1. Research Methodology in Finance
2. The Research Design: Planning the Research Proposal:
Lecturer: Dr. Thakshila Adikaram
2. Write your research proposal
• After completing steps in the research process, you are ready to complete a
research proposal. The proposal outlines the context, relevance, purpose,
and plan of your research.
• As well as outlining the background, problem statement, and research
questions, the proposal should also include a literature review that shows
how your project will fit into existing work on the topic. The research
design section describes your approach and explains exactly what you will
do.
• You might have to get the proposal approved by your supervisor before you
get started, and it will guide the process of writing your thesis or
dissertation.
3. How to write a research proposal
A research proposal describes what you will investigate, why it’s important,
and how you will do the research. The format of a research proposal varies
between fields, but most proposals should contain at least these elements:
1. Background of the study
2. Industry Overview (If any)
3. Research problem
(with justifying research problem with Identifying the gaps)
4. Research objectives
5. Research Questions
6. Significance of the study
7. Literature Review
8. Conceptual framework (if any)
9. Hypothesis (with Justifications)
10. Operationalization table
11.Methodology
12.Limitation of the study
13.Time plan
14.References
4. 1.Background of the study
The main idea of the background of study is to establish the
area of research in which your work belongs, and to provide
a context for the research problem. It also provides
information to the research topic.
In an introduction, the writer should create:
v reader interest in the topic,
v lay the broad foundation for the problem that leads to the
study.
6. 3.Research problem
• When you start a research, you have a question that you wish to seek
answer for. The question leads to a problem that needs to be solved
by the research. Begin the research with a description of the
problem or a problem statement.
• Discuss as:
• 1. Research gap; Theoretical gap, Literature gap and practice gap
• 2.Problem statement (What ,why, when, Where, Who and How)
7. 4.Research objectives
• States what your research hopes to accomplish.
• Objective 01 – To investigate the relative impact of
financial awareness on financial literacy
• Objective 02 – To investigate the relative impact of
financial attitude on financial literacy
• Objective 03 – To investigate the relative impact of
financial behavior on financial literacy
• Objective 04 – To investigate the relative impact of
financial knowledge on financial literacy
• Objective 05 – To investigate the relative impact of
financial skills on financial literacy
8. 5. Research Questions
• Based on the problem statement, you need to write one or more
research questions. These target exactly what you want to find out.
They might focus on describing, comparing, evaluating, or explaining
the research problem.
• A strong research question should be specific enough that you can
answer it thoroughly using appropriate qualitative or quantitative
research methods.
• It should also be complex enough to require in-depth investigation,
analysis, and argument. Questions that can be answered with
“yes/no” or with easily available facts are not complex enough for a
thesis or dissertation.
• In some types of research, at this stage you might also have to
develop a conceptual framework and testable hypotheses.
9. Research Questions
• You should formulate these clearly, giving an explanation as to what
problems and issues are to be explored and why they are worth
exploring
• Question 01 – To what extent does the financial awareness have a
significant impact on financial literacy?
• Question 02 – How the level of financial attitude significantly impact on
financial literacy
• Question 03 – Does financial behavior significantly influence on financial
literacy
• Question 04 – How does the financial knowledge impact on financial
literacy
• Question 05 – How far do financial skills impact on financial literacy
10. 6. Significance of the study
• Why your research is important and what contributions will it give to
the field. It is also advised to state how your findings can make a
difference and why is it important that the research be carried out.
Discuss as:
• Contribution to the theory
• Contribution to the practice
• Findings important to whom and how
Eg: For academia, Policy makers, industry and for future researchers
11. 7. Literature Review
This section need not be lengthy but it should reflect your understanding of relevant bodies of literature. List all pertinent
papers or reports that you have consulted in preparing the proposal; include conversations with faculty, peers or other
experts. A well-written review provides a sense of critical issues which form the background for your own work this
quarter.
By doing this it shows that you are aware of the literature study that is required in your research area. Your review a substantial
amount of reading materials before writing your proposal. It shows that you have sufficient theoretical knowledge in your
chosen research area.
By reviewing related literature at this stage, it will make you:
v Aware of other similar work which has been done.
v Expose methodologies that have been adopted and which you may use or adapt.
v Provide sources of information that you do not have yet.
