Research Methods in Accounting & Finance Chapter 5
Research Methods in Accounting & Finance Chapter 5
Chapter Five
Sources and Methods of Data Collection
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2 Types and Sources of Data
Primary vs Secondary Data
Primary sources of information: are source of data that provide firsthand
information for the use of immediate purpose.
Primary Data: are collected from primary sources.
Gathered by researcher himself and are gathered for the first time, thus,
happening to be original.
They are gathered by the researcher himself from the field of research direct
and for first time.
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Disadvantages of primary data:
A lot of time and efforts are required for data collection, analysis and report. So the
purpose of the research may be defeated.
The cost of the data collection goes high. The importance of the research may go down.
It has design problems like how to design the surveys. The questions must be simple to
understand and respond.
The respondents may give untimely, fake, socially acceptable and sweet answers and try
to cover up the realities.
Incomplete questionnaire always give a negative impact on research.
Trained persons are required for data collection. In experienced person in data collection
may give inadequate data of the research.
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9 Cross sectional data vs. time series data
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10 Methods of primary Data collection
Primary data are obtained either through observation or through direct
communication with respondents in one form or another.
There are several methods of collecting primary data:
Observation method
Interview method
Questionnaire Method
Content analysis
Focus group discussion
Nominal group technique
Delphi method
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1. Observation
involves systematically selecting, watching and recording behavior and
non-behavior characteristics.
participant or nonparticipant
In participant observation, the researcher actually participates in the
event or phenomenon being observed.
He experiences what the member of the group experience.
In nonparticipant observation the observer is outside the social setting of
the observed.
his presence may be unknown to the people he is observing
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Advantages of observation
Information obtained under this method relates to what is currently happening. It is not
complicated by either the past behavior or future intention or attitude.
It is independent of respondents and is not demanding the active cooperation of the
respondents.
Limitation of observation
It is an expensive method
The information provided by this method is very limited.
Sometimes unforeseen factors may interfere with the observation task
Some people or phenomena are rarely accessible to direct observation
Subjective Interpretation
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2. Interview
Involves oral questioning of respondents, either individually or as a group.
Interviews can be either unstructured or structured.
Structured interviews
Involve the use of
a set of predetermined questions and
highly standardized techniques of recording,
Follow procedures lay down and ask the question in the order prescribed.
The interviewer in a structured interview follows a rigid procedure laid down,
asking questions in a form and order prescribed.
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Unstructured interviews
Are characterized by a flexibility.
Do not follow a system of pre-determined questions and standardized techniques of recording
information.
The interviewer is allowed much greater freedom to ask, in case of need, supplementary questions
or at times he may omit or may change the sequence certain questions.
It is time consuming than that of structured interviews.
It also demands deep knowledge and greater skill on the part of the interviewer.
Unstructured interview is very important to study sensitive issues.
Particularly useful in exploratory researches whereas structured interview is good for
descriptive and explanatory researches.
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3. Content Analysis
It systematically describes and analyzes the form or content of written such as
books, magazines, newspapers and/or verbal material which can be either spoken or
printed. .
It is tedious process due to analyzed on number of pre-determined dimensions.
E.g. the analysis of the contents of articles or various letters that have been published.
4. Questionnaire
is a data collection tool in which written questions are presented and given to
respondents
It has different ways.
Mail questionnaires (self-administrated questionnaires)
Interview questionnaires (schedules)
Questionnaires through internet (through electronic media)
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5. Key informants
Key informants could be knowledgeable community leaders or
administrative staff at various levels and one or two informative members
of the target group of your research
Is good when the types of data you need are relatively objective.
important gain access to potentially available information
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23 Cont’d
6. Focus group discussions (FGD)
a special type of group in terms of purpose, size, composition, and procedures.
It hold seven to twelve participants who are unfamiliar with each other but who share similar
characteristics or common interests, and conducted by a trained interviewer.
In FGD the facilitator sets the agenda and lets the participants brainstorm on the agenda thereby
specifying the points of discussion.
The group discussion is conducted several times with similar types of participants to identify trends and
patterns.
In a group situation, members tend to be more open and the dynamics within
the group and interaction can enrich the quality and quantity of information needed.
Note ticker is required.
Focus groups are a qualitative data collection method, meaning that the data is descriptive and cannot be
measured numerically.
It helps to gain information about their views and experience of the topic.
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7. Nominal group technique (NGT)
It identify issues of concern to special interest groups or the public at large
Used o gain insight into group issues, behaviors and future research needs.
In NGT discussants are given the chance to list down and prioritize their own idea
about the topic in question
Then each NGT member presents the prioritized points and accordingly group discussion
starts
Encourages all group members to participate, and results in a set of prioritized solutions or
recommendations that represent the group’s preferences.
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8. Delphi method
Is a method for the systematic solicitation and collection of expert opinions
Eliminates committee activity of traditional approach toward achieving a
consensus through open discussion.
Used to structure discussions and summarizes options to collect
information/expertise from individuals spread out over a large geographic area, and
save time through the elimination of direct contact.
The technique requires a series of questionnaires and feedback reports.
Each series is analyzed and the instrument/statements are revised to reflect the
responses of the group.
A new questionnaire is prepared that includes the new material, and the
process is repeated until a consensus is reached data is valuable but very time
consuming
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TOOLS FOR SECONDARY DATA COLLECTION
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The end
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