ASSIGNMENT

Module Code FMC502

Module Name Research Methodology
Programme MBA in Financial Management
Department Management Studies
Faculty FMC

Name of the Student POOJA.M

Reg. No 18MCMS047092
Batch Full-Time 2018
Module Leader Dr.Devkumar. G

i
 Declaration Sheet
Student Name POOJA.M

Reg. No 18MCMS047092

Course MBA Batch Full-Time 2018.

Module Code FMC502

Module Title Research Methodology

Module Date 09-09-2019 to 27-09-2019

Module Leader Dr.Devkumar.G

Declaration

The assignment submitted herewith is a result of my own investigations and that I have
conformed to the guidelines against plagiarism as laid out in the Student Handbook. All sections
of the text and results, which have been obtained from other sources, are fully referenced. I
understand that cheating and plagiarism constitute a breach of University regulations and will
be dealt with accordingly.

Signature of the student Date 27-09-2019

Submission date stamp

(by Examination & Assessment
Section)

Signature of the Module Leader and date Signature of Reviewer and date

<RESEARCH METHODOLOGY> 2
 Abstract
____________________________________________________________________________

PART-A

1. Conduct a literature review (At least 10 Scopus papers) in your domain about the
issues/challenges/emerging trends.

2. Record your observations in template shown in the Appendix.

3. Based on the observations summarize the literature review.

PART B

Develop a research proposal with the following sections:

1. Introduction (to your domain and current trends/challenges/ importance)

2. Literature Review ( Comprehension of the literature review)

3. Identification of Research Gaps

4. Research Questions

5. Title and Aim of the Thesis

6. Objectives

7. Methodology for Each Objective

8. References

PART C

Combined Presentation on Part A and Part B

<RESEARCH METHODOLOGY> 3
PART A

1. Conduct a literature review (At least 10 Scopus papers) in your domain about the
issues/challenges/emerging trends.

• Literature Review

1. Demonetization: A step towards modified India

(Vedashree, December 2016)

Demonetization is the act of stripping a currency unit of its status as legal tender. It is a
process of removing a currency from general usage or circulation of money in a country. The
paper discusses about the move of demonetization taken by Central Government of India on
8th November, 2016 with respect to its reasons and effects on different sectors in India. The
sectors cover Micro Businesses, E-Wallet businesses, online retail stores and so on. The paper
is based on secondary data collected from different newspapers and online sources,
mentioned in references.

2. Measuring the market impact of hedge funds

(William, et al., 2015)

Hedge funds often employ opportunistic trading strategies on a leveraged basis. It is natural
to find their footprints in most major market events. A ‘‘small bet’’ by large hedge funds can
be a sizeable transaction that can impact a market. This study estimates hedge fund exposures
during a number of major market events. In some episodes, hedge funds had significant
exposures and were in a position to exert substantial market impact. In other episodes, hedge
fund exposures were insignificant, either in absolute terms or relative to other market
participants. In all cases, they found no evidence of hedge funds using positive feedback
trading strategies. There was also little evidence that hedge funds systematically caused
market prices to deviate from economic fundamentals.

<RESEARCH METHODOLOGY> 4
 3. Determinants of success of Micro finance schemes serving the Agricultural sector

(Emmanuel, 2014)

A good number of microfinance schemes target micro enterprises in agriculture, which vary
considerably in their use of external finances. This study analyses the determinants of use of
external finances by micro enterprises and their implications for the success of microfinance
schemes. Data obtained from 244 micro enterprises were analyzed using simple statistical
tools and the multiple regression analysis. The results show that micro enterprises whose
operators have low knowledge, low managerial skills and low net worth use more external
finances, whereas operators with better net worth, knowledge and managerial know how use
little or no external finances.

