MASTERS IN ACCOUNTING AND FINANCE

SUBJECT - RESEARCH METHODOLOGY FACULTY NAME – MS. SWETA PATEL

PATTERN OF WRITING ANSWERS – 6 marks (Maximum 10 mins for one question)

Introduction

Pictorial Presentation

Explanation (6 points)

NOTE: As and when the questions are taught, read and write it in note-book. Test series will be
conducted after lectures for all the modules

NOTES -

Module 1

1. What is research? Explain its characteristics.

2. Explain the different types of research.

3. Describe the stages in research process.

4. Describe the need and importance of research.

5. What is research? Explain the objectives of research.

6. What are the different sources of research problem?

7. Steps in formulation of research problem.

7. Review of Literature

1. Explain research and its features/characteristics.

Research is the systematic inquiry or investigation into a specific problem or issue that leads to new or
improved knowledge for solving the problem. Research is done mainly for two purposes: to enhance the
bank of knowledge or to develop new theories in the field and to identify the problem and search for
solutions for that problem. While we segregate the word Research it is “RE” and “SEARCH”. So, it denotes
searching for something again and again until it is found or new thing is found.

According to F.N. Kerlinger – It is a systematic, controlled, empirical, and critical investigation of

hypothetical propositions about the presumed relations among natural phenomena.

Thus, research is a systematic and organized study and analysis of an issue that helps solve the problem
or add new knowledge to existing knowledge.
Features of Research –

► Develops Principles – The purpose of doing such research is to find solutions to an immediate
issue, solving a particular problem, developing new technology and look into future. These
principles help to deal with similar situations in future.

► Uses Scientific Methods – In a typical application of the scientific method, a researcher develops
a hypothesis, tests it through various means, and then modifies the hypothesis on the basis of
the outcome of the tests and experiments. Research is having a sound reasoning.

► Maintains Objectivity – Objectivity requires that we as researchers be unbiased and remain

un-influenced by our personal feelings, opinions or prejudices when conducting the research.
The findings of the research must be based on the data collected and not on the values, beliefs
or opinions of the researcher to ensure objectivity. Process of collecting information qualitatively

► Purposeful Investigation – Extent of prevalence as well as its pinpoint reasons. The purpose of
research is to inform and is based on collected and analyzed data. This exploration occurs
systematically, where it is either tested or investigated to add to a body of knowledge.

► Studies Complex Human Behavior – Two persons not alike and the study is a broad and
interdisciplinary field that draws on theories and methods from psychology, sociology,
anthropology, economics, and other related disciplines. Human behaviour is complex and
multifaceted, and is studied by a broad range of disciplines across the social and natural
sciences.

► Continuous Process – The research process is a continuous cycle. Research does not follow a
one-way linear progression, instead it is a continuous process of checking and re-checking,
evaluating and analyzing, and repeating the entire process over and over again. Old Existing New
(Grows strength by strength).

► Conducts Observation and Experimentation – An observational study is when the researcher

observes the effect of a specific variable as it occurs naturally, without making any attempt to
intervene. In an experiment, the researcher manipulates the situation and observes the effect in
a more controlled setting. Put to test its validity & reliability.

► Changes in Environment – Research allows you to pursue your interests, to learn something new,
to hone your problem-solving skills and to challenge yourself in new ways. Working on a
faculty-initiated research project gives you the opportunity work closely with a mentor–a faculty
member or other experienced researcher. It adopts as per changing times.

► Ensures Practical Use – Research is a systematic way of gathering data and harnessing curiosity.
This research provides scientific information and theories for the explanation of the nature and
 the properties of the world. It makes practical applications possible. Must bring all round
progress and benefits.

2. What are the different types of research?

Introduction to research (as above)

Types of research –

► Basic Research – Basic research, also called pure research, fundamental research, basic science,
or pure science, is a type of scientific research with the aim of improving scientific theories for
better understanding and prediction of natural or other phenomena. Basic research generates
new ideas, principles, and theories, which may not be immediately utilized but nonetheless form
the basis of progress and development in different fields. Today's computers, for example, could
not exist without research in pure mathematics conducted over a century ago, for which there
was no known practical application at the time. Basic research rarely helps practitioners directly
with their everyday concerns; nevertheless, it stimulates new ways of thinking that have the
potential to revolutionize and dramatically improve how practitioners deal with a problem in the
future. {In short - Theoretical, Fundamental, Improving Academic Knowledge, Out of Curiosity
(Research on new disease)}

► Applied Research – Applied research is a type of examination looking to find practical solutions
for existing problems. These can include challenges in the workplace, education and society. This
research type uses empirical methodologies, such as experiments, to collect further data in an
area of study. There are 3 types of applied research. These are evaluation research, research and
development, and action research. {In short - Decisional Research, Tackles Business Problems
(New Product Launch)}

