ACC 80 - Accounting Research Methods

OVERVIEW OF RESEARCH

Specific Objectives
After studying this module, you should be able to:

1. Define research and illustrate the attributes of a formal research;

2. Describe the significance of research in accounting and the economy;
3. Describe the dimensions of a formal research;
4. Classify formal research according to purpose, application of results, information
type and time dimension;
5. Compare and contrast the classifications of research;
6. Discuss the elements of research methodology and relate them with research
method;
7. Differentiate the various sources of knowledge and evaluate their usefulness;
8. Contrast the two methods of drawing conclusions from research; and
9. Explain the nature and components of theory and analyze its role in research.

Learning Sequence/Input

LECTURE 1: Fundamentals of Research

Introduction

 “Research is a key to progress. There can be no progress without research in almost if

not all human endeavors. In the government, education, in trade and commerce, and in
all types and kinds of industries, research is vital and essential”. (Calderon & Gonzales,
2011)

 The word research is frequently used in everyday conversation, especially in the

academe. It means a lot of things when used in ordinary parlance. Examples:
 Students are required to do a library or internet research about something or
someone with a written report submitted after the said research.
 Products are advertised to have been produced as a result of long years of
research.
 Medicines like vaccines are said to be products of research.
 Polls of people's opinions are also reported to be a product of research.

o These activities, however, could not be considered research in the technical

sense, especially if they were conducted merely to gather facts or information
without clear purpose and without interpretation of the data gathered.

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o While collecting data may be part of the research process, if it was not
undertaken in a systematic manner and was not analyzed or interpreted
systematically, the act remains to be mere data gathering and not a formal
research. Similarly, mere assembling of data from a variety of sources without
the systematic process of interpretation does not qualify as a research
(Mendoza, 2012).

 An activity to be considered as a research should entail a systematic process that uses

data to achieve a clear purpose such as answering a question, gaining an understanding
of an event or phenomenon, or solving a problem.

o The term "systematic" suggests that research is based on logical relationships

and not just beliefs. It follows an orderly and sequential procedure that leads to
the discovery of truth, solution of a problem or whatever is aimed to be
discovered.

Definitions of Research

There is no single universal definition of research, but literally, the term research means to
search for. Among other definitions advanced by scholars as cited by different authors are:

 The systematic investigation into and study of materials and sources in order to
establish facts and reach new conclusions (Internet).
 The systematic process of collecting and analyzing information in order to increase our
understanding of the phenomenon with which we are concerned or interested (Leedy
and Ormrod, 2010).
 Something that people undertake in order to find out things in a systematic way,
thereby increasing their knowledge. (Saunders, et a1., 2010).
 To solve problems and expand knowledge (Howard and Sharp, 1988).
 A process of arriving at a dependable solutions to a problem (Osuala, 1990)
 An organized inquiry that aims at providing information for solving identified problems
(Asika, 1990)
 A systematic effort to secure answers to questions (Reinard 1994)
 A quest for new knowledge pertinent to an identified problem through the application
of scientific tools (Fagbohungbe, 1998).
 The process of gathering data or information to solve a particular or specific problem in
a scientific manner (Calderon & Gonzales, 2011).
 A scientific investigation of phenomena which includes collection, presentation, analysis
and interpretation of facts that links an individual’s speculation with reality.

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 It is a systematic study of a trend or event which involves careful collection,

presentation, analysis and interpretation of quantitative data or facts that relates man’s
thinking with reality.

 From the given definitions of research we can say that research is about three
issues:
 Solving problem
 Using scientific method in solving the problem
 Advancing knowledge or contributing to the present one.

Characteristics of a Formal Research:

1. Question or problem as starting point.

o Research originates with a problem that should be solved or a question that
should be answered.
 Such problem or question should be clearly defined in terms of scope and
context.
 The problem or question statement should be properly contextualized to
distinguish the research problem from other problems in the unit of study
such as organization and group.

2. Clear articulation of a goal.

o Research requires a clear and unambiguous statement of the purpose of the
research which sets the direction for all other steps to be undertaken.
o Generally, a research aims to describe, explain, predict, and relate events and
behavior or attributes of the subject of study.

3. Specific plan of procedures.

o The overall research effort must be explicitly planned and logically designed.
o The plan serves as the roadmap that every entity involved in the research can
rely on for whatever task should be accomplished.

4. Collection and interpretation of data.

o This attribute makes research an empirical entity that could afford sufficient
basis for whatever conclusion it advanced and uphold.
o These two distinct, yet related tasks should be well-planned and properly
implemented to enable reasonable assurance that observations support the
purpose of the study and its intended use.

