CHAPTER 1

INTRODUCTION TO RESEARCH METHODS

IN ACCOUNTING AND FINANCE

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 LEARNING OBJECTIVES
 Upon completion of this chapter, students
will be able to:
 Elaborate the meaning, concepts, definition and
objectives of research;
 Explain the significance of research;

 Investigate the purposes of the different types of

research;
 Distinguish between research methods and research
methodology; and
 Explain of the research process; 2
MEANING OF RESEARCH
 Research in common parlance refers to a
search for knowledge.
 Define research as a scientific and
systematic search for pertinent information
on a specific topic.
 In fact, research is an art of scientific
investigation.
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CONCEPT OF RESEARCH

A systematic and scientific search for

pertinent information on a specific
topic;
The application of the scientific method
in the study of problems;
A Voyage of discovery or search for
new knowledge;
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RESEARCH PHILOSOPHY
A research philosophy is refers to a system
of beliefs and assumptions about the
development of knowledge.
 which is shared by members of a scientific
community,
 which acts as a guide or map, dictating the
kinds of problems scientists should address
and the types of explanations that are
acceptable to them.
 RESEARCH PHILOSOPHY …CONT’D
 At every stage in your research, you will make a
number of types of assumption
 These include assumptions about human
knowledge (epistemological assumptions),
about the realities you encounter in your
research (ontological assumptions) and the
extent and ways your own values influence your
research process (axiological assumptions).
 These assumptions inevitably shape how you
understand your research questions, the
methods you use and how you interpret your
findings
ONTOLOGICAL, EPISTEMOLOGICAL AND AXIOLOGICAL
ASSUMPTIONS…CONT’D

Assumption Questions Positivism Interpretivi

type (objectivism) s m/
Subjectivis
m
On t o l o g y What is the nature of Real Nominal/decid
reality? ed by
What is the world like? convention
– What are External: social
organizations like? reality is Socially
independent of constructed
the researcher
Multiple
One true reality realities
(universalism) (relativism)
ONTOLOGICAL, EPISTEMOLOGICAL AND AXIOLOGICAL
ASSUMPTIONS…CONT’D
Assumption Questions Positivism Interpretivism/
type (objectivism) Subjectivism

Epistemolo What Constitutes • Adopt assumptions • Adopt the

gy Valid Knowledge of the natural assumptions
and How Can We Scientist of the arts and
Obtain It? Humanities
• Facts • Opinions
• What is considered • Numbers • Narratives
acceptable & • Observable phenomena • Attributed
legitimate knowledge? meanings
• A Deductive or Theory- •An Inductive or
• What constitutes Testing Approach Theory-Building
good-quality data? Approach

• What kinds of •Law-like •Individuals and

contribution to generalizations contexts,
knowledge can be specifics
made?
ONTOLOGICAL, EPISTEMOLOGICAL AND AXIOLOGICAL
ASSUMPTIONS…CONT’D

Assumptio Questions Positivism Interpretivi

n type (objectivism) s m/
Subjectivis
m
Ax i o l o g y • What is the role of • Value-free • Value-bound
values in research?
How
should we treat our •Detachment/ • Integral and
own values when we do objectivity reflexive
research?

• How should we deal

with the values of
research participants?
 SOURCES OF KNOWLEDGE
1. Everyday Experience as Sources of Knowledge.
other ways of knowing from our everyday
experiences are:
A. The Method of Tenacity
The term tenacity refers to the acceptance of a belief
based on the idea that “we have always known it to

be this way” . We accept those beliefs and customs as

true without exploring them and then behave with it.
B. The Method of Authority
Accept a new idea or information stated by
the authority figure. 10
 C. THE PRIORI METHOD

 First we develop general knowledge, opinion, or

belief about the world then we draw new and
specific conclusion from this general knowledge.
(it is also known as a deductive reasoning.)

D. Common sense
 Common sense is based on our own past
experiences and our perceptions of the world.
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SOURCES OF KNOWLEDGE CONT…..
2. The Scientific Method as a Source of
Knowledge
 Science is a body of systematized knowledge.

 The scientific method of knowing is the scientific

research.

Scientific research follows logical steps, which

include:
• defining the problem
• making tentative explanations
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SCIENTIFIC RESEARCH LOGICAL STEPS CONT…

• Gathering information

• Testing the validity of the hypothesis

• Making conclusions as to whether the

hypothesis can be accepted or rejected

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 DEFINITION OF RESEARCH
Research is;
• the systematic process of collecting, and
analyzing information to increase our
understanding of the phenomenon under study.

