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Criticizing positive accounting theory

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  • LAWRENCE A. BOLAND
  • IRENE M. GORDON

Abstract

. One theoretical approach recently emphasized in the accounting literature is positive accounting theory. Synonymous with this theoretical view are the 1978 and 1979 articles published by Ross Watts and Jerold Zimmerman. These two articles prompted criticism from three different perspectives. There are critiques that refer to technical research methods problems, critiques concerned with philosophy of science issues, and critiques centered on the limitations of economics†based accounting research. In their 1990 article, Watts and Zimmerman responded to most of the published critiques. They specifically claimed that methodological criticisms have failed to have any influence on accounting research. This paper provides a critical examination and assessment of these alleged failures by examining two types of critiques, economics†based critiques and those based on issues of the philosophy of science. The critiques discussed include those to which Watts and Zimmerman responded as well as several other critiques that either Watts and Zimmerman failed to discuss or that were not published until after their 1990 article appeared. Positive accounting theory is shown to be applied economic positivism. Tracing the historical background of positive accounting research through its economic roots shows that the “positive†aspect of the Watts and Zimmerman approach is more rhetoric than methodology. It is argued that positive accounting theory does represent a problem shift toward a domain of research that is appropriate for Chicago School economics. A review of the published critiques of positive accounting theory shows that although critiques based on philosophy of science may not be very effective, economics†based critiques that emphasize the limitations of equilibrium†based economic analysis offer a promising avenue for methodological critiques of positive accounting theory. Résumé. Parmi les publications relatives à la comptabilité, celles qui touchent la «théorie de la comptabilité positive» attiraient récemment l'attention. Ross Watts et Jerold Zimmerman, dans leurs articles publiés en 1978 et 1979, adoptaient l'équivalent de ce point de vue théorique. Ces deux articles ont soulevé les critiques, dans trois perspectives différentes. Certaines critiques portent sur le problème des méthodes techniques de recherche, d'autres ont trait aux questions relatives à la philosophie de la science et d'autres encore sont centrées sur les limites de la recherche comptable qui s'appuie sur l'économique. Dans leur article de 1990, Watts et Zimmerman réfutaient la plupart des critiques qui avaient été publiées, invoquant plus précisément le fait que les critiques méthodologiques ne sont pas parvenues à influer sur la recherche comptable. Les auteurs procèdent à un examen et à une évaluation critiques des lacunes que l'on impute à cette théorie, sous forme d'analyse de deux ordres de critiques: les critiques relatives aux fondements économiques et les critiques relatives aux questions touchant la philosophie de la science. Les critiques analysées comportent celles auxquelles Watts et Zimmerman ont répondu ainsi que plusieurs autres critiques que ni Watts ni Zimmerman n'avaient analysées auparavant ou qui n'ont été formulées qu'après la publication de leur article de 1990. Les auteurs démontrent que la théorie de la comptabilité positive équivaut au positivisme économique appliqué. En retraçant les fondements historiques de la recherche sur la comptabilité positive dans ses racines économiques, ils démontrent que l'aspect «positif» de l'approche de Watts et Zimmerman est plus réthorique que méthodologique. La théorie de la compatibilité positive représente toutefois le déplacement du problème vers un domaine de recherche qui convient à l'économique de l'École de Chicago. L'analyse des critiques de la théorie de la comptabilité positive qui ont été publiées démontre que même si les critiques se rapportant à la philosophie de la science ne se sont peut†être pas révélées très efficaces, les critiques se rapportant à l'économique et mettant l'accent sur les limites de l'analyse économique basée sur l'équilibre ouvrent des horizons prometteurs aux critiques méthodologiques de la théorie de la comptabilité positive.

Suggested Citation

  • Lawrence A. Boland & Irene M. Gordon, 1992. "Criticizing positive accounting theory," Contemporary Accounting Research, John Wiley & Sons, vol. 9(1), pages 142-170, September.
  • Handle: RePEc:wly:coacre:v:9:y:1992:i:1:p:142-170
    DOI: 10.1111/j.1911-3846.1992.tb00874.x
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    2. Oleksandr Petruk & Serhiy Legenchuk & Nataliya Koroliuk, 2013. "Development of Accounting Theory in English-Speaking Countries: On the Way to Multi-Paradigmatic Discipline," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 48-56, September.
    3. Collin, Sven-Olof Yrjö & Tagesson, Torbjörn & Andersson, Anette & Cato, Joosefin & Hansson, Karin, 2009. "Explaining the choice of accounting standards in municipal corporations: Positive accounting theory and institutional theory as competitive or concurrent theories," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(2), pages 141-174.
    4. Reiter, Sara Ann & Williams, Paul F., 2002. "The structure and progressivity of accounting research: the crisis in the academy revisited," Accounting, Organizations and Society, Elsevier, vol. 27(6), pages 575-607, August.
    5. Gérard Charreaux, 2008. "La recherche en finance d’entreprise:quel positionnement méthodologique ?," Revue Finance Contrôle Stratégie, revues.org, vol. 11(Special), pages 237-290, June.
    6. Jonathan Maurice, 2019. "When environmental accounting choices are not only opportunistic: the case of environmental accounting provisions [Quand les choix comptables liés à l’environnement ne sont pas qu’opportunistes : c," Post-Print hal-02128271, HAL.
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    8. Rajat Deb, 2019. "Accounting Theory Coherence Revisited," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 44(1), pages 36-57, February.
    9. Pankaj Kumar Baag & Kavitha P, 2017. "Philosophies and tradition of accounting research," Working papers 260, Indian Institute of Management Kozhikode.
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