A Practical Guide to the Preparation, Drafting and Submission of Dissertations in Finance by Dr. G. Pollio

8/8/2019 A Practical Guide to the Preparation, Drafting and Submission of Dissertations in Finance by Dr. G. Pollio

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A Practical Guide to thePreparation, Drafting and

Submission of Dissertations inFinance

Gerald Pollio, Ph.D.

Preliminary

Not to be quoted without the authors permission

(2009)


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1. Introduction

The purpose of this Guide is to acquaint you with the purpose, sources and structure ofyour finance dissertation.

Most graduate business schools require students to produce a dissertation in partialfulfilment of the requirements for obtaining an MBA degree. Many students resent thisrequirement; and would if they could take additional courses or, better still, produce aBusiness Project instead. This is the practice of some business schools, though the vastmajority still require production of what might best be described as an academicdissertation.

We place the word academic in inverted commas to emphasise that dissertations are notstrictly speaking formal academic studies. Business education is after all an appliedsubject and students, accordingly, will expect that the topic of their dissertation shouldemphasise practical relevance. The two of course are not mutually exclusive: most

business school dissertations combine the former with the latter, in that students areexpected to produce output that meets or exceeds established academic norms but withinthe context of addressing a topic that will advance understanding of a narrowly definedbusiness issue.

Student hostility towards the dissertation requirement is understandable, but as we hopeto show misguided. Throughout their course of study students have to face assessmentsof various sorts, some oral, some written, some as part of a group exercise, others asindividual assignments. What these assessments have in common is that they were all setby the students lecturers, with the choice, if any, confined to the limited range of topicson offer. A dissertation is the only assessment the choice of which is determined more orless uniquely by the student.

Students, of course, have the benefit of their Supervisors advice, designed to improvetheir proposal and ensure that it can be completed within the time required. Only on veryrare occasions will a Supervisor reject the students topic and then only because it is toobroad and thus unlikely to be completed within the time allotted. Supervisors seldomreject out of hand a dissertation topic, since we all recognise that a topic of the studentsown choice is the best motivator for getting on with the work.

A logical place to begin our discussion is with the concept of research. Most studentsfind the task awesome, especially international students arriving from countries where theprevailing approach to education differs, in some cases quite radically, from that of theUnited Kingdom. Yet the process is far less daunting than you might imagine, not theleast because, perhaps without even being aware of it, most students have alreadyproduced some fairly sophisticated research results of their own.

Consider the following: the university at which you are studying was not chosenrandomly; you will have reviewed the websites of a number of different business schools

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that were of interest to you. You will have narrowed the focus by concentrating on thosewhere you meet all of the requirements, whether in respect of prior academicaccomplishment or linguistic proficiency. You will have determined whether tuitioncosts are reasonable, and whether you can afford major ancillary expenses such ashousing, food and transportation. You will also have investigated whether you are able to

work, and if so, how many hours are both permissible and consistent with successfullycompleting your course of study.

The answers to all of these issues will have come from a careful and detailed assessmentof the material from whatever source or sources you had access to, and quite possiblyfrom discussions with one or more students who attended the university you areconsidering attending. These people will also be a source of valuable informationconcerning the additional costs you will incur as part of acquiring your degree, what typeof work is available locally and what rates of pay are likely to be. Armed with thisinformation, you select from among the many post-graduate institutions you investigatedthe one that best meets all of your requirements.

As will be seen the very same process applies when drafting your dissertation.

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2. Research

What is research? The definition favoured by the UKs Quality Assurance Agency isalso one of the most comprehensive:

Research is to be understood as original investigation undertaken in orderto gain knowledge and understanding. It includes work of direct relevance tothe needs of commerce and industry, as well as to the public and voluntarysectors; scholarship, the invention and generation of ideas, imagesperformances and artefacts including design, where these lead to new orsubstantially improved insights; and the use of existing knowledge inexperimental development to produce new or substantially improvedmaterials, devices products and processes, including design and construction.It excludes routine testing, and analysis of materials, components andprocesses, for example, for the maintenance of national standards, as distinctfrom the development of new analytical techniques. It also excludes thedevelopment of teaching materials that do not embody original research.

The quote actually applies to the production of doctoral dissertations though with allnecessary changes applies equally to MBA dissertations. Knowledge is not produced inisolation; it builds upon the scholarship and research efforts of others, hence the centralityof the Literature Survey that is mandatory for all dissertations. It provides the platformupon which the dissertation rests, pointing to the best way to approach a given topic; italso summarises the results of recent scholarship against which the findings of yourdissertation can and will be measured.

The QAA definition highlights the critical importance of originality, by which they meaneither a new or unique contribution to existing knowledge or the generation of results thatextend, revise or supplant existing scholarship. A somewhat weaker standard is appliedto the production of a Masters dissertation. You will not be expected to produce originalresearch in the sense just described. Originality here means you will select and address atopic of interest or importance applying principles and techniques learned as part of your post-graduate education. In effect, the dissertation demonstrates the depth of yourunderstanding of the analytical materials acquired during your course of study and yourability to apply the associated tools constructively and effectively to a topic of directinterest or relevance to you.

It also means something else of equal importance, which applies in respect of whatevermaterial you are required to prepare and submit for evaluation, namely, that all such workmust have been conceived and produced by you. We are, of course, referring here toplagiarism. This does not mean that you can not refer to work produced by others, onlythat whenever you do, you must acknowledge its source. This applies as much to directquotations, which you will be required to indicate with the use of inverted commas, or toparaphrases, summaries of other peoples ideas. The failure to do so is not merely abreach of research ethics, it amounts to intellectual theft that can result in immediatefailure of the work presented and possible termination of your studies here.

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There are various aspects of research that you must understand as a prelude to writingyour dissertation; many of these terms are used casually, or carelessly, even among thosewho should know better. It seems desirable, therefore, to provide rigorous definitions forthese terms to prevent you from falling into the same trap. We begin with the termconcept. Concepts are abstractions products of the mind that identify some aspects of

reality as forming a class made up of things that are similar or at least alike enough for purposes of theorising about them.

A concrete example should help here. Mammals are warm blooded animals that incubatetheir offspring internally and give birth to living young. There are of course manydifferent types of mammals, from mice to hippopotami, some of which are carnivores,others herbivores, while yet others eat both meat and vegetation. These variations withinthe broader category are, however, irrelevant to many biological theories; for manytheoretical purposes, all mammals are alike. Although concepts are abstract, and notalways directly measurable, all scientific concepts have empirical (observable)counterparts. We may not be able to see, touch or smell the concept of mammal, but we

can see, touch, and smell animals that are classified as mammals.An indicator is any observable measure of a concept. While scientific research isundertaken to test a theory or thesis, actual research necessarily is based entirely onexamination of indicators. There is, for example, a strong presumption in themanagement literature that training improves productivity which in turn benefits thefirms bottom line. What we observe are the results (indicators) of training onprofitability, and if profitability does improve we may reasonably conclude that trainingcontributed to improved financial performance.

Theories and theses produce specific predictions about relationships that do (or do not)exist among a given set of indicators. A prediction about the relationship that existsamong indicators is known as a hypothesis; it is the hypothesis that serves as the specificresearch focus. A theory is meant to have general relevance, applicable across time andspace; a thesis, by contrast, lacks generality and typically applies to a specific situationoccurring in a specific time period.

