Positive Accounting Theory and Science
Positive Accounting Theory and Science
Md Humayun Kabir Senior Lecturer Faculty of Business Auckland University of Technology Auckland, New Zealand Phone: 09 921 9999 E-mail: humayun.kabir@aut.ac.nz
------------------------------------------------------------------------------------------Earlier versions of this paper benefited from comments from Lee Parker of the University of South Australia, William Maguire of Manukau Business School, Keith Hooper of Auckland University of Technology, Divesh Sharma of Florida International University, Ainul Islam of Massey University and Santi Narayan Ghosh of the University of Dhaka.
Electronic copy available at: http://ssrn.com/abstract=1027382
Positive Accounting Theory and Science
Abstract
This paper examines the development of positive accounting theory (PAT) and compares it with three standard accounts of science- Popper (1959), Kuhn (1996) and Lakatos (1970). PAT has been one of the most influential accounting research programs during the last four decades. One important comparison to which Watts and Zimmerman (1986) have appealed to popularize and legitimize their approach is that their view of accounting theory is the same as that in science. Thus, it is important to examine how far accounting could have been studied in the mould of science and how the development of PAT compares with the three standard accounts of science. Such a comparison will enhance our understanding of how PAT progressed over the last decades and what methodological gaps remain. This paper shows that there are some limits to the study of accounting in the mould of natural science. Furthermore, the methodological position conforms to none of the standard accounts of science. Rather it contains elements of all three. Finally, it identifies some methodological gaps in PAT. Keywords: Positive Accounting Theory, Science, Methodology, Philosophy of Science, Methodological Controversies discussed in Chapters 8-14 of W & Z (1986). At the
Md Humayun Kabir Senior Lecturer Faculty of Business Auckland University of Technology Auckland, New Zealand Phone: 09 921 9999 E-mail: humayun.kabir@aut.ac.nz
------------------------------------------------------------------------------------------Earlier versions of this paper benefited from comments from Lee Parker of the University of South Australia, William Maguire of Manukau Business School, Keith Hooper of Auckland University of Technology, Divesh Sharma of Florida International University, Ainul Islam of Massey University and Santi Narayan Ghosh of the University of Dhaka.
Electronic copy available at: http://ssrn.com/abstract=1027382
Positive Accounting Theory and Science
Abstract
This paper examines the development of positive accounting theory (PAT) and compares it with three standard accounts of science- Popper (1959), Kuhn (1996) and Lakatos (1970). PAT has been one of the most influential accounting research programs during the last four decades. One important comparison to which Watts and Zimmerman (1986) have appealed to popularize and legitimize their approach is that their view of accounting theory is the same as that in science. Thus, it is important to examine how far accounting could have been studied in the mould of science and how the development of PAT compares with the three standard accounts of science. Such a comparison will enhance our understanding of how PAT progressed over the last decades and what methodological gaps remain. This paper shows that there are some limits to the study of accounting in the mould of natural science. Furthermore, the methodological position conforms to none of the standard accounts of science. Rather it contains elements of all three. Finally, it identifies some methodological gaps in PAT. Keywords: Positive Accounting Theory, Science, Methodology, Philosophy of Science, Methodological Controversies discussed in Chapters 8-14 of W & Z (1986). At the