USQ ACC8000 Research in Accounting Practice Assignment 1 Solution

This ACC8000 Research in Accounting Practice assignment solution provides comprehensive answers to several key questions related to accounting research. It discusses the managerial value of business research, the necessity of theory in accounting research, and the acceptance or rejection of theories. The assignment also differentiates between exploratory, descriptive, and causal research methods, outlines the stages in a research process, and details the key features of a research proposal. Furthermore, it addresses ethical issues in accounting research, including professionalism, confidentiality, plagiarism, and collusion. The solution also identifies quantitative research methods and independent variables within a given case study, offering a thorough overview of essential concepts in accounting research.

BUSINESS RESEARCH
Question 1
I do disagree with the statement “there is no managerial value in doing research in business”.
Managerial values serve as guiding principles for every single operation of the business (Pera,
Occhiocupo and Clarke, 2016). Management keeps all plans on check while values regulate the
plans on operation. Therefore, managerial value is the shadow for the successful business
activities and operations. On regards to business research, managerial values have the following
benefits;
Managerial values helps to minimize ambiguity by providing reliable information that aid
decision making. In relevant to business research, a managerial value conveys the business
purposes by proving the road map on what is to attained and, helping a researcher to remain
focused by keeping track on the directions related to the research activity.
Managerial values help to reduce risk associated with business research such as confidentiality
risk and legal risk among others. With managerial values, researchers will be able to remain
guided by the principles which stipulate the direction to take and the future outcome of the
research project. A managerial value crystallizes research activities by bringing together the
objectives and the goals of the business research, this helps the researcher not to lose the track of
ongoing research activities.
Managerial values add value to the quality of the research being conducted. The researcher will
be in position of not diverting from subject matter and therefore remain keeping the required
standards of the research.

Through managerial value, the professionalism will be highly observed. The issues to do with
misuse of research ethics such as data manipulation, data mispresentation, plagiarism, collusion
and many more shall be minimized.
Question 2
Theory in accounting research is a basis or group of assumptions developed to study financial
reporting application principles (Beattie, 2014). Accounting theories involves analysis of both
historical accounting practices foundation as well as changes in governing regulatory accounting
framework.
There is need for theory in accounting research. This is because, it form the basis of rules used
by financial practitioners in preparing useful financial document (Richardson, 2012). Accounting
theories create uniformity in preparing financial report and also enables clear understanding by
both practitioners and users. The theories help users of financial document to make sound
decision based on their study.
Accounting theories creates awareness on the developing financial matters and also create room
for the further research. Theories give support to the existing principles and build the foundation
for the future financial reasoning changes.
Theories are used in building research propositions and hypothesis in the following ways; theory
is basically an idea intended to explain something. These ideas are characterized by assumptions
derived from the study problem. From these assumptions, prepositions are build which in some
cases may require effort and support to obtain meaningful results from it. On the other hand,
when these propositions are tested, they develop to hypotheses. Hypotheses are testable and
quantifiable while propositions require no laboratory testing.

Yes, we can accept or reject theory after a field of inquiry. Theory is an idea and not the fact,
though when well studied and researched, it can develop to fact. On this regard, when theory is
relevant to the research problem and, addressing all the issues on question, it can be accepted
whereas, if it is not relevant to or cannot be modified to fit the study topic, then, it can be
rejected. Secondly, theory can accepted if it has the sense of truth and opens more interest on the
future research.
Lastly, if the theory builds no basis for the study, it can be rejected. Theory has an idea should
provide insightful information across and beyond all relevant discipline researched and
commented by more than one scholar. If it does not meet such quality, it should be rejected.
Question 3
Exploratory research - It is described as a research used to find out a problem which is yet to be
clearly identified or defined (Denscombe, 2014). This research provides a better understanding
of an existing snag but not conclusive outcomes. On this research, the researcher is flexible in
changing the subject matter on the review of the new data. To note, this research is usually
conducted on the preliminary stages of the problem.
Descriptive research - This is a research method that focuses on “what” question rather than
“why”. It basically describes the features of a phenomenon that is being researched (Nassaji,
2015). Descriptive research gives the explanation of the outcome based on analyzed data. It gives
no answer to the existence of the data. Its also quantitative in nature. That is, collect quantifiable
data commonly for statistical analysis. It is also associated with uncontrolled variables which
none of them are influenced in any manner. Descriptive research can be used as a base for the
further research.

