MAY 2012 SEMESTER
: ADVANCED ACCOUNTING AND FINANCE
: DOCTOR OF BUSINESS ADMINISTRATION
SARAVANAN KOLAN DE VELU
PROF. DR.MOHAMMAD ADAM BAKAR
INSTRUCTIONS TO STUDENTS
1) This assignment consists of THREE (3) questions. Answer ALL questions. 2) Plagiarism in all forms is forbidden. Students who submit plagiarised assignment will be penalised.
3) This assignment carries a 40% weightage toward final grade. 4) The submission date of take home final examination asnwer is ON 15 JULY 2012. Please submit your assignment answer via myAeU LMS (online submission).
THERE IS ONE PAGE OF QUESTIONS, EXCLUDING THIS PAGE.
FINAL EXAMINATION _ADVANCED ACCOUNTING AND FINANCE_0512
INSTRUCTION: Attempt ALL questions.
Behavioural research is popular in both Accounting and Finance disciplines. Discuss the main features of behavioural research and how it can be applied in either Accounting or Finance research. You may want to refer to the theory of planned behaviour and the theory of reasoned actions as a basis of your discussion.
Behavioral research is the approach that attempts to take into account of human behavior as it relates to decision making in accounting and finance disciplines. The behavioral approach focuses on how users interpret and use the information provided to him for decision making. In Accounting, this is done for the better understanding on impact of business processes, opinion and human variables to overall organization performance now and in the future. In other words, it is known as ‘human resource accounting’ which valuation of a company goes beyond the figures and targets to include the human factor.
The behavioral research can be explained in two well-known theories called ‘theory of planned behavior and the ‘theory of reasoned action’.
In the theory of planned behavior (Figure 1), the person’s behavior is determined by his/her attention to perform the behavior and that this intention is, in turn, a function of his /her attitude towards the behavior. The best predictor for such behavior is an intention. Intention is the mental process of perception, memory, judgment, and reasoning represents of a person readiness to perform a given behavior. This attention is determined by three things; their attitude toward the specific behavior; their existing in the mind and perceived behavioral control.
The theory of planned behavior holds that only specific attitudes towards the behavior in question can be expected to predict that behavior. Behavioral beliefs link the behavior to certain outcomes. For example, a person may belief that implementing the cost cutting campaign will leads to increase staff awareness in reduces the spending and will increase the company profit. Thus, the attitude towards the behavior is determined by the person’s evaluation of the outcomes associated with the behavior. The more positively the person evaluates the outcomes and believes that the behavior will achieve these outcomes then the higher chance is that the person will perform the same behavior.
The Subjective norm is individuals or groups that the person believes will approve or disapprove of him or her performing the behavior. An individual perception that the particular behavior which is influenced by the judgment of significant others such as parent’s, spouse, partner, close friend, co-workers, union members, accountant and so on. Generally, people who believe that most referents with whom they are motivated to comply think they should perform behavior will perceive social pressure to do so. For example, if the company wants to cost down by cutting the employee benefits then the union members will go strike against the company business.