Field experiments in managerial accounting research

Abstract

The use of field experiments in managerial accounting research has increased substantially in the last couple of years. One reason for this upsurge is the call in the literature to address causality more confidently, which can be best accomplished with field experiments. This research method provides a clear mechanism for identifying causal effects in the field because the researcher introduces exogenous manipulations in different experimental conditions to which observational units (e.g., individuals, groups, or companies) are randomly assigned. Hence, field experiments are well suited to address managerial accounting phenomena that are plagued with endogeneity concerns when analyzed by using the results of retrospective (observational) studies. This manuscript provides an introduction to field experiments and is especially directed toward managerial accounting researchers who wish to consider adding this research method to their toolbox.