There is a long running debate about the function of theory, and how best to test itsaccuracy. For some, theory serves three broad purposes equally: explanation,prediction and control. To fulfil these requirements, the assumptions upon which thetheory depends should be realistic, facilitating determination whether the theory hasbroad, limited or no explanatory power at all. If it does we should be able to use thetheory to forecast future outcomes: for example, a reduction in taxes or an increase inpublic expenditure is expected to stimulate economic activity by some multiple of theinitial fiscal injection. If the prediction is valid, then the information can be used toinfluence or control subsequent economic activity. When the economy is headingtowards recession, governments should pursue expansionary fiscal policies to limit thedecline in total output.

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For others, the true test of a theory is prediction alone; whether the assumptions used togenerate the theory are realistic or not is immaterial. Consider the following example,often used to support this assertion. A billiard player is about to launch the eight ball intothe corner pocket. Will she succeed? Other than guessing the outcome, we couldformulate a simple theory about the likelihood of success. One such theory would be to

assume that the player knows trigonometry and uses it to determine the correct angle withwhich the white cue ball should strike the black eight ball to ensure it falls into thedesignated pocket. As a description of how (most) people approach the game of billiardsit is probably hopelessly inaccurate, in other words, the assumptions underpinning thetheory taken at face are totally unrealistic, but as a theory of whether the eight ball willdrop into the corner pocket, there is none better.

Critics of this position point out that realistic assumptions are the foundation of soundresearch. Suppose one of the conclusions of the model is shown to be false, then itlogically follows that one of the assumptions must be false; if the assumptions are notrealistic (plausible), it is hard to learn from the failure of the conclusion. Note,

significantly, that realistic or plausible are not synonymous with true. It is thusunclear exactly what additional information is imparted by the use of realisticassumptions. Suppose we substitute more for less realistic assumptions; in what waywill we gain in understanding? If our objective is to determine how best to place abilliard ball in a given pocket, with which plausible assumption(s) should we replace themodels unrealistic assumptions, and will that significantly improve the modelspredictive accuracy?

A second, more focused, example may help clarify the point while pulling togetherbroader issues of how to go about testing hypotheses which, after all, is the primaryobjective of any dissertation. In Principles of Finance courses students are taught theEfficient Markets Hypothesis (EMH). The theory presupposes that market participantsmake use of all publicly available information to value assets, real estate or shares ofstock, for example. Indeed, the EMH goes so far as to assert that it doesnt matterwhether all traders act rationally; so long as some investors act rationally, then the marketas whole will exhibit rationality.

One of the main predictions of the EMH is that share prices will incorporate all knowninformation about the firm so that only the arrival of new information will cause prices tochange. Since new information (news) is unpredictable, so too will be the behaviour ofshare prices, thus providing an explanation for the apparent random character of theirmovements. If so, the best prediction of tomorrows share price is todays price. Anequally important implication is that active investment management is pointless, since itwill not be able to produce extraordinary returns; investors would do better to invest inindexed funds that track the movements of a broad market index.

How can we be sure that departures from rationality will be corrected by a small numberof rational, knowledgeable traders? The mechanism that ensures that shares are correctlyvalued is known as arbitrage; rational investors who spot pricing errors will buy (sell) theunder- (over-) priced asset until the correct valuation is achieved.

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But how do we know this well informed individual or group of individuals exists, and ifthey do how did they come by their extraordinary knowledge of asset valuation? Thesimple fact is that the existence of well-informed arbitrageurs, and how they acquire theiromniscience, is nothing more than a theoretical construct, assumptions that are notdirectly verifiable, but which help to explain why financial markets exhibit such a high

degree of efficiency. We could, of course, dispense with these assumptions, but then wewould have find another explanation for why markets are efficient

A final important consideration concerns causation. In principle, the concept isstraightforward: two variables are causally related if and only if it can be shown that thebehaviour of one variable (the dependent variable) is directly influenced by a secondvariable known as the independent variable. It is much more difficult to establishcausation empirically; the fact of placing one variable on the right hand side of theequation and calling it the independent variable is too facile.

Consider one of the examples given above that budget deficits can be used to stimulate

economic activity during recessionary periods. Since the size of the budget deficitaffects, as well as being affected by, the state of the economy, we could never be surewhich impact predominates, that is, whether fiscal policy is having the predicted impact. Numerous causality tests exist most of which are too advanced to be used fordissertations here. But the point to remember is that it is wrong to assert the existence ofcausal relationships without any empirical or external sanction for the claim.

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3. Getting Ready: The Proposal

To get you started the following exhibit highlights the main points you need to know todevelop yourProposal. The full UWIC report from which this exhibit is extracted isavailable on your student portal; it would be to your advantage to read this document

before embarking on your Proposal, as it answers the most frequently asked studentquestions.

Exhibit 1

Summary of Proposal Guidelines Red Book UWIC Revised Edition 2007with explanatory notes

Word count: The proposal is 2500 words of which the literature review should represent around1500 words.

I Provisional Title

This should include an initial sentence that clearly encompasses the purpose and aims of thedissertation. You should be able to establish in which organisation/s the primary data is to becollected and what the research aims to do.

II Brief review of literature

The aim is to have a focused and critical conclusion.The literature review is an essential guide to other stages. Plan your review into themes thatrelate directly to the research question and can direct the following research aims and objectives.

III Aims and objectives

These should flow directly from the focus of the literature review. Clearly specify yourresearch objectives.

IV Statement of the design and methodology

Overall design, validity and reliability. The justification will need to also refer to you title, aims,objectives together with issues of access [primary data] and time.

V Sources and acquisition of data

It must be shown how these relate to the research title and design. They must provide evidencethat access has been negotiated. [Email or letter from the organisation/s where the primary

research is to be gathered].

Ensure that ethical issues have been considered [never collect data, record interviews ormeetings without prior and clear permission being granted]. The method must be consistent withthe research design.Field work methods must be specified eg. participative observation, interviews andquestionnaires

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VI Method of data analysis

A clear and reasoned distinction needs to be made between deductive quantitative techniquesand inductive qualitative techniques. The selection needs to be consistent with the research designand field work methods.VII Form of presentation

Usually in written form. Additionally, Indicate if graphs, charts or tables are to be also included.

VII Timetable

ensures that the work has been plannedguide to the amount of work to be done guide to how much time should be spent on each section

time limitation can be a reason for selecting certain methods.

References

The Harvard System:

A reference is cited in the main body of the text by inclusion of the authors name and date ofpublication, e.g. (Greaves, 2006) wrote about the size of.

If you are using a direct quotation you must include quotation marks and the page number of thereference in the main body of your text, e.g. (Rooney and Owen, 2006 p. 5) maintain thatteamwork: supports the values of the organisation.

If there are more than two authors you should name the first author only, e.g. (Kotler et al, 2006).

References are then listed alphabetically on a references page at the end of your dissertation.

Examples:

Single author: Keegan, W. J. (1989) Global Marketing ManagementLondon: Prentice Hall

Two authors: Gerard, S. & Harman, D (2005) Winning the LeagueLiverpool: Penguin

Source: Michael L Nieto, LSC (2009).

You will be assisted with the production of your dissertation by your Supervisor, aknowledgeable member of faculty with a background in your chosen subject area. Beforebeing assigned a Supervisor, you are required to take a course in which the purpose,scope and nature of research and research methods are discussed and clarified. Thesenew tools are designed to supplement the knowledge you acquired in classroom lectures;together they provide the essential preparation to undertake production of yourdissertation.

The first step in this process will be topic selection. By the time you have reached thisstage, you will already have decided in which area of business you intend to specialise,

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and will similarly have considered those topics within your subject area that are ofgreatest interest.

YourResearch Methods course will help to sharpen your thoughts, after which you willbe required to produce a formal research proposal, that is, a brief description setting out

the primary and secondary, if any, objectives of your dissertation and how you intend toproceed with your study. The Proposal amounts to a statement of intent; it is possible toalter or amend your original submission, usually after preliminary consultation with yourSupervisor.