By reviewing related literature at this stage, it will inform you:
v If a chosen area has already been researched broadly.
v Approaches that you do not know of before
13. 9. Hypothesis/ Hypotheses
• Objective 01 – To investigate the
relative impact of financial
awareness on financial literacy
• Objective 02 – To investigate the
relative impact of financial attitude
on financial literacy
• Objective 03 – To investigate the
relative impact of financial behavior
on financial literacy
• Objective 04 – To investigate the
relative impact of financial
knowledge on financial literacy
• Objective 05 – To investigate the
relative impact of financial skills on
financial literacy
H1: There is a positive relationship
between financial awareness and financial
literacy
H2: There is a positive relationship
between financial attitude and financial
literacy
H3: There is a positive relationship
between financial behavior and financial
literacy
H4: There is a positive relationship
between financial knowledge and financial
literacy
H5: There is a positive relationship
between financial skills and financial
literacy
14. Variable Code Measurement indicator Reference Sources
Financial awareness Q1.1 Awareness about the existing savings interest rate Agarwalla, et al., (2013); Bhushan and Medury (2013); Thapa (2015)
Q1.2 Awareness about the existing loan interest rate Agarwalla, et al., (2013); Bhushan and Medury (2013)
Q1.3 Awareness about the existing inflation rate Agarwalla, et al., (2013); Bhushan and Medury (2013)
Q1.4 Awareness about the existing financial services Heenkkenda (2014); Thapa (2015); Singh & Kumar (2017)
Q1.5 Awareness about the existing financial risk Heenkkenda (2014); Thapa (2015); Singh & Kumar (2017)
Q1.6 Awareness about the existing alternative financial services Heenkkenda(2014); Thapa (2015)
Financial knowledge Q2.1 Knowledge about financial institutes available in this area Chen & Volpe (2002); Lusardi & Mitchell (2007); Ibrahim, (2009)
Q2.2 Knowledge about interest rates on savings Lusardi, et al., (2010); Taliaferr, et al., (2011)
Q2.3 Knowledge about interest rates of loans Setty, (2012); Bahmar, et al., (2012)
Q2.4 Knowledge about credit card and debit cards Bhushan & Medury (2013); Agarwalla, et al., (2013)
Q2.5 Knowledge about online payments Shaari (2013); Taft (2013)
Q2.6 Knowledge about the investment opportunities Heenkkenda (2014); Thapa (2015); Potrich, et al., (2015)
Q2.7 Knowledge about the advantages of formal financial system over the informal system Wellington & Mlambo (2016); Arora (2016); Singh & Kumar (2017)
Q2.8 Knowledge about time value of money Develop for this study
Financial skills Q3.1 Ability to access financial investment opportunities Taylor (2011); Potrich, et al., (2015); Bonga & Mlambo (2016)
Q3.2 Ability to estimate real value of money Arora (2016); Morgan et al., (2019); Rai et al.,(2019)
Q3.3 Ability to use credit cards and debit cards Agarwalla, et al., (2013); Singh & Kumar (2017)
Q3.4 Ability to use online payments Wellington & Mlambo (2016)
Q3.5 Ability to estimate cost of money Singh & Kumar (2017) Morgan et al., (2019)
Q3.6 Ability to estimate returns on investments Morgan et al., (2019); Rai et al.,(2019)
Q3.7 Ability to use ATM to deposit money Singh & Kumar (2017) Morgan et al., (2019); Rai et al.,(2019)
Financial attitudes Q4.1 Belief about the worth of savings Ibrahim (2009); Heenkkenda (2014)
Q4.2 Belief about worth of obtaining loans for investment Potrich, et al., (2015); Wellington & Mlambo (2016); Arora (2016)
Q4.3 Belief about the worth of using credit cards and debit cards for transactions Agarwalla, et al., (2013); Singh & Kumar (2017)
Q4.4 Belief about the worth of using debit cards for withdrawing money Singh & Kumar (2017); Lusardi, (2019)
Q4.5 Belief about the worth of using online payments Developed for this study
Q4.6 Belief about using mobile banking Singh & Kumar (2017); Morgan et al., (2019)
Q4.7 Belief about using cash deposit machines Bhargava, (2017)
Financial behaviour Q5.1 Willingness to save extra money for investment opportunities Lusardi and Mitchell (2007); Taliaferr, et al., (2011); Bahmar et al., (2012)
Q5.2 Willingness to get loans for increasing household income Setty, (2012); Agarwalla, et al., (2013), Khan, et al., (2014)
Q5.3 Willingness to use credit cards and debit cards for day today transactions Singh & Kumar (2017); Bhargava (2017)
Q5.4 Willingness to use online payments Wellington & Mlambo (2016); Morgan et al., (2019); Rai et al.,(2019)
Q5.5 Willingness to use debit cards for cash withdrawals Agarwalla, et al., (2013); Morgan et al., (2019); Rai et al.,(2019)
