is burned out. (deduction)

4 You use this hypothesis to conclude (deduce) that the light will not go

on when we push the switch. We know from experience that burned-out

bulb will not light.

 

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DEDUCTIVE APPROACH

DEDUCTIVE METHOD

Like Sherlock Holmes, the starting point is a given situation and moving to

a specific conclusion. All relevant information is assembled, studies

to solve the mystery. Aristotle, a Greek philosopher, described deduction

as "drawing conclusions by applying rules or principles; logically moving

from a general rule or principle to a specific solution". It is the process of

reaching a conclusion that is guaranteed to follow, if the evidence

provided is true and the reasoning used to reach the conclusion is correct.

An investigator is distracted with the noise and thinks that “noise

adversely affects mental problem solving.” It can be turned into a

research question like “would it be more conducive to solve mental puzzle

when there is no noise.”

In order to test it, two puzzles are given to the same group, one in noise-

less conditions and other in a blaring noise. If the results of test conducted

under noisy-environment are poor it can be deduced or concluded that

controlling the aversive noise is helpful in solving mental puzzles.

(Someone may say “why research, it is apparent?” It is logical to say it but

it had been previously proved and awareness has been created of the

noise pollution. In fact, noise can be measure in term of decibel (dB) and

by research, it has been established how much noise is tolerable under

what conditions. Zero dB describes perfect silence while 140 dB would

reflect a gunshot.

In deductive method, the premises (basis or evidence) provide a

guarantee of the true conclusion. Consider the following example:

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1. There are 32 books on the top-shelf of the book case,

2. There are 12 books on the lower-shelf of the book case.

3. There are no books anywhere on the bookcase

From the above, it can be concluded there are 44 books in the bookcase.

INDUCTIVE APPROACH

INDUCTIVE METHOD

Also known as Inductive reasoning or logic, this methods involves moving

from a specific situation to a general conclusion This is a way of “theory-

building”, whereby “specific facts are used to create a theory that

explains relationships between the facts and allows prediction of future

knowledge”. This method is more open-ended and exploratory. This does

not give 100% guarantee of truth but probability of being true.

Here is an example:

1. Socrates was Greek. (Premise)

2. Most Greeks eat fish. (Premise)

3. Socrates ate fish. (Conclusion)

While the premises were true, it is possible that conclusion was false.

Maybe Socrates was allergic to fish, for example. It can be said that

inductive approach is weaker than deductive approach as there is

possibility of arriving at false conclusion. However, it is not entirely true.

Conclusion

This hub states categories of research. If one wants to classify the

research by purpose, it would be basic research and applied research.

While basic research is done for the sake of gaining knowledge or

exploration or invention, the applied research uses the knowledge gained

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through basic research for solving problem. While discovery of laser was

through basic research, its subsequent use in remote-control pointer or

surgery is a result of applied research.

Another classification is deductive research and inductive research. In

deduction, we move from general to specific while in induction, it is the

other way round. Both methods are used in research.

THEORY BUILDING

A number of considerations are involved in building theory and applying it

to practical situations. Two critical facets are model specification and

statement of relationships. Alternative paradigms exist for each of these

steps.

 

Specification

The common starting point is to use the Porter typology--the nature of the

industrial environment, and the generic strategies for adapting to the

environment. These are viewed as critical factors shaping performance

of a firm (or degree of competitive advantage) compared to other firms in

the industry, comparison of firms among industries, and changes over

time. Theirs in the field have added that the type and level of resources,

or core capabilities should be considered.

Paradigm shift in model specification:

Underlying axioms that inform the above model can be identified.

Alternative axioms on the nature of the environment, the nature of

strategies, the nature of resources and the nature of core capabilities

can be identified.

These alternative axioms inform a different description of each of the

factors.

Specification of relationships.

Most theory in business and social sciences are built upon the

simplified assumptions of a Newtonian view of the world.

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Assumptions relating to determinism, linearity, one way directionality,

continuity of effects, and rapid movement to equilibrium in analysis of

relationships.

Diagnosis of problems and specification of solutions is characteristically

informed by this approach.

A more complex theory is based upon the Euclidean assumptions about

the nature of the world.

Assumptions relating to interdependence, probabilistic relationships,

curvilinear or discontinuities, lags in effects, tipping points, critical

mass, butterfly effects and potential of moving either toward

equilibrium or disequilibrium and unsteady states.

