Impact of Capital Structure on Financial Performance

Impact of Capital Structure on Financial
Performance- Study of Public Listed Financial
Institution

Table of Contents
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................3
3.1 Research Type.......................................................................................................................3
3.2 Research approach.................................................................................................................4
3.3 Research philosophy..............................................................................................................5
3.4 Research design.....................................................................................................................6
3.5 Data collection methods........................................................................................................8
3.6 Sampling................................................................................................................................9
3.7 Data analysis........................................................................................................................10
3.8 Ethical consideration...........................................................................................................11
3.9 Reliability and validity........................................................................................................12
3.10 Research limitation............................................................................................................14
REFERENCES..............................................................................................................................16

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology entails the tools and techniques which are employed by the
scholar to find out the suitable solution of issue or problem. It entails the paradigm, models,
phases and techniques which are undertaken by the researcher for conducting study more
effectively and efficiently (Bauer, 2014). Hence, methodology may be served as a systematic
plan that provides assistance to the researcher in conducting the whole study in a highly
structured way. Moreover, clear and precise methodology prevents confusion from the mind of
researcher and thereby helps in conducting investigation in the best possible way.
In this, scholar identifies the approaches, philosophies as well as data collection and
analysis technique in accordance with the research issue. In this way, methodology provides
direction to the researcher in relation to the steps which they need to undertake for getting
information about the financial structure undertaken by the publicly listed companies of Jordan
banking sector (Chilisa, 2011). Hence, research methodology furnishes information about the
approaches undertaken by scholar for evaluating the problem statement. Besides this, it also
provides deeper insight about accessibility and ethical aspects that are followed by the
investigator with the aim to raise effectiveness of study.
3.1 Research Type
In order to conduct investigation more effectually researcher is required to make
selection of research type. Moreover, determination of approach, philosophy, data collection
method and analysis technique is highly influenced from the type and nature of study. Hence,
type of research can be distinguished into two types such as qualitative and quantitative. Thus,
researcher needs to select type of investigation by taking into consideration the problem
statement or issue (Petty, Thomson and Stew, 2012). Qualitative investigation may be served as
an exploratory kind of research or study which is used to develop understanding about reasons
and motivation related to such issue.
Along with this, such kind or research or study also helps in developing hypothesis for
quantitative research or study. Such kind of investigation is highly suitable only when small
number of non-representative cases is analyzed. In addition this, according to such investigation

type unstructured or semi-structured techniques are undertaken by scholar for the collection of
data. Further, in this, data is analyzed through the means of non-statistical tools and techniques.
In this way, such study develops sound base for future decision making to a great extent
(Coleman and Ringrose, 2013).
On the other side, quantitative investigation helps in making evaluation of numeric facts
and figures. By using such type hypothesis can be evaluated or tested by the scholar. In this
regard, by applying the quantitative data analysis tools and techniques scholar can present the
findings. Hence, results attained through the means of quantitative investigation are highly
reliable in nature (Cammarota and Fine, 2010). Moreover, statistical tools and techniques
provide researcher with appropriate outcome. The reason behind this, Z, T, chi-square test,
regression etc. helps researcher in evaluating the dependency level, mean differences as well as
relationship which takes place between the two or more variables. Hence, such type helps in
assessing the suitable output from the sample which is derived randomly (Schmitt, 2010).
Further, by doing quantitative investigation researcher can recommend appropriate final course
of action. Thus, researcher needs to consider all the above aspects while making selection of the
type of study.
In this, with the motive to analyze the impact of capital structure on organizational
financial institution qualitative research design has been selected. Hence, in this, evaluation has
been made by the scholar to analyze the reasons and opinions due to which different kind of
theories and model is undertaken by the managers of banking institution. In addition to this, by
assessing the opinions of managers researcher can identify the manner in which capital structure
affects the performance of banking institutions in monetary terms (Flick, 2015). Hence, data
related to capital structure and financial performance has been gathered and analyzed by the
researcher according such investigation type. Hence, by doing online survey data has been
gathered from managers regarding the capital structure aspect. Further, thematic analysis
technique has been selected for making evaluation of qualitative aspects (Zhang, 2013). Thus,
qualitative study has been conducted by scholar on Jordan publicly listed organizations of
banking sector.