Saunders et al. (2003) argues that surveys are an economical way of getting data from a big population. He further points out that usually questionnaire method is used to collect data but there are other methods as well, which are associated with survey methodology for example structured interviews where all the respondents are asked similar questions, organized observation and organization and method research also fall into survey strategy. The aim of the method is to collect as much, comparable, information as possible – particularly in the area of attitude measurement. Surveys are ‘a method of gathering information from a sample of individuals’ (Scheuren, 2004: 9). They are extensively used method for data collection, and specifically for measuring opinions, attitudes, descriptions and causal relationships. Used for data collection in several fields (Neuman, 2000) surveys remain most popular in business studies (Ghauri and Gronhaug, 2002). The researcher follows a deductive approach by beginning with a theoretical or applied research problem and ending with empirical measurement and data analysis.
Like all research methods the survey has specific advantages and disadvantages. According to Scheuren (2004), survey advantages include speedy and economical collection of a variety of generalisable data. Moreover, data generated by survey method is inherently statistical (and significant) in nature (Neuman, 2000). Data can be easily quantified and ranked.56 Moreover, the fixed-alternative question can be much more directly applied to a hypothesis because the data are quantifiable (and reduced to a 'common dimension') with much less effort (Adams & Schvaneveldt, 2005: 203).In addition, survey makes it possible to ask about several things at one time, measure several variables, test several hypothesis and survey many people, respondents, about their beliefs, opinions, characteristics and behaviors (Neuman, 2000). Another clear advantage to this approach is that it is much easier for participants to complete the questionnaire they are less time consuming than open- ended surveys. Therefore, response rates are much higher. Moreover, there is increased speed at which responses can be gathered and processed and an absence of the interviewer effects that may undermine face-to-face interviews.
56
Statistical analysis can easily take place using SPSS & E- views software. It is likely that a Likert scale will be used to rank the questions and measure response sets, this “vertical” format allows the questionnaire to be pre-coded.
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4.5.1 The Pilot Questionnaires/Survey
The pilot questionnaire enables the questionnaire to be initially evaluated for its design, format, and clarity in content, relevant to the research question and structure. The pilot survey helps in assessing the reliability and validity of the questions. As Mitchell (1996) indicated, as well as allowing suggestions to be made to the structure of the questionnaire, the pilot survey helps to establish content validity. As indicated by Proctor (2000), it is more beneficial for a researcher to receive comments and responses to questionnaires before a large distribution takes place. This is because it would be impossible to exactly predict how respondents would interpret the questions. Similarly, other studies57 using survey-based methodology on finance managers have initially used test questionnaires as a suitable tool for assessing the validity of their research. Keeping in mind that the sample size of the number of respondents would be small, it was very important to have a “test questionnaires” first. Guidance was taken from prominent bankers58 in UAE banking sector while designing and structuring the questionnaires. For most questionnaires, the minimum number of pilots is ten (see Fink, 1995), as issuing them provides the researcher with added insight into the questionnaire’s design and validity.
A list of over twenty respondents59 was identified and used in a pilot study. A list based on the literature review which constituted of all questions which could be asked from senior credit risk managers of commercial banks was prepared. The researcher personally had meetings with every respondent for the purpose of filling in the test questionnaires and discussing in detail. To start with every aspect60 and issues in relation to banking regulation was considered and questions were included in the pilot questionnaire. Several highly technical questions relating to risk management61 were found not to be applicable because the UAE credit risk managers did not use those techniques. Hence several technical questioners62 were omitted from the final questionnaire. The pilot study indicated that the wording of some of the questions, and in some cases, their sequencing, required modification to reduce response error
57
See Collins (2001), Royal (2000), Schuster (1986) Crawford (1998).
58
List of Names of Senior Economist, central bank officials, Financial Analyst, Senior Bankers
59
The original test questionnaires are available on request.
60
Qualitative and quantitative problems in regards to risk management.
