Chapter 3
3. METHODOLOGY OF STUDY
We believe that in order to formulate a reliable purpose, we
have to carry out a reliable literature review. This gives insight into what
harmonization and practice actually are; hence, an understanding of the
specific problem area is possible. Case study analysis of European banks will
be used to support our analysis on a practical level and, by this, we have used
two commercial banks from three European countries that have different cultural
backgrounds. This section, therefore, sets up a framework and the approaches to
solving our problem.
3.1
RESEARCH STRATEGY
The strategy one uses when doing a study depends on how much
knowledge he has about the problem area and how well the problem is structured
and formulated. The strategic approach we deem appropriate is the descriptive
approach, within which we have made some analysis. We have used the 2000 annual
reports of six European banks to describe the divergence in reporting practices
existing among the European banks.
1. Sample: Cultural
Background
Select Country
2. Sample:
Measure of size
Choice of Banks
Financial Statements
3. Empirical:
Reporting Practice Measurement Practice
Consolidation Practice
Theories
Within a country
4. Difference in Practice
With other countries
Benchmark: EC Directives
5.
Summary of research results
6. Conclusion
FIGURE 4: PROPOSED RESEARCH DESIGN FOR STUDYING
REPORTING PRACTICES.
3.2
CASE STUDY STRATEGY
Since we are doing comparative studies across national
boundaries in order to obtain a broad based coverage of the European community,
we have classified countries with related culture and history into groups;
namely, Anglo-Saxon, Nordic, and Germanic. In the Anglo-Saxon group, we have
chosen two banks from the United Kingdom. In the same vein, we have chosen two
banks Germany to represent the Germanic group, and two banks from Sweden to
represent the Nordic group.
3.3 CHOICE OF COUNTRIES
While the choice of UK and Germany is obvious, we deem it
necessary to give an explanation on our choice of Sweden as representative of
the Nordic model. We believe that to assure validity, Sweden constitutes a
good representation of the whole of Scandinavian due to its size, which is
second to none in the region. We have also considered its industrial nature and
its international attachments. Another reason for choosing this country is that
this research has been conducted in Sweden (being students of the Graduate
Business School of Gothenburg University.)
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