FACULTY OF ECONOMICS AND BUSINESS
DEPARTMENT OF ACCOUNTING AND FINANCE
GROUP ASSIGNMENT 4
EBQ2054
RESEARCH METHODOLOGY ECONOMICS & BUSINESS
METHODOLOGY (PART 1)
THE EFFECTS OF FINANCIAL DISTRESS AMONG UNIMAS STUDENTS
SUBMITTED BY:
No. Group Members Name Matric No.
1 CHRISTINUS NG KA HING 40922
2 DALJEET KAUR A/P GAG JIT SINGH 40983
3 MOHD SYAFIQ BIN WAHID 42285
4 NUR DJUITA BINTI JAMALUDDIN 43089
5 NURUL NATASYA BINTI AZLY 43603
6 SULAIMAN BIN MOHD FAISAL 44274
LECTURER : MADAM SALAWATI BINTI SAHARI
DATE : 25 APRIL 2017
Table of Contents
1.0 Research Problem Statement ............................................................................................2
1.1 Research Objectives .........................................................................................................2
1.1.1 General Objectives ....................................................................................................2
1.1.2 Specific Objectives ....................................................................................................2
1.2 Research Questions ..........................................................................................................3
1.2.1 General Research Questions ......................................................................................3
1.2.2 Specific Research Questions ......................................................................................3
2.0 Prior Literature .................................................................................................................4
3.0 Introduction ......................................................................................................................6
3.1 Data Collection Methods ..................................................................................................6
3.1.1 Primary Data .............................................................................................................6
3.1.2 Quantitative Data.......................................................................................................7
4.0 Research Instrument .........................................................................................................8
4.1 Sampling Design ..............................................................................................................8
4.1.1 Target Population ......................................................................................................8
4.1.2 Sampling Frame and Sampling Location ...................................................................8
4.1.3 Sampling Elements ....................................................................................................9
4.1.4 Sampling Technique ..................................................................................................9
4.1.5 Sampling Size............................................................................................................9
References ................................................................................................................................ 11
Appendix Survey Questionnaire ............................................................................................. 12
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1.0 Research Problem Statement
1.1 Research Objectives
1.1.1 General Objectives
The general aim of this research is to investigate whether the financial distress
among UNIMAS students can be determined by factors such as unavoidable expenses,
lifestyle, peer pressure, tuition fees, debt loans, and financial planning and awareness.
1.1.2 Specific Objectives
i. To examine the relationship between unavoidable expenses and financial distress
among UNIMAS students.
ii. To analyze the relationship between lifestyle and financial distress among
UNIMAS students.
iii. To investigate the relationship between peer pressure and financial distress among
UNIMAS students.
iv. To determine the relationship between tuition fees and financial distress among
UNIMAS students.
v. To study the relationship between debt loans and financial distress among
UNIMAS students.
vi. To explore the relationship between financial planning and awareness and
financial distress among UNIMAS students.
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1.2 Research Questions
1.2.1 General Research Questions
What is the overall relationship between the determinants (unavoidable expenses,
lifestyle, peer pressure, tuition fees, debt loans and financial planning and awareness) and
financial distress among UNIMAS students?
1.2.2 Specific Research Questions
i. Do unavoidable expenses affect financial distress of students in UNIMAS?
ii. Does lifestyle affect financial distress of students in UNIMAS?
iii. Does peer pressure affect financial distress of students in UNIMAS?
iv. Do tuition fees affect financial distress of students in UNIMAS?
v. Do debt loans affect financial distress of students in UNIMAS?
vi. Does financial planning and awareness affect financial distress of students in
UNIMAS?
