Philosophy of Research Methods

Understand both the practical application and underlying philosophy of research methods within the accounting/finance arena. This is where you need to start your question from and give appropriate answers.

Sample Answer

Understanding Research Methods in Accounting and Finance

Introduction

Research in accounting and finance helps us to understand how money works in real businesses. It also helps organisations make better financial decisions. In this course, the focus is on learning both how to do financial research and why it`s important. This includes using the right methods to study problems, collect data, analyse results, and give advice.

Practical Application and Philosophy of Research

Research methods in this field are not just about numbers and formulas, they are about understanding why we do research and how it helps. The practical side means using tools like ratio analysis, financial modelling, and data interpretation. The philosophical side is about asking questions like:

• What is the purpose of this research?

• How do we know our findings are reliable or useful?
  By learning both, students can understand not only what to do, but also why they are doing it.

Techniques for Business Research

To solve real financial problems, students need to learn the right techniques. This includes:

• Using qualitative methods (like interviews or case studies) to understand business situations

• Using quantitative methods (like surveys or financial data analysis) to measure and test ideas

• Applying these techniques within the context of wider economic and organisational environments

For example, analysing financial statements helps reveal how a company is performing. Comparing these to industry trends or economic indicators makes the results more meaningful.

Independent Research and Communication

A big part of the course is learning to carry out independent research. This means:

• Choosing a financial problem to study

• Finding useful data

• Analysing that data

• Communicating the results clearly, often in a report or presentation

Being able to do this shows employers that you can work on your own, think critically, and explain complex financial information in a way others can understand.

Creativity and Problem Solving

Finance isn`t just about following rules, it`s also about solving problems creatively. This course teaches students to:

• Look at financial challenges from different angles

• Use models like NPV (Net Present Value) or SWOT analysis

• Compare different options to find the best solution
  For instance, choosing between investment options requires thinking about both risk and return, as well as timing and external factors.

Real-World Application of Theoretical Models

Theories like the Efficient Market Hypothesis, Capital Asset Pricing Model (CAPM), or Behavioural Finance are useful in understanding how markets behave. But more importantly, this course shows how to use these models in real situations:

• Should a company invest in a new project?

• Is a share overvalued or undervalued?

• What happens to profits if costs go up?

Continued...