Theoretical basis and implications of behavioral accounting research

Abstract

Behavioral accounting research (BAR) is a new school of positive research in accounting. Based on the new approaches BAR has bridged the gap between theory and accounting practice which capital market research and agency theory research have not overcome. 

The main purpose of this paper is to review the development of research in accounting and theoretical basis and new approaches of behavioral accounting research- a new area in accounting research. In addition to profound contributions to the role of accounting research in understanding and explaining practices, this paper also discusses limitations inherent in the methods employed by researches in behavioral accounting and potential challenges that researchers must overcome when conducting researches and interpreting implications of research results.