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2.0 Prior Literature
The method used by Archuleta, Kristy L; Dale, Anita; Spann, Scott M (2013) for their
study on College Students and Financial Distress: Exploring Debt, Financial Satisfaction, and
Financial Anxiety was questionnaire and interview. The sample of their study was 180 student
clients who sought services at a Midwestern university's peer financial counselling centre. The
questionnaire asked demographic and financial information such as age, marital status, current
monthly income, how much debt they owed, and reasons for their visit. If student clients chose to
participate in the research study, they completed a survey that asked questions about financial
behaviours, mental health, financial stress, financial satisfaction, risk tolerance, and financial
knowledge. Through this data collection methods the research team was able to find participants
related to their study easily and it ensured that they received more feedback from the research
participants and collect the necessary data.
On the other hand, Serido, Joyce; Shim, Soyeon; Xiao, Jing Jian; Tang, Chuanyi; Noel A.
(2014) conducted their study on Financial Adaptation Among College Students: Helping
Students Cope with Financial Strain using web-based survey from first-year college students.
An essential aim of the research was to comprehend college students' conception of the recession
on their knowledge, attitudes, behaviours, and associated impact on their well-being. The 10-
minute survey comprised 78 questions, including multiple Likert-type scales about attitudes,
behaviours, and well-being, true/ false financial knowledge questions, and open-ended narrative
about students' perception of the impact of the recession. This method allowed the research team
to conduct the survey with a larger sample. However, the likelihood of receiving correct
feedback from the participants was less as the survey consisted of too many questions and the
participants might have not answered faithfully.
On the contrary, Britt, Sonya L; Mendiola, Melanie R; Schink, Gregory H; Tibbetts,
Racquel H; Jonese, Scott H. (2016) used a similar data collection method (online survey) to
conduct their research on Financial Stress, Coping Strategy, and Academic Achievement of
College Students. However, they emailed the students personally and offered rewards to
students upon completing the survey. There were 16,675 e-mails successfully sent, 3,342 surveys
opened; 3,029 students started the survey; and 2,585 respondents finished the survey. This shows
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that it is difficult to collect data using the online survey method as most of the students choose
not to answer it even with the added incentives.
Lastly, McPherson and Andrea Vise conducted their study on College Student Life and
Financial Stress: An Examination of the Relation among Perception of Control and Coping
Styles on Mental Health Functioning through volunteer research participants. The volunteers
were asked to complete an online questionnaire. The incentive of becoming a volunteer was
receiving additional research credit to their university phycology courses. As participating in the
research was a requirement to pass the course the study was able to collect a lot of useful data.
To ensure the students were not overwhelmed by too many questions the questionnaire was set to
be completed in four phases.
In a nutshell, the most popular method used by prior literature for data collection is
questionnaires which can be handed out in hard copy to a specific sample or be online based and
interviews. Both methods have its advantages and disadvantages but they prove to be a
successful data collection method.
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3.0 Introduction
Aim to highlight the design and methodology used to obtain required data. It explains
thoroughly about the data collection methods, sampling design, research instrument, constructs
measurement, data processing and methods of data analysis.
3.1 Data Collection Methods
According to (Mario A. Brondani, et al., 2011), the method of data collection is
determined by the type of data needed and pre-set research design. The two types of data are
qualitative data and quantitative data. In this research, primary data & quantitative data
collection method is used to obtain information through large-scale survey research such as
questionnaires.
Meanwhile, this research will be using method of collecting quantitative data which
generates statistics (rather than meaning) through the use of large-scale survey research, using
method such as questionnaires or structured interviews.
3.1.1 Primary Data
Primary data ensures the most up-to-date information and realistic view to answer the
hypotheses and research questions (Saunders et al., 2009). In the research, the primary data is
collected via survey questionnaire technique which required less skill and sensitivity (Jankowicz,
2005). To increase the response rate, the researchers distribute and collect the self-administered
questionnaires to and from the target respondents after they answered the questionnaires.
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3.1.2 Quantitative Data
Quantitative data collection methods rely on random sampling and structured data
collection instruments that fit diverse experiences into predetermined response categories. Its
easy to produces results to summarize, compare, and generalize. Some examples of quantitative
data are your height, your shoe size, and the length of your fingernails. Speaking of which, it
might be time to call Guinness. You've got to be close to breaking the record.