4. Impact of Goods and Services Tax in India

(Bhushan, 2018)

Goods and Services Tax known as GST is a significant mile stone in the indirect tax structure
of India since independence. GST is a tax reform that transforms the country to: “One Nation,
One Tax, One Market” by, replacing all indirect taxes levied on goods and services by the
Central and State governments, simplifying the tax structure, easing compliances and
digitization. More than 160 countries have implemented GST/VAT in some form or other.
France was the first country to introduce GST. Now in India GST was implemented on 1stJuly
2017 with the objective to support and enhance the economic growth of the country. Goods
and Service Tax (GST) is a destination-based consumption tax on supplies of all goods and
services. All sections of economy viz., big, medium, small scale units, intermediaries,
importers, exporters, traders, professionals and consumers will be directly affected by GST.
Purpose of the paper is to analyze the impact of GST and study the impact of GST on Indian
economy. The study was based on secondary sources. It is concluded that GST has positive
impact on the economic growth of the India.

<RESEARCH METHODOLOGY> 5
 5. The Effects of the Global Financial Crisis on China’s Financial Market and
Macroeconomy

(LinyueLi, et al., 2015)

This paper provides a brief review of the increasing importance of China in the world economy
and discusses the spill over effects of the global financial crisis on China’s financial markets
and macroeconomy. It presents and critiques alternative ways of estimating these effects.
Contrary to much popular discussion, China was hit fairly hard by the global recession
generated by the financial crisis. It suffered a huge drop in exports, and these effects on the
economy were only partially offset by China’s huge stimulus program. While growth remained
well above international averages, its drop was of the same order of magnitude as for the
United States. The paper closes with a brief discussion of some of the major challenges facing
China to rebalance its economy in order to sustain high growth.

6. Retirement Plans: Planners and Non-Planners

(Eric & Karen, 2012)

With the aging of millions of baby bloomers, retirement planning is rapidly increasing in
importance. This study explores differences in characteristics of individuals who have well-
articulated retirements plans and those who do not. Women and those with low financial net
worth are less heavily represented among planners. More heavily represented among the
planners are self-employed, those with high financial net wealth, and those who have spoken
to a professional financial planner. Research suggests that retirement planning can benefit
individuals in a number of ways. Author also explained the impacts of four types of pre-
retirement planning activities (financial, health, social life and psychological planning).

<RESEARCH METHODOLOGY> 6
 7. Are Asian stock market fluctuations due mainly to intra-regional contagion effects?
Evidence based on Asian emerging stock markets

(Rumi, 2013)

The main purpose of the study is to examine the long and short-term dynamic linkages among
international and Asian emerging stock markets and then try to quantify the extent of the
Asian stock market fluctuations which are explained by intra-regional contagion effect. The
study, therefore, proceeds first by examining the dynamic causal linkages among eight
national daily stock price indices four major established markets and four Asian emerging
markets and then quantifying the extent of their dynamic interdependencies through the
application of recent time-series econometric techniques vector error-correction model and
level VAR model containing integrated and cointegrated processes of arbitrary orders.

8. MERGERS IN BANKING INDUSTRY OF INDIA: SOME EMERGING ISSUES

(Joshi, 2014)

The world of competition is like a jungle where monsters gobble smaller ones therefore one
has to be competent enough to win the rivalry. There are evidences that large enterprises
have merged smaller competitors in themselves. This review article on mergers in banking
industry has been ignited from the case of the Bank of Rajasthan Ltd. and ICICI Bank Ltd. The
aim of this paper is to probe the motives of banks for mergers and acquisition with special
reference to Indian Banking Industry. For this purpose, sample of 17 mergers (post
liberalization) of Banks is taken. This study is conducted on the basis of number of branches,
geographical penetration in the market and benefits from the merger. Apart from their
financial aspects, this article also raises certain questions from the point of view of Human
Resources Management and Organization Behavior for scholars and researchers. This article
leaves footprints on the way of further studies on mergers and acquisitions from a different
outlook.

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 9. Socially Responsible Investing: An Investor Perspective

(Thomas, February 2013)

Given the growing importance of Socially Responsible Investing (SRI), it is surprising that there
is no consensus of what the term SRI means to an investor. Further, most studies of this
question rely solely on the views of investors who already invest in SRI funds. Our study
surveys a unique pool of approximately 5,000 investors that contains both investors who have
used SRI criteria in investment decisions and those who have not, and involves abroad array
of criteria associated with SR investing. Our findings offer new insight into the SRI debate. For
both sets of investors, environmental and sustainability issues dominate as the major
category associated with SR investing. These findings can help providers of SR investment
vehicles to improve the SRI products that they offer to the general investor, thus both
encouraging the initial adoption of SR criteria by investors and increasing overall investment
in SR choices.