Concepts from chaos theory are used to profile complex relationships.

The specification of the model is also informed by a Euclidean view of

the world since the more complex questions posed usually require

more variables.

Diagnosis of problems, and specification of solutions is can be informed

by this approach.

Choosing a Researchable topics

1. Select a topic that interests you

2. Read through background information

3. Start making a list of key words

4. Write out your topic as a statement and select the main

concepts

5. Start making a list of words to describe your topic

Select a topic that interests you:

Selecting a topic is possibly the most difficult part of doing research. Is it

too big? Is it too narrow? Will I be able to find enough on it? Start by

choosing a topic that you like or are curious about. You're going to be

working on it for quite a while, so try and find one that's interesting and

that you can reasonably cover in the time and space available.

Read through background information:

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Taking a few minutes to read about your topic in a specialized

encyclopaedia, dictionary or handbook may be one of the most effective

and time saving research tips on this list. You will probably refine and

refocus your topic several times before you finalize it.

The Reference shelves behind our Reference Desks are filled with books

that can help you focus your topic. These books are good places to start

your research when you know little about a topic, when you need an

overview of a subject, or when you want a quick summary of basic ideas.

They are also useful for discovering the names of important people, and

can familiarize you with the vocabulary of the field. Encyclopaedia articles

are often followed by carefully selected bibliographies or lists of

references to other works, useful items to have as you begin looking for

additional information.

Write out your topic as a statement and select the main concepts:

Once you have your topic, write it out as a short sentence or question and

look at the different components that make up your statement. The

research statement "Is memory loss related to aging?" has two main

concepts:

1) Memory loss

2) Aging

Start making a list of words to describe your topic:

Start compiling a list of the key words that you will use as you search for

your topic. The way terms are used in some fields can be very different

from standard everyday usage. The Reference Desk can help you find

specialized dictionaries and thesauri to define unfamiliar terms and

quickly build a useful list of key words to search on. For example, the topic

"Is memory loss related to aging?" might have key words that fall into two

general categories:

1) Memory loss or amnesia or Alzheimer's.

2) Aging or aged or elderly, seniors

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The Research Process

Research methodology is sequence or steps, which need to be followed in

research or study to generate scientific results and knowledge. So, the

following sequence or steps are relevant to virtually all studies,

researches, and projects at whatever level of learning in sciences.

STEP 1

The step has to do with identification of problem. This implies that a GAP

exists. So, this GAP is the focus of the study.

STEP 2

For every GAP, there must be related concepts or theories within which to

understand how problems (GAP) formulated could be resolved. The

concepts, models and theories essentially provide the framework of every

scientific study. This stage also accompanies every other step in the

process as it serves as a guide in the conceptualization and operation of

all steps. Understanding of these steps in the research process allows for

easy comprehension of all other stages. This is the jacket of the research

work.

STEP 3

The objective of any good study as research are specifically how to

achieve the aim of the study and how some problems identified will be

solved. Once the research has been formulated, it is usually necessary to

have some stated objective that the study intends to achieve.

STEP 4

Hypothesis is important in a research study but it is good to note that not

all researches require hypothesis setting. A statement of hypothesis is

expected to link the stages of problem identification, aim and objectives

with measurement, data collection, and data analysis stage. Once the

hypothesis or hypotheses have been stated, reference is then made to

models and theories that will assist in identifying variables to be selected

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and measurement of the variables and data collection and analysis. There

are essentially two types of hypotheses operating and statistical

hypotheses.

In operating hypothesis all the researchers is expected to do is to justify

his position based on existing literature –Library Research while the

statistical hypothesis will require statistical testing.

STEP 5

Measurement state in research process is preparatory to collection of

data. It is an important step prior to field design as major instrument of

data collection, which must be identified and tested. It is this stage that

the scale of measurement of data collection becomes very clear and

allows for proper understanding of models and quantitative methods to be

used.

STEP 6

After the stated objective and drawing of overall research question s, with

the aid of hypotheses, there is the need for data collection. This is through

primary and secondary sources.

STEP 7

Before data collected are analyzed it is usually necessary to prepare them

either for storage or analysis.

STEP 8

Tabulation and graphical presentation of collected data makes the

analysis easier and simple for interpretation. At this level, quantitative

and qualitative techniques are put into use. While some requires desk

calculators, some requires the use of computer.

