ARSI UNIVERSSITY

COLLEGE OF BUSINESS & ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

ASSIGNMENT FOR THE COURSE:

“RESEARCH METHODS IN ACCOUNTING AND FINANCE (AcFn3101)

Prepared by:-

Ayalnesh Tibebu
(IDNo. Ex-0809/10

AU, Bishoftu campus

Oct 15 , 2020
 Table of contents
1.

Answers for Chapter 1 Questions................................................................................................................1

1.1 Definition of Research in terms of its components...........................................................................1
1.2.Explanation of the three purpose of research.....................................................................................1
1.3. Explanation of the three types of research........................................................................................2
1.4 Research ethics in the area of accounting and finance research.........................................................3
2. Answers for Chapter 2 Questions............................................................................................................4
2.1 Differentiate between background of the study and problem statement.............................................4
2.2 Differentiate between scope and the limitation of a study.................................................................5
2.3 Explain the relationship exists between research questions and specific objectives..........................6
2.4 Define the significance of a study and identify the two major beneficiaries of the research..............6
2.5 The subcomponents of the introduction chapter of a thesis...............................................................7
3. Answers for Chapter 3 Questions............................................................................................................8
3.1. List down the major sources of LR in the scientific research writing...............................................8
3.2. The purpose of conducting LR.........................................................................................................8
3.3. The conceptual framework and list the different ways of presenting it.............................................8
3.4 The three types of research hypothesis..............................................................................................9
References.................................................................................................................................................11

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 Research Methods of Accounting and Finance (AcFn3101)

Answers for Chapter 1 Questions

1.1 Definition of Research in terms of its components
Research is the art of investigating, gathering of data, information and facts for the advancement
of knowledge.
Research is a sign of intelligence
 Intelligence can be defined as the adaptation of an environment to suit needs, which is
why humans can be acknowledged as the most 'intelligent' of species.
 Humans observe, identify, plan and then effect change.
 Humans have social gain through information as well as resource sharing.
 As apart from any other species, humans have complex language structures and the
written word to share information from one person to another.
 Literate societies with well structured, permanent means of communicating information
have immense evolutionary advantage.
Systematic research in any field of inquiry involves three basic operations-
 Data collection: It refers to observing, measuring, and recording information.
 Data analysis: It refers to arranging and organizing the collected data so that we may be
able to find out what their significance is and generalize about them.
 Report writing: It is an inseparable part and a final outcome of a research study. Its
purpose is to convey information contained in it to the readers or audience.
1.2. Explanation of the three purpose of research
There are three types of research,
exploratory research, descriptive and explanatory research that are explained below:
Exploratory Research
It is a study of new phenomenon. Exploratory research is characterized by its flexibility.
When a problem is broad and not specifically defined, the researchers use exploratory
research as a beginning step.
Exploratory studies are a valuable means of understanding what is happening; to seek
new insights; to ask questions and to assess phenomenon in a new light.

Exploratory research has the goal of formulating problems more precisely, clarifying
concepts, gathering explanations, gaining insight, eliminating impractical ideas and

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forming hypotheses. Literature research, survey, focus group and case studies are usually
used to carry out exploratory research.

Descriptive Research
When a particular phenomenon is under study, the research is needed to describe it, to
clarify and explain its inner relationships and properties. The descriptive research will
portray an accurate profile of people, events or situations.

Descriptive research in contrast with exploratory research defines questions, people

surveyed and the method of analysis prior to beginning of data collection. In other words,
descriptive research defines the research aspects viz., who, what, where, when, why and
sometimes how of the research.

Explanatory Research
When the focus is on cause-effect relationships, the study can be explanatory explaining
which causes produce which effects. Our concern in casual analysis is how one variable
affects, or is „responsible for‟, changes in another variable. The stricter interpretation of
causation is that some external factor produces a change in the dependent variable.

Explanatory research which is grounded in theory is another research purpose type, and
the theory is created to answer why and how questions.

Explanatory studies go beyond description and attempts to explain the reasons for the
phenomenon that the descriptive study only observed. In an explanatory study, the
researcher uses theories or hypotheses to represent the forces that caused a certain
phenomenon to occur.
1.3. Explanation of the three types of research
Research can be classified from three perspectives:
1. application of research study
2. objectives in undertaking the research
3. inquiry mode employed

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Research Application:
From the point of view of application, there are two broad categories of research:
 pure research and
 applied research.

