Chapter 3: Research Methodology

3.1. Introduction
This section presents the methodology that was applied in answering the research
questions and testing the hypothesis. It covers the research design, target population,
sample, sampling technique, data collection instruments, and data collection
procedures and data analysis.
3.2. Research Design
3.2.1. Data
The study adopted a quantitative method, as the research objectives is to
determine the reasons for dividends being unclaimed amongst the shareholders
of financial institutions in Bhutan. Data will be collected from the three major
parties involve the rise of unclaimed dividends.
3.2.2. Design
The study will be conducted based on descriptive research design. A descriptive
study is based on making findings about the questions; who, what, where, when,
or how much. According to Cooper and Schindler (2014) descriptive studies are
always handled with hypothesis which is clearly defined questions and serve a
number of objectives in the study. A descriptive study is appropriate for this
study because it allows the researcher to examine the reasons for unclaimed
dividends by shareholders among the selected banks in the industry.
3.2.3. Model
In reference to the, the research estimated a multiple linear regression model
based on the enter method to find the factors significantly explaining the rising
unclaimed dividends among the shareholders, in consideration of all the parties
involved (shareholders, listed banks and securities exchange commission).
Therefore, to investigate the reasons for the increasing unclaimed dividends
among listed financial institutions, the study has been conducted using the
following potential factors and variables:
a) Perception
b) Death and personal problems
c) Financial literacy
d) Companies dividend policy
e) Effectiveness in monitoring policies and procedures
3.3. Population and sample frame
3.3.1. Study Population
The target populations of this study are shareholders which include the
individuals and firm that did not claim their dividend in the recent years; financial
institutions which
include the T bank and the Druk Punjab National Bank Limited (DPNBL), and
the Royal Securities Exchange of Bhutan Limited (RSEBL). The total of
unclaimed dividends from DPNBL and T Bank totals to about 10,000
shareholders in the previous financial year. The study frame includes all the
minority and majority shareholders of the respective companies. Similarly, T
Bank currently has 195 employees in total and DPNBL employs 139 staff in its
company. The employees are taken as the population for the listed companies.
Royal securities exchange has about 23 personal that are engaged in the
operations of activities. However, those who did not consent to participate in the
study or absent during the day of data collection are excluded.
3.3.2. Sampling Technique
The stratified random sampling method is used to recruit study participants. The
strata consisted of the four major disciplines, employees of the listed
companies, employees of RSEBL, shareholders of T Bank who did not claim
their dividends and unclaimed dividend shareholders from the DPNBL. A
sampling frame consisting of the list of unique numbers to all the each
individuals in each strata was prepared. Computer generated random sampling
proportionate to size of strata was used to recruit the sample.
3.3.3. Sample size
Sample size determination for our study is done using Yamane Taro formula
(Taro, 1973):
N
n= 2
1+Ne
Where
n signifies=Smaple ¿ ¿
N signifies=PPopulation under study
e signifies=Margin of error which is 0.05
Therefore the sample size calculation for the particular study is as follows:
10,357
n=
1+10,357 ( 0.05 )2
n=385

Out of 10,357, the sample size calculation is 385. Researchers adopted a

stratified random sampling method to collect data from three business colleges
and the distribution of sample size in each strata is as follows:
Table 1
Sample size

Different parties involved Sample Number

65 00
Shareholder of PNBL ×385=242
10357

35 00
Shareholders of T Bank ×385=130
10357

195
Employees of T Bank ×385=7
10357

139
Employees of DPNBL ×385=5
10357

23
Royal securities exchange ×385=1
10357
3.4. Data collection tool
3.4.1. Data collection
This study is a cross-sectional questionnaire based survey. The study adopted
quantitative technique to bring out the reasons and factors that affect the raising
unclaimed dividends.
3.4.2. Questionnaires
It was to gather statistical data about the responses. It was used to get
information from the shareholders on their perception, knowledge and reasons
for the unclaimed dividends. Besides, to authenticate the reasons and factors,
another set of questionnaires was prepared for the relevant listed companies.
Further, to further strengthen the validity of the information, a similar set of
questionnaires is used to get the views of the personals from the RSEBL, which
would enable to have views from both the shareholders and companies.
Questionnaires are the principal tool for this research.
3.4.3. Questionnaire design
The questionnaire was prepared by the researcher. The respondents will be
provided a mixture of closed questions, open questions and multiple-choice
questions which will describe their response to a statement or item.
Questionnaires will be created with two parts; Demographic questions and
knowledge profiles on unclaimed dividends. The second part contains the Likert
scale questions for studying the research objectives. Demographic
questionnaires are measured using nominal scale and the rest of the
questionnaires are measured using 5-point Likert scale where 5- point rated as
Strongly agree and 1-point rated as Strongly Disagree.
3.4.4. Data Collection Procedures
Both primary and secondary data would be collected for the purpose of analyses
and interpretation.
a) Primary data
Primary data will be collected from the response of all three parties involved.
All data would be collected from respondents through the following
instrument.
b) Secondary data
 Information’s regarding the shareholders; their details shall be collected from
the online websites.
3.5. Data Analysis
A raw data is captured from the responses to the questionnaire. This is followed by
coding which involve assigning numbers to answers so that the responses would be
grouped into a limited number of classes or categories. Thereafter data is undertaken to
convert the information gathered into a medium for viewing and manipulation.
Finally, a descriptive statistical analysis was undertaken using computer application
packages statistical package for social sciences (SPSS) in order to develop sufficient
knowledge to describe the body of the data, using tables, and figures to give a clear
picture of the research findings.
To measure the level of impact form a particular factor researchers used Likert scale in
the questionnaire which includes: strongly agree=5; Agree=4; neutral=3; disagree=2;
strongly disagree=1; these rating scales are used to calculate the mean scores of the
various statements. These ratings scales were used to calculate the mean scores (M)
and standard deviation (SD) of the various items (Joshi, Kale, & Chandel, 2015).
Descriptive statistics have been used to describe the basic features of the data in the
study. The correlation analysis was performed in order to measure the impact of the
factors. In order to test the hypothesis of the study, a linear regression models were
used.
3.6. Data Presentation
Descriptive result will be presented as frequencies with the corresponding percentages
and tables. As per the need of the study, the annexure would be prepared and placed
at the end of respective chapters. All inferences of the study would be properly
explained and link with the findings of the current literatures and would be presented in
textual form. Similar to the research conducted by Sharma, Dorji, & Wangchuck (2021),
all the data would be incorporated and analyzed without manipulating the same. In
brief, the following ethical considerations would be considered to ensure the dictum.
i. Obtain a formal letter from the college seeking to collect data for the research
from the office of DSA and DAA.
ii. Formal office approval would be obtained to meet the official of RSEBL, T-Bank
and DPNB
iii. Do not use any copy right material without acknowledgement
iv. Do not disclose the identity of the respondents.
 v. Do not use the research data for any other purpose except for the proposed
research.
vi. No fabrication and falsification of data
vii. Do not follow any other methods/ practices in the study which are considered
unethical