Casual research – This is a research method used to find out the cause and effect of a variable
(Maxwell, 2012). Casual research answers the why question, It is carried out in order to evaluate
the impact of a given changes on existing behavior. Casual research helps to explain the
relationship between different variables. Casual research is characterized with the following
components; Temporal sequence, Concomitant variation and Nonspurious association
Question 4
Stages in a research process
Identify research problem. This is the initial stage of the research activity, it includes selecting
the area of study interest and identifying the gap. The research problem is the area of concern or
area in the question to be improved. It should be of an interest to the person carrying out a
research for the easy writing.
Review of literature. This involves conducting the check on the other similar research problems
carried out earlier (Aveyard 2014). Though, the most part of the literature review is done after
the formulation of hypotheses to enable the researcher remain relevant on the topic. The
secondary data such as books, journals, newspapers, magazines and online articles are much used
for this part.
Literature review gives more insightful information for the study subject and helps to develop the
ground for the research problem. Simply, it gives the relation of the research topic with existing
work of the other scholars.
Formulate hypotheses. It includes identifying research goals, objectives and posing research
question. The research hypotheses give background of the whole study and the direction to take.

Prepare research design. This involves identifying the methodology on the data collection. It is
associated with critically analyzing the merits and demerits of alternative data collection
methodology. These methodologies may include questionnaires or face to face questions.
Data collection. This is the key area of the study; it involves great preparedness and highest level
of professionalism. Data collection may be primary or secondary depending on the type of study
been conducted.
Data analysis. This includes processing data to meaningful results. It may be either done
statistically or logistically in order to achieve desirable results.
Interpretation and research writing. Basically involves justifying whether the aim and objectives
of the research has been achieved. It also covers research limitation and if need for the future
research and above all, the first research draft is developed.
Question 5
Research proposal and key features
Research proposal – it is an academic or scientific document written to describe a plan for
investigating a research project (Klopper, 2008). In other words, research proposal is a document
proposing research project. Research proposal lays down the procedures and methods for
conduction research project. Research proposal is not only limited to academic but its
multipurpose document which can be also used as a document for rising project fund. An
academic research proposal follows a certain structural procedure which is not much far different
from funding proposal.

Research proposal should have the following features;
Proposal should have the introduction part, which includes research problem, problem
justification and objectives. Research problem and objectives should be clear and easy to
understand, explaining what the project intent to achieve.
Good research proposal should have literature review recognizing similar work of other authors.
That is, it should give a background of the research subject, identifying the gaps on the subject
matter and the contributions toward closing the gaps.
Third, research proposal should have the disclaimer statement that is, giving boundaries on to
what extent to be covered by the research or the population targeted. Research proposal should
not be undefined.
Forth, it should have defined methodology explaining how the project should be conducted,
analyzed and presented. Methodology should also explain the viability of the method used and
reasons behind the methods.
Lastly but not the least, research proposal should be properly cited with clear reference.
Also, it should be free of jargon and plagiarism. That is, should be original work of the
researcher and not copied.
Research proposal should give the background for the future planned project. That is, it should
be open ended.
Question 6
Ethical issue in accounting research – Any activity is governed by the moral value, same way as
when doing a research (Bell, Bryman & Harley, 2018)). The following moral value should be
instituted and observed when doing research activity;

Professionalism must be observed at very high level in order to avoid issues to do with conflict
of interest, fraudulent and data manipulation among others should be avoided at all the cost.
Both researchers and research participant should remain honest when presenting data. It is a
responsibility of a researcher to ensure information gathered is true and fair. It is also a
responsibility of a researcher to ensure analysis given is not manipulated at any way and the
information is reliable and dependable.
Confidentiality – As required by the accounting and auditing standards, no financial data should
disclosed without adequate consent. Both researchers and research participant should remain
confidential to the information provided unless authorized to disclose.
When conducting accounting research, the participant should request for the data disclosure
without interfering with this ethic.
Professionalism –High level of professionalism should be maintained when carrying out
accounting research. All parties must remain focused on the subject matter and be careful with
every data. The legal framework of the research should not be violated. Research information
should be of high quality free of errors.
Both researchers and research participant should be objective. That is, to avoid bias in all aspect
of data presentation. All information that affects research should be disclosed.
Both research participants should be respectful to intellectual properties. That is, no someone
information should be presented without consent or acknowledgment. Any form of copyright and
patents should be respected in order to avoid risk of the plagiarism.
Collusion – It results from more than one student contributing or participating in a work which
was meant to be completed and submitted by one student. In other words, collusion occurs when
individual assignment is completed jointly.