The title of your proposed dissertation provides a clear statement as to what you intend todo. Best practice is to put the title in the form of a question; if you intend to answer thequestion posed in the title with reference to a specific company or industry, you may addan indication to that effect, for example, Does Pay for Performance Affect Profitability?The Walt Disney Company as a Case Study.

In preparation for submitting your Proposal you will have done some preliminaryresearch to determine whether there are sufficient resources to produce your dissertationwithin the time allotted. You will provide a general overview of how you intend todevelop your analysis (methodology) and discuss the main objectives of the study. Sinceyou have neither completed your research nor developed the data to support youranalysis, it will be difficult at this stage to set out a definitive statement of either. Only asyour literature review and research proceed, will it be possible to firm up the details ofyour dissertation.

Practically, this means that you will have the opportunity to revise aspects of your studyas may be necessary, though ideally the changes will be modest and fully in keeping withthe originally stated intentions. If more radical changes are required, it would be best todiscuss the proposed modifications with your Supervisor.

Finally, you are required to provide a time line setting out a work schedule. The time youallocate to the different sections of your study should reflect their relative importance, anindication of which is shown in the following exhibit (2). The Proposal should becomprehensive enough to provide a clear statement of your research intentions,amounting to no more than 1,500-2,000 words, but not so detailed as to deprive you offlexibility to modify your approach as your research proceeds.

The Proposal will then be graded, and comments provided to assist you in transformingyour initial ideas into a workable dissertation that can be produced within the requiredtime period. If, as sometimes happens, your Proposal is failed, it is nothing to be tooconcerned about as your Supervisor will have provided detailed comments which, iffollowed, should lead to a passing grade upon resubmission.

An MBA dissertation is a challenging task for most post graduate students, but it can alsobe extremely rewarding. Most obviously, it is a piece of research that you have producedlargely or entirely on your own. And second, it is something that can be shown to,

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among others, prospective employers to demonstrate the depth of your understanding ofan important financial topic; you will have few other examples of your post-graduatework that can serve this purpose.

Exhibit 2

LSC/STM MBA Dissertation Assessment Form

Criteria Weighting

Mark Comments

1. Purpose: a clearstatement of the purposeof the dissertation e.g.reasons for theinvestigation; statement ofproblems; purpose of thestudy

15

2. Literature review:

critical review of theliterature e.g. use ofrelevant literature;evidence of understandingthe ideas expressed;development of extent ofapplication

20

3. Methods; appropriateuse of methods e.g. statedreasons for using type ofmethods; description ofmethods; appropriateness

and extent of application

15

4. Data: presentation andanalysis e.g. descriptionand setting of the study;presentation of the results;analysis of the findings

20

5. Interpretation andconclusion: e.g. analysis offindings with reference topurpose of study; issuesfrom the literature review;

practical application andareas for further research

20

6. Presentation: e.g.structure, language,visuals, logic andcoherence

10

Final Mark

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100

There are several general points you should bear in mind when developing or outlining adissertation topic. You must use information and knowledge learned during your studiesin order to be able to form suitable research titles. The most important thing is to develop

dissertation topics that you feel comfortable with and have confidence that they can becompleted within the time allotted and to the required standard. Tutors and orSupervisors can provide you with helpful information.

The following pointers provide you with useful information as to how to proceed todevelop your dissertation topic or title.

It may be belabouring the point, but dissertation topics should be based in the realworld of your field of study.

Topics should be based on yourarea(s) of interest. There is no point in asking

your Supervisor to choose a topic for you, as they will refuse to do so. Becauseyou will have to carry out the research, it is essential you feel comfortable withthe topic.

You should be knowledgeable about your topic, as you are more likely tocomplete successfully a dissertation when you have a strong interest in or directknowledge of its subject matter. You might consider in this connectionresearching a topic that would be helpful to your prospective career.

You must ensure your chosen dissertation topic is up to date; new knowledge isconstantly being produced and must not be ignored, otherwise your dissertation

will appear outdated, with an attendant negative impact on your final grade. Agood dissertation topic, accordingly, must be up to date and reflect currentpractices; MBA dissertations are not historical exercises, though you may refer toor summarise relevant background information if that would help to betterunderstand or clarify points being made in your dissertation.

You should rule out dissertation topics that are too difficult for you to research.Many students select dissertation topics in areas that are considered to beinteresting or trendy, but are not actually of interest to them. Students imaginethat more difficult topics will impress their Supervisors and ultimately receive abetter grade than they would have gotten with a topic of more direct interest or

relevance to them It doesnt, not the least because it is difficult to get good marksin a subject which you lack the competence to write about.

One of the best ways to develop a sound and interesting dissertation topic is tothink about issues that you have discussed and learned during your course ofstudy. Consider particular content areas or subjects that you studied within yourmodules and especially those that stimulate ideas that might help throw light onthe research questions and topics that you are attempting to formulate.

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You might consider rereading one or two previously assigned text books orarticles. Revising previously acquired knowledge and ideas can often helpformulate an interesting dissertation topic; it can also provide you with anindication whether yours is a good topic or not. Students will be able to gauge for

themselves whether they can easily obtain relevant information to support theirresearch if they decide to pursue that particular topic.

It might be useful at this point to illustrate, using an actual case study, the process bywhich initial, tentative ideas are transformed into an acceptable proposal and ultimately asatisfactory dissertation.

Against the backdrop of the large number of recent and past corporate failures beginning with Enron and WorldCom and culminating in the financial difficultiesrecently experienced by many large multinational banks several students thought itmight be worthwhile to investigate the importance of auditing failures as a possible

contributing factor.Students expressing an interest in pursuing various aspects of this topic were keen tofocus on either accounting and auditing issues or were professional auditors wanting toknow more about the practices of the Big 5 accounting firms.1 Many indicated the topicconnected with their professional development and thought (correctly) it would enhancetheir career prospects, a perfectly valid reason for choosing a particular dissertation topic.

Their next task was to narrow the issue to a relevant topic that could be completed withinthe required time period. Out of these preliminary discussions there emerged a numberof interesting and important topics that served both the students immediate academic

needs and longer term professional interests.One of the first of these proposals took as its point of departure Enrons failure andsought to explain why Arthur Andersen, the firms auditor, had failed to detect thecompanys growing financial difficulties. This suggested two hypotheses: (1) Enrondeliberately withheld pertinent information from its auditors, concealing questionablefinancial transactions in so-called Special Purpose Vehicles (SPV), legal entities thatbenefited the company by reducing transparency; or (2) perhaps Andersens practiceconcentrated on companies making similar extensive use of SPVs, and thus faced similarfinancial issues. Andersen may also have advised as to how best to structure and managesuch vehicles, which raises the spectre of a potential conflict of interest.

Both hypotheses were perfectly reasonable, the more immediate question being how togo about implementing them. The first hypothesis could be attacked from the standpointof numerous official investigations and research reports that have addressed all aspects ofEnrons failure, including the importance of auditing failures.

1 The Big 5 auditing firms are: Arthur Andersen (now defunct), Price Waterhouse Coopers, Ernst andYoung, Deloitte and Touche, and KPMG.

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The second involved developing data on the companies audited by Andersen to determinewhether its client list differed fundamentally from that of its competitors. This in turnsuggested two possible approaches:

Establish whether Andersen specialised in companies operating in the same

industries as Enron. The student was encouraged to pursue this line of inquirybecause preliminary research indicated that Andersen did indeed have a largerconcentration of its clients in the oil and gas industries than did other majoraccounting firms, meaning they could have been as vulnerable financially aswas Enron.

