Defining the scope of study in a research proposal for the finance area

 Defining the scope of study in a research proposal for the finance area ensures clarity on what your research will cover and what it will exclude. Here’s a step-by-step guide:

1. Identify the Core Focus of the Research

  • Define the central topic or issue you are addressing.
    • Example: "Impact of ESG factors on portfolio performance."
  • Specify the subfield in finance:
    • Corporate finance, investment analysis, risk management, behavioral finance, FinTech, etc.

2. Define the Study’s Boundaries

  • Subject/Population: Specify the entities or participants studied.
    • Example: "This study focuses on publicly traded companies in the renewable energy sector in emerging markets."
  • Geographic Scope: Limit the geographic area.
    • Example: "The study analyzes firms listed on the Indian Stock Exchange."
  • Time Period: Define the timeframe for data or analysis.
    • Example: "The study covers the period from 2015 to 2025."

3. Specify the Context and Perspective

  • Context: Mention the framework or setting of the study.
    • Example: "The study evaluates portfolio performance in the context of market volatility caused by global crises."
  • Perspective: Highlight the approach used (e.g., investor, corporate, or market viewpoint).
    • Example: "The study adopts the perspective of institutional investors managing large-cap portfolios."

4. Highlight the Key Variables

  • Specify the independent, dependent, and control variables.
    • Example:
      • Independent variable: ESG scores
      • Dependent variable: Portfolio risk-adjusted returns
      • Control variables: Market size, sector type

5. Clarify Methodological Scope

  • Type of Data: Specify whether the study is based on primary or secondary data.
    • Example: "This study utilizes secondary data from Bloomberg and annual reports."
  • Analytical Tools: Highlight the techniques or software.
    • Example: "The study employs regression analysis using Python to identify the relationship between ESG factors and portfolio returns."

6. State What Is Excluded

  • Define exclusions to avoid ambiguity:
    • Example: "This study does not consider private companies or non-listed entities due to data limitations."

7. Align Scope with Research Objectives

  • Ensure the scope supports your research objectives and questions.
    • Example: If your objective is to assess the impact of blockchain on cross-border payments, limit the scope to specific regions, payment systems, or time periods.

8. Write the Scope Statement

  • A well-defined scope of study can look like this:

"This study investigates the impact of ESG factors on portfolio risk-adjusted returns for publicly traded companies in the renewable energy sector in emerging markets. The analysis focuses on data from 2015 to 2025 and utilizes ESG scores from MSCI and financial data from Bloomberg. It excludes private companies, small-cap stocks, and developed markets to ensure focus on the unique dynamics of emerging economies. Regression analysis will be employed to examine relationships, with control variables including market size and sector type."

9. Ensure Feasibility

  • The scope should be:
    • Achievable with your resources and timeline.
    • Relevant to the finance domain and your research problem.

10. Review and Refine

  • Seek feedback from peers or mentors to ensure the scope is clear and comprehensive.
  • Adjust the scope if it appears too broad or too narrow during initial research phases.

A well-defined scope provides a clear framework, ensuring your research remains focused, manageable, and aligned with the goals of your study in the finance area.

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