Persuasion as a Prelude to Proof: Theory Acceptance in Accounting Research

Authors

  • John Sennetti Nova Southeastern University
  • Barri Litt Nova Southeastern University

Abstract

In his 2013 presidential scholar address to the American Accounting Association, Michael Jensen, an early author of agency theory, makes an appeal for a new language and new paradigm to introduce his proposed theory of integrity in accounting. In the 1970s, agency theory was promoted over other theories because it demonstrated empirical evidence of the accounting procedures actually used in practice, compared to those that “should” be used according to established rules (see Jensen and Meckling, 1976). Contrarily, in this paper, we show scientific theories (Latour, 1987), and in particular accounting theories, are actually accepted by a larger persuasion than just the empirical evidence. The early empirical evidence on agency theory was often not even statistically significant. As Jensen now demonstrates, consistent with Latour (1987), this persuasion begins with a new language and a new world view, and continues with a strategy of properly framing expectations for the data outcomes and the empirical evidence.

Author Biographies

John Sennetti, Nova Southeastern University

John Sennetti is a professor of graduate statistics and accounting at Nova Southeastern University, whose
Ph.D. is from Virginia Tech, supports the research of his graduate students, and has also published in Auditing: A Journal of Practice and Theory, Journal of Finance, Journal of Business Ethics, Advances in
Accounting Behavioral Research, and many other journals.

Barri Litt, Nova Southeastern University

Barri Litt is an assistant professor of accounting at Nova Southeastern University. She received her Ph.D.
in accounting from Florida International University. She is also an Elijah Watt Sells Award recipient,
having scored in the top ten in the nation on the 2007 Certified Public Accountant Examination. Her current
research interests include auditing, accounting education, and corporate social responsibility.

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Published

2013-12-05

Issue

Vol. 4 No. 1 (2013)

Section

ABR Journal Articles

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