Accounting Research

Methods
Iris M. Dajao-Opiso, CPA, DBA
 Introduction to Research
What is Research?
In common language, Research refers to
“Search for Knowledge”. It is an art of
scientific investigation.
It is also a systematic design, collection,
analysis and the reporting the findings and
solutions for the marketing problems of a
company. Research is required because of
the following reasons:
– To identify and find solutions to the
problems
– To help making decisions
– To develop new concepts
– To find alternate strategies
 Introduction to Research
Research can either be qualitative or
quantitative

It can also be classified into pure,

applied, descriptive, exploratory,
diagnostic, conceptual, action and
evaluation research.

It can further be classified into analytical,

empirical, formalized, survey, case
study, field investigation and library
research
 Introduction to Research
Quantitative research and Qualitative research

❑ Quantitative research denotes to methods that generate data comprising

of numbers. This research is conducted for the measurement of quantity
and it is applicable to the work which can be expressed in terms of
quantity only. This research usually employs the use of survey
questionnaire in the collection of primary data.
❑ Qualitative research relates to quality involved in assessment. It
generates the data that is verbal. Assessment of human behavior is a
qualitative research. This research usually employs observation or
in-depth interview in the collection of data
❑ It is difficult to find out which research is quantitative and which one is
qualitative. There are four main methods for these types of research
work namely – interview, questionnaires, observations and documents
analysis. On the basis of their explanation none of this can be
exclusively labeled as quantitative or qualitative. Accordingly the
labels of quantitative and qualitative should be applied to data rather
than to methods.
❑ Motivation research is important type of qualitative research, which is
conducted to assess the motive or desire of human behavior. Likewise
Opinion research is also qualitative research conducted to know how
people feel about particular subject.
 Introduction to Research
Quantitative research and Qualitative research

❑ The findings of qualitative research cannot be generalized across

population and is usally treated as a csae study.

❑ Findings of quantitative research on the other hand, can be

generalized across population if the sampling method was done
randomly.
 Introduction to Research
Can Quantitative research and Qualitative research be combined?

YES! This is known as triangulation.

• The result of qualitative research can be used to support and

validate the result of quantitative research
 Introduction to Research
On the basis of intent, research can either
be any of the following:

1. Pure
2. Applied research
3. Descriptive research
4. Exploratory research
5. Diagnostic Research
6. Conceptual research
7. Action research
8. Evaluation research
 Introduction to Research
1. Pure Research
• Pure research is also called as fundamental research. This is conducted
with view for the sake of the knowledge having no intention of its
application.
• This study is conducted for generalized which will help us to form
certain theory.
• In pure research if study is conducted to assess human behavior, it may
provide us generalization in relation to normal human behavior.
• Pure research offer solutions to many practical problems. It helps us to
find out various crucial factors. It develops many alternative solutions.

2. Applied research
• Applied research is carried out when any real-life problem or social
problem requires immediate solution which can be helpful in policy
formulation by the concerned agency. This is considered problem
oriented and action directed activity in which immediate and practical
results are required.
• There is vast scope for applied research in the field of technology,
management, commerce and economics, as it contributes to the
development of new facts or testing of new theory.
• Applied research can put theory to the test, it may add to conceptual
clarification and integrate previous existing theories.
 Introduction to Research
3. Descriptive research:

✔ Descriptive research is termed as Ex-post-facto research.

✔ This type of research is mainly concerned with description of
facts only.
✔ It is an expiration of state of affairs as they exists. This includes
surveys and facts findings enquiries.
✔ The main important aspect of this type of the study is that
researcher has no control on the variables under investigation; he
can only describe things as they exist and discover the causes.

4. Exploratory Research or Formulative research:

✔ It helps us to investigate any problem with suitable hypothesis.
✔ This research on social science is particularly important for
clarification of any concept and throwing new light for further
research on principles of developing hypothesis and its testing
with statistical tools.
 Introduction to Research
• 5. Diagnostic Research
This is similar to descriptive study but with a different focus. It is directed
towards discovering what is happening, why is it happening/ and what can be
done about. It aims at identifying the causes of a problem and the possible
solutions for it

• Purpose: A diagnostic study may also be concerned with discovering and

testing whether certain variables are associated, e.g., are persons hailing from
rural areas more suitable for managing the rural branches of banks? Do more
villagers than city-voters vote for a particular party?

