CHAPTER 3

RESEARCH METHODOLOGY

In this chapter, the research design, environment, population, data gathering

procedures, and analysis of the data are presented. Each topic is discussed briefly.

Research Design

The researchers utilized the descriptive-correlational research design. It is a research

design that examines how two or more factors are related without the researcher changing the

variables. Correlations can be positive, negative, or even not exist at all. More specifically,

correlation coefficients are used to measure the size and direction of the link between two

variables (University of Minnesota, 2016).

Research Locale

We analayzed the emerging REIT companies in the Philippines. The Philippines is an

excellent place to invest in real estate, especially given how profitable and booming the real

estate industry is. Furthermore, real estate investments are a great strategy to increase wealth

due to the nation's strong economy and ongoing growth.

Population and Sampling

The target population for this research is defined to include the REIT-listed companies in

the Philippines; the accessible population is comprised of five companies: Ayala Land REIT

(AREIT), DoubleDragon Properties REIT (DDMPR), Filinvest REIT (FILRT), Robinsons Land

Commercial REIT (RCR), and Megaworld REIT (MREIT).

Purposive sampling was utilized in this study, and subjects were chosen based on the

year they were publicly listed since we needed a year’s worth of data. Because of this, we were

able to select five REIT companies listed above that are feasible for our study, more specifically

companies that became publicly listed on 2020 and 2021. Purposive sampling was utilized since

it allows for a better match between the sample and the research's goals, boosting the study's

quality and the reliability of the data and findings.

 Instrumentation

The tools with which researchers attempt to measure variables or items of interest in the

data-collection process are referred to as instruments (Columbia University, n.d.). However, our

research did not utilize an instrument because we took and used secondary data.

Data Gathering Procedure

The steps we undertake to gather relevant data are from reliable websites, specifically

Wall Street Journal. Wall Street Journal is an American business-focused international daily

newspaper based in New York City. It is the definitive source of news and information through

the lens of business, finance, economics, and money, global forces that shape the world and

are crucial to understanding it. In addition, it had the reputation of being accurate over the last

many decades. More specifically, we collected the daily closing prices of the five REIT

companies from the start of public listing and the closing prices of the PSEi during the same

period and analyzed them in order to identify the relationship between the two variables.

Ethical Consideration

In research, ethical considerations are a set of principles that guide your research

designs and practices. When collecting data from people, researchers must always follow a set

of rules. Moreover, these considerations help to protect research participants' rights, promote

valid research, and maintain integrity (Business Research Methodolgy, n.d.). However, our

study will rely on secondary data. As a result, no ethical considerations will be used or stated in

this research.

Analysis of the Data

To statistically treat the data, we used Excel data analysis tools to find the relationship

between the daily closing prices of PSEi and the respective daily closing prices of REITs. More

specifically, we used correlation analysis to understand better if there is a relationship between

the selected variables (Kiernan, 2014). Additionally, we used regression analysis to identify the

variation in one variable based on another variable (Mindrila & Balentyne, n.d.). Through this,
we were able to evaluate if there is a strong relationship between the daily closing prices of

PSEi and the respective closing prices of REITs.