Pure research involves developing and testing theories and hypotheses that are
intellectually challenging to the researcher but may or may not have practical application at
the present time or in the future. The knowledge produced through pure research is sought
in order to add to the existing body of research methods.

Applied research is done to solve specific, practical questions; for policy formulation,
administration and understanding of a phenomenon. It can be exploratory, but is usually
descriptive. It is almost always done on the basis of basic research. Applied research can be
carried

1.4 Research ethics in the area of accounting and finance research

Research ethics provides guidelines for the responsible conduct of research. In addition, it
educates and monitors scientists conducting research to ensure a high ethical standard. The
following is a general summary of some ethical principles:
Honesty: Honestly report data, results, methods and procedures, and publication status. Do not
fabricate, falsify, or misrepresent data.
Objectivity: Strive to avoid bias in experimental design, data analysis, data interpretation, peer
review, personnel decisions, grant writing, expert testimony, and other aspects of research.
Integrity: Keep your promises and agreements; act with sincerity; strive for consistency of
thought and action.
Carefulness: Avoid careless errors and negligence; carefully and critically examine your own
work and the work of your peers. Keep good records of research activities.
Openness: Share data, results, ideas, tools, resources. Be open to criticism and new ideas.

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Respect for Intellectual Property: Honor patents, copyrights, and other forms of intellectual
property. Do not use unpublished data, methods, or results without permission. Give credit where
credit is due. Never plagiarize.
Confidentiality: Protect confidential communications, such as papers or grants submitted for
publication, personnel records, trade or military secrets, and patient records.
Responsible Publication: Publish in order to advance research and scholarship, not to advance
just your own career. Avoid wasteful and duplicative publication.
Responsible Mentoring: Help to educate, mentor, and advise students. Promote their welfare
and allow them to make their own decisions.
Respect for Colleagues: Respect your colleagues and treat them fairly.
Social Responsibility: Strive to promote social good and prevent or mitigate social harms
through research, public education, and advocacy.
Non-Discrimination: Avoid discrimination against colleagues or students on the basis of sex,
race, ethnicity, or other factors that are not related to their scientific competence and integrity.
Competence: Maintain and improve your own professional competence and expertise through
lifelong education and learning; take steps to promote competence in science as a whole.
Legality: Know and obey relevant laws and institutional and governmental policies.

Answers for Chapter 2 Questions

2.1 Differentiate between background of the study and problem statement
The background study for a thesis includes a review of the area being researched, current
information surrounding the issue, previous studies on the issue, and relevant history on the
issue. Ideally, the study should effectively set forth the history and background information on
your thesis problem.
A problem statement is a clear concise description of the issue(s) that need(s) to be addressed by
a problem solving team. It is used to center and focus the team at the beginning, keep the team
on track during the effort, and is used to validate that the effort delivered an outcome that solves
the problem statement.
The purpose of a problem statement is to:
1. Introduce the reader to the importance of the topic being studied. The
reader is oriented to the significance of the study and the research questions,
hypotheses, or assumptions to follow.
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2. Place the topic into a particular context that defines the parameters of what
is to be investigated.
3. Provide the framework for reporting the results and indicates what is
probably necessary to conduct the study and explain how the findings will
present this information.
2.2 Differentiate between scope and the limitation of a study
To indicate “research methodology” for theses, dissertations and research papers is a good
practice. When it comes to dissertations and theses, the research methodology is written in detail.
Often, there are sub headings within the research methodology.
There are two aspects in research methodology that may be quite confusing –
 Scope of the study
 Limitations of the study
Scope
Scope of the study is set by the research himself/herself. The scope of the study is important, so
that focus is maintained and at the same time, the research is specific and remains faithful to its
objectives.

The scope of knowledge is vast. But all research projects are time bound. Hence, it is important
to fix the scope of the research. As I said earlier, the researcher himself / herself has to fix the
scope of the research.

