ARBA

ARBAMINCH
MINCH UNIVERSITY
COLLEGE OF BUARBA
SCHOOL MINCHSTUDIES
OF GRADUATE UNIVERSITY
COLLEGE OFOF
DEPARTMENT BUSINESS AND ECONOMICS
ACCOUNTING AND FINANCE
Department Of Accounting and Finance
SINESS AND ECONOMICS
RESEARCH METHODS IN ACCOUNTING
Department Of Accounting and FinanceAND
FINANCE

By:- Dr. Wondwossen Jerene

April, 2021
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OUTLINE
1.Introduction and Overview of Research
2.Formulating A Research Problem
3.Literature Review
4.Research Design and Methods
5.Research Proposal Development
6.Data Analysis and Interpretation
7.Writing the Research Report

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 CHAPTER ONE

INTRODUCTION AND OVERVIEW OF RESEARCH

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 WHAT IS RESEARCH ?
 Everywhere, our knowledge is incomplete and
problems are waiting to be solved.
 The role of research is to provide a method for
obtaining those answers by inquiringly studying the
evidence within the parameters of the scientific
method.
 Basically, it is a way of “re-searching” or looking again
at the world and making sense of it. Re (again) +
Search.
 The word research is composed of two syllables, re
and search: re is a prefix meaning again, anew or over
again; search is a verb meaning to examine closely
and carefully, to test and try, or to probe.
 Together they form a noun describing a careful,
systematic, patient study and investigation in some
field of knowledge, undertaken to establish facts or
principles. 4
• Research is a systematic
process of collecting, analyzing, and
interpreting information (data) to increase
understanding of a phenomenon about which we
are interested. ( Systematic and orderly (following a
series of steps).
 Research is a structured enquiry that utilizes
acceptable scientific methodology to solve
problems and create new knowledge that is
generally applicable.
Research is a process through which we attempt to achieve
systematically and with the support of data the answer to a
question, the resolution of a problem, or a greater understanding
of aphenomenon
It is a discovery (Rediscovery); A voyage from
the known to the unknown. This is a general
definition which applies to all disciplines.

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 Why do we learn Research Methods?
1. The aspiration of businessmen is changing
– They need more and better information
– They need to use improved techniques and tools
– They face information overload
2. Fast changing business environment
• There are dynamic changes in the:
 business,
 political and
 social environment.

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New problems are arising including:
Merger,
national public policy,
economic policies (tax, export and import,),
explosive technology growth and transfer,
continuing innovation in the global community (e.g. IT),
market issues (competition, changes in consumer behavior,
advertisement)
microeconomic issues (like employment, income, savings,
and investment).
• These changes demand new knowledge for
decision makers when evaluating alternatives to
solve problems.
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3. The trend toward complexity has increased the
risk associated with business decisions
• This complicated situation requires sound
information base for decision makers.
• This information can be acquired through a
business research.

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 Importance of Research
• The ultimate goal of research in any field is:
To generate accurate information for use in decision
making to solve:
 economic,
social,
environmental and
managerial problems
To generate theories and principles in the given field
and to increase the pace of knowledge development
in the field.
To reduce the risk of making wrong decisions by
reducing the uncertainty of decisions.
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 Characteristics of Scientific Research
is directed toward the solution of a problem;

is based upon observable experience or empirical

evidence;

demands accurate observation and description;

 involves gathering new data from primary or first-hand

sources or using existing data for a new purpose;

Characterized by carefully designed procedures,

requires expertise;

Strives to be objective and logical. 10

• According to Cooper 2006, a good research
should possess the following characteristics.
Purpose clearly defined.
Research process detailed:
Research design thoroughly planned:
High ethical standards applied:
Limitations frankly reveled:
Adequate analysis for decision maker’s needs:
Findings presented unambiguously:
Conclusions justified:
Researcher’s experience reflected
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 Goals of Scientific Research
• Research can be used for the purposes of:
 description,
explanation,
prediction, and
Control
Comparison

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 Research May Not Be Needed - when?
• Situations in which research may be inappropriate.
Information is already available.

There is insufficient time for research.

Resources are not available

Costs outweigh the Value of the research.