Determine whether Andersens clients exhibited a risk profile different fromthe firms audited by the other Big 5 accounting firms. Auditors serve twomain shareholder functions assurance and insurance the formerconfirming the accuracy of the clients financial statements, and the latterensuring the availability of financial resources needed to cover any damages

arising from auditing failures. The largest accounting firms would seem tooffer investors the strongest guarantees on both scores, in which case theydeserve the premiums they are reported to earn over lower tier accountingfirms.

There is of course no reason a priori to suppose their client lists differed significantlyfrom each other. Indeed, it is fairly common to assume that the Big 5 accounting firmswere more or less homogeneous, and thus pretty much interchangeable; the results of theanalysis would disclose not only whether there were specific reasons for Andersensfailures but also whether clients do in fact view their auditors comparably.

Two additional issues arose in connection with pursuing this proposal:

How to go about collecting the necessary data for the dissertation, and

After having gathered the data, could one be sure that any differences detectedwere significant.

The first issue was resolved by choosing a relatively large sample of companies in anumber of different industries, then sorting each by its auditing firm; the second requireduse of specific statistical techniques capable of differentiating whether any observeddifferences could be interpreted as significant or whether they were more likely to reflect

chance, a by-product of the size of the sample chosen.

This highlights yet another important trade off that must be faced as you develop yourproposal and ultimately your dissertation. The larger the sample, the greater confidenceyou may have that the observed data are indicative of real differences between the twogroups you are studying. On the other hand, unless you have access to large economic,financial and corporate data bases, it will take considerable time to develop your data conceivably more than you have for producing your dissertation meaning that you may

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have to make do with a smaller sample thus reducing the confidence with which you canpresent your findings and conclusions. This is where statistical procedures come into thepicture and we shall have more to say about them later in this Guide.

Before leaving this subject, we should mention a number of other hypotheses that

students have pursued in this specific area of research.

Around the time of Enrons growing financial difficulties, did Andersens otherclients experience a more negative share price impact compared with firmsaudited by the other Big 5 accounting firms?

Did Andersens growing legal difficulties affect the clients of the other largeaccounting firms, and if so which were most directly and strongly affected?

Why were the financial data of so many companies restated during this period?

Did clients that reported dismissing Andersen experience positive stock pricereactions around the time of the dismissal?

Did clients that remained with Andersen experience negative stock price reactionsin response to announcements by other firms they were dismissing Andersen?

Some idea of the full range of suitable MBA dissertation topics is given below, whichwere chosen from those approved by the University of Wales, one of the institutions thatwill be awarding your degree. Note, in particular, not only the wide range of topicsrepresented but also the geographic scope of the dissertations.

Competition between the Hong Kong and Shanghai IPO Markets Determinants of Capital Structure: Cross-Sectional and Panel Analysis for UK

non-Financial Firms Inter-cultural Differences in Internet Marketing Communications Reform of the Foreign Exchange Rate Regime and Exchange Rate

Misalignment in China Capital Structure and Financial Crisis in Malaysia The Impact of the Asian Financial Crisis on the Relationship Between

Financial Development and Economic Growth The New Basel Accord: Implications for the UK Residential Mortgage Market

Determinants of Japanese Commercial Banks Profitability, 1995-2003 Financial Derivatives and the Exposure of US Banks Culture, Economic Development and the Financial Sector: an essay Economic Crises and the Financial Sector: Empirical Evidence from Turkey Bank Efficiency in the Nigerian Commercial Banking Sector Bank Off-Balance Sheet Business and Risk Exposure Taxes Effects of Fixed Assets Revaluation on Stock Returns: Evidence from Greece An exploratory study of supply chain integration over the Internet

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Recipes for Western Fast-food success in China a value chain perspective Enterprising environment for Entrepreneurs E-commerce facilities within Greek retailers How mangers can increase Employees Motivation within the retail services

without increasing financial costs The relevance of Strategic Statements to the delivery of shareholder value Virtually working: an examination of the experience of home tele-workers in

North East Wales Are solicitors client focused? International expansion by franchising Marketing effectiveness: the case of the Brunei Islamic Trust Fund The training function of the International Joint Venture

Finally, the following exhibit illustrates a number of important things about yourdissertation; it will repay careful study as it answers most of the basic questions studentshave concerning the structure and content of their dissertation.

Exhibit 3

MBA Dissertation Pointers

Structure Word CountGuide

Key Elements

Opening Section

Abstract


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dumped from the company website or an article.

A clear statement of Aims and Objectives E.g.

Aim: (example)

To explore strategies to develop international teamsObjectives are the key elements that underpin the aim.Therefore:

Objectives (Example)

To Explore IHRM models of the universalism school, cultural schooland key international cultural models

Toexamine the importance recruitment and selection in the contextof building international teams

To explore the characteristics of a successful international team

To examine culturally aligned training for these teams

The results expected /aims of the research

Introduce the theoretical / conceptual framework that you willbe exploring (Plain English). It identifies the main theoreticalpoints and themes that are RELAVANT to the dissertation andinforms the reader how you intend fulfil your research aims byuse of research methods. E.g. Secondary data or primary dataanalysis

Brief outline of the subsequent chapters

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LiteratureReview

5500-7500 This is a theoretical exploration of the existing knowledge that isRELEVANT to the area you are investigating

What research exists? How does this impact on your research problem? What relevant theories and frameworks does it supply to your

problem?

The literature review focuses on similar and contrastingperspectives that researchers or academics have used toapproach this, or similar research areas. As such, you have toidentify the strengths and weaknesses of such approaches.

Use only relevant studies, focus on their main findings andconclusions

You should be able to consider the most appropriate areas,justify these, and use them to inform / create your researchmethodology

*The literature review is nota brief summary of all thebooksand articles you have read. This is called an annotated

bibliography.

Methodology 1500-2000 An in-depth discussion on how the study will be undertaken and howit fits with your research question

What methodology will be used? How will it be done? Why was the method selected? (justification for the final

selection) Why were other approaches discounted? Strengths and weaknesses of the approach Design of research instrument

Design of research instrument Clear indication of the design features and any questions to be

asked in a survey

Describe the data analysis techniques to be employed. E.g.

sampling techniques, frameworks, size and type of anappropriate survey

Description of subjects involved, settings for the study and anyvariables that may be encountered

Describe the data analysis techniques to be employed. E.g.sampling techniques, frameworks, size and type of anappropriate survey

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If you are using a particular concept / model, then it should be criticallydiscussed and incorporated here.

For in- companyInvestigative

dissertationswhere you haveaccess to theoperation

Current systemdescribed

Description of the operation and its processes A perspective on the problem

Factors that may be the cause of problems Identification of internal documents, operation procedures and

policies

Note: These two sections will add to the word count. So, adjust theLiterature Review and RM sections to compensate. The word countand structure should be adapted to suit the dissertation and its focus.

For in- companyInvestigativedissertationswhere you haveaccess to theoperation

Current systemAnalysed

Investigations into the company, the operation and its systems

This may involve application of a model or method that you discussed inthe literature review and research methods.

E.G. Observing an operator carrying out job task, asking questions afterthe operation and comparing this to required standards of performancenecessary. This might show that there is a skill gap in operatives that iscausing quality problems.

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Data Analysisand findings

3500-4500 What did you find?

One or possibly 2 chapters on data analysis and findings

What have you discovered and propose reasons why this may be?

