Financial research is the process of investigation of new facts and figures. It is the process of increasing the current knowledge by discovering new ideas. It is the gathering of the data, information, and facts for the advancement of knowledge for the project. Financial research is the careful and systematic study of knowledge undertaken to establish facts and principles. There are many different types of research but the deals which are related to finance are known as financial research.
For example: In an empty area a mall is to be constructed, Financial research helps you to analyze the data into the information when you wanted to start the new project you have to analyze what all parameters to be taken into consideration, from which source data is to be collected.
Importance of Financial Research:
- Consumer Behaviour: it is the systematic study of the behaviour of the customers what is their perception of the product.
- Start-ups: How much fund they would require, what should be a source of fund.
- Framing Policies for the financial product.
- Demand forecasting of the product.
Types of Financial Research:
- Quantitative Research: It is the systematic collection of data and analysis of the data. It is the design which is experimental, correlational, and survey. If the intent size is large that is to a larger population, then it would prefer the probability sampling to select the participants. Use secondary data for effective research.
- Qualitative Research: It is the research to understand the behavior of humans and the reasons for such behavior.
Various approaches to research are:
- Gathering and collecting data.
- Processing and transferring collected data into useful information.
- Looking at the competitive advantages.
- Classifying the data characteristics.