Significance of Positive Accounting Research Samples for Students

Question: Analyze the Scope, Role Impact of Positive Accounting Theory. Answer: Introduction Basically, each and every research paper is start from a research topic that addresses research problems and questions. The main research topic for this research is to understand and analyze the scope, importance/role/impact of positive accounting theory research and its implication in the real life. Moreover, it is also important to know that, in order to address the research questions and problems, the research article such as: Half a Defence of Positive Accounting Research is selected. Based on this research article, the key objectives associated with this research paper would be attained in order to reach a valid conclusion. Generally, the author of this research article is Paul V Dunmore and written in the year 2009. Moreover, the main aim of this critique is to conduct a critical investigation on the arguments presented by the researcher in this research article. In the same way, both positive and negative aspects of the research article would be presented in this paper to eff ectively understand the research topic and problem. At the same time, the researcher of the article had presented several arguments on the importance and implication of positive accounting research and theory. Additionally, this research paper is structured in an effective and proper manner to understand all the aspects of the research paper and article. For instance, the main parts of this research paper are introduction, detailed overview about the research article, research problems/questions, theoretical framework, importance, limitation of article and conclusion. Overview/Summary of Research Article In the research article, the author had tried to explain the significance of positive accounting research and theory and its applications in the real life or corporate world. Moreover, in this research article, it is argued that, business firms or companies must adopt such theories and practices in order to attain long term objectives, competitive scope and fight with the future business challenges (Hay, Knechel and Wong, 2006). It is found that, positive accounting is an important area that not only helps the business firms in reducing a number of costs but also adding the values in the efficiency, as well as productivity of the companies quickly and effectively. Additionally, the findings of the article is indicates and highlights the significance and value of behavioral finance in term of predicting (Francis, 2006). Moreover, the researcher had also analyzed the hypothesis of Efficient Market Hypothesis. Along with this, in this research article, the author had suggest to the comp anies and organizations of todays corporate world that, they should focus on using positive accounting theory as compare to the Efficient Market Hypothesis in order to enhance organizational efficiency and gain competitive scope. In addition to this, the main findings of the research article reflect that the PAT helps the business firms in analyzing and predicting the real life events effectively. In the same way, it brings innovation, improvements and development within a number of accounting transactions (Dunmore, 2009). It is also argued by the researcher in his study that, it is more essential and valuable for todays corporate companies to investigate and access the main reason behind any exact event. So, PAT is also more dynamic and useful for all the types of firms in predicting and analyzing the unprecedented events that are related to the firms and may affect the success and growth of the business firms. On the other hand, it is also summarized that, through the positive theory or research, a particular company could be success in predicting the sustainability aspect of its business in a more competitive and dynamic market situation in an effective and innovative manner (Fogarty and Markarian, 2007). Furthermore, the researcher of the article is also provides suggestions to todays business, accounting and finance manager to have strong as well as complete ideas about their own financial abilities to run accounting financial functions more dynamically. Moreover, they should also focus on enhanc ing their capabilities and knowledge in order to attain the long term and strategic goals and objectives of a firm. Along with this, it is also analyzed from the article that, positive accounting is a scientific approach to the research in the area of accounting that play a key role in developing an clear understanding about the main factors affecting the behavior of human in the accounting setting (Dunmore, 2009). Moreover, in order to effectively and accurately understand the human behavior, the author had presented a number of epistemological as well as ontological assumptions. But these assumptions would require scientific research to be a feasible intellectual project. On the other hand, it is also argued by the researcher that, positive accounting theory is offer positive outcomes for the companies and offer opportunities to the companies to understand upcoming events. Moreover, in order to improve decision making in the context of accounting setting, business firms must use positive research and theory. Moreover, importance of positive research programs and positive accounting theory is also summarized in the article (Belt, 2007). For case, the main findings of the study indicates that positive accounting research programs have more scope and wider than the positive theory. It is behavioral aspects of the accounting and financial transactions could be understood by a company by conductin g positive research programs. This is also offer opportunities and scopes to the financial managers to effectively and accurately handle the accounting issues in a more dynamic and systematic manner. Overall, it can be said that, the author had tried to explain the significance and role of PAT in the accounting setting to attain long term objectives of the business firms (Dunmore, 2009). Research Questions This research paper has wider scope for the further study in the area of positive accounting research programs, and theory. So, it addresses a number of specific, valuable and important research questions. The main research question of the study is given as below: How positive accounting theory and research is more significant and valuable in the accounting setting. And what are their major implications in the real corporate world? The following are the sub- research questions that directly and indirectly linked with the study such as: How positive research and theory influence the decisions of corporate companies positively? What are the key advantages and disadvantages of using PAT theory and research? What are the major roles and functions of PAT and positive research in improving organizational efficiency, and productivity? (Libet, 2002). How to avoid and deal with the future business challenges by using positive research programs? How positive research is plays a key role in adding the values within the companies? What are the major roles of behavioral finance? What are the major differences among the positive research, positive theory and theory of efficient market? Why business firms should use positive research and theory by ignoring Efficient Market Hypothesis? (Kosmala and MacLullich, 2003). How PAT and research plays key role in predicting real events for the corporate world? Why it is important for the financial and accounting manager to have strong financial knowledge and abilities? What are the major forces that may affect the human behavior in the