10. Money laundering

(Williams, 2015)

On the impeccable logic that the primary aim of criminal organizations is to make money, one
response of law enforcement has been to target the money laundering associated with the
international drugs trade as a means of discouraging drug tracking. The United States, through
the G‐7's Financial Action Task Force, has played the leading role in the creation of a global
anti‐money laundering regime. The main argument of this article is that, in spite of the
emphasis being placed on following the money as a way of disrupting transnational criminal
organizations, the advantages remain with the criminals. This is because the global financial
system presents more opportunities for hiding money than the authorities can hope to
forestall, with new technological developments acting to the benefit of those seeking to
obscure the source, ownership and movement of money. The game of catch‐up being played
by law enforcement agencies is illustrated through case studies.

<RESEARCH METHODOLOGY> 8
 2. Record your observations in template shown in the Appendix.

Methods, Conclusions Scholar’s

Sl. Year of Methodology, Research Drawn by Limitations of Comments about
No. Authors Publication Research Focus Tools Used Findings the Authors study the Research work
In long run it
definitely
will have
positive
impact in
Secondary Some positive controlling
data collected and some black money Demonetization
from different negative and fake Only selected with respect to its
newspapers impacts on money. sectors have reasons and effects
and online different been covered on different sectors
1 Vedashree.M Dec-16 Demonetization sources sectors for the study in India.
Monitoring
the
strategies of
hedge funds
can provide
early
indication of Analysis did not
potentially turn up any
Hedge fund dangerous hedge funds or
positions were risks mutual funds Hedge fund
relatively assumed by that had activities may serve
Principal modest at the the speculative bets as a leading
Market impact component beginning of ‘‘market’’ as against the indicator of market
2 William Fung 2015 of hedge funds analysis the crisis a whole. Mexican Peso. turmoil.
Micro
enterprises
whose Operators
operators have should be Age of the
low knowledge, adequately respondents
Determinants managerial informed and their The respondents
of success of Simple skills and net and attitude have low
Micro-finance statistical worth use more encouraged towards the use knowledge of
schemes tools and external to become of external sources of micro
serving the multiple finances and members of finances were credit as well as
Emmanuel Agricultural regression operators vice- finance not significant lending practises of
3 O. Eyo 2014 sector analysis versa. group in their effects the lenders.
Due to time
constrain sector
wise detailed
GST has analysis was not
Analyse the positive done Due to
impact of GST impact on time constrain GST will play a
Impact of and study the the sector wise dynamic role in the
Goods and Based on impact of GST economic detailed growth and
Mamta Services Tax in secondary on Indian growth of analysis was not development of
4 Bhushan 2018 India sources economy the India done our country
Growing
economic China is China’s growing
strength has led having an economic strength
to a decoupling increasingly has led to a
LinyueLi, from large impact decoupling from
Thomas D, Effects of the Principal developments on the Major theme of developments in
W. & Global Financial component in the advanced global the paper is the the advanced
5 NanZhang 2015 Crisis analysis economies economy argument economies

<RESEARCH METHODOLOGY> 9
 Develop
user-friendly
Individuals who software to
have well- entice The expected
articulated individuals primary source of
Eric Brucker Survey from retirement to explore Procrastination, retirement income
& Karen Retirement 200 plans and those retirement inertia and low is associated with
6 Leppel 2012 plans respondents who do not planning expectations planning status
Existence of Empirical
short- and long- evidence
term suggesting A primer for the
relationship co- Include issues wealth of applied
between the movement related to financial
Vector error- established in dividends temporal econometric
Abul Masih correction & OECD and the or GNP is aggregation research focusing
& Rumi Stock market level VAR emerging Asian relatively even at a daily on dynamic causal
7 Masih 2013 fluctuations model markets weak level inference
Local banks
face
difficulty in
M&A in bearing the
banking sector impact of Motives of banks
has provided global for mergers and
Mergers in Sample of 17 evidences that economy, it Various acquisition with
Banking mergers (post it is the useful is one of the emerging issues special reference
K.A.Goyal & Industry of liberalization) tool for survival reasons for have been to Indian Banking
8 Vijay Joshi 2013 India of Banks of weak banks merger. identified Industry
Additional
research is
needed to
Investors develop
5,000 Environmental seem to alternative
investors that and prefer to screening Providers of SR
contains both sustainability reward firms approaches investment
investors who issues dominate who display based more on vehicles to improve
have used SRI as the major overall inclusionary the SRI products
Thomas C Socially criteria in category positive rather than that they offer to
Berry & Joan Responsible investment associated with social exclusionary the general
9 C Junkus 2014 Investing decisions SR investing behaviour factors investor
The game of
The money as a Law catch‐up being
way of enforcement played by law
G‐7's disrupting has been to enforcement
Financial transnational target the The advantages agencies is
Money Action Task criminal money remain with the illustrated through
10 Phil Williams 2015 laundering Force organisations laundering criminals case studies.