Plagiarism – It occurs when a writer or someone else deliberately present/use another person idea
or work as if it is her own without either consent or full acknowledgment of its source . On the
contest of plagiarism, the writer must respect copyrights, patents or any intellectual properties of
other parties.
Contract cheating - This is where a student get his or her coursework done by other students
through tendering.
These kinds of academic dishonest can lead to cancellation of student results or attract huge
penalties.
Question 7
a) Quantitative research method – this is because the most analyses on this research are
done statistically. That is, there is use of numerical data at every independent variable to
identify the extent of relationship between variables.
The research is build of descriptive statistic which is among the types of quantitative
research. It is also build of data tables which are the part of the quantitative research. As
the name suggest, the data from this research is quantifiable.
b) Model’s independent variables – independent variables are described as variables that can
be experimentally controlled or changed to test their effect on dependent variables
(Tuckma & Harper 2012). Referring our case study (Rashid, 2015), the following
variables are used;
i. Board independence
ii. Board size

iii. Frequency of Board meeting
c) Model’s dependent variables – These are variables that are being experimentally
measured, they depend on the independent variables (Tuckman & Harper 2012). In our
case, the below variable is the one measured on our study.
i. Agency cost
d) A hypothesis has been written as directional. Directional hypothesis is that which can
foretell the effect of one variable on the other (Cho & Abe2013). Directional hypothesis
show the direction taken by the independent variable whether positive or negative. For
instance from our case study, hypothesis one which states “a board’s independent will
reduce the firm’s agency cost”, this shows the positive direction on the effect of a board’s
independent on firm’s agency cost.
Second example is on hypothesis two, “board size will enhance the firm’s agency cost”,
though this does not specifically identify the required size, but the effect is either on side
whether small or large the size.
Other instance is on hypothesis three, “Advising tendency by board members will reduce
the firm’s agency cost”, this also show the positive direction research is taking on the
effect of advising board members.
e) Control variables – These are variables which remain unchanged throughout experiment
(Carlson & Wu 2012). They provide base for the variables relationship. On regard of our
case study, the following variables are used;
Director ownership as insiders, considered as the number of share owned by directors.

Institutional ownership, considered to influence CEOs’ decision either by limiting the
power. This is also measured by the number of shares owned by financial institutions.
The debt ratio, this measured by total debt against total asset is used to disciplining effect
of agency cost same as liquidity ratio.
Other control variables are firm age, firm size, firm growth and firm risk which
influences the agency cost.
References
Bell, E. B. (2018). Business research methods. Oxford, United Kingdom: Oxford university press.
Carlson, K. D. (2012). The illusion of statistical control: Control variable practice in management
research. Organizational Research Methods, 15(3) , 413 - 435.
Cho, H. C. (2013). Is two-tailed testing for directional research hpotheses tests legitimate? Journal of
Business Research, 66(9) , 1261 - 1266.

Denscombe, M. (2014). The good research guide: for small-scale social research projets. New York, UK:
McGraw-Hill Education (UK).
H, A. (2014). Doing a literature review in health and social care: A practical guide. New York: McGraw-
Hill Education (UK).
Kloper, H. (2008). The qualitative research proposal. Curationis, 31(4) , 62-72.
Maxwell, J. A. (2012). The importance of qualitative research for casual explanation in education.
Qualitative Inquiry, 18(8) , 655-661.
Pera, R. O. (2016). Motives and resources for value co-creation in a multi-stakeholder ecosystem: A
managerial pespective. Journal of Business Research 69(10) , 4033-4041.
Rashid, A. (2015). Revising Agency Theory: Evidence of Board Independence and Agency Cost from
Bangladesh. Journal of Business Ethics, 130 (1) , 181-198.
Richardson, A. (Critical Perspective on Accounting, 23 (1)). Paradigms, theory and
managementaccounting practise: A comment on Parker (forthcoming) "Qualitative management
accounting research: Assessing deliverables and relevance". 83-88.
Tuckman, B. &. (2012). Conducting educational research. Maryland, USA: Rowman & Littlefield
Publishers.
V., B. (2014). Accounting narratives and the narrative turn in accounting research: Issue, theory,
methods and a research framework. The British Accounting Review, 46(2) , 111 - 134.