CHAPTER-ONE

Introduction to Research
Methodology & Design In
Accounting & Finance
 Overview of Research
Research is mostly used terminology in
different academic and business institutions.
Research as consciously and creative human
activity involves discovering and learning new
things.
Where there is a problem there is always a
research.
Research can mean different things to
different people. People have defined research
differently according to their perception.
I. Meaning of Research
 The term research consists of two words:
 Research = re + search
 Re means again and again and search
means to find out something. The following
is the process:
Meaning ---
It Refers to a search for knowledge.
A scientific and systematic search for
pertinent information on a specific topic.
An art of scientific investigation.
A systematized effort to gain new knowledge.
A movement from the known to the
unknown.
It is actually a voyage of discovery.
Meaning---
Comprises defining and redefining problems,
formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last
carefully testing the conclusions to determine
whether they fit the formulating hypothesis.
The manipulation of things, concepts or symbols for
the purpose of generalizing to extend, correct or
verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art.
Meaning ---
An original contribution to the existing stock of
knowledge making for its advancement. It is the
pursuit of truth with the help of study,
observation, comparison and experiment.
The search for knowledge through objective and
systematic method of finding solution to a
problem is research.
The systematic approach concerning
generalization and the formulation of a theory is
also research.
Meaning---
In short, research’ refers to the systematic
method consisting of articulating the
problem, formulating a hypothesis,
collecting the facts or data, analyzing the
facts and reaching certain conclusions either
in the form of solutions(s) towards the
concerned problem or in certain
generalizations for some theoretical
formulation.
Nature & Scope of Business
Research
Business research covers a wide range of phenomena.
For managers, the purpose of research is to provide
knowledge regarding the organization, the market, the
economy, or another area of uncertainty.
A financial manager may ask, “Will the environment for
long-term financing be better two years from now?”
A personnel manager may ask, “What kind of training is
necessary for production employees?” or “What is the
reason for the company’s high employee turnover?”
Nature & Scope ---
A marketing manager may ask, “How can I monitor
my retail sales and retail trade activities?”
Each of these questions requires information about
how the environment, employees, customers, or the
economy will respond to executives’ decisions.
Research is one of the principal tools for answering
these practical questions.
 Nature & Scope---
Business research is the application of the
scientific method in searching for the truth
about business phenomena.
These activities include defining business
opportunities and problems, generating and
evaluating alternative courses of action, and
monitoring employee and organizational
performance.
Nature & Scope---
Business research is designed to facilitate the
managerial decision-making process for all aspects of
the business: finance, marketing, human resources,
and so on.
Business research is an essential tool for management
in virtually all problem-solving and decision-making
activities.
Business research also includes efforts that assist
nonprofit organizations.
Purpose of Research
The purpose of research is to discover answers to
questions through the application of scientific
procedures. The main aim of research is to find out
the truth which is hidden and which has not been
discovered as yet.
Though each research study has its own specific
purpose, we may think of research objectives as
falling into a number of following broad
groupings:
Purpose ---
1. To gain familiarity with a phenomenon or to achieve new
insights into it (studies with this object in view are termed
as exploratory or formulative research studies);
2. To portray accurately the characteristics of a particular
individual, situation or a group (studies with this object in
view are known as descriptive or explainatory research
studies);
3. To determine the frequency with which something occurs or
with which it is associated with something else (studies
with this object in view are known as diagnostic research
studies);
4. To test a hypothesis of a causal relationship between
variables (such studies are known as hypothesis-testing
research studies).
Motivation In Research ---

Desire to get a research degree along with its

consequential benefits;
Desire to face the challenge in solving the
unsolved problems, i.e., concern over
practical problems initiates research;
Desire to get intellectual joy of doing some
creative work;
Desire to be of service to society;
Desire to get respectability.
Types of Research
a. Descriptive vs. Analytical
Descriptive research includes surveys and fact-finding
enquiries of different kinds.
The major purpose of descriptive research is
description of the state of affairs as it exists at present.
The researcher has no control over the variables;
he/she can only report what has happened or what is
happening. This is called Ex post facto descriptive
research.
In analytical research, the researcher has to use facts
or information already available, and analyze these to
make a critical evaluation of the material.
b. Applied vs. Fundamental:
Research can either be applied (or action) research or
fundamental (to basic or pure) research.
Applied research aims at finding a solution for an
immediate problem facing a society or an
industrial/business organization, whereas
Fundamental research is mainly concerned with
generalizations and with the formulation of a theory.
Gathering knowledge for knowledge’s sake is termed ‘pure’
or ‘basic’ research.
Research concerning some natural phenomenon or
relating to pure mathematics are examples of fundamental
research.
c. Quantitative vs. Qualitative:
Quantitative research is based on the measurement of
quantity or amount. It is applicable to phenomena that
can be expressed in terms of quantity or numerical
facts.