<RESEARCH METHODOLOGY> 10
3. Based on the observations summarize the literature review.

1. Demonetization: A step towards modified India

Demonetization created effect on different sectors in different manners resulting into boom
for some sectors like E-Wallet businesses and temporary slowdown like micro businesses,
where most of the transactions are on cash basis. Demonetization though it has created some
positive and some negative impacts on different sectors but in long run it definitely will have
positive impact in controlling black money and fake money.

2. Measuring the market impact of hedge funds

Hedge fund activities may serve as a leading indicator of market turmoil. Many large hedge
funds employ opportunistic trading strategies on a leveraged basis. It is natural to find their
footprints in most major market events, particularly when ‘‘one-way bets’’ developed.
Monitoring the strategies of hedge funds can provide early indication of potentially
dangerous risks assumed by the ‘‘market’’ as a whole.

3. Determinants of success of Micro finance schemes serving the Agricultural sector

The result of this research confirms that respondents generally have low knowledge of
sources of micro credit as well as the lending practices of the lenders. The regression analysis
confirms that those respondents with better knowledge score actually use more external
finances. Consequently, microfinance schemes should make efforts to increase people’s
awareness on their activities. This would be invaluable in increasing the number of farmers
and fisherman groups that enlist in the microfinance programmers.

<RESEARCH METHODOLOGY> 11
 4. Impact of Goods and Services Tax in India

GST is an indirect tax reform in the Indian indirect tax system which simplifies the tax structure
of the country. GST is a method to get rid of inefficiencies of the previous system of multiple
taxes. It is expected to bring greater transparency, improve compliance levels. In the GST
system, taxes for both Centre and State will be collected at the point of sale on the
manufacturing cost. There is no doubt that the corporates would benefit once they settle in
under GST and assess the impact on their respective businesses.

5. The Effects of the Global Financial Crisis on China’s Financial Market and
Macroeconomy

Growing economic strength has led to a decoupling from developments in the advanced
economies is greatly overstated. China is having an increasingly large impact on the global
economy, but economic interdependence runs strongly in both directions. Despite its heavy
export dependence, China was able to take forceful policy actions to reduce the negative
effects of the global recession. The huge economic strides that China has made, it faces a
number of enormous economic challenge store balance its economy for sustainable economic
growth and playing an increased role in promoting international and regional economic and
financial cooperation.

6. Retirement Plans: Planners and Non-Planners

Since procrastination, inertia, and low expectations of success often impede retirement
planning, the recommendations provided were-

a) Develop user-friendly software to entice individuals to explore retirement planning

more easily

b) Improve financial literacy education to develop understanding and motivation

c) Institute programs that use inertia to encourage greater saving

<RESEARCH METHODOLOGY> 12
 7. Are Asian stock market fluctuations due mainly to intra-regional contagion effects?
Evidence based on Asian emerging stock markets

This paper focuses on an empirically elusive issue in the financer financial economics
literature concerning patterns of linkages amongst national stock markets. In dealing with
such an issue, a comparative analysis was made of two approaches in conducting causal
inferences in systems containing possibly integrated as well as cointegrated processes. The
paper illustrates how such methods may be appropriately augmented in a compatible fashion
to unearth previously unfounded linkage properties inherent amongst a system of stock price
indexes.

