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Question No. 06 i. Maines and McDaniel (2000) have published an article on the effect of a disclosure requirement on the processing of financial information

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Question No. 06 i. Maines and McDaniel (2000) have published an article on the effect of a disclosure requirement on the processing of financial information by investors. This article draws upon prior work in psychology, which asserts that performance-assessment judgments are formed by individuals from a linear combination of cues. The conclusion was the financial statement format did not significantly impact on the decisions of non-financial investors, who are not having knowledge about financial accounting and reporting. Explain the methodological characteristics of behavioral accounting research by focusing on the above research article. (10 Marks) ii. Froud et al. (2000) have published an article in Economy and Society Journal addressing the issue of whether maximizing shareholder value would result in superior business performance. The authors combine a limited but critical review of the literature before presenting a range of evidence to support their case. The evidence cited is in the form of a listing of the value-added performance of a range of companies as an illustration of a thread of argument drawn from the author's social and political framework. The paper emphasizes on 'interpretation rather than "explanation' or 'prediction when studying social phenomena. Explain the methodological characteristics of critical accounting research by focusing on the above research article

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