E-Strategy for Stock Brokerage Service in Hong Kong - Thesis Proposal Example

A study on e-strategy for stock brokerage service in hong kong Executive Summary This study is aimed at providing an in-depth evaluation of the e-strategy for stock brokerage in Hong Kong. Starting with the definition of e- strategy, the study moves on to discuss key methods and applications in adopted by the brokerage companies in Honk Kong. Further, the study highlights the key advantages and disadvantages attached with the e-brokerage strategies practiced in the brokerage companies in Hong Kong. The study will also provide practical suggestions in order to undertake improvement in the e-strategy for brokerage in the brokerage companies in Hong Kong. Overview of proposed Research: The proposed research analyses the e-strategies adopted by the brokerage companies in Hong Kong. Through the research, we will find out the gaps in the e-brokerage practices and will try to get insight about the e-strategies. The study will also provide practical suggestion in order to undertake betterment in the strategies adopted for e-brokerage, so that they can be helpful in further growth or taking corrective measures. Literature Review: The advent of the online trading has transfigured the trading industry all over the world including the online brokerage industry in Hong Kong. Last decade has seen a significant increase in the number financial institutions and brokers offering online trading in Hong Kong. These brokers offer both online and traditional brokerage services (Piotroski & Roulstone, 2004). Almost all of the companies listed at the Hong Kong Stock Exchange offer some form of internet based securities. Last few years have seen significant increase in the number of online traders. The number of online traders increases at the rate of 5% per annum. (Industry Overview) In 2003 the exchange launched AMS/3; the average daily turnover of the online brokers in Hong Kong has increased around 1.9% to around 13.0%. The Hong Kong exchange does not require any additional registration and licensing requirements for a company to conduct securities and commodities dealing through the Internet (Industry Overview). Reasons for the study: By reviewing the importance and uses of e-strategy of brokerage services and its literature, we will find out that e-brokerage is such effective tool which provide help to an ordinary person in undertaking trade with ease. On the other end it is also benefitting the trading companies in several ways. The data provided by the companies help in undertaking useful interpretation and comparison of the financial statements. The researcher is interested in evaluating every aspect of the e-strategy of brokerage. It is important for the brokerage companies to protect the interest of all parties and see that the firm grows profitably. Therefore, how far the management and investors can utilize the e-brokerage services to extract and present more and more information, needs to be evaluated. The purpose of this research is to analyze and identify that how the financial ratios are helpful in decision-making process of financial executives in the firm. Basically literature shows that e-strategy is a the tool through which investors are taking/making certain decisions about company's performance, liquidity profitability and its effectiveness but unless they do not compare it with the past performance of the same firm or other competitors or industry, they may not be able to extract the reasonable and useful information and analysis. So the main aim of the study is to evaluate whether the e-strategy is useful in providing the information helpful in predicting the performance of the firm. In the process of research, developing the views from the existing literature on e-strategy of brokerage will be our starting point and finally we will be able to present the gaps found in the e-brokerage practices of the companies in Hong Kong and suggest the steps for betterment. Objectives: The objectives of the present study would be as follows: To review extant conceptual models and theoretical frameworks related to the e-strategies of brokerage; To show the use of e-strategies to get useful information about the performance of the companies. To recognize the informative role of e-brokerage strategies for the customers; To highlight the utility of e-strategies in credit analysis and competitive analysis as well as in determining the financial capability of the firm. How the objectives will be achieved: Bryman (2003) 'Research is a systematic investigation to find answers to a problem. Saunders et al (2007) defined research as something that people undertake in order to find out things in a systematic way, thereby increasing their knowledge. The way in which a research is designed and the strategies used usually contains very essential assumptions about the researcher's worldview or paradigm Saunders et al (2007). Research methods are conventionally divided into quantitative, qualitative and participatory research methods, each with differing underlying approaches, tools and techniques. More over new tools and new solutions to shortcomings of old tools are continually being developed. The different methods can be integrated into a coherent research process, which builds on the relative strengths and weakness of each. The present research is tended to analyse the e-brokerage strategies practiced at the trading companies in Hong Kong. In this type of research, focus group and in-depth interviews are the methods that could be able to find out the usefulness, relevance and the gaps found in e-strategies of stock brokerage. Therefore, this research can consider two paradigms. 1). Positivistic Paradigm: This paradigm is based on quantitative data. This is objective in nature and widely used in scientific and experimentalist or traditionalist researches. Positivistic approaches to research are based on research methodologies commonly used in science (Gill and Johnson, 2002). They are characterized by a detached approach to research that seeks out the facts or causes of any social phenomena in a systematic way. Positivistic approaches are founded on a belief that the study of human behaviour should be conducted in the same way as studies conducted in the natural sciences. Positivistic approaches seek to identify measure and evaluate any phenomena and to provide rational explanation for it. This can be done using rational, systematic and deductive processes (Saunders et al, 2007). 