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5. Statement of the study limitations.

o Since all desired data may not be completely gathered and all expected
procedures may not be possibly executed, it is necessary that the research
discloses the corresponding restrictions or constraints.
o The expression of the research limitations cautions the users on the resultant
effect of the findings and conclusions of the study.

6. Clear presentation of findings and conclusions.

o The findings and conclusions constitute the value-added characteristics of a
formal research.
o Since the research recommendations are based on the findings and conclusions,
it is important that they are clearly presented to enable the users to evaluate or
appraise the depth, feasibility, and practicality of said recommendations.

Tabulated Comparisons of the Characteristics of Research

Characteristics of Formal Research by Leedy Characteristics of Research by Cooper and

and Ormond, 2010, as cited by Mendoza Schindler,2003, as cited by Mendoza
1. Research originates with a problem or 1. Purpose is clearly defined.
question.
2. Research requires a clear articulation of a 2. Research process is detailed
goal.
3. Research follows a specific plan of 3. Research design is thoroughly planned.
procedures.
4. Research usually divides the principal 4. High ethical standards are applied.
problem into more manageable sub
problems.
5. Research is guided by the specific 5. Limitations are frankly revealed.
research problem, question, or
hypothesis.
6. Research requires the collection and 6. Adequate analysis for decision maker’s
interpretation of data in attempting to needs is presented.
resolve the problems that initiated the
research.
7 Research is, by its nature, cyclical; or 7. Findings are presented unambiguously.
more exactly, helical. 8. Conclusions are justified.
9. Researcher’s experience is reflected.

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Purposes of Undertaking Research

 The possible purpose for doing research may be either one or more of the following:
1. To quench curiosity – a desire to know something
2. Willingness to solve problems
3. Desire to find out the relationship that exist between variables
4. Willingness to reduce the level of uncertainty when plans are being made
5. Desire to be of service to society.

Significance of Research
All progress is born of inquiry. Doubt is often better than over confidence, for it
leads to inquiry and inquiry leads to invention. Increase amounts of research make
progress possible. The role of research in several fields of applied economics, whether
related to the economy as a whole, has greatly increased in modern times. Some of its
significance are as below:
1. It is an aid to economic policy both for government and business
2. It facilitates the decisions of the policy makers
3. It helps in solving various operational and planning problems of business and
industry.
4. It is important for social scientists in studying social relationships and in seeking
answers in various social problems and
5. To those students, professionals, among others who are to write project, thesis,
dissertation, among others research may mean of careerism or a way to attain a
high position in the social structure.

Dimensions of Research

Formal research, both in natural and social sciences, has certain dimensions
distinguishing it from the loosely classified type of research. Four dimensions dominant in
scientific research which are bases in classifying researches:

1. Purpose of the research undertaking

2. Application of the overall research findings or results
3. Type of information gathered and analyzed
4. Time element in the conduct of the research

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Dimensions and Classifications of Research

Purpose Application Information Type Time

Descriptive Basic Quantitative Cross-sectional
Explanatory Applied Qualitative Longitudinal
Exploratory

Research Classification According to Purpose

 A formal research is conducted with one purpose or a combination of the following

purposes:
1. Description
2. Explanation
3. Exploration

DESCRIPTION

o Entails precise measurement and reporting of the characteristics of some phenomenon

or population under study. The type of research with this purpose is called descriptive
research.
o Descriptive research attempts to describe systematically a situation, problem,
phenomenon, service or program.
 It provides information about some conditions and describes attitudes towards
an issue.
 It uses visual aids such as graphs and charts to aid the reader in understanding
the data distribution.
 It reduces the data to manageable form.
o Descriptive research can be either quantitative or qualitative
 It can involve collections of quantitative information tabulated along a
continuum in numerical form, such as scores on a test or the number of times a
person chooses to use a certain feature of a multimedia program.
 It can also describe categories of information such as gender or patterns of
interaction when using technology in a group situation.

EXPLANATION

o Involves the discovery and reporting of relationship among the different aspects of the
phenomenon under study.
o When the relationship is able to foretell the occurrence of certain aspects of the
phenomenon, the study is capable of making prediction or the estimation of scores on
one variable from information about one or more other variables.

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o Research with this purpose is called explanatory research.