• Requirements: Both descriptive and diagnostic studies share common

requirements, viz., prior knowledge of the problem, its thorough formulation,
clear-cut definition of the given population, adequate methods for collecting
accurate information, precise measurement of variables, statistical analysis
and test of significance. As the aim is to obtain complete and accurate
information about a given situation/phenomenon, the research design must
make much more provision for protection against bias than is required in an
exploratory study. Moreover, the amount of work involved is considerable
and so concern with economy of research effort is extremely important.
 Introduction to Research
6. Conceptual Research:
Conceptual research is conducted by the thinkers and philosophers for
developing new theories or for reinterpreting old one. In this type of research
the researcher should collect the data to prove or disapprove his hypothesis.
The various ideologies are examples of conceptual research.

7. Action Research:
When researcher is conducted for the survey in a single workplace, than
action research is commonly used in such cases. The focus in action research is
given in improving working practices. The action research has practical
purpose and it is directed towards organizational changes in managerial set-up.
The action research theories are valid through practice, rather than applied
independently to practice. It is conducted through direct action. In action
research is conducted in various phases like, base line survey, systematic
action and periodical assessment.

8. Evaluation Research
This is an example of applied research. This research is conducted to find out
how well a planned programme is implemented. Therefore, evaluation research
deals with evaluating the performance or assessment of a project. Example:
“Rural Employment Programme Evaluation” or “Success of Midday Meal
Programme”.
 Introduction to Research
As to methods of study, a research can be classified as:

1. Analytical Research
It relates to critical evaluation of the existing facts and
information which is used in order to draw certain conclusions.

2. Empirical Research
Empirical research is based on observation or experience
without due regards to theories. In this type of research working
hypothesis is provided and then data is collected to prove or
disprove this. Researcher here sets up the design for desired
results.

3. Formalized Research
When hypothesis is tested in the research study it is known as
formalised research.
 Introduction to Research
4. Survey Research
A survey is conducted with an object to understand specific aspect in
defined population. Usually the population in study is so large that the
access to all the elements is impossible. Therefore sample taken from the
population will make it possible to draw the conclusions regarding
population. The purpose of the survey is to understand phenomena by
identifying influencing factors.
Survey are normally conducted through questionnaires but sometimes
interview method is used to collect necessary information. The method of
conducting survey may also be applied to analyzing large data files in an
organization by using sample form. Survey method is widely accepted
for following reasons.
1. Greater amount of objectivity
2. Greater reality in findings and conclusions.
3. It is most scientific method for obtaining data and dependable result.
4. Direct observation of the population has possibility of getting accurate
results.
5. Survey is extensively used in all the areas for its merit.
 Introduction to Research
5. Case study
❖ It is characterized by in-depth study of organization. It is a
concept and intensive study of business situation. It is usually
written with the purpose of discussion and learning.
❖ Case study is method of investigation for exploring a live
situation it is a in-depth study of situation as whole. It is in
the form of qualitative and quantitative analysis where
careful observation of situation is done.
❖ A case study uses various methods for collecting
information may be in form of interview, questionnaires,
observation and documentary analysis. By this, wide variety
of relevant dta is collected.
❖ A case is report containing facts and opinions expressed by
the people. The cases are designed to acclimatize the
situation to participant. This provides the description of the
decision taken in particular situation.
 Introduction to Research
6. Field Investigation
❖ The field investigation is conducted in the assessment of
actual situations. The results in this type of work is more
realistic. In order to have these results accuracy is required to
be maintained by making selection of proper sample. In field
investigation it is very difficult to control variables and
informants in the field.
7. Library Research
❖ When secondary data is reliable enough to be used for
drawing conclusions than library research is very useful. This
type of research is based on the assessment of the data
available from books, periodicals and journals available in
the library.
❖ The observations and conclusions drawn in these cases may
be bias if data is not used carefully. As this is only
compilation of available data it is not considered as actual
research work. If systematic investigation is made it can also
be very useful research study.
 Introduction to Research
❖ Exploratory Research
❖ The major emphasis in exploratory research is on converting broad,
vague problem statements into small, precise sub-problem statements
which is done in order to formulate specific hypothesis.
❖ The hypothesis is a statement that specifies, “how two or more
variables are related?” In the early stages of research, we usually lack
from sufficient understanding of the problem to formulate a specific
hypothesis. Further, there are often several tentative explanations.
❖ Example: “Sales are down because our prices are too high”, “Our
dealers or sales representatives are not doing a good job”, “Our
advertisement is weak” and so on.
❖ In this scenario, very little information is available to point out, what
is the actual cause of the problem.
❖ We can say that the major purpose of exploratory research is to
identify the problem more specifically. Therefore, exploratory study is
used in the initial stages of research.
 Introduction to Research
❖ Causal Research
Causal research refers to the existence of a cause and effect
relationship.
This research provides evidence that suggests whether a
cause and effect relationship exists or does not exist.
It describes whether an independent variable directly
influences the behavior of a dependent variable.
This can be explained with an example. Suppose managers at
a hospital want to know the extent to which advertising
creates revenue for hospitals, they can go in for causal
research.
This information will enable them to decide how much
money to allocate towards advertising for hospitals.
 Introduction to Research
❖ Cross- Sectional Research
• A cross-sectional study is concerned with a sample of elements from a
given population. Thus, it may deal with households, dealers, retail
stores, or other entities.
• Data on a number of characteristics from the sample elements are
collected and analysed. The cross-sectional study is the most frequently
used descriptive design in marketing research.
• Cross-sectional design involves the collection of information from any
given sample of population elements only once.
• They may be either single cross-sectional or multiple cross-sectional. In
single cross-sectional designs, only one sample of respondents is drawn
from the target population and information is obtained from this sample
only once.
• These designs are also called sample survey research designs.
 Introduction to Research
❖ Time Series Research

