1.

1 TYPES OF RESEARCH METHODS

The way one approach a research problem will have a deep effect upon the way they conduct
their research. There are different types of research one might undertake to investigate a
given research question. The followings consider the main types of research which one can
ponder when doing a research project or dissertation.

1. Descriptive Research
2. Exploratory Research
3. Confirmatory Research
4. Causal Research
5. Correlational Research
6. Prediction Research
7. Case Study Research Method
8. Survey Research
9. Ethnographic Research Method
10. Grounded Theory
11. Action Research

1. Descriptive research considers the current situation and may be used to expose new
facts and meaning. The main purpose of descriptive research is to observe, describe
and document aspects about conditions, situations, and events that occur in the
present. However, it does not take into considerations questions about
how/when/why. In effect, this type of research focuses on the "WHAT" question. As
an example, the following questions may be addressed: what are the characteristics of
UoM students?

2. An exploratory research is undertaken in situations of uncertainty where there is a

lack of theoretical understanding about the subject matter such that key variables,
their relationships, and their causal linkages, are subject to speculation. In this case,
the aim of the exploratory researcher is to understand an issue more thoroughly,
before attempting to confirm general statements or validate statistical data.
 Under exploratory research, the research starts without any hypothesis or theoretical
framework.

3. In contrast, a confirmatory research is employed when there are theoretical models

which have already been generated and there are post- hoc hypotheses which need to
be tested by collecting and analysing data.

4. Causal research is undertaken to determine whether one or more variables cause or

affect one or more outcome variables. The objective is to find causal linkages between
variables by observing existing phenomena and then searching back through
accessible data to discover probable causal relationships. For example, if a parent’s
education is being improved, it could lead to an improvement in financial literacy. In
this case, though it is complex to validate, one we would essentially be studying
whether the improvement in the parent’s education (cause) influenced positively on
financial literacy (effect).

5. Correlational research is designed to look at the relationships between two or more

variables. In particular, it looks for relationships or associations between variables
through the use of various measures of statistical association. However, when there is
an association between two variables, it does not imply causality.

6. Prediction research is used to forecast a phenomenon that will occur at time B based
on past information at a previous time A. A prediction research study attempts to
forecast future events and formulate hypotheses for research. For instance, researchers
can be engaged in forecasting stock returns based on the current prices of the
securities.

7. Yin (1984: 23) defined the case study research method as “an empirical inquiry that
investigates a contemporary phenomenon within its real-life context; when the
boundaries between phenomenon and context are not clearly evident; and in which
multiple sources of evidence are used”. The case study research method allows for an
in-depth study of a particular research problem with the objective of bringing us to an
understanding of a complex issue and emphasizing on detailed contextual analysis.
 The aim of this type of research is usually to focus on the context rather than to
generalize.

8. Survey Research: According to Trochim (2006), “the broad area of survey research
encompasses any measurement procedures that involve asking questions of
respondents”. The survey method aims at collecting methodical descriptions of
existing phenomena in order to understand the current situation. Data are usually
gathered by directing questions to a relatively large group of people.

9. Ethnographic research method includes the participation of the researcher in some

part of a group to understand the interactions between group members. This type of
research typically looks at a description of events that occur within the life of a group,
taking into account their social-cultural context, values, rituals amongst others.

10. Grounded theory method initially begins with the collection of data from real-world
observations from a selected group of people with the aim of formulating and
developing conceptual categories/theory about social processes. There are further data
collections to validate the developed categories/theory. .

11. Action research is a methodology with the purpose of solving specific problems
within organizations, communities or countries. The explicit aim of action research is
to promote change within the organisation or the community. According to Stringer
(2007), “action research is either research initiated to solve an immediate problem or
a reflective process of progressive problem solving led by individuals working with
others in teams or as part of a "community of practice" to improve the way they
address issues and solve problems”.
1.2 USEFUL RESEARCH TERMINOLOGIES

Time Elements in Research

Time considerations are vital for any research problem as it will impact on the type of data
which will be needed for the research. The type of research can be classified as follows;
 Cross-sectional studies
 Longitudinal or time series studies
 Panel studies

 A cross-sectional study is one which is time invariant and which include many
variables or observations at one point in time. For instance, one could consider the
determinants of dividend policy for firms at a particular time period, say 2015.

 A longitudinal study is one that takes place over time. For instance, one could
consider the dividend policy of a particular firm over time, e.g 2000-2015.

 There can also be a panel study taking into consideration different events take at
different time. As an example, there could be a study of dividend policy for 40 listed
companies from 2000 till 2015.