Presenting the findings1) Restate the actual research question for the reader and show

frequency tables and graphed data. Interpret the data for eachdata set. Make selected links back to the LR

2) You may be able to cross-tabulate; make correlations from onedata set to another IF you have set up the personal informationand demographics of the population first. From this you may beable to identify patterns and trends.

3) Discuss the results in plain English4) Build on and qualify the overall conclusions linking back to the

LR and key facts from the analysis.

Discuss whether your results successfully met the conditions to test yourresearch question or hypothesis e.g. in a postal survey, how many peoplereturned the questionnaire? Those who didnt, are they different insomeway?

Conclusions 2000-3000 Discuss in narrative form your conclusions linking back to your researchquestion and literature review so that a clear argument and thesis can beidentified throughout the work.

Use clear statements on the conclusions reached Was your hypothesis or theory supported in your findings? Answer the questions you raised in the introduction. How does the results compare with theory and good practice

discussed in the literature?

How do your results compare to those of other research /academic studies? What has surprised you about the results? What limitations may there be to your study? How does it add to knowledge in the field? What further research would you recommend to develop your

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4. The Introduction and Literature Review

The first section of your dissertation is the Introduction, in which you state the basicobjectives of the study; this would include both primary and secondary objectives, theformer relate to the main topic(s) of your dissertation, while the latter are a number of

important side issues that flow out of the analysis of the main area of interest. It will alsoserve to introduce how you intend to pursue your chosen topic by providing a discussionof the methodology you will be using to implement the study.

Students sometimes find it easier to write the Introduction last, a decision that is lessconvoluted than it appears. After all, it is much easier to draft the introduction when youknow how things turned out than when they are still pretty much up in the air. This is animportant point to bear in mind since the introduction frames the remainder of thedissertation. The reader is more likely to be drawn into the study if the approach,objectives and method are clearly, carefully and confidently stated then if theintroduction is carelessly or ambiguously worded.

The second broad area is the Literature Review or Survey. This is one of the mostcritical sections of the dissertation as it provides the foundation upon which your studyultimately rests. Despite its importance there is considerable ambiguity as to how best todevelop the Survey. In some instances students compile what amounts to little more thanan annotated bibliography, that is, they list numerous publications that relate to their topicand provide brief summaries of each. This, of course, misses the point and value of sucha Survey.

For one thing, if pursued correctly it will open your eyes to valuable sources ofinformation that can be used to inform your study. It will point you in the direction ofwhat has been written in your area of research and will provide alternative perspectiveson many of the issues you will be covering in your dissertation, some of which willconfirm your conclusions, while others will not.

Part of your job will be to separate out the more from the less relevant studies, the morefrom the less reliable findings. Relevant and reliable do not refer to whether previousresearch agrees with the findings of your study, but rather to the quality of the findings,that is, how well they have held up to subsequent research. Findings that have not (orcannot) be replicated should be considered suspect, while those that have been validatedrepeatedly are worthy of more serious consideration.

Before considering how best to evaluate the evidence you are developing in connectionwith your dissertation, it is worth considering the different types of information resourcesthat are available, above all, their advantages and limitations. There are five principalliterature resources: popular press (including electronic documents); practitioner booksand compendia; practitioner journals; academic books and compendia; and academicjournals. We now consider each in turn.

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Popular press: The popular press consists of widely read business publicationsand magazines. It includes publications such as the Financial Times and Wall StreetJournal, both international newspapers, and magazines such as The Economist,Euromoney, Business Week,Institutional Investorand Forbes.

The main value of this literature is timeliness and accessibility: global business andfinancial newspapers provide real time information concerning all aspects of national andinternational business and global financial market trends. The information provided isgenerally factual, practical and intended for the use of decision makers. Businessmagazines, because they publish only weekly or monthly, take a slightly longer(thoughtful) view of international political, business and financial developments andoften provide informed commentary, frequently by guest contributors, designed toprovide perspective on recent or prospective developments.

The main weaknesses of the popular press are the same as its strengths, namely, itscurrency. Currency means that much of the information provided is incomplete or

uneven. Some issues are covered in considerable depth, including commentary providedeither by staff or guest contributors or in editorials, while others rate only one columninch of space. By definition, news equates to new information, which perforce isfragmentary, inaccurately reported or simply wrong. Leading newspapers and magazinesoften publish apologies for inaccuracies in the original stories or corrections that revise orupdate information previously provided.

There are other difficulties that also affect the value of such information for use indissertations. Most business newspapers and magazines are, owing to their mainreadership, business men and women, so they often colour information to maximise theappeal to their target audience; their editorials equally tend to adopt pro-business stances.It is absurd to imagine that such publications are (or can be) value-free; the very best onecan hope for is that their journalists offer a wide range of alternative or competitiveperspectives, from which readers can draw their own conclusions about the value orrelevance of the points of view being expressed.

Most such publications make every attempt to ensure that the information they provide iscomplete if not accurate. Not being scientific, there is no reason to expect scientificrigour in most of the information they provide. Only the most mundane information standardised measures of business, financial or economic performance, for example arelikely to be presented reasonably accurately; less familiar or more technical informationis not always well covered or explained, nor is any attempt made to distinguish betweenthe relevance of different concepts. Trendy, rather than serious, ideas tend to beemphasised partly because that is one of their main functions, to publicise the new andthe controversial, not to concentrate on concepts that have longer term significance,promote sound business practices or add to the firms bottom line.

The Internet is a source of the widest imaginable range of subjects. Business andfinancial information is easily accessible thanks to search engines that do most of thework. There are numerous sources of information so that the competitive ideal noted

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above is met well beyond what is possible within a given news organisation. On theother hand, the available information lacks even the most elementary safeguards withrespect to accuracy or completeness.

The classic example here is Wikipedia. In its original form, Wikipedia entries could be

edited online by anyone, qualified or not, regardless of whether the correctedinformation is more or less accurate than the information it replaces. Wikipediarecognised this difficulty and now imposes a time delay for redaction of individualentries. Of course this does nothing to correct the basic flaw in its design. Information isuseful only if it is accurate. In the Wikipedia world ideology or personal views areconsidered to be of equal value to research driven and supported by facts; the lack ofintellectual controls means that no information so supplied can be regarded asauthoritative, even when it is. It is best to avoid such information; most Supervisors willdo more than raise an eyebrow should information from this source be listed in footnotesor the bibliography.

Practitioner Books and Compendia: This category comprises an amazingdiversity of publications that it is difficult to know exactly how to describe and evaluate.Many of the books falling into this category are of the popular variety, written by authorskeen their share their experience or point(s) of view with the reader. They vary widely interms of quality and value, so the best way to approach them would be with a high degreeof scepticism.

Unless the authors have an established track record in the area or areas in which they arewriting, it would be best avoid them altogether for the simple reason that no matter howdeeply felt the authors concern for the topic being addressed there is simply no way thereader can assess the validity of the results or how widely they can be applied. This isnot to say the genre is worthless; there are examples of such books having been writtenthat have changed thinking or influenced organisational practices, but these are theexceptions.

Practitioner Journals: These avoid some, but not all of, the pitfalls ofpractitioner books while most journals subject submitted articles to peer review. Theirmain advantage is that they are highly readable, and do not presume any specialisedknowledge on the part of the reader; theHarvard Business Review is a prime example ofthis genre. They also deal mainly with live business issues and as they tend to beauthored either by current practitioners or academics, the arguments tend to be presentedwith greater objectivity than in the popular press.

The weaknesses of this literature derive mainly from a predisposition to include articlesdealing with issues such as philosophy or other equally arcane areas that lack immediacyor that drift into such generalities as to be practically worthless in terms of applicabilityor relevance. A second shortcoming is the overriding importance editors of such journalsattach to clarity and uniformity of style. This emphasis produces a number of unfortunateconsequences.

