"London as a major maker and highlight aboutfinancial hub for the the impact of governmentinvestors. Once it is decision on the financialdifficult for the marketorganisation to attract alump sum investment Automatically then it isgoing make an adverseimpact in the revenue.(Masih & Masih, 2007).Political risk factor Client investment was It is quite prudent andlimited before the stability justified to keep in toucharises in Sri lanka, and organise meeting withOrganisation has got the the Srilankan governmentpulse of political instability to bring smoothness in thewhich may be detrimental business transaction.for further businessexpansion. Migration of the IT Sometimes failure to Millennium IT product isplatform deliver a robust and tested in different ITsophisticated technology market .Organisation hasthrough post trade service bolstered a highly expertmay leads to and capable ITdissatisfaction among the management team to look32 investor. after the executionprocess. At the same timecontinuous contact ismaintained with eachclient so that thetimeliness is maintainedso that they can adhere tothe project timetables(Masih andMasih, 2009).Risk from the client and DeSantis and Gerard“Getting into the shapecompetition (2007) mentioned that as “should the buzz word forbusiness reliant on small long term sustainability.number of customer Therefore LSE hastherefore to maintain a designed a structuredclose watch with them is programme whichessential as they are also enhances the client?smaintaining a liaison with engagement process.our competitors. Through Turquoise, theySometimes as all these move with the 12risk factors are interlinked important globaltherefore change of the investment banks for theregulatory affairs development of the pan –sometimes may change European trading. Thethe commercial strategy method is strictly33 of the clients (Mukherjee observed so that theet.al., 2008). projected benefit ensuressatisfaction among theclients.Credit / Counter party To reduce the credit risk As the system is quiterisk during such clearing update and monitoredoperation by holding closely therefore nocollateral in the form of significant record ofmember margin deposit. default has come so farfrom the market. In factCC & G maintains financialrisk committee to lookafter these entire episodesthat are responsible formanagement of such fund(Chen et.al., 2010)34 Chapter-3Research Methodology3.1 Introduction Research methodology comprised of the following components like research design,sample design, research approaches, philosophy and ethics. Research philosophiesand design are prepared in such a manner so that it can accomplish the researchobjective. Collis and Hussey (2009) pointed out that research entails a thoroughinvestigation and enquiry which is done in a systematic and methodologicalmanner. The aim of the study is to examine the impact auto correlation of thedifferent stock with respect to the stock indices. Present study justified anddiscussed the entire sample design process in details. Finally the issue associatedwith the observer influence is discussed and the role of ethical approach issummarized at the end of this chapter (Flannery and Protopapadakis, 2009).35 3.2 Concept of research onionBalmer and Gray (2010) demonstrate that research onion helps the researcherin selecting suitable research methods for finding result. There are multiplesteps available in the research design process. All the steps are sequentiallyarranged so that it can reach to the desired objective. There are number ofphilosophy available to the researcher and out of these present research onlycultivated and nurtures the following portion of the onion.Positivism DeductiveSecondary data AnalysisQuantitativeDataAnalysisFig no 5-Research opinion (Source Saunders, M. N., Lewis, P., and Thornhill, A., 2008, p.52)36 3.3 Research philosophyResearch philosophy is the philosophical background that is considered once theresearch is executed. There are two types of research philosophies–positivistpragmatism and phenomenological pragmatism. Certain basic belief has taken intoconsideration once this particular study was performed. The justification behindchoosing the specific research philosophy is mentioned below (Sekaran and Bpugie,2009).3.3.1 Justification of choosing positivistic research philosophyThese methods are identified in the current study because it is poignant and usefulin the field of Finance. Research attempted to estimate the impact of share price ofdifferent organisation on London stock indices and the trend of the stock exchangethrough exponential smoothing. These are the philosophy which allows the authorto arrange the data in quantitative form. The philosophy mainly focuses on the factsand tests the hypothesis with adequate logic. This philosophy supports torestructure and modify different phenomena in its simplest form. During collectionof the time series data from the stock market Researcher used to observe thevariability and co movement of the other stock exchange along with LSE .This islater arranged in a sequential manner.3.3.2 Usefulness of this philosophy during analysis of LSEChurchill and Iacobucci (2009) described that phenomenological approach based onthe assumption that will elaborate various qualitative aspects of any given37 observation point in a subjective manner. It assists to understand the rationality ofthe event, Assess various risk factor of the market. It unveils the subjective reality.These features are important to estimate the performance of the specific stockmarket trend and its interrelationship with other stock exchange.3.4 Research Approach selectionPresent study was considered the deductive research approach (useful forquantitative analysis). It has analysed and considered only quantitative aspects ofthe LSE that are interrelated with its variation and return series during dataanalysis (Collin-Dufresne et.al., 2009). Case study was analysed on the basis ofsecondary data.3.4.1 Justification of selecting deductive approachThe sample size considered for the study was quite large. The last 6 years day wisemarket stock figure of LSE was included (excluding the holidays).Statistical analysiswas mandatory. Researcher has compared the analysis that has done oversecondary data with the observational fact what he has noticed from secondaryinformation data set. Tülin and Swait (2007, p.196) emphasised “Consumerdecision making process during selection of share is governed by multiple factors,qualitative research has immense potentiality to disclose the complexity present inthe decision making process.” It also examines the direction and change of theconsumer perception about risk and its impact on community life.38 3.4.2 Usefulness of this approach to assess the trend of LSE.It allows measuring the customer mindset in details. In depth analysis of themovement of different organisation stock buying characteristics allows researcherto examine their buying spree and habit. It exposes different contemporaryphenomena and how it is affecting the philosophy of the buyer in UK market (Engleand Mustafa, 2009).3.5 Justification of selecting a combination of descriptive research andexploratory research Present study attempts to identify the critical factors that are controlling the trendof LSE and its impact on investor?s behavior. Stock movement governed by variousrisk factors. Sekaran and Bpugie (2009) mentioned that sample itself reflects thecharacteristic of the population. It explains the importance of observation techniqueand how the implications of the result are interdependent with it (Nik and Schreier,2008).More importantly during present study researcher has also collected relevantinformation through questionnaire methods to define the problems, thereforesatisfying the research question and hypothesis (set in chapter-1) becomesmandatory( Bliss and Panigirtzoglou, 2009).3.6.1 Usefulness of this method during the assessment of LSE movementover the last 6 yearsThe main objective of the research is to evaluate issues that are contemporary withthe brand positioning mechanism. Present study tests different theories mentioned39 "