• A systematic attempt to obtain answers to

meaningful questions about phenomena of events
through the application of scientific procedures.
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Reflection
What are the basic Characteristics of
Research?

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 BASIC CHARACTERISTICS OF RESEARCH

1. Research is directed towards the solution of

problems.
2. Research emphasizes the development of
generalizations, principles, or theories what will be
helpful in preceding future occurrences.
3. Research is made upon observable experiences or
empirical evidence.
4. Research demands accurate observation and
description.
5. Research requires expertise.
6. Research is characterized by patient and unhurried
activity.
7. Research is carefully recorded and reported. 16
 OBJECTIVES OF RESEARCH
1. To gain knowledge with a phenomenon or to achieve
new insights into it .
2. To show accurately the characteristics of a particular
individual, situation or a group.
3. To determine the frequency with which something
occurs or with which it is associated with something
else.
4. To test a hypothesis of a causal relationship between
variables.
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Reflection
What makes people to
undertake research/
motivation in research?

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 MOTIVATION IN RESEARCH
 Desire to get a research degree along with its
consequential benefits;
 Desire to face the challenge in solving the unsolved
problems,
i.e., concern over practical problems
initiates research;
 Desire to get intellectual joy of doing some creative
work;
 Desire to be of service to society;

 Desire to get respectability.

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 CLASSIFICATION OF RESEARCH
Research can be classified in terms of:
• g o a l o f re s e a rc h ,

• specific objectives of research,

• a p p r o a c h e s o f re s e a rc h ,
• designs,
• the type of data used in research, and
• fields of study.
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 1. BASED ON THE GOAL OF RESEARCH
A. BASIC RESEARCH
 Basic research (also called fundamental or pure
research) has as its primary objective the
advancement of knowledge and the theoretical
understanding of the relations among variables.
The major aims of basic research include:
 Obtaining and using empirical data to formulate,
expand, or evaluate theory; and
 Discovery of knowledge solely for the sake of
knowledge.

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B. APPLIED RESEARCH
 Applied research is designed to solve practical
problems of the modern world, rather than to acquire
knowledge for knowledge's sake.
 Applied scientists might look for answers to specific
questions that help humanity, for example medical
research or environmental studies.

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2. BASED ON THE SPECIFIC OBJECTIVES OF RESEARCH
A) Descriptive Research-sets out to describe and to
interpret what is.
 The methods that come under descriptive research
are:
• Surveys
• Correlation studies
• Observation studies
• Case studies
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B) Explanatory Resaerch- aims at establishing the cause
and effect relationship between variables.
 There are two types of explanatory research:

1. Experimental research
2. Ex post facto research(means after
the fact or retrospectively)
 exploratory research-is less formal, sometimes even
unstructured and focuses on gaining background
information and helps to better understand and
clarify a problem.
 Exploratory research is conducted when there are
few or no earlier studies to which references can
be made for information.
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3. BASED ON APPROACHES OF RESEARCH
 Qualitative research- involves studies that do not
attempt to quantify their results through
statistical summary or analysis.

 Quantitative research- Quantitative research is

the systematic and scientific investigation of
quantitative properties and phenomena and their
relationships.

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 QUALITATIVE RESEARCH VS. QUANTITATIVE RESEARCH
Characteristics Qualitative Research
Participant observation, semi-structured
Typical Data Collection interviews, introspection.
Methods
Instruments use more flexible
To describe variation
To describe and explain relationships
To describe individual experiences
Analytical objectives To describe group norms
Question format Open-ended
Timing of Analysis Parallel with data collection
Are rarely used. Methods of analysis are
Application of Standard formulated during the data collection
Methods of Analysis p ro c e s s .
There are no human characteristics and
processes from which generalizations can
Nature of reality emerge.
Quantitative Research
Laboratory observations,
questionnaire, schedule or
structured interviews.
Instruments use more rigid style
To quantify variation
To predict causal relationships
To describe characteristics of a
Population
Closed-ended
After data collection
Standard statistical methods are
frequently used
There are human characteristics and
processes that constitute a form of
re a l i t y i n t h a t t h e y o c c u r u n d e r a
wide variety of conditions
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4. BASED ON DESIGNS
 experimental,

 quasi-experimental, and

 non-experimental.

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5. BY TYPE OF DATA
 Primary research (also called field research) and

 Secondary research (also known as desk research).