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 The Role of Business Research
• The main role of business research is:
 To provide information that facilitates management decisions.
 To identify and define market opportunities.
 To generate and refine management actions.
 managers determine which plan or strategy will best meet
opportunities.
 To monitor strategies and plans.
 To help managers to make better and informed decisions.
• Managerial decisions based on quality information help to reduce the
level of uncertainty and risk of business organizations.
• Information provided through business research should be:
• Accurate
• Current
• Sufficient
• Relevant
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• The Scientific Method and Characteristics of Research
• Research is a process of collecting, analyzing and
interpreting information to answer questions.
• But to qualify as research, the process must have certain
characteristics.
• It must, as far as possible,
 be controlled
 Rigorous/hard/strong
 systematic
 valid and verifiable
 empirical and
 critical

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Classification of Research

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• It is difficult to propose a single classification
method that fits different disciplines and is
acceptable by all.
• There is no clear dividing line between one
method and the other.
• Research can be classified in terms of:
Application of research,
Objectives of research,
Approaches of research
Time Dimension of Research
The type of data used in research

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 1. Based on the Application of Research
• The goal of research is problem solving.
• The nature of the problem that the research
attempts to solve could be theoretical or
practical – building a theory or solving
immediate practical problems.
• These leads to two broad classifications of
research:
1. Basic research, and
2. Applied research

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1. Pure/Fundamental/Basic Scientific Research
• It is aimed at the advancement of knowledge and
the theoretical understanding of the relations
among variables.
• It is basically concerned with the formulation of a
theory or a contribution to the existing body of
knowledge.
• It is designed to add to an organized body of
scientific knowledge and
• But it does not necessarily produce results of
immediate practical value.
• The major aims of basic research include:
Obtaining and using empirical data to formulate, expand,
or evaluate theory; and
Discovery of knowledge solely for the sake of
knowledge. 28
• The motivation behind is to expand human knowledge,
not to create or invent something that has practical
significance.
• It has no direct benefits, rather indirect benefits, which
can contribute greatly to the advancement of humanity.
• In general, basic research:
 Represents a rigorous and structured type of analysis;
 Employs careful sampling procedures to extend the findings
beyond the group or situation; and
 Has little concern for the application of the findings or social
usefulness of the findings.
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 2) Applied Research
• It is designed to solve practical problems of the modern world, rather
than to acquire knowledge.
• Its goal is to improve the human condition.
• It is undertaken to solve immediate practical problem and the goal of
adding to the scientific knowledge is secondary.
• It look for answers to specific questions that help humanity.
• Example: medical research or environmental studies.
• The purpose of applied research is about:

testing theories, often generated by pure science, and

 applying them to real situations,
addressing more than just abstract principles.
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• 2. Based on Objectives of Research
Descriptive,
Explanatory
Exploratory research.
a)Descriptive Research
• It sets out to describe and to interpret what is.
• It looks at individuals, groups, institutions,
methods and materials to:
 describe,
Compare and contrast,
classify,
analyze and
 interpret the entities and the events that constitute the various
fields of inquiry.
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• It aims to describe the state of affairs as it exists.
• It is to describe some aspect of a phenomenon,
i.e., the status of a given phenomenon.
• It helps to understand a topic and lead to causal
analysis.
• It involves a variety of research methods to
achieve its goal. These are:
Surveys
Correlation studies
Observation studies
Case studies

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 i. Surveys
• It gather data at a particular point in time with the
intention of :
describing the nature of existing conditions, or
identifying standards against which existing conditions can be
compared, or
determining the relationships that exist b/n specific events.
They may vary in their levels of complexity and in
terms of their scope.
It is used to scan a wide field of issues, populations,
programs etc. to measure or describe any
generalized features.
 It is useful in that it usually:
 gathers data on a one-shot basis and hence is economical and
efficient;
 represents a wide target population
 generates numerical data;
 provides descriptive, inferential and explanatory information; 35
 ii. Correlational Studies
• It studies to trace relationships among two or more
variables in to gain greater situational insight.
• We may wish to know, for example, whether there
is relationship b/n:
 sex and choice of field of study;
whether criminal behavior is related to social class
background; or
the number of years spent in full-time education and
subsequent annual income.
 Its purpose is not to establish cause-effect r/nship
among variables rather to determine:
 whether the variables under study have some kind of association or
not.
 Variables being studied may have positive or
negative relationship or they may not have
relationship at all.
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 iii. Observation Studies
• It involve observing and recording of behavior or
trait or attribute as it occurs in its natural
settings.
• Features observation study :
Non-interference.
involves the observation and detection of invariants, or
behavior patterns or other phenomena that exist in the
real world.
useful when we know little or nothing about a certain
subject.
It is basically descriptive.
it cannot tell us why the phenomenon occurred.
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 b) Explanatory Research
• Is to identify the reasons for something that occurs.
• It aims to understand phenomena by discovering and
measuring causal relations among them.
• It looks for causes and reasons.
• It involves:
 Explaining things not just reporting. Why?
 Determining which of several explanations is best.
 Determining the accuracy of the theory;
 Providing evidence to support ing
 Testing a theory's predictions or principles.
 Answering the “why” questions involves developing causal
explanations.
 Causal explanations argue that phenomenon Y is affected
by factor X.
 There are two types of explanatory research:
• Experimental research
• Ex post facto research
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 i) Experimental Research
• A researcher create two matched groups as similar
as possible to test his/her hypothesis:
One group is considered as the experimental group
the other as the control group.
 The experimental group is the one on which the
tests are conducted.
 The role of the control group is very critical since it
serves to isolate the experimental stimulus as the
single source of change among the experimental
stimulus.
• In experimental research, the researcher
intentionally manipulates one variable to measure
its effect on the other.
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 ii) Ex Post Facto Research
• It refers to those studies which investigate
possible cause-and-effect relationships by
observing an existing condition or state of affairs
and searching back in time for plausible causal
factors.

