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CHAPTER IV

RESEARCH DESIGN

4.1 OBJECTIVES OF RESEARCH

 To know the investor preference towards selection of debt market

instruments in chennai city

 To focus on the investment pattern of the debt market investors in

the selection of investment avenues

 To understand the investment objectives of the debt market

investors

 To understand the impact of demographic factors on the

investment decision in the context of the debt market instruments

 To know specific type of information required for debt market

investors for making investment decision

 To establish the impact of risk factors influencing the selection of

investment alternatives

 To bring out the key factors normally examined by the investors in

analyzing the performance of debt market instruments

 To know how the debt market investors carry out Industry

analysis, Market analysis and company analysis to generate

relevant information for decision making

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4.2 HYPOTHESES OF RESEARCH

 There is no significant relationship between investor demographic

factors and investment pattern of debt market investors.

 There is no significant relationship between investor demographic

factors and analysis factors considered by debt market investors.

 There is no significant relationship between investment pattern of

investors and return expectations of the debt market investors.

 There is no significant relationship between investment objectives

of investors and risk factors considered by debt market investors.

 There is no significant relationship between information required

for investment and analysis factors considered by debt market

investors.
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4.3 LIMITATIONS OF STUDY

Any research study will be restricted in scope by particular inherent

limitations that are participated by the choice of the research design,

sampling procedure and respondent selection. This study has the

following limitations.

 This study is confined to the opinions of the Debt Market Investors

on sample basis in Chennai and hence this cannot be construed to

reflect the opinion of all debt investors all over the country.

 This research study is restricted to six selected variables even

though there are more such variables related to study.

 The samples gave opinions differently at different times because of

their psychological temperament. This influenced the research

study.
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4.4 RESEARCH FRAMEWORK

The focus of the study is Debt Market investor’s preference in

selecting the investment avenues. The study is more descriptive in

nature. Investor’s consideration for the selection of the debt market

instruments was analyzed.

4.5 SELECTION OF GEOGRAPHICAL AREA FOR STUDY

Investors of debt market instruments in Chennai city are considered

as the population for this research study. Chennai City is selected as the

study area for this research. Chennai is a metropolitan city where in

includes all type of Investors such as Professional, employees of Private

Sector, Public Sector etc., with varied demographic factors. Chennai

population is thoroughly analyzed before selecting as a study area for

this research.

4.6 SAMPLE DESIGN

Sampling is a procedure to draw conclusions about significant

group of Respondents by studying a small sample of the total population.

A sample is a section of the population selected to present the population

as a whole. Ideally the sample should be representative so that the

researches can make accurate estimate of the thoughts and behaviors of

the large populations. Totally, 1000 debt market investors have been

selected on the basis of proportionate random sampling method. Out of

the sample of 1000 debt market investors, the researcher has able to

collect information through questionnaire. After verification, the

researcher found that few samples could not be considered due to errors,
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omission and other problems. Hence the researcher was able to process

the data only with the help of 934 samples. Ultimately this formed as the

sample volume of the study. The collected and usable samples tested for

significance using normal distribution and the test has revealed perfect

continuous distribution with exact normal curve for all the statements in the

questionnaire.

4.7 SOURCES OF DATA

Primary data source was applied for his research study. Primary

data collection is necessary when a researcher cannot find the data

needed in secondary sources. Researcher was interested in primary data

about demographic, socioeconomic characteristics, attitudes, opinions,

interests, awareness, knowledge, intentions, motivation and behavior of

debt market investors. Three basic means of obtaining primary data are

observation, surveys, and experiments. The choice will be influenced by

the nature of the problem and by the availability of time. For this

research study Questionnaire was the Primary Data source which is

applied to collect the opinion about the investors of debt market

instruments in Chennai city.

4.8 TOOLS FOR DATA COLLECTION

Survey method is employed to collect the data from the

respondents and the data are collected with the help of questionnaires.

Questionnaire is administered for the respondents. Questionnaire is a

standardized form for collecting information to elicit data from the

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respondents. A questionnaire consists of a set of questions presented to

a responded for his or her answers. The questionnaire prepared in this

study was mainly aimed at personal interview, multi-choice questions,

dichotomous questions and also checklists.

4.9 PILOT STUDY & PRE-TESTING QUESTIONNAIRE

A well structured questionnaire based on the objectives of study

was formulated and using this questionnaire response was collected from

50 Debt Market investors. Based on their suggestions some wordings of

the questions and their options were added, changed and eliminated.

Sequences of some questions were also changed. This process was once

again repeated and the questionnaire was once again altered and then

finalized for the research study. Cronbach alpha method was applied to

check the reliability of the questionnaire.

4.10 DATA EDITING AND STATISTICAL TOOLS

Primary data source was applied for the collection of the data from

the Debt Market investors. Data collected are edited and coded by using

the tally bars. This helps in converting the gathered data into a tabulated

grouped data.

• Percentage Analysis is applied to create a contingency table from the

frequency distribution and represent the collected data for better

understanding.
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• Chi-Square analysis is used to compare the observed data of the

debt market investors with the data expected to obtain according to

a specific hypothesis formulated in this study.

• Analysis of variance is brought to bear on the problem of identifying

the impact of personal variables on factors of debt market

investments

• Kruskal-Wallis analysis is applied for testing whether there exists a

consistency in the opinions of respondents.

• Correlation coefficient analysis is used to measure the strength of

the linear relationship between two attributes of debt market

investments.

• Kolmogorov- Smirnov Analysis is applied in this study to test the

equality of continuous between two set of data.

• Factor Analysis is applied to split the variables and highlight the

major factors in this study.

• T Test Analysis are used to find the significance difference between

prominent attributes of debt market investments

A well planned research methodology will make possible the

smooth sailing of the research objective and thereby making research as

competent as possible yielding maximum information with the optimal

effort and time.