Can research in accounting be relevant for practice?

Abstract

While there is general agreement that accounting research should be relevant for practice, it is not clear what relevance means and how to achieve relevance. A common assumption is that relevance follows from research that addresses current global challenges conducted in close cooperation with practice. This paper argues that true relevance requires predictive ability, that is, the idea of establishing causality is important. To do that in accounting, a field characterized by complex interactions of many variables and institutional settings, requires multiple studies on similar topics and the development of strong theory and methods. Research, therefore, must focus on certain key issues and take a long-term approach. It cannot continuously adapt to changing political preferences. In addition, research conducted in close cooperation with practice is not ideal for the development of theory and methods. An obstacle to achieving more relevant research is the existing incentive system for researchers.