► Descriptive Research – Descriptive research is an appropriate choice when the research aim is to
identify characteristics, frequencies, trends, and categories. It is useful when not much is known
yet about the topic or problem. Before you can research why something happens, you need to
understand how, when and where it happens. Descriptive research aims to accurately and
systematically describe a population, situation or phenomenon. It can answer what, where,
when and how questions, but not why questions. A descriptive research design can use a wide
variety of research methods to investigate one or more variables. Unlike in experimental
research, the researcher does not control or manipulate any of the variables, but only observes
and measures them. {In short - Describe the characteristics of variables (Absenteeism reason)}

► Analytical Research – Analytical research is a specific type of research that involves critical
thinking skills and. the evaluation of facts and information relative to the research being
 conducted. A variety of people including students, doctors and psychologists use analytical
research during studies to find the most relevant information. Detailed statistics and statistical
checks help guarantee that the results are significant. {Carries out analysis of a problem
(Doctors)}

► Empirical Research – Empirical research is research that is based on observation and

measurement of phenomena, as directly experienced by the researcher. The data thus gathered
may be compared against a theory or hypothesis, but the results are still based on real life
experience. It is also a way of gaining knowledge by means of direct and indirect observation or
experience. Empiricism values some research more than other kinds. Empirical evidence can be
analyzed quantitatively or qualitatively. {In short - Derives knowledge from actual experiences
not theory (Lab test)}

► Qualitative Research – Qualitative research is a type of research that aims to gather and analyse
non-numerical data in order to gain an understanding of individuals' social reality, including
understanding their attitudes, beliefs, and motivation. Qualitative data describes qualities or
characteristics. It is collected using questionnaires, interviews, or observation, and frequently
appears in narrative form. For example, it could be notes taken during a focus group on the
quality of the food at Cafe Mac, or responses from an open-ended questionnaire. {In short – It is
in Qualitative form – Not measured in numbers}

► Quantitative Research – Quantitative research is the process of collecting and analyzing

numerical data. It can be used to find patterns and averages, make predictions, test causal
relationships, and generalize results to wider populations. Quantitative research is a research
strategy that focuses on quantifying the collection and analysis of data. {In short – It is in
Qualitative form – Measured in numbers}

► Other Types of Research –

Field Research / Laboratory Research
One-Time Research / Multi- Layered Research
Conclusion Oriented Research / Decision Oriented Research
Historical Research / Current Situation Research

3. What are the stages in research process?

The research process consists of a series of systematic procedures that a researcher must go through in
order to generate knowledge that will be considered valuable by the project and focus on the relevant
topic.

To conduct effective research, you must understand the research process steps and follow them. Here
are a few steps in the research process to make it easier for you:
Step 1: Identify the Problem
Finding an issue or formulating a research question is the first step. A well-defined research problem will
guide the researcher through all stages of the research process, from setting objectives to choosing a
technique. There are a number of approaches to get insight into a topic and gain a better understanding
of it. Such as:
a. A preliminary survey
b. Case studies
c. Interviews with a small group of people
d. Observational survey
Problem should be researchable, interesting, purposeful, understandable, manageable, and ethical.

Step 2: Evaluate the Literature/ Review Of Literature

A thorough examination of the relevant studies is essential to the research process. It enables the
researcher to identify the precise aspects of the problem. Once a problem has been found, the
investigator or researcher needs to find out more about it.
This stage gives problem-zone background. It teaches the investigator about previous research, how they
were conducted, and its conclusions. The researcher can build consistency between his work and others
through a literature review. Such a review exposes the researcher to a more significant body of
knowledge and helps him follow the research process efficiently.

Step 3: Create Hypotheses

Formulating an original hypothesis is the next logical step after narrowing down the research topic and
defining it. A belief solves logical relationships between variables. In order to establish a hypothesis, a
researcher must have a certain amount of expertise in the field.
It is important for researchers to keep in mind while formulating a hypothesis that it must be based on
the research topic. Researchers are able to concentrate their efforts and stay committed to their
objectives when they develop theories to guide their work.

Step 4: The Research Design

Research design is the plan for achieving objectives and answering research questions. It outlines how to
get the relevant information. Its goal is to design research to test hypotheses, address the research
questions, and provide decision-making insights.
The research design aims to minimize the time, money, and effort required to acquire meaningful
evidence. It includes –
a. Statement of problem and objectives
b. Sources of data collection
c. Time period of research study
d. Area/Place where research is to be conducted
e. Resources required
f. Techniques of data collection

Step 5: Describe Population

Research projects usually look at a specific group of people, facilities, or how technology is used in the
business. In research, the term population refers to this study group. The research topic and purpose
help determine the study group.
Suppose a researcher wishes to investigate a certain group of people in the community. In that case, the
research could target a specific age group, males or females, a geographic location, or an ethnic group. A
final step in a study’s design is to specify its sample or population so that the results may be generalized.

Step 6 Designing Questionnaire

A questionnaire is a research instrument that consists of a set of questions or other types of prompts
that aims to collect information from a respondent. A research questionnaire is typically a mix of
close-ended questions and open-ended questions. The purpose of a questionnaire is to gather data from
a target sample. The data collected can be quantitative or qualitative.

