The purpose of this paper is to use qualitative research findings to describe and analyze the use of a new teaching approach for a better understanding of earnings management.
Three classroom workshop designs with finance professionals were performed as an experiment to discuss the underlying assumptions of mainstream earnings management research. The outcome of the experiment is analyzed and serves as a basis for reflection on the new teaching approach.
The teaching experiment revealed the value to participants in discussing the complexity of the accounting choice process. The workshops provided insights into the wide range of accounting choices that finance professionals are confronted with and into the differences in perception of the participants relating to the accounting choices to be made. These insights contradict the assumptions of a “neutral reporting process” and solely “purposeful interventions” used in mainstream earnings management research. Analyzing the elements of the different workshop settings in relation to the outcome of the discussion identified strengths and weaknesses of each setting and generated ideas for further development of the teaching approach.
This research note adds to the understanding on how qualitative research can be used in teaching and shows that it is also coherent with using teaching as a site for qualitative research.
The discussions relating to the limitations of mainstream accounting research are predominantly of a general nature. This research note takes these discussions into consideration by exploring the subject of earnings management, offering an alternative teaching approach.