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For one thing editors are assigned to see an article through from submission topublication. These people are typically better informed about the editorial requirementsof the journal than the content of the articles being submitted. In the course of rewritingarticles they can, and often do, sacrifice relevant material or lose the main point(s) beingmade by the author for the sake of clarity. Many authors put up with this interference

because of the journals prestige and wide readership, the latter in particular being ofconsiderable importance to aspiring academics or consultants looking to add to theirreputations and hence client lists.

Even so, it would be wrong to dismiss such journals out of hand. Many articles arewritten by acknowledged experts in their field, with the material presented in a form thatis far more accessible than where the research underpinning the article was originallypublished. The Journal of Corporate Finance is another good case in point: like the Harvard Business Review, it invites distinguished academics, lawyers, and businesspractitioners to contribute articles or to participate in roundtable discussions invariably onfinance or related topics. The presentations may include technical material but presented

in such a way as to ensure that it can and will be easily understood; this is especiallyuseful for business students who may lack the qualifications to understand the moretechnical analytical or statistical issues characteristic of articles appearing in learnedjournals.

Used wisely, such journals can be a source of valuable and useful information; however,they are best used as a complement to and not a substitute for the more scholarly articlesthat should form the core of the dissertations Literature Review.

Academic Books and Compendia: Academia places considerable importanceon the production of research articles and less to the production of specialisedmonographs or books. Many authors write books to summarise a relatively large body oftheir previous research or to produce textbooks. Much of the material contained inspecialised monographs will have been published previously; in many instances theresults of prior research are incorporated in their entirety in the text, the main differencesbeing that dated information will have been replaced with more recent data. A newintroduction and conclusion are often added to tie the disparate research reports togetherand, where required, some of the material will have been updated to take account ofrecent developments or research in the studys main field.

Such publications provide little information beyond what could have been gotten fromreading the original articles. There is nothing wrong with this practice, and from theresearch consumers point of view may actually be beneficial in that most of the relevantmaterial will be available in a single source.

We might also include in this category official publications, such as those issued bycentral banks (the Federal Reserve Bank, and its regional banks [Federal Reserve Bank ofNew York, Federal Reserve Bank of Boston, and so forth]; the Bank of England,Financial Services Agency, and other OECD central banks); government agencies (USDepartment of Commerce or the UK Department of Trade and Industry) and publications

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of international organisations such as the International Monetary Fund, the World Bank,regional development banks and the Bank for International Settlements. Reports andpublications of local Chambers of Commerce and other trade associations also fall withinthis category.

Central bank and other official publications provide both statistical information, currentand historical, covering a wide range of data; they also publish general reports intendedfor popular consumption as well as more specialised publications, such as financial or policy reviews, that tend to focus on matters of current interest, or working papersprepared by professional staff members. Most central banks and international financialinstitutions produce similar policy and research documents, mostly written in English, butfrequently translated into other European languages, mainly French. Publications of theEuropean Union are available in the languages of member countries.

Academic Journals: The principal advantages of academic journal articles arethat they are written by professionals with (usually) considerable knowledge of their

subject, and are peer reviewed meaning that other specialists will have had theopportunity to assess whether their research findings are worthy of publication. This process ensures higher standards of objectivity than apply to the other literaturecategories we have reviewed. Authors accordingly are more likely to produce higherquality articles that tend to focus more on narrower academic concerns than on currentissues or fads that tend to dominate the popular press.

This is not true of all academic journals; there are several excellent publications thatcombine the highest academic standards with a focus on contemporary issues. Two ofthe best are published by the Brookings Institution in Washington, D.C., Brookings Papers on Economic Activity, one devoted to macroeconomic, the other tomicroeconomic, issues. Prominent academics are invited to analyse topical issues atforums held twice-yearly. Discussants are nominated to comment on individual reports,and their remarks are included alongside the main article. Audience members, too,contribute to the discussion, and the final publication contains summaries of theircomments as well.

The weaknesses of the academic literature are the obverse of its strengths. To ensureobjectivity, the editorial process is typically very long, the time from submission topublication can be as long as two years, to the detriment of accessibility. To remedy thisshortcoming many authors publish so-called working papers, which can be accessed atleading academic websites such as the Social Science Research Network (SSRN).

This, however, poses the same problems that we noted above: neither the fact of havingbeen included on the SSRNs website, nor the academic affiliation of its author canguarantee the quality of the publication; indeed, some authors do not even bother toindicate their affiliation. This poses few if any problems for academics, equipped as theyare (or should be) to separate the wheat from chaff. For consumers of academic research,the inability to properly assess whether the article has any merit at all suggests that allsuch studies should be viewed cautiously.

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One technique widely favoured by consumers as a quality measure is the number of timesa given article has been accessed, with higher downloading frequencies taken as anindicator of intrinsic merit. The flaw here is the equation of interest with importance.

It is interesting to note that the SSRN does list the ten most popular articles measured bythe number of times they were accessed in a given time period. In each case, the mostpopular articles were also written by some of the countrys best known academics. It isthe combination of frequency and author, not frequency alone, that gives this measureany degree of credibility. Against this backdrop, peer review in leading journals is stillthe soundest guide to the worth of any individual publication.

Finally, we might note that there are a huge number of publications that could beincluded in this category of extremely variable quality. The fact of peer review here is noguarantee of the value of the final publication. True, editors go to great lengths to ensurethat reviewers are qualified and competent, and often provide a comprehensive list of the

members of their editorial boards. There should, however, be no presumption that any ofthese will have seen, let alone commented, on a particular article; in some instances theeditor has the final say as to whether or not to publish a given article, a far cry from thehighest standards of the best academic literature.

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5. Evaluation of Published Research ResourcesWhat conclusions can we draw about the value of the different research resources used bystudents in the preparation of their dissertations? With respect to business literature,there is a general consensus that the closer the methodology approaches that favoured by

the softer social sciences (communications, decision making, motivation, leadership,and so forth) the weaker is their claim to scientific validity; this conclusion holds trueequally for several other areas of business research. The principal exception is economicor financial research, where the favoured method of analysis more closely approximatesto that of the natural or physical sciences.

Financial economists typically use published information; most other disciplines have togenerate their own data, usually based on surveys, the design and data collection are oftenmore time consuming than is the analysis. Statistical procedures are employed, thoughnot always of the same degree of sophistication or applied with the same competence aseconomic modellers; nor are the full set of results always published, making it difficult

for other researchers to evaluate the claim(s) being made.Against this backdrop, you will need help to determine how best to interpret the value ofthe information being generated. How, in other words, you can best establish therelevance and reliability of the information being developed. Abelson2 suggests theacronym MAGIC as the best way to judge the worth of information.

M = Magnitude: The important point here is the how large are the effects beingreported? How reliable and broadly based are they? In each case, the more impressivethe findings, the more reliable they may be taken to be.

A = Articulation: How well is the research story being told? Does it consider both sidesof the issue fairly, and does it do so in a sound and reasoned form?

G = Generality: Do the findings have wide implications or are they specific to aparticular point in time or to a specific set of circumstances? How well is the claim(s)made supported?

I = Interestingness (or perhaps, better still, importance), the ability of the researchfindings to influence how other people view the topic, even the potential to alter orchange their beliefs concerning the phenomenon under investigation.C = Credibility, that is, is the argument being put forward theoretically andmethodologically sound? Have alternative perspectives been confronted? Are the datatoo good to be true: do the results depend upon statistical procedures correctly appliedthat rule out the possibility of the observed outcome occurring by chance or do theydepend upon personal observation or experience only?

