Research objectives should start with action verbs elaborate in context of finance

 In academic and applied research, especially in finance, research objectives are critical components that guide the scope, direction, and methodology of the study. Starting research objectives with action verbs is essential because it clearly defines what the researcher aims to do, ensuring that the objectives are measurable, achievable, and research-oriented.

 Why Use Action Verbs in Research Objectives?

Action verbs:

  • Make the objective specific and goal-oriented
  • Clarify the intent of the research
  • Facilitate evaluation of research outcomes
  • Align with Bloom’s Taxonomy, which classifies learning and cognitive levels — useful in academic finance research

 Examples of Action Verbs in Finance Research Objectives

Action Verb

Objective in Finance Context

Analyze

To analyze the impact of interest rate changes on stock market returns in India.

Evaluate

To evaluate the performance of mutual funds based on risk-adjusted returns.

Compare

To compare the capital structure decisions of public vs private sector banks.

Examine

To examine the role of behavioral biases in individual investment decisions.

Assess

To assess the effectiveness of credit rating agencies during financial crises.

Determine

To determine the factors influencing Foreign Direct Investment (FDI) inflows in the Indian financial sector.

Forecast

To forecast future cash flows using discounted cash flow (DCF) models for startup valuation.

Investigate

To investigate the relationship between ESG scores and financial performance of listed companies.

Measure

To measure the volatility of cryptocurrencies using GARCH models.

Identify

To identify the key financial indicators predicting bankruptcy in small and medium enterprises.

 Best Practices for Writing Research Objectives in Finance

  1. Start with a strong action verb – Avoid vague words like “understand” or “know.”
  2. Be specific – Clearly define the financial concept, model, or instrument.
  3. Keep it researchable – The objective must allow data collection and analysis.
  4. Align with research questions/hypotheses – Maintain logical consistency.

 Sample Research Title and Objectives (Finance Domain)

Title: A Comparative Study of Financial Performance of Public and Private Sector Banks in India

Objectives:

  1. To analyze the trends in profitability, liquidity, and solvency of selected banks.
  2. To compare the asset quality between public and private sector banks.
  3. To evaluate the effect of government reforms on banking performance post-2016.
  4. To recommend strategies for improving operational efficiency in the banking sector.

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