• Time-series design is an additional evaluation

research design type. This design type entails
measurements made over a fixed time period, such as
the study of traffic accident rates before and after the
lowering of the speed limit in an area.
 Introduction to Research
What is Business Research?

❖ Business research is a means of providing

management with information.
❖ The main purpose is to reduce uncertainty at the time
when business strategy is being planned, and to monitor
performance after the strategy has been implemented.
❖ It has crucial role in aiding decision making, by ensuring
continuous flow of data or information.
❖ The information collected from business research and its
contribution to decision making, depends largely on the
nature of the problem.
❖ If the problem is not correctly defined the information
collected can go waste or may be irrelevant.
❖ Any approach to designing a research project therefore
should start from defining the problem carefully.
 Introduction to Research
What is Business Research?

• Research provides the needed

information that guides managers to
make informed decisions to
successfully deal with problems.
• The information provided could be the
result of a careful analysis of data
gathered firsthand or of data that are
already available (in the company).
 Introduction to Research
What is Business Research?

Few questions must be assured before one conducts

research:

1) What information will aid decision making?

2) What are we going to do with this information?
3) How should we collect this information?
4) What are we going to measure?
5) How should we analyze results?
6) How much should we spend on the entire
research process?
 Introduction to Research
Why study Research?

Research provides you with

the knowledge and skills
needed for the fast-paced
decision-making
environment
 Introduction to Research
Why is it important for managers to
know about research?

• Solve problems
• Decision making tool
• Competition
• Risk
• Investment
• Hire researchers and
consultants more effectively
 Introduction to Research
Why do managers need better
information?

• Global and domestic

competition is more
dynamic
• Organizations are
increasingly practicing
data mining and data
warehousing
 Introduction to Research
Why do you need to acquire research skills?
• To gather more information before
selecting a course of action
• To do a high-level research study
• To understand research design
• To evaluate and resolve a current
management dilemma
• To establish a career as a research
specialist
 Introduction to Research
How do you define business research?
To McDaniel and Gates “Business research is
the planning, collection and analysis of data
relevant to business decision-making and the
communication of the result in this analysis to
management”.
In the words of John W Best, “Research is
the systematic and objective analysis and
recording of controlled observations that may
lead to the development of generalizations,
principles, or theories, resulting in prediction
and possibly ultimate control of events”.
 Introduction to Research
What is good research?
• Following the standards of
the scientific method
– Purpose clearly defined
– Research process detailed
– Research design
thoroughly planned
– Limitations frankly
revealed
– High ethical standards
applied
 Introduction to Research
What is good research?
– Adequate analysis for
decision-maker’s needs
– Findings presented
unambiguously
– Conclusions justified
– Researcher’s experience
reflected
 Introduction to Research
What is good business research?
– For quantitative basic business
research, it must be grounded on
theory and empirically verifiable
– Results of the study must contribute to
the advancement of knowledge in
business and management
– It results in scientific knowledge that is
ethically neutral
– For qualitative business research, the
observation obtained can be interpreted
by experts and the interpretation will
serve as basis for managers to
understand customers and pave the
way for an effective strategy
Nature or Characteristics of Business
Research
• Covering business region
• Judging problem
• Flexible
• Deciding how to produce the
product
• Promoting Business
 Nature or Characteristics of Business
Research
1. Promoting Business
The aim of any business research is how to better
promote the business in an economically sound manner
and to increase the businesses net profit, exposure and
ensure its continuity.

2. Covering business region

It includes all the regions in which the business operates,
locally and internationally. Example: Setting-up a hotel
means knowing local conditions such as attractions and
competing establishments but also problems such as crime
or obtaining supplies.

