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UNIT-I – INTRODUCTION TO RESEARCH

Department of [Link] Markets

Class : SY IDC

Semester-IV

Subject :Research Methods in Financial Markets

Faculty: Mr. Pritam Chorghade

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Synopsis :
[Link] & Definition of research
[Link] of research
[Link] of research
[Link] of research in Financial Markets
[Link] of research.
[Link] of research problem
[Link] research design.
[Link] Collection and Types of Data collection
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Meaning & Definition -Research

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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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TYPES OF RESEARCH

The research is broadly classified into two main classes:

[Link] or basic research and
[Link] research.
•Basic and applied researches are generally of two kinds: normal research and
revolutionary research.
• In any particular field, normal research is performed in accordance with a set of
rules, concepts and procedures called a paradigm, which is well accepted by the
scientists working in that field.
•In addition, the basic and applied researches can be quantitative or
qualitative or even both (mixed research).
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1. Fundamental or Basic Research

• Basic research is an investigation on basic principles and reasons for

occurrence of a particular event or process or phenomenon.
• It is also called theoretical research. Study or investigation of some natural
phenomenon or relating to pure science are termed as basic research.
• Basic researches sometimes may not lead to immediate use or application.

• It is not concerned with solving any practical problems of immediate

interest.
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Basic research

•Seeks generalization
•Aims at basic processes
•Attempts to explain why things happen
•Tries to get all the facts

•Reports in technical language of the topic

It provides a systematic and deep insight into a problem and facilitates

extraction of scientific and logical explanation and conclusion on it. It helps
build new frontiers of knowledge. The outcomes of basic research form
the basis for many applied research.
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2. Applied research:

• In an applied research one solves certain problems employing well known

and accepted theories and principles.
• Most of the experimental research, case studies and inter-disciplinary
research are essentially applied research.
• Applied research is helpful for basic research.
• A research, the outcome of which has immediate application is also termed as
applied research.
• Such a research is of practical use to current activity.
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Applied research

•Studies individual or specific cases without the objective to generalize

•Aims at any variable which makes the desired difference
•Tries to say how things can be changed
•Tries to correct the facts which are problematic

•Reports in common language

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Further Classification

Quantitative research

•It is numerical, non-descriptive, applies statistics or mathematics and uses

numbers.
•It is an iterative process whereby evidence is evaluated.
•The results are often presented in tables and graphs.
•It is conclusive.
•It investigates the what, where and when of decision making.
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Further Classification

Qualitative research
•It is non-numerical, descriptive, applies reasoning and uses words.
•Its aim is to get the meaning, feeling and describe the situation.
•Qualitative data cannot be graphed.
•It is exploratory.
•It investigates the why and how of decision making.

Mixed research
•Mixed research- research that involves the mixing of quantitative and
qualitative methods or paradigm characteristics. Nature of data is mixture of
variables, words and images.
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Other types of research

Exploratory Research
•Exploratory research might involve a literature search or conducting focus group
interviews. The exploration of new phenomena in this way may help the
researcher’s need for better understanding, may test the feasibility of a more
extensive study, or determine the best methods to be used in a subsequent study.
For these reasons, exploratory research is broad in focus and rarely provides
definite answers to specific research issues.

•The objective of exploratory research is to identify key issues and key variables.
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Other types of research

Descriptive research
•The descriptive research is directed toward studying “what” and how many off this
“what”. Thus, it is directed toward answering questions such as, “What is this?”.

Explanatory research
•Its primary goal is to understand or to explain relationships.
•It uses correlations to study relationships between dimensions or characteristics
off individuals, groups, situations, or events.
•Explanatory research explains (How the parts of a phenomenon are related to each
other).
•Explanatory research asks the “Why” question.
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Other types of research

Longitudinal Research
•Research carried out longitudinally involves data collection at multiple points in
time. Longitudinal studies may take the form of:
•Trend study- looks at population characteristics over time, e.g. organizational
absenteeism rates during the course of a year
•Cohort study- traces a sub-population over time, e.g. absenteeism rates for the
sales department;
•Panel study- traces the same sample over time, e.g. graduate career tracks over
the period 1990 – 2000 for the same starting cohort.
•While longitudinal studies will often be more time consuming and expensive
than cross-sectional studies, they are more likely to identify causal
relationships between variables.
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Other types of research

Cross-sectional Research
•One-shot or cross-sectional studies are those in which data is gathered once, during a
period of days, weeks or months. Many cross-sectional studies are exploratory or
descriptive in purpose. They are designed to look at how things are now, without any
sense of whether there is a history or trend at work.
Action research
•Fact findings to improve the quality of action in the social world

Policy-Oriented Research
•Reports employing this type of research focus on the question ‘How can problem ‘X’ be
solved or prevented ?’

Classification research
•It aims at categorization of units in to groups
•To demonstrate differences
•To explain relationships
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Other types of research

Comparative research
•To identify similarities and differences between units at all levels

Causal research
•It aims at establishing cause and effect relationship among variable

Theory-testing research
•It aims at testing validity of a unit

Theory-building research
•To establish and formulate the theory
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SOURCES OF RESEARCH PROBLEM

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Research Design
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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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 Mahatma Education Society’s
Pillai College of Arts, Commerce & Science ( Autonomous)
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