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 c) Exploratory research
• It is conducted when there are few or no earlier studies
to which references can be made for information.
• It is a type of research conducted because a problem
has not been clearly defined.
• Its purpose is to gain background information and
better understand and clarify a problem.
• Exploratory research helps to:
– determine the best research design,
– develop hypotheses
– develop questions to be answered,
– understand how to measure a variable,
– determine data collection method, and
– Determine selection of subjects. 41
 3) Based on Approaches/Inquiry Mode of Research
a) Qualitative Research
• It involves studies that do not attempt to quantify their
results through statistical summary or analysis.
• Data are often in the form of descriptions, not numbers.
• Sometimes results of qualitative research are subjected
to relatively less rigorous quantitative treatment.
• Often the goal of qualitative research is to look for
meaning.
• It is thus a type of empirical enquiry that entails purposive
sampling for gathering data.
• It typically involves in-depth interviews, group
discussions, artifact studies, projective techniques, and
observations without formal measurement.
• Qualitative research is much more time consuming, but
provides more richness to the data.
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b) Quantitative Research
• It is the systematic and scientific investigation of
quantitative properties and phenomena and their
relationships.
• Its objective is to develop and employ
mathematical models, theories and hypotheses
pertaining to natural phenomena.
• The process of measurement is central to
quantitative research b/c it provides the
fundamental connection b/n empirical observation
and mathematical expression of an attribute.
• It usually starts with a theory or a general
statement proposing a general relationship b/n
variables.
• It attempt to test hypotheses or statements with a
view to infer from the particular to the general.44
 4. Time Dimension/Span of Research

Cross-sectional Longitudinal

 Studying groups of people at  Studying the same individuals

one time over time
 Researcher doesn’t have to  Evaluates how things
wait until subjects grow older change over time
 Provides no information about  Time consuming and costly
the stability of dataover time

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 5. Based on Type of Data
• Depending of the type of data generated and used
research can be classified as:
Primary research/ field research and
Secondary research/desk research.
a) Primary research:
 involves the collection of data that does not already
exist
b) secondary research
 involves the summary, collation and/or synthesis of
existing data.

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 Conceptual vs Empirical Research
a) Conceptual research
• It is related to some abstract ideas or theory.
• Philosophers and thinkers generally use it to develop new
concepts or to interpret existing ones.
b) Empirical research
• It is data-based, coming up with conclusions that are
capable of being verified, by observation or by experiment.
• In this kind of research, the researcher should collect
enough data to prove or disprove his hypothesis.
• It is appropriate when proof that certain variables affect
others variables in some way is sought.
• Evidence gathered through experiments or empirical
studies provides the most powerful support possible for a
given hypothesis.
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Research Process

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• It involves:
1. Formulating research problem What to do

2. Conceptualization of research design

3. Constructing instrument for data collection Planning
how to
4. Sample determination do

5. Writing research proposal

6. Collecting data
7. Data processing
 Data coding
 Editing
 Data presentation Conducting of
 Data analysis the Study
 Actually
 Conclusion and recommendation Doing it
8. Writing Research report
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 RESEARCH PROCESS AT A GLANCE

Research Problem

Literature Review

Research Questions

Quantitative Research Qualitative Research

Research Designs

Quantitative Designs Qualitative designs

Combined Designs • Action research
-Experimental -Mixed methods • Grounded theory
-Correlational - • -Ethnography
-Survey • -Narrative

Instruments
Data Analysis Interpretation

Discussion, Conclusions, Limitations, Future Research

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The Research‘Onion’

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 Activity 1
• 1. List down six (6) researchable problem areas in
Accounting and Finance.
• 2. List ten (10) thesis titles in Accounting and
Finance (Customize the global scenario in to
Ethiopian context)
• Instruction: submit hand written paper in the
next class.

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Thank You!!!
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