While fixing the scope, the researcher has to take into consideration:
 the time available
 resources available
 ability to travel far distances
 density of data / information in a set space / area
The scope can be set in terms of geographical area, number of legal systems studied, the time
period of study, amount of resources referred and data.
Limitations
When we say “limitations of the study”, we are referring to the aspects that are beyond the
control of the researcher.

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The act of limiting or the state of being limited.

A restriction; a boundary, real or metaphorical, caused by some thing or some circumstance.

2.3 Explain the relationship exists between research questions and specific objectives
Research questions are main broad questions and may be complemented by a few investigative
questions.
 They must be fact-oriented, information-gathering questions, capable of being
confirmed or refuted.
Research objectives are statements of intention or actions intended. Objectives may be specified
in the form of actions (verbs) to answer the posed questions.
 Generally objectives begin with: to discover, to determine, to establish, to
access, to identify, to compare, to analyze, to evaluate, and the like.
Research questions are those questions upon which your research project will be focused and
for which timely and informed answers can be directly developed based on an analysis of the
data you collect
By contrast, research objectives are directly linked to your research questions and are used to
describe the general and specific aims and outcomes that are intended to be achieved by a study
What are the research objectives?
In general, research objectives describe what we expect to achieve by a project.
Research objectives are usually expressed in lay terms and are directed as much to the client as
to the researcher. Research objectives may be linked with a hypothesis or used as a statement of
purpose in a study that does not have a hypothesis.
Even if the nature of the research has not been clear to the layperson from the hypotheses, s/he
should be able to understand the research from the objectives.
2.4 Define the significance of a study and identify the two major beneficiaries of the
research
 The significance of the study is basically the importance of your research. The
significance of a study must be stated in the Introduction section of your research paper.
While stating the significance, you must highlight how your research will be beneficial to
the development of science and the society in general.

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 You can first outline the significance in a broader sense by stating how your research will
contribute to the broader problem in your field and gradually narrow it down to
demonstrate the specific group that will benefit from your research. While writing the
significance of your study, you must answer questions like:
 Why should your research be published?
 How will this study contribute to the development of your field?
2.5 The subcomponents of the introduction chapter of a thesis
The subcomponents of introduction chapter of a thesis
 Background – What is the context of this problem? In what situation or environment can
it be observed? (Provide sufficient information for the readers to understand the topic you
are researching about.)
 Statement of the Problem – What is it that we do not know? What is the gap in our
knowledge this research will fill? What needs to be improved?
 Rationale or Justification of the Study – Why is this research important? Who will
benefit? Why do we need to know this?
 Research Questions – What is it that you want to find out? (a question that’s broad
enough to stimulate your interest and narrow enough that you can provide a convincing
answer)
 Hypotheses – What ideas are suggested as possible explanation for the problem, situation
or condition and will be proved to be correct or incorrect by the research?
 Objectives – What steps will the researcher take to try and fill this gap or improve the
situation? (Relate them to the research problem.)
Break down a general objective into minor, connected parts (specific objectives). Specific
objectives should systematically address the different research questions, and specify
what you will do in your study, where and for what purpose.
 Scope of the Study – Is the study limited to a specific geographical area or people, or to
only certain aspects of the situation? Is there any aspect of the problem the researcher
will not discuss?
 Limitation of the Study – Is there any factor, condition or circumstances that will
prevent the researcher from achieving all his/her objectives?

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 Conceptual Framework – sometimes referred to as “theoretical framework”; presents

your ideas in a model or illustration of what you intend to investigate and some theories
related to it. The research problem is a part of the conceptual framework that you will
build based on the existing theories and research.

Answers for Chapter 3 Questions

3.1. List down the major sources of LR in the scientific research writing
Literature review sources
Literature review sources can be divided into three categories as illustrated in table below:
 Primary sources for the literature :
Examples: Reports, Theses, Emails, Conference proceedings, Company reports,
Unpublished manuscript sources, Some government publications
 Secondary sources for the literature :
Examples Journals Books, Newspapers, Some government publications
 Tertiary sources for the literature
Examples: Indexes, Databases, Catalogues, Encyclopedias, Dictionaries, Bibliographies
Citation indexes
3.2. The purpose of conducting LR
The purpose of a literature review is to gain an understanding of the existing research and
debates relevant to a particular topic or area of study, and to present that knowledge in the
form of a written report.
Conducting a literature review helps you build your knowledge in your field. You’ll learn
about important concepts, research methods, and experimental techniques that are used in
your field. You’ll also gain insight into how researchers apply the concepts you’re learning in
your unit to real world problems.