context of accounting? What are epistemological and ontological assumptions in the accounting setting? Why positive research is wider and valuable than the positive theory? These identified research questions or hypotheses are more valuable that helps in addressing the research problems and solving the research issues effectively. These questions are presenting and reflecting both positive and negative aspects of the conducted literature review (Davila, and Foster, 2007). Theoretical Framework The researcher had used various theoretical framework and concepts in order to fulfill the objectives of the study. For case, theoretical assumptions are made by the author by using epistemological and ontological statements in order to solve the research problems effectively. In addition to this, these theoretical concepts and frameworks are more valuable for the financial managers, accounting people and auditors to improve their understanding about the positive research and theory and their value in the real life events. For case, by applying this theoretical framework, they could be able to enhance organizational efficiency and productivity in a more innovative, systematic and dynamic manner. At the same time, the theoretical framework could also be used and applied by todays business firms and companies in order to deal with the future business challenges in the area of finance, auditing and bookkeeping (Dahmash, Durand, and Watson, 2009). In the same way, the present accounting systems, process and practices could be improved effectively by using such theoretical framework. In addition to this, the framework such as positive research, theory, programs, efficient market theory could also be used by the companies to predict the upcoming events those are directly or indirectly linked and related with the business operations and functions. This would bring innovation and development not only within the accounting and financial functions but also entire functions of the firms. Moreover, the researcher had also used various significant theoretical models to present the study that could be used to bring reliability, flexibility, accountability within the current process and systems (Antle, Gordon, Narayanamoorthy, and Zhou, 2006). The Significance and Limitations of the Article Significance: On the basis of the findings and arguments made by the researcher, the main significance of this research article is that the author had used and applied various statistical, mathematical and theoretical models to present the study and address the research problems effectively. Moreover, clear discussion on the positive research, positive theory and efficient market theory is also made by the researcher that is important to understand the study. Along with this, the researcher had also tried to explain and define the major differences among the positive accounting theory and positive accounting research or program. Overall, it can be said that, each and every aspects related to the positive accounting theory and research is analyzed properly and accurately by the author to develop a clear understating about the research topic. Finally, the author had crucially conducted literature on the study by considering both positive and negative aspects. These are the main importa nce of the study found in the study (Choi, Kim, Liu, and Simunic, 2009). Limitations: The key limitation and disadvantage of the study is that, the author had not presented study scientifically, appropriately and effectively. It is because there are no clear research topic, research objectives, goals, research questions. Moreover, the researcher had not focused on developing the hypothesis for the study that is a major weakness of the study. Along with this, it is also analyzed and accessed that, the researcher had more focused on theoretical concepts of positive research and ignored others aspects directly that shows no link among the research topic and problem (Humphrey, 2008). The information, data, results and findings of the study is not presented graphically that is another limitation of the study. Moreover, more complicated and complex mathematical models are used in the study that is not easily to use and understand by the financial and accounting managers. In the same way, this research study has a lot of limitations that directly or indirectly a ffecting the findings and results of the study (Ashton, Dunmore, and Tippett, 2004). Conclusions Based on the facts, and observation made by the researcher in his study, it can be concluded that, positive accounting theory and research is play a key role in predicting the human behavior in the accounting setting that is important for a company in enhancing its productivity and efficiency. Moreover, positive research has more scope and wider as compare to positive accounting theory because it provides significant opportunities to the financial/accounting managers and their companies to predict and access future business events that are related to the company and its business operations. Additionally, the business firms should ignore efficient market hypothesis by using positive accounting research in order to bring innovation, accountability, creditability and accuracy within the accounting transactions and functions. Finally, it can be concluded that, in todays corporate business environment, human behavior is affecting the business decisions so business firms should apply posit ive theory and research in the accounting setting. References Antle, R., Gordon, E., Narayanamoorthy, G., and Zhou, L. (2006). The joint determination of audit fees, non-audit fees, and abnormal accruals. Review of Quantitative Finance Accounting 27 (3), pp. 235266. Ashton, D., Dunmore, P., and Tippett, M. (2004). Double entry bookkeeping and the distributional properties of a firms financial ratios. Journal of Business Finance and Accounting 31 (5-6), pp. 583606. Belt, D., (2007). Struggle for the soul of Pakistan. National Geographic 212 (3), pp. 3259. Choi, J.-H., Kim, J.-B., Liu, X., and Simunic, D. A. (2009). Cross-listing audit fee premiums: Theory and evidence. The Accounting Review 84 (5), pp. 1429 1463. Dahmash, F. N., Durand, R. B., and Watson, J. (2009). The value relevance and reliability of reported goodwill and identifiable intangible assets. The British Accounting Review 41 (2), pp. 120 137. Davila, A., and Foster, G. (2007). Management control systems in early-stage startup companies. The Accounting Review 82 (4), pp. 907937. Dunmore, P.V. (2009). Half a Defence of Positive Accounting Research. Available At: https://sydney.edu.au/business/__data/assets/pdf_file/0012/59988/Paul_Dunmore_MEAFA_201df {Accessed On: 27 May 2017}. Fogarty, T. J., and Markarian, G. (2007). An empirical assessment of the rise and fall of accounting as an academic discipline. Issues in Accounting Education 22 (2), pp. 137161. Francis, J. R., (2006). Are auditors compromised by nonaudit services? Assessing theevidence. Contemporary Accounting Research 23 (3), pp. 747 760. Hay, D. C., Knechel, W. R., and Wong, N., (2006). Audit fees: A meta-analysis of the effectof supply and demand attributes. Contemporary Accounting Research 23 (1), pp. 141191. Humphrey, C., (2008). Auditing research: A review across the disciplinary divide. Accounting, Auditing Accountability Journal 21 (2), pp. 170 203. Kosmala and MacLullich, K. (2003). The Emperors new clothes? New audit regimes: Insights from Foucaults Technologies of the Self. Critical Perspectives on Accounting 14(8), pp. 791. Libet, B. (2002). The timing of mental events: Libets experimental findings and theirimplications. Consciousness and Cognition 11 (2), pp. 291299.