The subject of the relationship between theory and practice has long been focused by psychologists as to what extent theories can be used as the principles that guide practice. A theory has a fundamental role in providing researchers with frameworks and in guiding practitioners to formulate a problem in actual practice settings. This paper is divided into four sections. The first section explores the literature review of the relationship between theory and practice. The second section illustrates the short-term liquidity measurement theory in the context of how the theory can be translated into practice. In the third section of this paper, the researcher discusses the connections between the theory described and related applications. The fourth and concluding section outlines some recommendations.
Inhaltsverzeichnis (Table of Contents)
- Is There a Gap between Theory and Practice?
- Literature Review
- Relationship between Theory and Application
- Short-term Liquidity Measurement Theory
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper explores the relationship between theory and practice in the context of financial ratios theory. It aims to examine whether there is a gap between the theoretical concepts and their practical application, and to identify factors that contribute to this potential gap.
- The interplay between theory and practice in scientific research.
- The role of theoretical frameworks in guiding research and practice.
- The importance of translating theoretical concepts into practical applications.
- The potential gap between theory and practice in the context of financial ratios theory.
- Factors that may contribute to the gap between theory and practice.
Zusammenfassung der Kapitel (Chapter Summaries)
The first section of the paper explores the literature review of the relationship between theory and practice in scientific research. It discusses various perspectives on how theory is used to guide practice, including pragmatism, realism, and instrumentalism. The second section illustrates the theory of short-term liquidity measurement in the context of how the theory can be translated into practice. This section explains the rationale behind liquidity ratios and their use in evaluating a firm's ability to pay its short-term debts. The third section of the paper discusses the connections between the theory described and related applications, focusing on the potential gap between theory and practice and its implications for practitioners. The fourth and concluding section outlines some recommendations for bridging the gap between theory and practice.
Schlüsselwörter (Keywords)
This paper focuses on the relationship between theory and practice, particularly in the context of financial ratios theory. Key themes include liquidity ratios, financial analysis, short-term liquidity measurement, and the translation of theoretical concepts into practical applications. The paper examines the potential gap between theory and practice and explores factors that contribute to this gap.
- Quote paper
- Dr. Alaa Eldin Moustafa (Author), 2014, The Debatable Distance between Theory and Practice: An Analysis of Financial Ratios Theory, Munich, GRIN Verlag, https://www.grin.com/document/287044
