The functional use of theory in accounting research: evidence from leading journals

Abstract

This study aims to examine how theory is used in articles published in leading accounting journals and considers what these patterns imply for the development of the discipline. Using Gregor’s (2006) taxonomy, this study analyses a stratified random sample of 200 articles from six leading accounting journals across two periods (2007–2009 and 2017–2019). It examines the functional role theory plays, compares patterns across journals and tracks changes over time. Explanation–Prediction (EP) theory dominates and has increased over time. Other forms of theorising remain limited, although there are small increases in explanatory and design-oriented studies. US-based journals show stronger reliance on EP, while the European journal displays greater diversity in the purposes served by theory. This study focuses on six influential journals and two time periods. Future research could include a broader range of journals and longer timeframes to capture wider developments in accounting research. A strong focus on EP theory may limit the discipline’s ability to address emerging challenges. Encouraging a wider range of theoretical approaches could enhance accounting’s relevance and connection to practice. Greater diversity in theory use may help accounting better respond to societal challenges such as sustainability, technological change and evolving institutional demands. This study offers a new perspective by examining the functional role of theory across accounting research. It provides empirical evidence on dominant patterns of theory use and their implications for disciplinary development.