Research is the only tool with which theoretically observed phenomenon is tested for its existence in practice. Research substantiates the theoretical underpinnings of an observed fact or experience or a trend. The scope of accounting research is growing, and this issue brings out the importance of the technical issues concerning research methods in accounting research.

Suyash Kamal Sinha in the paper "Positive Accounting Theory: A Critique", recognizes and highlights the importance of intense debate on the pros and cons of any given topic for the emergence of the best theory or approach. He also observes that only when the researchers emphasize the combinations of accounting methods affecting earnings, the results would be of much more importance. This paper emphasizes the need for improving the linkage between theory and empirical tests and the importance of research in the area of accounting.

In the process of achieving the required results and testing theoretical understanding, there comes a number of theories, which are tested empirically. The main objective of accounting systems is to provide investors with relevant information that may be useful for efficient decision making in resource allocation. The paper "Value Relevance: Evidence from SEM-7 Firms on the Mauritian Equity Market", by Subadar Agathee Ushad, S Fowdar, R V Sannassee and Mannowa Leckraj, examines the ability of accounting numbers to explain the differences in stock prices on the Mauritian Stock Exchange. The authors find the ability of accounting signals to explain the differences in stock prices in the MSE. The findings of the study reveal that earnings, book values and dividends do not, on their own, explain the market value of a firm, but individually been found to have value relevance in the price of assets on the SEM.

The shareholders and the stakeholders continuously wait for the information to flow from the company to the markets in different forms. Particularly, the earnings statement that the companies publish and present annually and quarterly are eagerly awaited by the researchers who make their own analysis. Supporting the requirement, the laws in different countries are amended to make it a mandatory aspect for all the publicly listed companies. The paper "Determinants of Timeliness of Corporate Disclosure of Selected Companies in India", by Poonam Mahajan and Subhash Chander, examines the issue of timeliness in the disclosure practices of the corporates and the impact of various factors on the behavior of timely reporting in India. The authors observe that mean reporting in India is around 63 days and this lag is far higher than those reported in the developed country like the US, but lower than a few other countries, such as Australia, Bangladesh, Greece, Hong Kong, Malaysia, New Zealand, Pakistan, and Russia. The authors also observe that the large Indian firms being audited by big six audit firms take less time in releasing information to public and are influenced by the growing industries such as Information Technology and Media and Telecommunication. The audit complexity also significantly influences the reporting lag of corporate sectors in India.

The firms convey the messages of financial health and growth of them through different announcements like earnings, stock split, issue of new debt, equity merger, acquisition, etc., to the market, which has an impact on the price of shares traded in the market that directly affect the value of the firm. Such announcements are differentiated as good and wrong signals by the potential investors and shareholders. The paper, "The Effect of Quarterly Earnings Announcements on Sensex: A Case with Clustering of Events", by Santu Das, J K Pattanayak, and Pramod Pathak, examines the impact of quarterly earning announcements on the stock price movement of the firms constituting the BSE-Sensex. The authors find that large firms are closely monitored by the market participants and therefore information transmission or announcement by a large firm is quickly incorporated into prices, leaving no scope for earning abnormal returns, implying that announcement of earnings do not have any pre-return or post-return effect on the firms included in Sensex (BSE Sensex, India).

The paper, "Factors Influencing Investment in Tax-Saving Schemes", by K Natarajan, attempts to assess the factors that influence the salaried assessee to invest in tax-saving schemes and the schemes in which people generally prefer to plan their savings and tax. The author also opines that guidance and information provided by the tax consultants about the tax-saving schemes may not be suitable, adequate or in-time. The author finds that many assessees are not investing in infrastructure bonds and public provident funds, and this may be because of the lock-in period in such investments, lack of awareness, and low publicity by the government and the issuers. The author of this paper suggests that the institutions should educate and create awareness among the assessees through print media, electronic media, meetings and conferences.

- Vunyale Narender
Consulting Editor