There are several reasons to conduct a literature review at the beginning of a research project:
 To familiarize yourself with the current state of knowledge on your topic
 To ensure that you’re not just repeating what others have already done
 To identify gaps in knowledge and unresolved problems that your research can address

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 To develop your theoretical framework and methodology

 To provide an overview of the key findings and debates on the topic
3.3. The conceptual framework and list the different ways of presenting it.
What is a Conceptual Framework?
A Conceptual framework is a visual representation that helps to illustrate the expected
relationship between cause and effect in a financial context. It is also called a Conceptual Model
or research model. Different variables and the assumed relationships between those variables
are included in the model and reflect the expectations.

A Conceptual Framework is a tool that is used before to a study. This makes a Conceptual
Framework an analytical tool. It is used to make conceptual distinctions and bring together
different ideas. Strong Conceptual Frameworks lead to actual realisation of the intended
objective.

In fact, the Conceptual Framework is a representation of a problem statement / research question.

It also looks pretty simple. Once the independent and dependent variables have been determined,
a Conceptual Framework can be started:
 Frameworks – The dependent and independent variables are drawn up in the frames.
 Arrows – the arrows between two concepts indicate that there is a causal link; where the
arrow comes from influences where the arrow points to.
 Lines – where a relationship (correlation) between 2 variables is expected, but no
connection, a line is used

3.4 The three types of research hypothesis

The word hypothesis is derived form the Greek words “hypo” means under ; “tithemi” means
place . Under known facts of the problem to explain relationship between these
 a statement subject to verification
 a guess but experienced guess based on some facts
 is a hunch, assumption, suspicion, assertion or an idea about a phenomena, relationship,
or situation, the reality of truth of which one do not know

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 A researcher calls these assumptions, assertions, statements, or hunches hypotheses and

they become the basis of an inquiry.
 In most cases, the hypothesis will be based upon either previous studies or the
researcher’s own or someone else’s observations
 Hypothesis is a conjectural statement of relationship between two or more variable
(Kerlinger, Fried N, Foundations of Behabioural Research , 3rd edition, New York: Holt,
Rinehart and Winston, 1986)
Three types
 working hypothesis
 Null hypothesis
 Alternate hypothesis
Working hypothesis
The working or trail hypothesis is provisionally adopted to explain the relationship between
some observed facts for guiding a researcher in the investigation of a problem. A Statement
constitutes a trail or working hypothesis (which) is to be tested and conformed, modifies or even
abandoned as the investigation proceeds.

Null hypothesis
A null hypothesis is formulated against the working hypothesis; opposes the statement of the
working hypothesis. It is contrary to the positive statement made in the working
hypothesis; formulated to disprove the contrary of a working hypothesis

When a researcher rejects a null hypothesis, he/she actually proves a working hypothesis In
statistics, to mean a null hypothesis usually Ho is used. For example, Ho €Q = O where Q is the
property of the population under investigation O is hypothetical
Alternate hypothesis
An alternate hypothesis is formulated when a researcher totally rejects null hypothesis . He/she
develops such a hypothesis with adequate reasons The notion used to mean alternate hypothesis
is H1 €Q>O i.e., Q is greater than O
 Working hypothesis: Population influences the number of bank branches in a
town

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 Null hypothesis (Ho): Population do not have any influence on the number of
bank branches in a town.
 Alternate hypothesis (H1): Population has significant effect on the number of
bank branches in a town. A researcher formulates this hypothesis only after
rejecting the null hypothesis.

References
 Zikmund W.G.(200). Business Research Methods.6th ed.,Totonto,Canada
 Hemsley-Brown.J.(2004).’Facilitating Research Utilization: A cross-sector review
of research evidence’.
 https://www.wisdomjobs.com/e-university/research-methodology-tutorial-
355/procedure-for-hypothesis-testing-11525.html
 kabir, S. M. (2016). Introduction to Research. uk.
 Whybark.D.C(1997).”Research in operations management

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