Testing versus building accounting theory with experimental research – Insights from management research

• In Event: SESSION 8D: Financial Accounting and Reporting

Abstract

With this conceptual paper, we want to raise scholars’ awareness of the underused potential of experiments in current accounting research. We refer to research taxonomies from the management discipline to explore the role of experimental research in testing and building accounting theory. Although the contribution of laboratory research to testing theory is well acknowledged, we argue that exploratory experimental research efforts also have the potential to build new theory, pointing at the underused potential of experiments in current accounting research. In doing so, we (i) provide a clear understanding and definition of theory building and theory testing in accounting research and (ii) present a guideline for assessing the degree of theory building and theory testing inherent in any (experimental) study. We argue that an inter-study triangulation aligning experimental and archival methodologies will have the potential to produce results that are robust to internal and external validity concerns, thus advancing accounting theory. However, within triangulation of studies the role of experimental research is not predetermined and might encompass confirmatory theory-testing approaches and more exploratory approaches that attempt to build new theory.

Authors

• Daniel Reimsbach, University of Duesseldorf

• Bastian Hauschild, University of Duesseldorf