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6. BY FIELDS OF STUDY
 n at u ral s c i e n c e re s e a r c h ,
 s o c i a l s c i e n c e re s e a r c h ,
 e d u c a t i o n a l re s e a r c h ,
 b e h a v i o r a l s c i e n c e re s e a r c h ,
 h e a l t h s c i e n c e re s e a r c h , e t c .

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 REVIEW QUESTIONS

1. What do you mean by research? Explain

its significance in modern times.

2. What are the basic differences between

Qualitative and Quantitative Research?

3. What is the difference between

experimental research and ex post facto
research?
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 RESEARCH APPROACHES
 There are two basic approaches to research;
1. quantitative approach, and
2. the qualitative approach.
3. Mixed Research Approach
Quantitative approach
 The former involves the generation of data in
quantitative form which can be subjected to
rigorous quantitative analysis in a formal
and rigid fashion.
 This approach can be further sub-classified into
inferential, experimental and simulation
approaches to research. 32
Qualitative approach

 Qualitative
approach to research is concerned with
subjective assessment of attitudes, opinions and
behaviour.

 Qualitativemethods are typically more flexible –

that is, they allow greater spontaneity and
adaptation of the interaction between the researcher
and the study participant.

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SIGNIFICANCE OF RESEARCH
 Research has its special significance in
solving various operational and planning
problems of business and industry.
 Research is equally important for social
scientists in studying social relationships
and in seeking answers to various social
problems.
 Research provides the basis for nearly all
government policies in our economic system.

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SIGNIFICANCE OF RESEARCH CONT…

 In the context of government, research as a tool

to economic policy has three distinct phases
of operation:
(i) investigation of economic structure through
continual compilation of facts;
(ii) diagnosis of events that are taking place and
the analysis of the forces underlying them; and
(iii) the prognosis/an opinion, i.e., the prediction of
future developments.

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 SIGNIFICANCE OF RESEARCH CONT…

Others significance of research:

(a) To those students who are to write a master’s or
Ph.D. thesis, research may mean a careerism or a way
to attain a high position in the social structure;
(b) To professionals in research methodology,
research may mean a source of livelihood;
(c) To philosophers and thinkers, research may mean
the outlet for new ideas and insights;
(d) To literary men and women, research may mean
the development of new styles and creative work;
(e) To analysts and intellectuals, research may mean
the generalizations of new theories.
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 RESEARCH METHODS VERSUS METHODOLOGY
 Research methods (techniques) refer to the methods
the researchers use in performing research operations.
Research methods can be put into the following three
groups:
 Those methods related to collection of data;
 Those statistical techniques which are used for establishing
relationships between the data and unknowns;
 Those methods used to evaluate the accuracy of the results
obtained.
 Research Methodology: a science of studying how
research is done scientifically.
 Is concerned with assessing whether a specific method is
relevant to the problem at hand.
 It deals with the whole process and all stages of the38
research
 RESEARCH AND SCIENTIFIC METHOD

 Science has been defined as “the methodological and

systematic approach to acquisition of new knowledge”
 Bernard Philips (1976) (In McNaub, 7) described the
major steps in scientific research as:
1. Defining problems so as to build on available
knowledge
2. Obtaining information essential for dealing with
these problems
3. Analysing and interpreting these data in
accordance with clearly defined rules,
4. Communicating the results of these efforts to
others
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 IMPORTANCE OF KNOWING HOW RESEARCH IS DONE
 The knowledge of research methodology are;
 provides good training specially to the new research
worker and enables him to do better research and tools to
took at things in life objectively.
 to evaluate and use research results with reasonable
confidence.
 helps the consumer of research results to evaluate them
and enables him to take rational decisions.
 Research also helps to develop and have critical analysis and
communication skills
 the public administrator can become aware of what others in the
career field are doing and say about what may be common problems.
 Is the way to pass new information to the future generation using
scientific and professional journals.
 To enhance our knowledge
 To have the ability to make quick and intelligent decision. 40
 Question for Reflections

1. What are the Criteria of Good Research?

2. State the qualities of a good research.

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 THE RESEARCH PROCESS
( 1) formulating the research problem;
(2) extensive literature survey;

(3) developing the hypothesis;

(4) preparing the research design;

(5) determining sample design;

(6) collecting the data;

(7) execution of the project;

(8) analysis of data;

(9) hypothesis testing;

(10) generalizations and interpretation, and

(11) preparation of the report or presentation of the

results, i.e., formal write-up of conclusions reached. 42
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The of End
Chapter 1 !!
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