CHAPTER THREE RESEARCH METHODOLOGY
3.1. INTRODUCTION
Methodology as defined by Yomere et al (1999), this is the methods, procedures or modalities by which the researcher intends to accomplish the objectives of the research project. They went on to state that before a researcher can state the methodology he wants to employ, he must have a plan. This plan is called the Research Design.
Oghene (2003) described methodology as an operational framework in which facts are placed so that their meaning may be seen more clearly. This chapter examines all the methods and procedures used in accomplishing the objectives of this research work.
It is thus presented under the following sub-headings.
1. Research design;
2. Sources of Data;
3. Data Presentation methods;
4. Variables to be studied;
5. Data Analysis techniques;
6. Summary.
3.2 RESEARCH DESIGN
Nachimias et al (1985) and Yomere et al (1999) described the research design as the blueprint that addresses the problems of scientific inquiry. They went further to state that it is a programmer that is meant to guide the researcher’s process of collecting, analyzing and interpreting observations.
In creating a case study, care is taken to ensure that the researcher stays within the chosen course as outlined in both the scope of this project and the research questions. To do this successfully, the researcher would require multiple research designs.
Exploratory research which would provide background information, clarify problems and hypothesis, as well as establishing the research objectives;
Descriptive research, which will provide answers to the research questions as related to the statement of the problem.
Thus, with the above mentioned sub-areas of the research work.
Ensuring that variables to be studied were as those outlined in the scope and the limitation of the research work.
Ensuring that data analysis techniques employed were consistent with the overall objectives of the project work.
Ensuring that data to be presented were gotten from reliable sources.
3.3. SOURCES OF DATA
The success of any research undertaken depends on the availability of data. Data in research could be collected from two major sources, primary and secondary, Yomere et al (1999) and Oghene (2003)). Certain research can only be carried out realistically by the use of secondary data (see Yomere et al (1999) and Oghene (2003)). This research work happens to fall into this category of research. Hence, this research work relied extensively on information generated from secondary sources.
i. The sources from which data were gathered were;
ii. The Central Bank of Nigeria (CBN) Annual Reports for the period under study;
iii. The National Bureau of Statistics, formerly Federal Office of Statistics (FOS), Annual Reports for the period under study;
iv. The OPEC Magazine/Bulletin of Zenith Securities Limited;
Cash Craft Asset Management Limited (member of the Nigerian Stock Exchange).
3.4 DATA PRESENTATION
A given research work must present data in such a way that readers of such work would find the data appealing. In the context of this, data gathered from the above-stated sources would be presented in a tabular form. Also the use of graphs would be utilized to present the data.
Data would be presented thus:
i) The first data group would be showing the independent variable against the dependent variables. This is for the sake of hypothesis testing.
ii) Data would also be presented so that the theoretical framework of the study would be understood by all who would read it.
3.5 DATA ANALYSIS TECHNIQUES
Data become more meaningful and useful after they have been analyzed and it involves converting a series of recorded observation into descriptive statements and/or inferences about relationships (Yomere et al (1999))
The way gathered data are analyzed is very vital to the success of any research work. Such analytical tools must be seen not to be only relevant to the gathered data but must be able to:
i) Define the relationship between the independent and dependent variables;
ii) Disprove very convincingly any of the hypothesis.
Koch (2003) described the regression analysis as most versatile and powerful tools for econometric analysis. Regression is a method of generating a linear equation that best describes the relationship between variables. A linear regression is therefore a regression analysis that assumes a straight-line relationship between the variables, X and Y; Garson (2007).
Yomere et al (1999), Oghene et al (2003), and Koutsoyiannis (1991) all saw regression anlaysis as describing the relationship between more than two variables, one dependent and more than one explanatory variables. Koutsoyiannis (1991) went on to call the dependent variables “regressand†while the explanatory variables are called “regressorsâ€. The dependent variable is the variable being estimated while the independent variables are factors which it is hoped are related to the dependent variable and which would be used to explain differences among the values of the dependent variables.
3.6 MODEL SPECIFICATION
The following regression analysis formulae as defined by Sanford (2005) would be used for this research work.
1. Regression Coefficient: In linear regression, the model specification is that the dependent variable, yi, is a linear combination of the independent variables. For example, in simple linear regression for modeling N data points there is one