 Explanatory research attempts to clarify why and how there is a relationship
between two aspects of a situation or phenomenon.
 A subcategory of explanatory research is correlational research-one that
emphasizes on the discovery or establishment of the existence of a relationship,
association, or interdependence between two or more aspects of a situation or
phenomenon.
o In general, a correlational research is a quantitative study wherein a
relationship of two or more variables from the same group of subjects is
determined.
 Theoretically, any two quantitative variables can be correlated as long as
there are scores on these variables from the same participants.
 It is a waste of time, however, to collect and analyze data when there are
slim chances to prove that these two variables are related to each other.

EXPLORATION

o This refers to an attempt to develop an initial, rough understanding of some

phenomena.
o Exploratory Research is a type of research conducted for a problem that has not been
clearly defined.
 It helps determine the best research design, data collection method, and
selection of subjects for a problem.
 It is done to satisfy the researcher’s curiosity and desire for better
understanding and test the feasibility of undertaking a more careful study.
 It often relies on reviewing secondary documents and other available literature
and/or data.
 It uses qualitative approaches such as informal discussions with consumers,
employees, management or competitors, and more formal approaches through
in-d interviews, focus groups, projective methods, case studies or pilot studies.
 The results of exploratory research are not usually useful for decision-making by
themselves, but they can provide significant insight into a given situation.

Research Classification According to Results Application

1. Basic Research
2. Applied Research

BASIC RESEARCH also called pure or theoretical research

o Undertaken to increase one’s knowledge about certain phenomenon or behavior but

does not seek to solve any existing problem. It only seeks new ways of thinking.

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o There is no immediate or direct benefit as it is a research for the sake of research.

Nonetheless, it is the source of many new theories, principles, and ideas. It adds to the
body of knowledge in a particular field or discipline.
o Involves developing and testing theories and hypotheses that are intellectually
interesting to the investigator and might have some applications in the future, but have
no application to social problems in the present time.
o Oftentimes, there is no commercial value to the discoveries resulting from basic
research. However, this type of research may ultimately contribute directly or indirectly
to practical problem solutions and it is also possible that basic research forms the basis
of another applied research or the development of some commercial products in the
long run.

APPLIED RESEARCH

o Refers to a scientific study that seeks to solve practical problems, rather than acquire
knowledge for knowledge's sake.
o In social sciences, the overarching goal of applied research is to improve the human
condition.
 For example, applied researchers may investigate ways to improve agricultural
crop production, treat or cure a specific disease, or improve the energy
efficiency of homes, offices, or modes of transportation.

A comparison of the nature of basic research and applied research is shown in the following
table:

Category BASIC RESEARCH APPLIED RESEARCH

(Theoretical Research) (Policy Research)
Purpose Producing knowledge for Producing knowledge for action
understanding
Discipline Usually confined to one discipline Often multidisciplinary
Audience Intended for a scholarly audience Intended for a public audience of policy
or for specialists makers as well as scholarly audience
Coverage Often narrow in focus as it strives Often comprehensive as it strives for
for precision suitable solution to a real life problem

Research Classification According to Information Type

o The third dimension of research is the type of information gathered and analyzed.
Based on this dimension, research is classified as quantitative and qualitative.

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QUANTITATIVE RESEARCH

o Refers to the systematic empirical investigation of the quantitative properties of certain

subject matter or phenomenon and the relationships of these properties.
o It is primarily concerned with the measurement of attitudes, behaviors, and
perceptions.
o Its objective is to develop and employ mathematical models to certain phenomena in
order to test hypotheses and generate theories.
o The process of measurement is central to quantitative research because it provides the
fundamental connection between empirical observation and mathematical expression
of quantitative relationships.
o Used widely in social sciences such as economics, psychology, anthropology, and
political science.
o Its mode of generating data is through large-scale survey, using questionnaires or
structured interviews.
o In general, the researcher has a very clear idea on what is to be measured before the
measurement process takes place.

QUALITATIVE RESEARCH

o Explores attitudes, behavior, and experiences, through methods as interviews or focus

groups. It attempts to get an in-depth opinion from participants. Fewer people take part
in the research, but contact with them tends to last longer.
o This type of research studies the subjects in their natural settings. The researcher
conducts a systematic inquiry into meanings, attempting to interpret and make sense of
phenomena and the meanings that people attribute to them.
o The qualitative methods produce information only on the particular cases studied, and
any general conclusions can be considered only as hypotheses. Quantitative methods
can be used to verify which of these hypotheses are true.
o Qualitative research is a more subjective form of research as it allows researchers
themselves to introduce their own bias to form a more complete picture of the subject.
o This type of research is necessary in situations where what is being looked for in a study
is unclear. In said situations, the researcher should be alert in determining what data is
important and what is not.
o The data are less concrete than pure numbers instead, qualitative research may yield
stories, or pictures, or descriptions of feelings and emotions.
o The interpretations given by research subjects are given weight in a qualitative research,
so there is no attempt to limit their bias. At the same time, researchers tend to become
more emotionally attached to qualitative research, and so their own bias may also
become highly evident in the results.