STEP 9

This shows presentation of result findings. From the findings and

implication of the study, recommendation can be made. Also the findings

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may create an avenue for emergence of a GAP which may require

investigation; hence, the research process needs to be followed again.

PROBLEM DEFINITION Research, however is conducted to find solution to problems, using

scientific procedures. This makes it impossible for a researcher to carry

out any investigation without stating in clear terms what the problem(s) is

or are. Problem identification is an important step in the process of

conducting a research; the researcher must learn to recognise and define

a problem. When a problem is identify and question relating to the

problem are asked, then the solution is at hand. Problems lead to the

generation of question that might be difficult to investigate. But when a

series of ideas have been gathered together , which aim at providing

solutions to such problems, then the problem is on its way to being

solved. For instance, what relationship exists between price of a

commodity and the demand for that commodity? Does the price of a

commodity affect the demand? The answers to these questions can be

sought through research study by stating what is called ‘hypotheses.

There are two variables contained in the questions above, these are;

price and demand. This implies that the question state a scientific

problem, which needs to be investigated. If on the other hand, questions

such as that which influences human attitude is asked, such as, ‘how do

we know that the act of terrorism has stopped in Iraq? ‘then this question

meets the definition of problem, which is, ‘the act of terrorism in Iraq; but

it cannot be easily tested. This we do not have concrete fact about the

attitude of the citizens of Iraq who might want to investigate the act.

Thus, it might not follow the scientific procedure when solving problem.

NATURE OF ACCOUNTING PROBLEM

It is a known fact that there is no discipline without its own different

problems. Most of the problems of accounting discipline are associated

with the preparation of financial statements and they come with the fact

that:

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Application of accounting concept and convention may not be the

same from company to company

Financial statement are prepared to show true fair view, hence the

actual figures may not be shown in them;

Financial statements only disclose monetary facts and non-monetary

facts that can only be disclosed in notes to the financial statement.

HYPOTHESIS FORMULATION

A hypothesis is a prediction of expected outcomes; it states the

relationships between variables that the researcher expects to find as a

result of the study. Ifthat is so, then the hypothesis represents a

formalized focus for the collection of data.

Further highlights:

1- A hypothesis is needed only when there is an interaction between

variables. Now suppose that you want to detect the ratio females:

males of the associates of this journal, then there is no need to

formulate a hypotheses as far as there are no interactions of

variables.2- A hypothesis is derived from an observation or a

reflection.3- A hypothesis should specify the following: population,

cause, outcome, dose response and time response. For example:

"Eating more (cause) makes people fat". This is less well-defined than

the following: "Eating more than3 meals (dose) for 3 month (time), will

increase the weight of individual adult (population) by 8 kilogram

(outcome).To formulate the null hypothesis (Ho), just add the word

(not) to the wording of the alternative hypothesis. The last is the one

you should strive to disprove.4- One study might need more than one

hypothesis. This would depend on the number of indicators involved.

RESEARCH DESIGNS

Before examining types of research designs it is important to be clear

about the role and purpose of research design. We need to understand

what research design is and what it is not. We need to know where design

fits into the whole research process from framing a question to finally

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analysing and reporting data. This is the purpose of this chapter.

Description and explanation Social researchers ask two fundamental types

of research questions:1 What is going on (descriptive research)?2 Why is

it going on (explanatory research)?

Descriptive research although some people dismiss descriptive research

as `mere description', good description is fundamental to the research

enterprise and it has added immeasurably to our knowledge of the shape

and nature of our society. Descriptive research encompasses much

government sponsored research including the population census, the

collection of a wide range of social indicators and economic information

such as household expenditure patterns, time use studies, employment

and crime statistics and the like. Descriptions can be concrete or abstract.

A relatively concrete description might describe the ethnic mix of a

community, the changing age profile of a population or the gender mix of

a workplace. Alternatively

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References

Asika N(1991) Research methodology in Behavioural sciences, Ikeja:longman Publisher.

Dawson, Catherine, 2002, Practical Research Methods, New Delhi, UBS Publishers’ Distributors

Kothari, C.R.,1985, Research Methodology- Methods and Techniques, New Delhi, Wiley Eastern Limited.

Kumar, Ranjit, 2005, Research Methodology-A Step-by-Step Guide for Beginners,(2nd.ed.),Singapore, Pearson Education

Roozenburg, N.F.M. and Eekels, J. (1995) Product Design: Fundamentals and Methods, Utrecht: Lemma.

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