Q5.6 Willingness to use cash deposit machines Agarwalla, et al., (2013); Singh & Kumar (2017); Adam et al.,(2018)
10. Operationalization Table
16. Operationalization Table
Concept Variable Measure Source Question
number in
questionaire
Performance Appraisal Perceived accuracy Accuracy of the Performance Appraisal Bernardian et al 2015 1,2,3
Consideration of entire rating period J.A. Colquitt 2001 4,5
Identifying all weaknesses and strengths J.A. Colquitt
2001
6,7
Recognition of effort put into work J.A. Colquitt
2001
8,9
Accuracy of rating J.A. Colquitt
2001
10
Perceived procedural fairness Ability to influence over the outcome J.A. Colquitt 2001 11,12
Regularity of conducting P.A. J.A. Colquitt 2001 13,14
Unbiasness Taylor et al 15,16
Perceived distributive fairness Reflection of the contribution Vishal Gupta et al 2011 17,18
Justification of the outcome Greenberg (1986) 19,20
Perceived interactional fairness Ethical & moral standard Sandra Misiak (2010) 21,21,23
Freedom to express views during evaluation J.A.Colquitt (2001) 24,25
Rewards Intrinsic rewards Praise effort, Skills and courage Tremblay et al 2009 26,27
Recognition 28
Recognition of your expertise and using it for the organization 29,30
Autonomy 31,32
Extrinsic rewards Monetary benefits 33,34
Medical facilities 35,36
Motivation Motivation Motivation caused by salary, bonus etc. Lashchonau, A. (2015) 37,38,39,40
Motivation caused by Performance appraisal process 41,42,43,44,4
5
Employee performance Employee performance Promptness Work performance
questionnaire – University of
Michigan
46,47
Absenteeism 48,49
Carefulness 50,51
Concentration on work 52,53
Idling 54,55
Quality of work 56,57
17. 11.Methodology/ Research Design
• You should provide an outline of:
1. Research Philosophy (Positivism/ Interpretivism)
2. Research Approach (Inductive/Deductive)
3. Research Strategy (Qualitative/Quantitative)
4. Research Method (Survey/interview)
5. Unit of Analysis
6. Time horizon(Cross sectional/ Longitudinal)
7. Research Instruments (Questionnaire)
8. Sample Process(Population, Sample size, Sampling method)
9. Data Analysis
18. 18
Research Design
Research paradigm Positivism
Research methodology Quantitative
Research approach Deductive (extending and testing theory)
Research method Survey
Research purpose Hypotheses testing
Sampling technique Multi stage mixed sampling method
Time horizon Cross-sectional
Unit of analysis
Rural women living under the poverty line*
(Official Poverty Line (OPL) for 2018 is Rs.4,677)
Data collection method Researcher-Administered Questionnaire
Data Source Primary data
Population
Total rural poor women population(338,203)in Sri Lanka under the poverty line*.
(Official Poverty Line (OPL) for 2017 is Rs.4,677)
Sample size 426 were collected at initially as a sample size (386 used for the data analysis)
Main statistical model for
testing hypothesis
Multiple regression
Statistical technique of
data Analysis
SPSS
19. 12.Limitation of the study
• In this section you need to discuss the restriction or drawback of
your study with respect to aspect such as:
• Respondents
• Sample size
• Location of Study
• Sampling Technique used
• Variable selected
20. 13.Scope of the study
Content scope;
• Financial literacy dimensions are the independent variables and Financial
literacy level was the dependent variable.
Functional scope;
• This study look at the dimensions of financial literacy and examine what is the
most significant dimension among the available dimensions and how those
have impact on the level of financial literacy.
Geographic scope;
• The findings of the study are limited to undergraduates in government
universities located along western province.
Periodic scope;
• The study was carried out in the period of four months that is between April to
August 2020.And the review was from 2015 to 2020.
21. 14.Time plan
• You should include an outline of the various stages and corresponding
time lines for developing and implementing the research, including
writing up your thesis.
22. 15.References (APA Method 6th version)
One Author
• Author Last Name, First Initial., (Year). Title of article. Title of Journal,
Volume(Issue), Page Number(s). https://doi.org/number
Two Author
• Author Last Name, First Initial., & Author Last Name, FirstI nitial. (Year).
Title of article. Title of Journal, Volume(Issue), Page Number(s).
https://doi.org/number
Three Author
• Author Last Name, First Initial., Author Last Name, First Initial., and Author
Last Name, First Initial(Year). Title of article. Title of Journal, Volume(Issue),
Page Number(s). https://doi.org/number