Quantitative research is concerned with testing hypotheses derived from theory and being
able to estimate the size of a phenomenon of interest. Depending on the research question,
participants may be randomly assigned to different treatments. If this is not feasible, the
researcher may collect data on participant and situational characteristics in order to statistically
control for their influence in the dependent, or outcome, variable. If the intent is to generalize
from the research participants to a larger population, the researcher will employ probability
sampling to select participants.
Data collected via questionnaire technique which required less skill and sensitivity
(Trochim, 2006). To increase the response rate, the researchers distribute and collect the self-
administered questionnaires to and from the target respondents after they answered the
questionnaires.
In this research also used open ended question which means the open-ended questions are
questions that allow someone to give a free-form answer. other than that, Open-ended questions
require an answer with more depth and a lengthier response. Open-ended questions are also
helpful in finding out more about a person or a situation, whether it's during an interview, at a
party, or when getting to know a new friend. Open-ended question allow the respondent to
express an opinion without being influenced by the researcher (Foddy, 1993: 127). This has
several consequences for the quality of survey data. (Lazarsfeld, 1944: 30-60) already suggested
using open-ended question at the initial stage of questionnaire design in order to identify
adequate answer categories for the close-ended question.
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4.0 Research Instrument
Self-administered questionnaire method has been used to obtain data. The study adapts
the questionnaires from various past studies related to this topic and mainly uses Likert scale
measurement for all the variables constructed in the proposed theoretical framework. The
questionnaire has been divided into two sections whereby section A consists of demographic
profiles of the respondents while the six independent variables are asked in Section B
questionnaire.
4.1 Sampling Design
Sampling design is a process to select an appropriate amount of units from the population
of interest to provide accurate information about the entire population (Hair, Babin, Money, &
Samouel, 2003).
4.1.1 Target Population
The target population is defined as the entire group of people the researcher is interested
in (Easton & McColl, 1997). The population consists of UNIMAS students and the sample will
be taken from students in every faculty, comprising of those from year 1 until the final year. The
sample will be taken to focus on the insight of students daily financial routine throughout the
semester that causes financial distress. The target population for the research is 17,000 UNIMAS
students whereby with 9 faculties in total.
4.1.2 Sampling Frame and Sampling Location
Systematic sampling is a statistical method involving the selection of elements from an
order sampling frame. Meanwhile, since UNIMAS have 9 faculties with 17,000 students in total
and therefore, the number of students in each faculty is deemed significant in representing the
entire population of UNIMAS students and enables to draw samples in an efficient manner.
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4.1.3 Sampling Elements
The target respondents are students who enrolled in different qualifications and courses
of study at 9 faculties in UNIMAS. Since they are varied in personality and views, a more
accurate and generalize results can be obtained.
4.1.4 Sampling Technique
System random sampling is a type of Probability sampling technique (or
representative sampling) is associated most commonly survey research strategies where you
need to make inferences from the sample about the population to answer the research question(s)
and to meet the objectives of research. With the systematic random sample, there is an equal
chance (probability) of selecting each unit from within the population when creating the sample.
The systematic sample is a variation on the simple random sample. The sampling frame required
an accurate, easily accessible and not containing periodic pattern. Therefore, the questionnaires
will be distributed to 9 faculties in UNIMAS.
4.1.5 Sampling Size
n : Minimum required sample size
: The critical value, the positive value that is at the vertical boundary for the area of in the
right tail of the standard normal distribution.
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: Estimate of the proportion of people falling into the group in which the study is focusing
into
E : the maximum difference between the observed sample mean and the true value of the
population mean.
The sample size had been calculated by Raosoft Sample Size Calculator using the
above formula. As the population of UNIMAS students is 16,489 in accordance to Fact and
Figures updated by UNIMAS Official Site, the calculation resulted in 376 minimum sample size.
