Half a Defence of Positive Accounting Research

Question: Discuss about theHalf a Defence of Positive Accounting Research. Answer: Introduction There are three goals for Positive Science one is development of hypothesis or theory, second is that the theory so developed shall have valid predictions and thirdly the predictions so formed should be of the phenomena which have not been observed. In other words, positive accounting helps in explaining and predicting particular phenomena. The main aim of the study is to develop the explanation for human behavior along with understanding the cause and effect relationships defined as world under the study. In this, the critique has examined the positive accounting research as a part of the large scientific intellectual project. The nature of its being and the nature of its being true and false have been examined in detailed on step to step. The emphasis has been laid on the effectiveness of Positive accounting research as wider project with reference not only to the statistical measures but also to the human behavior in an organization, application of different models and the repeti tion of the application of models so as to get the better results. The study has been completed by collecting data from recent papers which are considered as reliable. Though accounting illustrations must have been used but auditing literature examples have been used for more clear understanding. The study has been detailed in eight clauses. First clause deals with introduction and second deals with the details of scientific research project. In the third clause, examples of positive research in accounting have been mentioned and in fourth the reason for the existence and knowledge of the scientific project has been explained. In the fifth clause, hypothesis testing has been examined along with the details for requirements of successful research program in clause six. Seventh clause answers as to why there has been a gap between the practicing of the positive accounting research as actual and as required. The last clause concludes the study with the summary of the paper. Summary Of The Article The article has started with the abstract of the study and has provided the gist of the study stating Watt and Zimmerman has applied the Positive accounting theory for particular field but for the purpose of the study the positive accounting research will be considered as long scientific research project which can be applied in all the fields. He has stated in the beginning of introduction that its being a wider intellectual project which help in understanding the cause and effect relationship in the world. It means for every effect that happened in any field there always be cause and through this study he has very well explained the cause and effect relationship which has indeed helped him to form different conclusions. At the first he has argued that the positive accounting research has much wider scope than positive accounting theory. Positive accounting theory only considers the rational human behavior as the understanding factor whereas positive accounting research make one understand of specific accounting phenomena without rational human behavior rather considering non rational aspects which qualifies it as a scientific research project. Thereafter, he made arguments at each stage whether relating to hypothesis or describing the scientific research project. The major view that has been outlined in the study is examining the nature of existence of and the nature of knowledge about the positive research. He thereafter identifies the gap between the accounting research currently prevailing and the accounting research that should have been followed. This gap has been analyzed through various models including Poppers criteria of testing and Choi et al. model. By identifying the gap, he has provided the suggestions to improve and have laid down the factor which helps in development of successful research program. Research Question The question on which the study has been based is that whether or not positive accounting research contributes to the world in the study with the main focus on understanding the human behavior and the reasons for such behavior in an organizations where various decisions or work are mostly carried out under the specified control systems, for instance university manager working under the planning and budget department. If the aforesaid system is present where the humans working in an organizations works only under the pressure, then there may be chances of having quality issues in the work and which is considered as matter of serious concern by the management. For this, the organizations undertake various tests including hypothesis or by way of different person to person models. The research question so described is very important as it forms the basis of effective working of the positive accounting research which is currently being practiced in the field of accounting. It has started from Watts and Zimmerman view of claiming positive accounting theory as useful for assessing the human behavior and has extended at each and every stage such as Kuhn Model where he has provided disciplinary matrix where puzzles can be easily solved irrespective of the fact whether it will contribute towards the wider scientific project. The same model has gained importance after some time and useful for the elite group and the critiques consider the Kuhns finding has fit for its positive accounting research. Also the research questions has been flowed from very best example from the Scientific Ontology and epistemology where the self centered behavior of the humans has been considered that too with the rationality. It underlines the problem of agency where the person works as an agent of his / her principal. Studies have underlined that if humans works without another person control then the purpose of scientific research will be defeated. With these considerations and literature be hind the study the research question has been envisaged. Theoretical Framework Framework is defined as the structure within which particular problem can be solved or particular research can be undertaken or particular person can works in department, etc. Theories are the written representation, made by different authors, which are used for determining particular cause of future action or for laying down the frame for building the structure. Theoretical framework means the structure which has been established through the means of different theories. Theoretical framework has been established using various ideologies and works of authors. Some theories of Sophist and others have been laid down which makes impossible for the critique to conduct the research. The instance of such theory is that nothing exists, if exists then nobody knows about it and in case if someone knows about it and he or she cannot communicate the same fact to others. Further the framework has been extended by the use of Positive Accounting Theory by Watts and Zimmerman where its states that the process of accounting are mainly due to the self centered behavior of persons working in various types of organizations. The Significance and Limitations of The Article The article is very useful for understanding the human behavior in the different contexts. It has contributed to the wider scientific project. The article has built the platform from the theories of his own assumption of having different world to the theories of sophists then to the application of model of Watts and Zimmerman and then to the Poppers Model which in itself is big one and so on. Thereafter, hypothesis and falsification testing has been done using Poppers Model. The Model has been very well explained by giving an example of Pioneer 10 and 11 spacecraft. The literature of auditing has been used throughout the study which has helped in understanding the behavior of individuals more clearly. It is because auditors are considered as an independent person and have no personal bias with any other person where otherwise employees working in an organization may have conflicts of interest and other such issues. In the study, the author has very well acknowledged the limitations. The major limitation is that illustrations have not been provided with respect to the real world in the statistical calculations so that the reader can understand that area in total. Another major limitation is that the human behavior shall also be mentioned more deeply with the help of examples. He has drawn well defined theoretical conclusions from the study which helps the readers or other researchers to work further. These limitations have not hampered the significance of the article in any way. It is because the findings are not dependent on the limitation factor rather the findings have come out with the more clear suggestions. Conclusion Positive accounting research is regarded as part of the intellectual project of scientific research. The research has undertaken to make the readers understand the cause and effect relationship that prevails in the world as defined in the article. The study has listed out various theories for testing the research along with different models. With the application of Popper Model and Kuhns Model, the author has defined that positive accounting research as scientific project rather than the positive accounting theory. To conclude the report, the article is well drafted, prepared and have provided many knowledgeable matters to the readers through which they can undertake the testing of their predictions in comparison with old to new theories. References Watts R. and Zimmerman L. (1990), Positive Accounting Theory : A Ten YearPerspective,availableon https://faculty.etsu.edu/pointer/watts%26zimmerman2.pdf accessed on 13/12/2016. Milne M, (2001), Positive Accounting Theory, Political Costs and Social Disclosure Analysis : A Critical Look, available on https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.199.7620rep=rep1type=pdf accessed on 13/12/2016. Kabir M., Positive Accounting Theory and Science, available on https://centrum.pucp.edu.pe/adjunto/upload/publicacion/archivo/positiveaccountingtheoryandscience.pdf accessed on 13/12/2016. Financial Accounting Theory, Summary The Positive Theory of Accounting, available on www.umanitoba.ca/faculties/management/acctfin/courses/.../group82.doc accessed on 13/12/2016. Outline of Positive Accounting Theory available on www.umanitoba.ca/faculties/management/acctfin/courses/.../group84.doc accessed on 13/12/2016. Sterling R, (1990), Positive Accounting : An Assessment , ABACUS, pages 98-130 Watts R. and Zimmerman L. (1986),Positive Accounting Theory, New Jersey : Prentice Hall.