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(Risk Management Techniques like VAR, other matters relating credit risk management issues)
62
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and also promote and facilitate productive participation by respondents. It was also found out during the pilot questionnaires that senior credit risk managers would prefer filling out a questionnaire with specific options, which he/she could select or rank in order of preference, rather than giving written explanations. All this was achieved based on feedback of the pilot questionnaire and informal discussions with the senior credit managers of these banks. In final questionnaire was designed and modified accordingly to their feedback, hence confirming the validity of the research investigation. The credit risk managers of the following six leading commercial banks UAE were to fill out the questionnaire:
Name of the bank
National Bank of Abu Dhabi Abu Dhabi Commercial Bank Emirates Bank International Emirates Islamic Bank Mashreq Islamic Bank Abu Dhabi Islamic Bank
4.5.2 Questionnaire Design & Analysis
The questionnaire was framed in two stages. A draft63 was worked out covering different aspects64 and issues in relation to credit risk management was considered and questions were included in the pilot questionnaire as discussed in previous chapters, were considered. The draft constituted questions in the following categories:
4.5.2.1. Demographic Questions
Questions were included on: the senior credit risk bank manager’s which concentrates on their demographic65 and basic information66. For example: age, sex, marital status, basic and professional education, experience as a senior manager, number of training courses attended etc. The purpose was to determine if the above factors influenced attitude towards regulatory and behavior of the senior credit risk managers. Similar
63
Initial draft of test questionnaires carried is also available on request.
64
Qualitative and quantitative problems regarding the credit risk management issues
65
For example: Age, maritalstatus, salary, basic education, profession education years of experience of senior credit risk manager s etc.
66
For example Basic education, profession education, years of experience of senior credit risk manager etc.
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questions based on demographic representation and analysis, has been used in survey work by Royal (2000, 2002), and Collins (2001) on credit managers. The questionnaire begins with the respondent filling out his/her name, the name of the bank and branch as well as their age. The respondents were then given three options to choose from which were in relation to their education, years of experience etc.
4.5.2.2.Credit risk management based issues
Questions were included on: The qualitative and quantitative issues relating credit risk management in the UAE financial sector for example; the accuracy of data available; credit rating agencies; dependence on financial and non-financial information etc. These issues relating to the credit risk management have been highlighted in research studies such as Santomero (1999; 2000), Bessis (1998; 2006), Coyle (2000).
The final questionnaire developed by the researcher was particularly for the senior credit risk managers of the six UAE commercial banks keeping in mind the response to the test questionnaire67. Informal meetings with several prominent UAE bankers as well as the feedback of pilot study helped in designing the questionnaire. The intention while designing the questionnaires was to have them in a structured format so they would be suitable for statistical analysis. Most importantly, the feedback from the test questionnaire provided the insight into relevant questions. It was decided to use a structured questionnaire68 would encompass all the research objectives. As Khan and Cannell (1957) have suggested, the questionnaire must serve two purposes: I) it must translate research objectives into specific questions whose answers will provide the necessary data for evaluation. II) It must also aid the researcher in motivating respondents, so that the necessary information is obtained.
The format of the questionnaires69 was extremely important. The senior credit risk managers, for whom the questionnaire was designed, are extremely busy people and are always pressed for time. The time they could spare for it was limited, their lack of exposure to academic research making them wary. Since they had to volunteer the information questions had to be simple, precise and logical. They also had to be self- explanatory and not too detailed or about events too far in the past. Each question had
67
Test Questionnaire was carried out on 20% of the entire population.
68
See Anderson, C.R. and Paine,(1975); Maines (1995); Keasey & Watson (1986)
69
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to be separate from the other, easy to understand, totally unambiguous and relevant to this research. While conducting the pilot questionnaires, it was observed and suggested that the senior credit risk managers should not be asked too intrusive, potentially sensitive questions, since that would be make very uncomfortable and they not culturally use to.
It was strongly indicated that explicit questionnaires, which required mentioning names, would jeopardize the jobs of the respondents and would adversely affect the response rate. While designing the questioner, it was also kept in mind that an average questionnaire would take approximately 35-45 minutes to complete. All the interviews were conducted in English. The survey questions70were standardized and the positivist principle71 of minimizing the researcher influence, adhered to.