Qualitative research, on the other hand, is concerned
with qualitative phenomenon, i.e., phenomena
relating to or involving quality or kind.
For instance, when we are interested in investigating
the reasons for human behavior (i.e., why people think
or do certain things), we quite often talk of ‘Motivation
Research’, an important type of qualitative research.
d. Conceptual vs. Empirical:
Conceptual research is that related to some
abstract idea(s) or theory. It is generally used by
philosophers and thinkers to develop new
concepts or to reinterpret existing ones.
On the other hand, empirical research relies on
experience or observation alone, often without
due regard for system and theory. It is data-based
research, coming up with conclusions which are
capable of being verified by observation or
experiment. We can also call it as experimental
type of research.
e. Some Other Types of Research:
All other types of research are variations of one or more of the
above stated approaches, based on either the purpose of
research, or the time required to accomplish research, on the
environment in which research is done, or on the basis of some
other similar factor.
Form the point of view of time, we can think of research either
as one-time research or longitudinal research. In the former case
the research is confined to a single time-period, whereas in the
latter case the research is carried on over several time-periods.
Research can be field-setting research or laboratory research or
simulation research, depending upon the environment in which
it is to be carried out.
Research can as well be understood as clinical or diagnostic
research. Such research follow case-study methods or indepth
approaches to reach the basic causal relations.
Research Approaches
There are three approaches to reaserch
a. Quantitative
b. Qualitative
c. Mixed
a. Quantitative Approach
A quantitative approach is one in which the
investigatory primarily uses postpositive
claims for developing knowledge (i.e., cause
and effect thinking, reduction to specific
variables and hypotheses and questions,
use of measurement and observation,
and the test of theories), employs
strategies of inquiry such as experiments and
surveys, and collect data on predetermined
instruments that yield statistics data.
b. Qualitative Approach
A qualitative approach is one in which the inquirer
often makes knowledge claims based primarily on
constructivist perspectives (i.e., the multiple
meanings of individual experiences meanings socially
and historically constructed, with an intent of
developing a theory or pattern) or
advocacy/participatory perspectives (i.e., political,
issue-oriented, collaborative, or change oriented) or
both. It also sues strategies of inquiry such as
narratives, phenomenologies, ethnographies,
grounded theory studies, or case studies.
The researcher collect open-ended, emerging data with
the primary intent of developing themes from the data.
c. Mixed Approach
A mixed methods approach is one in which the
researcher tends to base knowledge claims on
pragmatic grounds (e.g., consequence-oriented,
problem-centered, and pluralistic).
It employs strategies of inquiry that involve
collecting data either simultaneously or
sequentially to best understand research problem.
The data collection also involves gathering both
numeric information (e.g., on instruments) as well
as text information (e.g., on interviews) so that the
final database represents both quantitative and
qualitative information.
Criteria for Selecting an Approach
 Match Between Problem and Approach
For example, if the problem is identifying factors that
influence an outcome, the utility of an intervention, or
understanding the best predictors in outcomes, then a
quantitative approach is best. It is also the best approach to
sue o test a theory or explanation.
On the other hand, if a concept or phenomenon needs to be
understood because little research has been done on it, then
it merits a qualitative approach. Qualitative research is
exploratory and is useful when the researcher does not know
the important variable to examine.
A mixed methods design is useful to capture the best of both
quantitative and qualitative approaches.
- Personal Experiences
An individual trained in technical, scientific writing,
statistics, and computer statistical programs who is also
familiar with quantitative journals in the library would
most likely choose the quantitative design.
The qualitative approach incorporates much more of a
literary form of writing, computer text analysis
programs, and experience in conducting open-ended
interviews and observations.
The mixed methods researcher needs to be familiar with
both quantitative and qualitative research. This
personals needs understanding of the rationales for
combining both forms of data so that they can be
articulated in a proposal.
- Audience
Finally, researchers are sensitive to audiences to
whom they report their research. These audiences
m be journal editors, journal readers, graduate
committees, conference attendees, or colleagues in
the field.
Students should consider the approaches typically
supported and used by their advisers. The
experiences of these audiences with quantitative,
qualitative, or mixed methods studies will shape
the decision made about this choice.
Research process
Research process consists of series of
actions or steps necessary to effectively
carry out research and the desired
sequencing of these steps.
The chart shown on the following slide
in Figure 1.1 well illustrates a research
process.
Research Process
Research Process--
The chart indicates that the research process
consists of a number of closely related activities.
But such activities overlap continuously rather
than following a strictly prescribed sequence.
One should remember that the various steps
involved in a research process are not mutually
exclusive; nor they are separate and distinct.