3. Judging problem
One of the natures of business research is judging local
problems of the environment in which our establishment
is going to operate.
 Nature or Characteristics of Business
Research
4. Flexible
Another characteristic of business research objectives is
flexibility. The research may be programmed for one area and
then something shows-up.
If that “something” is pertinent, it should be investigated and
included in the research. Research is discovering new things and
factors, it should not be easily sidetracked but it also should not
be inflexible.

5. Deciding how to produce the product

Business research should include the use of the internet. If the
business is manufacturing a specific product, look at the market
size and options on how to produce the product.
This is part of knowing who is your competitor , but slightly
different as it helps to best determine how to
produce the product.
 Scope of Business Research

◦ Production and producing Methods

◦ Personal and Industrial Relations
◦ Purchasing and Inventory
◦ Financing, Investment and credit
◦ Market, the consumer and Marketing
procedure
◦ Economic conditions and Tendencies
◦ Public and Government Relations
 Scope of Business Research
1. Production and producing Methods:
Business research is used in production cost analysis, time
and motion studies, machine depreciation and obsolescence;
production stabilization.

2. Personal and Industrial Relations

It is used in Aptitude and attitude tests, fatigue studies,
wage employment, and retirement plans, employee
organizations and activities, death and sickness disability
benefit plans, and group insurance.

3. Purchasing and Inventory

It is used for sources and prices of materials, purchasing
methods and procedures, inventory control and storage.
4. Financing, Investment and credit:
It is used for financial methods and operations, budget
planning, investment of reserves divided policies, credit sources
and costs.
 Scope of Business Research
5. Market, the consumer and Marketing procedure
It is used for Market potentials, trading areas and sales
quotas, distribution channels, distribution cost, price policies
and competition, credit and collection, advertising,
warehousing and transportation, consumer identity and
attitudes.

6. Economic conditions and Tendencies

It is used for Measurement and forecast of economic
and business conditions, general price structure and price
movements; trade and production changes; rates of return
on investments and of profits on sales, national income
estimates, taxation.

7. Public and Government Relations

It is used for Relation of concern and its industry to
public weal; public attitudes, exchange of information with
government agencies; regulations by statute and
administrative order.
Steps Involved in the Research Process
Scientific Approach
1 Observation
2 Identification of problem area
3 Theoretical framework
4 Hypotheses
5 Research design
6 Data collection
7 Data analysis
8 Data interpretation
9 Implementation
 The seven-step process in the
Hypothetico-Deductive method
• 1 Observation
• 2 Problem identification
– preliminary information gathering
• 3 Theoretical framework
– theory formulation
• 4 Hypothesizing
• 5 Research design
– further scientific data collection
• 6 logical analysis
• 7 Deduction
 The seven-step process in the
Hypothetico-Deductive method
• problem statement is a clear, precise, and succinct
statement of the question or issue that is to be
investigated with the goal of finding an answer or
solution.
• Theoretical framework is the foundation on which the
entire research project is based.It is logically
developed,described,and elaborated network of
associations among the variables relevant to the problem
situation.
• A hypothesis is a tentative statement that proposes a
possible explanation to some phenomenon or event. A
useful hypothesis is a testable statement which may
include a prediction. A hypotheses should not be
confused with a theory.

• Data analysis: the data gathered are statistically

analyzed to see if the hypotheses that were generated
have been supported.
• Measurement is the process observing and recording the
observations that are collected as part of a research
effort.
• Deduction is the process of arriving at conclusions by
interpreting the meaning of the data analysis results.
 Research Method
vs
Methodology of Research

• Research Methods can be of two types:

1. quantitative
2. qualitative

• Research methodology is referred to as

the study of methods and to establish an
understanding of why these methods
were used for the research. Research
methodology provides a logical
explanation behind the steps taken in
the research.
 Research Method
vs
Methodology of Research
Research Methods Methodology of Research
• are the methods used • is systematic approach to
by researchers to solve the research problem
collect data to and to reach a new
conduct research on conclusion
a particular research • the objective is to
topic determine the solution by
• the objective is to applying correct procedures
find the solution of research
• are useful to apply • are applied in the initial
during the latter stage of the research being
stage of the research conducted.
process • is a multi-dimensional
• are small part of concept.
research
methodology.
 Research Method
vs
Methodology of Research
Research Methods Methodology of Research
• consist of various • are used applied during the
techniques where initial stage of the research
various studies and to explain the purpose of
experiments are used chosen methods and how
to conduct research they will serve its function
and reach an • is a systematic strategy to
appropriate achieve the decided
conclusion objective
• consist of different • encompasses different
investigation techniques which are used
techniques during the performance of
• encompasses of the experiment, surveys,
carrying out an and test, etc.
experiment, survey,
test and so on