2 R. P. Abelson, Statistics as Principal Argument(Erlbaum: 1995).

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to enlighten but rather to convince, often of a point of view that does not command broadsupport.

Academic research, though widely (and correctly) conceded to be the most objectivesource of information is not without problems of its own. These limitations apply

especially in respect of business research, and other soft sciences. Even within businesssubjects, there is considerable dispersion not only in terms of methodology, but also interms of interpretation.

The empirical literature tends to follow a common structure. A theory of the phenomenon to be investigated is adumbrated and tested typically using statisticalanalysis. This approach is most common in economics and finance research, butincreasingly is finding its way into management and marketing research as well. A keydifference is that in the latter disciplines there are few theories as well developed as thosein economics or finance. Moreover, while economic and financial research makes use ofnumerous large data bases from which to test hypotheses, among management and

marketing disciplines the data tends to be developed ad hoc, that is, primary data basedupon surveys or interviews of varying size, or experiments, with the data thus generatedtested for the associations or differences the research is designed to identify.

We shall have much more to say later about surveys and interviews; here we areconcerned primarily with the limitations of these approaches and how these limitationsaffect any generalisations that can be drawn from the test results. The first question thatwe need to answer is: How do we know we have found anything of significance?Significance can be defined either in its everyday sense of importance or in itsnarrower, more technical statistical sense, that is, whether the observed results could havearisen by chance.

Here we need to draw a distinction between business studies research on the one hand,and financial and economic research on the other. Analysts argue that the former (unlikethe latter) tends to suffer from three main shortcomings: (1) the lack of researchreplication; (2) the inability to cumulate or generalise the research results; and (3) thefaulty interpretation of statistical significance.3 The first point is important because itstands in marked contrast to the way research in the physical or natural sciences isconducted, where research findings are expected to be replicated to establish therobustness of the original findings. If the original results cannot be verified bysubsequent research, then the validity of the initial findings should be dismissed.

Nor does the growing use of high powered statistical techniques change things all thatmuch: statistical significance is not always proof of support for the hypothesis beingtested. Statistical results can and often are misused, either because the researcher fails tounderstand the limitations of the methodology, or because crucial assumptionsunderpinning the statistical model have not been met, or through some combination of thetwo. Replication permits detection and correction of such errors; with the current

3 The following discussion is adapted from John Kmetz, The Skeptics Handbook: Consumer Guidelinesand a Critical Assessment of Business and Management Research (2002).

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research ethos discouraging such an approach, much of the management researchliterature should be regarded with caution.

That economic or financial research avoids all of the shortcomings of research methodsfavoured in other business studies areas is only partially true. Much of the received

wisdom, based upon strong assumptions concerning human behaviour, has beenquestioned, while the application of new, less restrictive paradigms has challenged manyof the disciplines most basic conclusions.

Two assumptions in particular lie at the heart of much economic and financial research:(1) individuals behave rationally, that is, when confronted with choices they select theone that best serves their interest (self-interest); and (2) individuals have access toidentical information. The first assumption minimises the possibility that psychologicalforces can and do influence human economic behaviour; once this assumption is relaxed,so-called Behaviouralist models can begin to unravel phenomena that appear to defytraditional economic analysis, speculative Bubbles, for example. The second

perspective undermines the traditional market model since it assumes that buyers andsellers do nothave access to identical information, in which case, the latter can exploitthe former with an attendant negative impact on economic efficiency.

These challenges have forced researchers to question their respective approaches, and byhaving drawn attention to existing weaknesses have caused practitioners to confrontthem. In economics and finance, asymmetric information and the research it hasgenerated has proved to be of immense value, with many of the insights having beenincorporated into the traditional curriculum. The other criticisms have fared less well,but that hasnt deterred researchers from pursuing their research programme even thoughthe balance of evidence makes clear there is much less there than meets the eye.

We raise these issues so as to provide a more balanced view of the quality ofinformational resources available to business students. Research methods and results inall disciplines, even in the physical sciences, have and continue to be questioned. Butthey dont change the fact that much of traditional theory still has considerable merit andaccordingly is still taught. Indeed, exceptions and anomalies are the rule not theexception in all areas of science, and that is how things should be.

Karl Popper, the eminent philosopher, pointed out long ago that the struggle toaccommodate anomalous evidence is an important aspect of the accumulation ofscientific knowledge. This struggle, Popper points out, rarely leads to the completeabandonment of the existing conceptual framework. Rather, it typically results inmodifications to the current paradigm capable of accommodating observed anomalies,while retaining those features of the intellectual framework that still fit.

Business students can rest assured that the research upon which their dissertations arebased is still valid. By highlighting the limitations of different informational resourceswe do not mean to suggest that all such resources lack any value at all; as we have seen,they also have their advantages. The point is we need to take the good with the bad to

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arrive at a balanced view of what the literature has to offer. Business students arefortunate in that the available literature resources are vast. The aim is to ensure you makebest use of what is available, hence the emphasis we place on research methods to whichthis Guide is a part.

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6. Methodology

If you are preparing a dissertation in any subject area other than finance, you will berequired to generate primary data. Primary data are produced through surveys orinterviews or some combination of the two. Some finance dissertations also involve the

production of primary data; here, however, the survey results are intended to supplementthe basic objective of the dissertation.

For example, one recent dissertation sought to determine what impact adoption of EUaccounting rules would have on the reported profitability of leading Turkishmanufacturing companies. The authors main hypothesis was that the shift would resultin lower earnings than would have been reported under traditional accounting standards.The results were mixed so he decided to supplement his financial analysis byinterviewing analysts employed in leading local brokerage and accounting firms. He wasunder no obligation to do so, but was convinced that the additional information he woulddevelop would illuminate the ambiguous results of the financial analysis. It did.

As you will have noticed from Exhibit 2, there are two principal dimensions to theMethodology section. (1) It should provide an in-depth discussion of how the study willbe undertaken and how it fits in with the issue your research is intended to answer.There are several different approaches that could be used to develop the information inyour analysis. You will need to provide justification for your particular approach: why itwas chosen in preference to alternative ways of going about collecting data, that is, whyyou believe it provides the best fit for addressing your chosen topic. And (2) if you areusing one provide a detailed consideration of how you designed your survey.

6.1 Surveys

A survey is nothing more than a systematic method of collecting information from aselected group of people who are asked a series of questions.4

(a) When Should I Use a Survey?

You employ a survey when it is faster, easier, or less expensive to use than othermethods. Sometimes other data collection methods are preferable. For example, todetermine the number of people using a clinic, you could simply count the number ofsignatures on the sign-in sheet, or examine the daily records; no survey is required toobtain such information.

Nor is there a need to undertake a survey when the information exists in some other formthat can easily be accessed, for example, in archives, records, or databases. Using suchdata can save you time, money, and effort.

4 Much of the following discussion, examples and some charts and tables are adapted from: Houston, Survey Handbook(Organizational Systems Division, Total Quality Leadership Office of the Under Secretary of the Navy).

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(b) Survey Preparation

What is the purpose of the survey?

Surveys are used for many purposes, and these influence its form and content. Some of

these include:

To obtain information that can be used to verify the main predictions of thetheoretical literature.

Identify organizational strengths and weaknesses

Targeting areas in need of improvement

Assess the effectiveness of new or existing policies or programs

What specific information is needed?

To meet the purpose of the survey, identify the topics or issues of interest and the formsof information needed. If, for example, you are interested in determining the importanceof maintaining current dividends, you might ask questions about how often and underwhat circumstances dividends are increased. You might also ask people to compare thevalue of dividend payout with alternative methods of returning cash, and so forth. If theobjective is determine future actions, you might ask respondents to identify what factorsinfluence future payout decisions.