They do not necessarily follow each other in any
specific order and the researcher has to be
constantly anticipating at each step in the research
process the requirements of the subsequent steps.
Steps in Research Process
1. Formulating the research problem
Research problem is general area of interest
or aspect of a subject-matter that a
researcher would like to inquire (study) and
resolve.
There are two types of research problems,
i.e., those which relate to states of nature
and those which relate to relationships
between/among/ variables.
Formulating the research problem
Essentially two steps are involved in formulating the
research problem, i.e., understanding the problem
thoroughly, and rephrasing the same into meaningful
terms from an analytical point of view.
The best way of understanding the problem is to discuss it
with:
a. One’s own colleagues
b. Those having some expertise (scholars) in the matter.
c. Examine all available literature (i.e., (1)conceptual
literature concerning the concepts and theories, and
(2)the empirical literature consisting of studies made
earlier).
2. Extensive literature survey
Once the problem is formulated, a brief
summary of it should be written down.
Academic journals, conference proceedings,
government reports, books etc., must be
tapped depending on the nature of the
problem.
In this process, it should be remembered
that one source will lead to another.
3. Development of working hypotheses
Working hypothesis is tentative assumption made in order to
draw out and test its logical or empirical consequences. How?
a) Discussions with colleagues and experts about the problem,
its origin and the objectives in seeking a solution;
b) Examination of data and records, if available, concerning
the problem for possible trends, peculiarities and other
clues;
c) Review of similar studies in the area or of the studies on
similar problems; and
d) Exploratory personal investigation which involves original
field interviews on a limited scale with interested parties
and individuals with a view to secure greater insight into the
practical aspects of the problem.
4. Preparing the research design
Research design states the conceptual
structure within which research would
be conducted.
Facilitates research to be as efficient as
possible yielding maximal information.
The function of research design is to
provide for the collection of relevant
evidence with minimal expenditure of
effort, time and money.
Preparing the research design
There are several research designs, such as,
experimental and non-experimental hypothesis
testing. Experimental designs can be either
informal designs (such as before-and-after without
control, after-only with control, before-and-after
with control) or formal designs (such as
completely randomized design, randomized block
design, Latin square design, simple and complex
factorial designs), out of which the researcher
must select one for his own project.
Preparing the research design
The preparation of the research design, appropriate
for a particular research problem, involves usually the
consideration of the following:
i. The means of obtaining the information;
ii. The availability and skills of the researcher and his
staff (if any);
iii. Explanation of the way in which selected means of
obtaining information will be organized and the
reasoning leading to the selection;
iv. The time available for research; and
v. The cost factor relating to research, i.e., the finance
available for the purpose.
5. Determining sample design
A sample design is a definite plan determined
before any data are actually collected for obtaining
a sample from a given population.
All the items under consideration in any field of
inquiry constitute a ‘universe’ or ‘population’.
A complete enumeration of all the items in the
‘population’ is known as a census inquiry.
The items so selected from the population
constitute what is technically called a sample.
Important Sample Designs
- Deliberate sampling-purposive/non-
probability/convenience/judgmental/ sampling.
 Simple random sampling
 Systematic sampling
 Stratified sampling
 Quota sampling
 Cluster sampling and area sampling
 Multi-stage sampling
 Sequential sampling
6. Collecting the data
Data can be collected either through
experiment or through survey.
 Survey data collection may involves:
Observation
Personal interview or telephone interview
Mailing of questionnaires
Document/report/ review for secondary data
7. Execution of the project
If the execution of the project proceeds on correct
lines, the data to be collected would be adequate
and dependable.
8. Analysis of data
The analysis of data requires a number of
closely related operations such as
establishment of categories, the application
of these categories to raw data through
coding, tabulation and then drawing
statistical inferences.
9. Hypothesis-testing
Hypothesis-testing will result in either accepting
the hypothesis or in rejecting it.
Various tests, such as Chi square test, t-test, F-test,
have been developed by statisticians for the
purpose.
If the researcher had no hypotheses to start with,
generalizations established on the basis of data
may be stated as hypotheses to be tested by
subsequent researches in times to come.
10. Generalizations and interpretation
If a hypothesis is tested and upheld several times,
it may be possible for the researcher to arrive at
generalization, i.e., to build a theory.
As a matter of fact, the real value of research lies
in its ability to arrive at certain generalizations.
If the researcher had no hypothesis to start with,
he might seek to explain his findings on the basis
of some theory.
11. Preparation of the report or the thesis
Finally, the researcher has to prepare the report of
what has been done.
- The report layout may involve
a. Title
b. Acknowledgement
c. Key words
d. Abstract
e. Introduction and Statement of the problem
f. Research design
g. Data analysis & interpretation
h. Findings, conclusions, recommendations, etc)
Thank You