Advanced Research Methodology (6103) Lecture-1: Epistemology & Ontology in Accounting

This flashcard set covers the philosophical foundations of accounting research, focusing on epistemology, ontology, and the three primary paradigms: positivism, critical realism, and constructivism.

Epistemology

The study of how we know what we know, examining the origins, nature, methods, and limits of human knowledge.

Ontology

The branch of philosophy that investigates the nature of existence and reality.

Positivism

A philosophical framework that trusts only what can be observed, tested, and proven scientifically, viewing the world as a measurable machine free from personal bias.

Realist Ontology

The belief that an objective, independent economic reality exists within a company (assets, liabilities, etc.) prior to and separate from measurement.

Social Constructivist Ontology

The perspective that financial reality is not discovered but created through accounting rules, professional judgments, and institutional practices.

Hermeneutic Approach

An epistemological method where knowledge is derived from interpretation and judgment, such as applying estimates for depreciation or fair value.

Objectivity

In a positivist context, the assumption that financial reality exists independently of the accountants reporting it.

Neutrality

The positivist principle that an accountant should act as an objective reporter rather than an interpreter.

Archival Research

A positivist research methodology that involves analyzing large datasets of financial information.

Event Studies

A quantitative research method used to measure market reactions to accounting announcements.

Critical Realism

A paradigm holding that reality exists independently but is only partially knowable through a stratified or layered understanding.

Constructivism

A paradigm where knowledge is created through human interaction and language, focusing on understanding multiple realities rather than prediction.

Fair Value Accounting (Constructivist View)

A socially negotiated construct shaped by models, market psychology, and institutional interests rather than a discovered natural truth.

Greenwashing

The use of CSR reports to construct a particular corporate identity that may not reflect actual environmental impact.

The Empirical (Critical Realist Layer)

The surface level of reality that includes observable events, such as a failed audit like Enron or Wirecard.

The Real (Critical Realist Layer)

The deep level of reality containing underlying mechanisms, such as audit firm commercial pressures, regulatory gaps, or cognitive biases.

Relativism

A criticism of constructivism suggesting that if all realities are socially constructed, all accounts may be seen as equally valid without criteria for judgment.

Blockchain (Positivist View)

The perspective that blockchain provides an objective, tamper-proof record of financial facts.

Integrated Reporting (Critical Realist Lens)

An approach that attempts to make visible previously hidden mechanisms and gears of value creation within a company.