8. MERGERS IN BANKING INDUSTRY OF INDIA: SOME EMERGING ISSUES

Banking sector is one of the fastest growing areas in the developing economies like India.
M&A is discussed as one of the most useful tools for growth, which has evoked the interest
of researchers and scholars. Indian economy has witnessed fast pace of growth post
liberalization era and banking is one of them. M&A in banking sector has provided evidences
that it is the useful tool for survival of weak banks by merging into larger bank. It is found in
our study that small and local banks face difficulty in bearing the impact of global economy
therefore, they need support and it is one of the reasons for merger.

9. Socially Responsible Investing: An Investor Perspective

We exploit a large, unique dataset of individual investors to infer the attitude of individual
investors toward SRI. Since our dataset is not limited to those already investing in SR funds,
we are able to see a broader range of opinions about SRI. We find that both SR investors as
well as those not inclined to invest in SRI consider environmental issues to be the most
important. We also find that investors prefer to reward firms who display overall positive
social policies rather than exclude firms based on certain products or policies. Most SR
vendors focus on an exclusionary approach and perhaps this disconnect is limiting the growth
of SRI.

<RESEARCH METHODOLOGY> 13
 10. Money laundering

The main argument of this article is that, in spite of the emphasis being placed on following
the money as a way of disrupting transnational criminal organizations, the advantages remain
with the criminals. This is because the global financial system presents more opportunities for
hiding money than the authorities can hope to forestall, with new technological
developments acting to the benefit of those seeking to obscure the source, ownership and
movement of money. The game of catch‐up being played by law enforcement agencies is
illustrated through case studies.

<RESEARCH METHODOLOGY> 14
PART B

Develop a research proposal with the following sections:

TOPIC – CORRUPTION IN INDIA

1. Introduction

Fighting corruption has emerged as a key development issue in India in recent years. More
and more policymakers, businesses, and civil society organizations, have begun to confront
the issue openly. At the same time the general level of understanding about corruption has
risen markedly. Until recently, it was not uncommon to hear someone discuss anti-corruption
strictly in law enforcement terms. By contrast, most people working in the field today
acknowledge that public education and prevention are equally important. The field has also
come to appreciate how critical the role of civil society is for effective and sustained reform.

A corrupt society is characterized by immorality and lack of fear or respect for the law. It is
the abuse of public power for private gain. Corruption comes under many different guises like
bribery, extortion, fraud, embezzlement. misappropriations of public goods, nepotism
(favoring family members for jobs and contracts) cronyism and influence pending.

2. Literature Review

(Sondhi, 2014)

A preliminary analysis of the literature shows that corruption in India and elsewhere is
recognized as a complex phenomenon, as the consequence of more deep-seated problems
of policy distortion, institutional incentives and governance. It thus cannot be addressed by
simple legal acts proscribing corruption. The reason is that, particularly in India, the judiciary,
legal enforcement institutions, police and such other legal bodies cannot be relied upon, as
the rule of law is often fragile, and thus can be turned in their favor by corrupt interests.

<RESEARCH METHODOLOGY> 15
(Rajak, 2013)

The behavior of India legislators both at the union and in the state leaves a lot to be desired.
Every time they act motivated by personal gain. Corruption in the assemblies as seen from
this perspective implies floor crossing, case for vote taking money or other benefits to ask
questions, framing rules under the influence of big corporate houses at the cost of common
people. Criminalization of politics is yet another fact of corruption in the current parliament.
These are over a quarter MPs with criminal records. Many with serious charges against them.
It also highlights an area where electoral reforms is urgently needed so that criminals don't
enter in the parliament or state assemblies.

3. Identification of Research Gaps

• There is very little evidence on how to successfully fight corruption; therefore,

research of corruption should focus on experiencing and evaluating new tools
to improve accountability

• There should be more research on the differential effect of corruption

• There is little relationship between the relatively large body of literature on

how institutions enable corruption, and the relatively small literature on how
much corruption actually occurs in specific contexts

4. Research Questions

• What is the magnitude of corruption?

• Do higher wages for bureaucrats reduce corruption?

• Why have there been so few successful attempts to fight corruption?

• Does corruption adversely affect growth?

• Projects that work to impede corruption, either directly or indirectly?

