Implications of the crisis of objectivity in accounting measurement on the development of finance theory
Musvoto, Saratiel Wedzerai
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Studies in accounting measurement indicate the absence of empirical relational structures that should form the basis for accounting measurement. This suggests the lack of objectivity of accounting information. Landmarks in the development of finance theory indicate the use of accounting measurement information as a basis for their development. This indicates that subjective accounting information is incorporated in finance theory. Consequently, this questions the status of finance as a universal science for all investigators, and its ability to construct precise models of finance experiences. This paper uses the principles of representational measurement to highlight the implications of subjective accounting information on the development of finance principles and concepts. It shows that finance, is not a universal science and that precise models of finance experiences are currently not constructible.