In this study, the confidence level is determined to be at 95%. Meanwhile for margin of error, it
is determined when sample data is collected and the sample mean is calculated. The sample
mean is typically different from the population mean. Therefore, the difference between the
sample and population means can be thought of as an error. The margin of error, E, is the
maximum difference between the observed sample mean and the true value of the population
mean which was calculated to be at approximately 5%.
The 376 minimum sample size will be divided into target respondents as had been stated
in previous subsection 4.1.3 Sampling Elements. The questionnaires will be distributed evenly
in respect of gender and faculties to ensure that the result is not biased.
Pilot test will be done in the early stage before distributing the questionnaire and the
sample size will be expanded to 20-30 respondents to ensure that it does not rigidly follow the
minimum sample size as there could be missing data in some of the target respondents. The
questionnaires questions were constructed to be short and simple in a way that it will not take
much time for the students to fill in and will be easier for them to understand. These are among
the steps that are taken to ensure the validity of the questionnaire. The test of validity in this
questionnaire emphasizes on the transparency of the students answers hence the findings will
not deviate far from the actual state.
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References
Archuleta, Kristy L; Dale, Anita; Spann, Scott M. Journal of Financial Counseling and Planning;
Columbus 24.2 (2013): 50-62,91,93.
Burns, A. C., Bush, R. F. (2003). Marketing Research: Online Research Applications (4th ed.). Upper
Saddle River, NJ: Prentice Hall.
Britt, Sonya L; Mendiola, Melanie R; Schink, Gregory H; Tibbetts, Racquel H; Jonese, Scott H. Journal
of Financial Counseling and Planning; Columbus 27.2 (2016): 172-183.
Easton, V. J., & McColl, J. H. (1997). Statistics glossary. Retrieved August 25, 2011, from
[Link]
Hair, J. F., Babin, B. Jr., Money, A. H., & Samouel, P. (2003). Essential of business research methods.
United Stated of America: John Wiley & Sons.
Froddy, W. (1993): Constructing Question for Interview and Questionnaire: Theory and Practice in Social
Research. Cambridge: Cambrigde University Press.
Jankowicz, A. D. (2005). Business Research Projects (4th ed.). London: Thomson Learning.
Lazarsfeld, P.F. (1944): The controversy over detailed interviews - an offer for negotiation. Public
Opinion Quarterly, 8, 38-60.
Mario A. Brondani Micheal I. MacEntee and O'Connor Deborah Email as a Data Collection Tool when
Interviewing Older Adults. [Journal] // International Journal of Qualitative Methods.. - 2011. - pp.
p221-230.
McPherson, Andrea Vise. North Carolina State University, ProQuest Dissertations Publishing, 2012.
3520971.
Saunders, M., Lewis, P. & Thornhill, A.(2009). Research methods for business students (4th ed.). Harlow, England:
Prentice Hall.
Serido, Joyce; Shim, Soyeon; Xiao, Jing Jian; Tang, Chuanyi; Noel A. Journal of College Student
Development; Baltimore 55.3 (Apr 2014): 310-316.
Trochim Willian M.K. Levels of Measurement [Online] // Reserch Methods Knowledge Base. - October
20, 2006. - April 22, 2017. - [Link]
UNIMAS Facts and Figures. (n.d.). Retrieved April 19, 2017, from [Link]
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Appendix Survey Questionnaire
UNIVERSITI MALAYSIA SARAWAK
FACULTY OF ECONOMICS AND BUSINESS
DEPARTMENT OF ACCOUNTING AND FINANCE
RESEARCH TOPIC:
THE EFFECTS OF FINANCIAL DISTRESS AMONG S UNIMAS STUDENTS
SURVEY QUESTIONNAIRE
DISCLAIMER:
This survey is based on The Effects of Financial Distress among UNIMAS Students. The
objective of this survey is to collect tangible information about the effects of financial distress
among UNIMAS students. This survey is being conducted by a group of researchers from
UNIMAS in order to solve the overwhelming issue that had been experienced by students
especially in the current economy.