• What are the strategies that can be used to combat corruption in a country?

<RESEARCH METHODOLOGY> 16
 5. Title and Aim of the Thesis

Title - Combating corruption in India

Aim of the Thesis -

Courts will have their power restored; police officials who file weak charge sheets to let the
guilty off the hook will be held accountable; bribe-givers will come forward and present
evidence against officials who demand bribes to issue birth and death certificates; bank clerks
will be willing to testify against those that allowed the banking system to get defrauded.
Moreover, as conviction rates go up, and the backlog of cases piling up in courts and clogging
the system will decrease. The system will also need a mechanism that allows the courts to
clean up corruption in their own backyard. Legislators and jurists could mutually find
measures that work, without treading on each other’s toes. Corporate barons, too, could play
a role in this, since their growth is most adversely affected by the debilitating atmosphere of
sloth and protection that permeates the corridors of power.

There is an economic cost to justice getting delayed. As the risk of doing business in a country
increases, the margins of profit also increase to cover invisible costs that must be met up and
down the line. After 70 years of independence, India deserves an economic growth spurt and
the citizens must ensure that the country does not reach the path of being regarded as a failed
state.

6. Objectives

Two things need to be done to address the acute problem of corruption in India. First, the
government must dispense with the protection that legislators, bureaucrats and bankers
enjoy, instead allowing some of them to become approvers with immunity from prosecution.
Second, judicial vacancies must be filled up soon, and appropriate premises and support staff
must be provided.

<RESEARCH METHODOLOGY> 17
7. Methodology

In the recent years significant improvements have been made in the measurement of
corruption, in the construction of composite corruption indices, and in the design and
implementation of surveys. Beyond applying improved empirics through a multi-pronged
approach to surveys, it is now possible to construct a framework linking the analytical and
empirical research with operationally relevant utilization. We can effectively utilize empirical
analysis in the design and implementation of action programs.

8. References

• Sondhi, S., 2014. Corruption in India. World Congress of International Political Science
Association , 12(3), pp. 1-6.

• Rajak, J. S., 2013. Corruption in India: Nature, Causes, Consequences and Cure. IOSR
Journal Of Humanities And Social Science , 18(5), pp. 20-24.

• https://www.ey.com/in/en/services/assurance/fraud-investigation---dispute-
services/bribery-and-corruption-ground-reality-in-india

• https://www.globallegalinsights.com/practice-areas/bribery-and-corruption-laws-
and-regulations/india

<RESEARCH METHODOLOGY> 18
References for Part A
Bhushan, M., 2018. Impact of Goods and Services Tax in India. AKADEMOS , pp. 31-84.

Emmanuel, O. E., 2014. Determinants of success of Micro finance schemes serving the Agricultural
sector. Pakistan Journal of Social Sciences, pp. 173-176.

Eric, B. & Karen, L., 2012. Retirement Plans: Planners and Nonplanners, Educational Gerontology.
Educational Gerontology, 39(1), pp. 1-11.

Joshi, D. K. G. &. V., 2014. MERGERS IN BANKING INDUSTRY OF INDIA: SOME EMERGING ISSUES.
Asian Journal of Business and Management Sciences , 1(2), pp. 157-165.

LinyueLi, Thomas D, W. & NanZhang, 2015. The Effects of the Global Financial Crisis on China’s
Financial Market and Macroeconomy. Economics Research International, pp. 1-6.

Rumi, A. &., 2013. Are Asian stock market fluctuations due mainly to intra-regional contagion
effects? Evidence based on Asian emerging stock markets. Pacific-Basin Finance Journal, 2(7), pp.
251-282.

Thomas, B. J. &. J., February 2013. Socially Responsible Investing: An Investor Perspective. Journal of
Business Ethics, 3(11), pp. 707-720.

Vedashree, M., December 2016. Demonetization: A step towards modified India. International
Journal of Commerce and Management Research, pp. 35-36.

William, F., David & Hsieh, 2015. Measuring the market impact of hedge funds. Journal of Empirical
Finance , pp. 1-35.

Williams, P., 2015. Money laundering. South African Journal of International Affairs, 5(1), pp. 71-96.

<RESEARCH METHODOLOGY> 19