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 Tabulated comparison of the quantitative and qualitative

Category Quantitative Research Qualitative Research

Aim The aim is to classify the attributes
of the subject of study, count
them, and construct statistical
models in an attempt to explain
what is observed.
Design All aspects of the study are
carefully designed before the data
are collected.
Data- Researcher uses tools, such as
gathering questionnaires or instrument to
instrument collect numerical data.
Types of data Data are in the form of numbers
and statistics
Degree of It is relatively objective as it seeks
partiality precise measurement and analysis
of target concepts.
Use of data Quantitative data are more
efficient and able to test
hypotheses, but may miss
contextual detail.
Researcher’s Researcher tends to remain
participation objectively separated from the
subject matter.
The aim is to develop a complete or
detailed description of the attributes of
the subject of study.
The design emerges as the study
unfolds.
Researcher is the data gathering
instrument.
Data are in the form of words, pictures
or objects.
It is relatively subjective since the
individual’s interpretation of event is
important, especially when using
participant observation, in-depth
interviews, and the like.
Qualitative data are richer in meaning,
but time consuming, and less able to be
generalized.
The researcher tends to become
subjectively immersed in the subject
matter.

 While in doing quantitative studies the researcher generally knows exactly what data
are being looked for before the research begins, in qualitative research the focus of the
study may become more apparent as time progresses.

Research Classification According to Time Dimension

o The fourth dimension of research is time element. In research nomenclature, cross-

sectional research and longitudinal research are used to differentiate the point in time
the data were gathered.

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CROSS-SECTIONAL RESEARCH

o Involves observation of the population, or a representative subset, at a defined time. It

is quick by nature since the researcher does not have to follow the development of
each subject studied.
o This type of research is designed to look at a variable or relationship of a set of
variables at a particular point in time.
o The benefit of this type of research is that it can be done relatively faster as the
research data are gathered at the same time. '

LONGITUDINAL RESEARCH

o Involves repeated observations of the same variable or set of variables over a period of
time.
o It is often used to study changes or developmental trends over time.
o This type of research tracks the same people or other subjects of the study and observes
the differences.
o Due to repeated observations, it may have more power and benefit than cross-sectional
studies. However, since most longitudinal studies are observational, in the sense that
they observe the state of the subject without manipulation, it has been argued that they
may have less power to detect causal relationships.
o This type of research is more costly and time-consuming, especially when applied to a
large group of individuals over an extensive time span.
o It provides the best information about the continuity or discontinuity of behavior over
time and allows for the tracking of patterns of behavior, as well as trends of
development, within a similar group.

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References. List of books, reading materials and other references used in this
module.

Calderon, J. F., & Gonzales, E. C. (2011). Methods of Research and Thesis Writing.
Mandaluyong City, Philippines: National Bookstore.

Calmorin, L. P. (2016). Research and Thesis Writing with Statistics Computer Application.
Manila: Rex Book Store.

Cooper, D. R., & Schindler, P. S. (2014). Business Research Methods (12th ed.). Philippines:
McGraw Hill Education.

Cristobal, A. P., & Cristobal, M. D. (2013). Research Made Easier: A Step-by-Step Process.
Quezon City: C&E Publishing, Inc.

Faltado, R. E., Bombita, M. B., Boholano, H. B., & Pogoy, A. (2016). Practical Research 2:
Quantitative Research. Manila: Lorimar Publishing, Inc.

Gordon, Teresa P. and Porter, Jason C. 2009. Reading and Understanding Academic
Research in Accounting: A Guide for Students. Global Perspectives on Accounting
Education. Vol. 6, 2009, 25-45

Mendoza, Rufo R. (2012). Accountancy Research Theory and Practice. Dom Dane Publishers.
Sampaloc, Manila.

Mohamed Sherif, et. al. (December, 2017). Research Methods for Accounting and Finance.
The Global Management Series. Goodfellow Publisher, Ltd. Oxford

Smith, Malcolm. (2014). Research Methods in Accounting. Third Edition. SAGE Publications
Ltd. London

Yusuf, Ibrahim (n.d.). Lecture Notes for National Diploma (II) In Accounting on Research
Methodology in Accounting (ACC219).Nuhu Bamalli Polytechnic, Zaria

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