Please let us know your spontaneous response to the question. All information provided by you
will be kept confidential and will be used purely for academic purposes. Demographic
information is requested only for comparative study analysis and the questionnaire will be
anonymous. No harm will befall to any of the participants.
CONSENT:
I have read and understood all the information written above. My participation in this survey is
voluntary and I am willing to share necessary information for this survey.
Thank you for your participation
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SECTION A: DEMOGRAPHIC INFORMATION
Please indicate () in the appropriate information about yourself. Each question should
only have ONE answer. All responses are strictly confidential.
1. Gender Male Female
2. Year of Study 1 2 3 4 5
3. Faculty FEB FK FSGK FSKPM FPSK
FSS FSTS FSKTM FPBPK
4. Age 18-20 21-23 24-26 27-29 30-32 33-35
SECTION B: INDEPENDENT VARIABLES
UNAVOIDABLE EXPENSES (1st Independent Variable)
What is your average monthly income at your disposal from the following sources?
(At your disposal is the money which is meant for monthly consumption, no matter when it was
earned.)
Add a0 or strike-out box if you did not receive any income from a certain source
Average Income
Description Statement
(RM per month)
1. Provision from family/partner
Financial Support from public sources/others
2. Non-repayable grant/ scholarship
3. Repayable loan (PTPTN/MARA)
4. Self-earned income through paid job
5. Savings (e.g. previously earned money)
6.` Other source (include other public or private support)
Total Income (RM)
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UNAVOIDABLE EXPENSES (1st Independent Variable)
What are your average monthly expenses for the following needs?
Add a 0 or strike-out box if no money was spent on a certain type of costs.
Paid by
I pay out of my
Living cost parent/partner/
own pocket
(RM per month) others for me
(RM per month)
(RM per month)
Accommodation (including utilities, water,
1.
electricity)
Living/daily expenses (food, clothing, toiletries
2.
etc.)
3. Social and leisure activities
4. Transportation
5. Health cost (e.g. medical insurance)
6. Debt payment
7. Other regular costs (tobacco, pets, insurance etc.)
8. Emergency
Total (RM)
(II) LIFESTYLE (2nd Independent Variable)
Who has had the most significant influence in shaping what you know and think about money?
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How well does each of the following statement describe you? For each statement, please
circle your answer to each statement using 5 Likert scale [(1) = strongly disagree; (2) =
slightly disagree; (3) = Moderate; (4) = Agree and (5) = strongly agree]
Strongly Slightly Moderate Agree Strongly
Statements Disagree Disagree Agree
1 2 3 4 5
rd
PEER PRESSURE (3 Independent Variable)
I tend to emo on buying decision 1 2 3 4 5
I tend to spend a lot in the presence peer 1 2 3 4 5
I spend more than the peer 1 2 3 4 5
I was not influenced by peer pressure 1 2 3 4 5
I was influenced by peer decision making 1 2 3 4 5
TUITION FEES (4th Independent Variable)
I have felt optimistic about my future 1 2 3 4 5
I have felt tense, nervous or unhappy 1 2 3 4 5
I felt that people disliked me 1 2 3 4 5
I felt unable to control the important things
1 2 3 4 5
in life
I felt that things were going someway 1 2 3 4 5
th
DEBT LOAN (5 Independent Variable)
I know how to spend my student loan 1 2 3 4 5
I felt loan is helpful in life 1 2 3 4 5
I felt stressed with debt loan 1 2 3 4 5
I managed monthly bill on time 1 2 3 4 5
I managed debt loan well 1 2 3 4 5
FINANCIAL PLANNING & AWARENESS (6th Independent Variable)
I have better understanding of how to invest
1 2 3 4 5
my money
I have better understanding of how to
1 2 3 4 5
manage my credit use
I have the ability to maintain financial
1 2 3 4 5
records for my income and expenditure
I have little or no difficulty in managing my
1 2 3 4 5
money
I have the ability to prepare my own
1 2 3 4 5
weekly/monthly budget
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