Research Methods For

Business
Presented To:
Sir Khuram Shafi

Presented By:
Muhammad Razaq (043)
Hafiz Muhammad Abu Bakar (074)
 Topic: The effect of inflation,
interest rate & dividend paid on
Stock market
We have a number of articles which tells in
different ways about the effect of interest
rate, inflation & dividend on stock market.
 Introduction
 We studied many articles which tells if the
interest rate will increase then the stock
market will also increase and wise versa.
 We also studied the relationship between
the inflation and the stock market is
inverse.
 In the same sense the dividend paid and
the stock market also have a direct
relation. Means that the stock market
prices increase when the companies give
the high rate of dividend.
 Significance
The stock market is very important because
of these.
 It tells about the situation of the economy

of the country.
 Before the investing every investor check

the country stock market index.

 Being a finance student one must have the

information about stock market.

 Research Problem
 The broad problematic area is the
fluctuation of the stock market.
 The stock market fluctuate due to these
variable.
 These variables are inflation, interest rate,
dividend paid, political certainty, law an
order situation, leverage ratio.
 Variable Selection
 There are many variables which
effect the stock market but we select
these four variables which are;

Independent Variables:
Inflation, Interest rate, Dividend paid.

Dependent Variable:
Stock market
 Model
Inflation

Interest Rate Stock Market

Dividend Paid
 Hypothesis
 Hn1 = There is relationship b/w inflation and stock market
H n2 = There is positive relationship b/w interest rate and
stock market
Hn3 = The dividend paid has effect on stock market
 Ha1 = There is no relationship b/w inflation and stock
market
Ha2 = There is negative relationship b/w interest rate and
stock market
Ha3 = The dividend paid has no effect on stock market
 Research Design
 Type of study
There are many types of study like
exploratory, descriptive, hypothesis test,
revised base, case study etc.
 The type of our study is Exploratory.
 Research Design
 Type of investigation
There are many types of investigation like
average, covariance, correlation, causes of
effect, ranking, optimization, dependency
etc.
 our investigation is Correlation
 Research Design
 Extent of researcher interference
There are three type of interference like
minimum interference, moderate
interference and excessive interference
 Our interference type is minimum
 Research Design
 Study setting
There are two type of study setting which
is contrive & non contrive
 Our study setting is contrive.