2). Phenomenological Paradigm: This paradigm is based on qualitative data. This is subjective in nature and follows humanistic and interpretative methods. Phenomenological approaches however, approach research from the perspective that human behaviour is not as easily measured as phenomena in the natural sciences. Phenomenological approaches are particularly concerned with understanding behaviour from the participants' own subjective frames of reference. Thus, research methods are chosen therefore, to try and describe, translate and explain and interpret events from the perspectives of the people who are the subject of the research (Saunders et al, 2007). The positivist philosophy will be adopted in this research since this is an analytical research. The core principals guiding the choice of methodology for this research are the reliability, depth and accessibility of information gathered and presented in a form which is easily readable and understandable. In this research Quantitative research technique will be adopted. As it is analytical research and requires lots of data interpretation, particularly statistical techniques. It uses numbers and can present findings in the form of graphs and tables; it conveys a sense of solid, objective research (Denscombe M, 2003). This research is based on the qualitative as well as quantitative data. Thus this research will adopt the conclusive research design as this research design is used when the study demands to come up with some conclusions. It can also be called as causal research as it depends upon the cause and effect relationship. The study will aim at explaining causal relationships between the variables by establishing causal laws and linking them to a deductive or integrated theory (Hussey and Hussey, 1997). Methods/Approach: 1). Focus groups discussion: Focus group discussion can be used for a wide range of qualitative research aims and objective but they are commonly used to ascertain information on collective views of particular identified group like financial executives. The data produced by focus groups are distinct from those produced by other types of qualitative techniques. Focus group discussions (FGD) were conducted with people's aware and using financial ratios. The main themes of FGD were: The understanding and concepts of e-strategies of brokerage in Hong Kong and its use and analysis; The existing use of e-strategy and its impact on brokerage; The future trend and ways of effective and transparent use of e-strategy for brokerage by the companies in Hong Kong. 2). In Depth Interviews (IDIs): A semi-structured In Depth Interview (IDIs) questionnaire comprising of a series of appropriately worded and sequenced questions with certain pre-coded responses (to facilitate evaluation of data) was directed at eliciting subjective information on key issues of financial ratios. The IDI questionnaire has two versions: A (individuals) and B (Informant) depending on the status of the respondent. 3). Key Informant Interview (KII): KIIs will be conducted to elicit descriptive and analytical information from individuals holding prominent position in the brokerage field and having good communication skills, reputation of knowledge of their field. This method was primarily planned to generate general as well as specific information pertaining to usefulness and effectiveness of e-strategies for brokerage in Hong Kong. Reasons for selecting the project: My degree in communication technology acquired in 2002 and work experience of working in IT field for around 8 years have encouraged me to cull the topic from the field of IT. Being more narrowed, I am working on internal IT support and management. My daily operation is to manage IT infrastructure, desktop support and server support. In additional, I manage project implementation. As the field of e-brokerage is gaining immense attention now days and is quiet related to my field therefore, I chose the topic of e strategies of brokerage prevalent in the companies in Hong Kong. The chosen topic will help me in exploring the gaps in the customer expectations and the e-strategies of brokerage practiced by the companies. Time scale for research: The Gantt chart is depicting the methodology, which will be followed during the complete tenure of research. The present study is supposed to take the following time for completing various activities. Methodology Target time Two week Two week Two week Two week Two week two week two week Literature review November Primary and Secondary data collection and analysis (including preparing interview guide and obtaining responds) December Further extended literature review January Interview response interpretation and analysis January Start writing the dissertation (first draft) February Final draft including editing, formatting bibliography etc., (on the basis of feedback from the facilitator) February Printing, binding and submission March References: Bryman A and Bell E (2003). Business Research Methods, New York: Oxford University Press. Gill J and Johnson p (2002). Research Methods for Managers, 3rd edn, Sage Publications. Hussey J and Hussey R (1997). Business Research: A practical guide for undergraduate and postgraduate students, London: Macmillan Business. Industry Overview (no date available). Hong Kong. Retrieved as on 09/10/2009 from http://main.ednews.hk/listedco/listconews/sehk/20080130/00510_284806/EWF113.pdf Piotroski & Roulstone (2004). The Influence of Analysts, Institutional Investors, and Insiders on the Incorporation of Market, Industry, and Firm-Specific Information into Stock Prices. The Accounting Review, Vol. 79 (Iss. 4), pg. 119. Saunders M, Lewis P and Thornhill A. (2007) Research Methods for Business Students, 4th edn , Essex: Pearson Education. Read More