Step 7 Sampling Design

Sampling means selecting the group that you will actually collect data from in your research. Samples are
used to make inferences about populations. Probability sampling means that every member of the target
population has a known chance of being included in the sample
a. Sample must be representative of the universe.
b. Sample should be decided depending on the objectives of the research.
c. Proper sampling methods.
d. Economical and cost effective.
e. Proper sampling plan.
f. Sample size should be suitable to collect relevant data.
g. Sample size should be flexible and not fixed.

Step 8: Data Collection

Data collection is important in obtaining the knowledge or information required to answer the research
issue. Every research collected data, either from the literature or the people being studied. Data must be
collected from the two categories of researchers. These sources may provide primary data.
a. Experiment
 b. Questionnaire
c. Observation
d. Interview
Secondary data categories are:
a. Literature survey
b. Official, unofficial reports
c. An approach based on library resources

Step 9: Data Analysis and Interpretation / Data Processing

During research design, the researcher plans data analysis. After collecting data, the researcher analyzes
it. The data is examined based on the approach in this step. The research findings are reviewed and
reported.
Data analysis involves a number of closely related stages, such as setting up categories, applying these
categories to raw data through coding and tabulation, and then drawing statistical conclusions. The
researcher can examine the acquired data using a variety of statistical methods.
Data Processing includes –
a. Editing
b. Coding
c. Classification
d. Tabulation

Step 10: The Report-writing

After completing these steps, the researcher must prepare a report detailing his findings. The report
must be carefully composed with the following in mind:
a. The Layout: On the first page, the title, date, acknowledgments, and preface should be on the
report. A table of contents should be followed by a list of tables, graphs, and charts if any.
b. Introduction: It should state the research’s purpose and methods. This section should include
the study’s scope and limits.
c. Summary of Findings: A non-technical summary of findings and recommendations will follow the
introduction. The findings should be summarized if they’re lengthy.
d. Principal Report: The main body of the report should make sense and be broken up into sections
that are easy to understand.
e. Conclusion: The researcher should restate his findings at the end of the main text. It’s the final
result.

4. Describe the importance of research.

a. Financial Management - enables the finance industry to gain meaningful insights into different
products and services. This increases sales opportunities and offers businesses all the information they
need to design effective financial strategies.

b. Human Resource Management - It facilitates prediction of future events and behavioural patterns.
Evaluation of current programmes, practices and policies is possible through HR research. It prepares
objective base for revision of current organisational programmes, practices and policies.
c. Reduction in costs - Companies conduct numerous studies and research to determine the most
optimal and cost-effective ways to manufacture a product or provide a service. Then, to reduce the costs,
they can improve their existing manufacturing structures.

d. Product pricing decisions - pricing research is able to predict customer perception of the new price,
and as the result, what impact a price increase may have on revenue.

e. Dealer relationships - Market research blends consumer behavior and economic trends to confirm and
improve your business idea. It's crucial to understand your consumer base from the outset. Market
research lets you reduce risks even while your business is still just a gleam in your eye. Improves dealer
relationship and get market opportunities.

f. Competitive advantage - A competitive advantage is what sets a business apart from its competitors. It
is essential in order for a business to succeed, whether it's by ensuring higher margins, attracting more
customers, or achieving greater brand loyalty among existing customers. Research helps in gaining
competitive advantage.

g. Market expansion - Market research allows you to mitigate your risk by being as prepared as possible
for the myriad challenges involved in entering a foreign market. You'll better understand your customers
and what they want, be more prepared to take on your competition, avoid legal issues, and have a more
viable strategy.

h. Corporate image - A corporate image study, similar to a brand equity study, measures the perception
of an organization among its specific target audience. The goal is to better understand the thoughts,
feelings, and expectations of the brand among that group of targeted consumers or clients.

i. Auditing of records - Its objective is to point out research areas that allow us to learn something more
about the auditor's function, audit tech- niques etc. In particular, its objective is to examine the future of
the auditing activity which is likely to be subject to very signifi- cant swings and changes.

5. What is research? Explain the objectives of research. (Refer PDF for explanation)

a. To find solutions to problems

b. To verify and test existing laws or theories

c. To obtain information

d. To extend knowledge

e. To establish generalizations and general laws

f. To predict events

g. To analyse inter-relationships

h. To develop new tools and concepts

i. To develop new theories and principles

j. To develop innovative ideas

6. What are the different sources of research problem? (Refer PDF for explanation)

a. Research Guide

b. Reading

c. Academic Sessions

d. Brainstorming sessions

e. Consultations and Discussions

f. Experiences

g. Funding Agencies

h. Field situations

i. Existing research

j. Intuition

7. Steps in formulation of research problem. (Refer PDF for explanation)

a. Statement of the problem

b. Understanding the nature of the problem

c. Surveying the relevant literature

d. Discussions experienced persons

e. Rephrasing the research problem

f. Operational definition of concepts

g. Delimiting the scope of the study

8. Review of Literature (Refer PDF for explanation)

Steps in review of literature

Purpose of review of literature