Who will be surveyed?

Identify the types of people who can provide the information you are interested indeveloping. Do they belong to a particular group (students, managers), a single categorywithin that group (post-graduate business students or middle managers) or do they comefrom a variety of categories (under- and post-graduate students, all managers of BarclaysSouthwark branch)?

How will the survey be administered?

There are three main ways to conduct surveys face-to-face interviews, telephoneinterviews, and written surveys, conducted either by post, email or group sessions with

the method chosen capable of providing sufficient information as quickly, efficiently andeconomically as possible.

Interviews only make sense when you need to collect detailed information from arelatively small group of people. Interviews can be used to explore issues and options toa greater extent than written surveys.

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What resources will be needed?

You will be responsible for designing and implementing the survey. On the other hand,people who respond to the survey should be considered as a resource in terms of number,time invested, and information provided.

What survey items will be used?

Occasionally it is possible to use existing surveys, but you must consider ways in whichthey can be updated to reflect any relevant changes that will have taken place between thetwo surveys. For post graduate business students, this is practical only where previousresearch surveys are deposited in the Schools library. It may be possible to accesscompleted UWIC dissertations, but unless they are online you will have to visit thelibrary in Cardiff, which may not always be practicable. It is best, therefore, to think interms of an original survey, though the specific questions you intend to ask in the surveymay be gleaned from prior studies uncovered in your Literature Review.

How will survey information be analyzed and reported?

Once developed, you must consider the best way the data can be organized andinterpreted. There are numerous possibilities: some relatively simple and straightforward tables, frequency distributions, line graphs, bar charts, pie charts, or histograms whileothers, only slightly more complex, may involve the calculation of averages (means) andtheir associated standard deviations, medians and modes. The analysis dictates the bestway to present your data. If, for example, you intend to apply formal statisticalprocedures, then you may want to present summary measures only; if the tabulatedinformation constitutes the main data then you may want to use more expansive formats.

All survey results are intended to measure differences or associations. What impact doestraining have on worker productivity? Does additional training lead to even betterperformance? In the first instance we are interested in determining how big the effect, ifany, is of requiring employees to attend training sessions. One way to do this would becalculate average worker productivity, usually measured as output per hour worked,before and after attending training sessions. Does it matter whether the training occursduring work hours, after hours or on the weekend? Are the results sensitive to whetheremployees attending after work sessions are or are not paid?

In each case, the answer depends upon the size of the effect. If after completing thetraining session, for example, the improvement amounts to only 1.75 per cent, is thatlarge enough to confirm the value of the training sessions? Assume further that payingstaff attending out of hours training sessions improves productivity by 4.75 per centcompared with 1.5 per cent if employees are not paid? In the first example, the effectappears too small to confirm the claim that training matters; on ether hand, thedifferences in productivity between employees attending training sessions who are or arenot paid appears big enough to support the contention that payment matters. Survey

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results could be supplemented with interviews asking employees what differencepayment had on their attitudes towards the value of training.

A word of caution: even large differences can sometimes be misleading, especially wheresample sizes are relatively small. It may just be that the observed difference of paying

employees to attend training sessions after hours may have arisen as a result of chance.Later on various statistical procedures will be described that can be used to determinewhether such results could have arisen by chance.

How many people need to respond to the survey?

What is of interest is not the sample results but rather whether we can draw anymeaningful inferences concerning the larger population from which the sample wasdrawn. That really is the point of a survey: in most cases it is physically impossible orprohibitively expensive (or both) to interview each person in the group you are interestedin. Samples of inappropriate size can lead to misleading results, inaccurate

interpretations, and ineffective actions.(c) Constructing Survey Items

Survey questions should be:

Clearly written. Statements should be short, to the point and easy to read. Jargon,technical terms or unfamiliar acronyms should be avoided.

Concise. Get to the point as quickly as possible: wordy questions are distracting andcould easily defeat the purpose of the survey.

Specific. Focus on one idea at a time. Each item should collect information on a singlebehavior, attitude, opinion, event or subject.

Explicit. Do not force people to guess about what is being asked. Be sure theyunderstand what information you want by explicitly stating so. If necessary, highlight orunderline what is needed by way of an answer.

Selecting Response Formats

Along with the statements and questions, you need to provide methods for people to givetheir answers. Typically, survey items are used to ask people how much they agree withsome statement, how importantsomething is, or how often something happens.

Rating Scales. Surveys often ask that products or services be rated according to somescale. Some survey items present statements and ask people to rate how much they agreeor disagree with the statements.

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For example, on a scale of to five tell me whether your supervisor encouragessubordinates to participate in important decisions.

1 = Strongly disagree; 2 = Disagree; 3 = Slightly disagree; 4 = Agree; 5 = Stronglyagree.

When creating rating scales, ensure that the end points (or anchors) are equal andopposite in meaning. Failure to do so runs the risk of biasing the survey responses.

Note, finally, that when the survey results are tabulated, you will obtain a mean rating of,say, 4.25; in terms of the way the above rating system is defined, that would indicate thatmost respondents took the view their supervisors did encourage their participation inmaking important decisions. You may also calculate the associated standard deviation,which indicates the extent to which individual responses deviate from the mean value.The higher the standard deviation, the greater is the dispersion of responses, and viceversa. Note, finally, that the mean and standard deviation are measured in the same units,

hence the preference for this statistic over the variance.

5

Ranking Items. Another common response choice is to ask respondents to rank-order alist of options in terms of some factor, importance, for example. These data help toprioritise what is most important to respondents. Thus, if speed of service and cost of arestaurant meal are ranked higher than quality of food and variety on the menu, effortscan be focused on those aspects most important to respondents. Consider the followingexample:

Please rank the following five objectives in terms of importance by markinga 1 next to the most important objective, a 2 next to the second mostimportant objective, and so forth:

--------Achieving a quick success--------Increasing the amount of output--------Reducing the price charged to customers--------Reducing the work backlog--------Reducing the number of defects

Selecting Options. This response format presents a list of statements or options to whichrespondents are asked to circle one or more items that apply to them. This format issimilar to the ranking question, but does not require survey respondents to put things inany particular order; this kind of question is easier to respond to than having to rank-order questions, for in many cases respondents are unable prioritise when they feel thateverything is of equal importance.

5 The standard deviation, usually denoted by the lower case Greek letter sigma () is the square root of the variance,hence the variance is the square of the standard deviation and thus the square of the data unit. For example, if the dataare measured in per cent, then so to will the standard deviation, while the variance will be per cent squared, a unit ofmeasure that is not easily grasped or understood.

36


37/95

Comments and Open-ended Questions. The fourth question/response type allowsrespondents to provide additional comments or other information in response to generalquestions. These questions usually leave blank space where respondents can writewhatever is important in their own words and format. Examples are listed below.

Do you have any suggestions on how we can improve classroom lectures?

Are there any products or services you need that we do not currently provide?

Is there anything else you would like us to know?

Demographic Questions. Demographic information is used mainly to segmentrespondents into narrower groups based on specific characteristics such as age, level ofeducation, marital status or salary level. Segmentation is important if one of the purposesof the survey is to determine whether significant differences in responses exist betweengroups.

Which one of the following age categories do you currently fall into?

--------Under 20--------20-29--------30-39--------40-49--------50-59-------Over 59

What is the highest educational level you have attained?

-----Less than secondary school diploma-----Secondary school diploma-----Associate Degree-----Bac

Documents

A Practical Guide to the Preparation, Drafting and Submission of Dissertations in Finance by Dr. G. Pollio