Browsing by Author "Fernando, J.M.B.R."

Now showing 1 - 5 of 5

Effect Of Financial Performance on Share Prices During the Covid-19 Pandemic: Special Reference to The Listed Bank, Financial, And Insurance Sector in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Apasinghe, N.V.N.N.; Fernando, J.M.B.R.
Introduction: COVID-19 is a major health emergency recognized around the world. The investors invest in various types of investment avenues such as shares, treasury bonds, treasury bills, debentures etc. Among these instruments, investment in company shares is an attractive way of profitable investment as far as the capital market is concerned. Most of the stakeholders are mainly concerned about the share price of the entity in the process of resource allocation. Hence this study examines the effect of financial performance on share prices during the COVID 19 pandemic. Design/Methodology/Approach: This study used panel data consisting of 20 listed banks, financial and insurance sector in Sri Lanka covering the period from 2018 to 2020 at the Colombo Stock Exchange. Return on assets, return on equity, return on investment, earnings per share were used as financial performance measures and used two control variables: Board size and Firm Size. The study employed Ganger Causality test to find the effect of financial performances on the selected companies share prices. Findings: The study reveals that financial performance variables are Granger-cause average share price at its levels of significance during the COVID 19 pandemic consistent with the literature. Conclusion: This study can assist the banking, finance, and insurance sector in Sri Lanka to get a better understanding of financial performance on the share price during a pandemic. Stakeholders and bank managers will be able to use the results and findings from the results of this study and they can make more reliable and effective decisions during a pandemic.
Factors Affecting in Introducing Micro-Insurance for The Self-Employed People in Kurunegala District
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Amarasekara, M.S.P.C.G.; Fernando, J.M.B.R.
Introduction: The objective of this study is to examine the factors that affect the enhancement of outreach of Micro Insurance Services available for the self-employment sector in the Kurunagala district. The concept of micro-insurance is more prevalent in third world countries and the need for financial services for the poor is now universally accepted. Micro Finance (MFI) was launched to provide a formal risk protection scheme and minimize poor household facilities and the idea of micro-insurance was born. Design/Methodology/Approach: The study used deductive approach. The study employed a survey questionnaire to collect the data and the sample consist with 113 respondents. Willingness to pay, accessibility, affordability, and consumer trust were used as the factors affecting introduction of micro-insurance schemes. Findings: Willingness to pay, accessibility, affordability, consumer trust in income has significant positive effect on the implementation of micro-insurance. The hypotheses were tested using simple regression analysis, and all alternative hypotheses were accepted, and null hypotheses were rejected. Conclusion: The study relevels that industry professionals and insurance companies need to pay attention to the factors such as willingness to pay, accessibility, affordability, consumer trust in deciding their micro-insurance schemes. Thus, insurance companies can introduce new eye-catching insurance schemes to eliminate or mitigate the impact of these barriers.
The Impact of Covid19 Pandemic on The Profitability of the Insurance Industry in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Thilakarathna, U.H.L.; Fernando, J.M.B.R.
Introduction: The main purpose of conducting this research is to examine the effect of COVID-19 pandemic on the profitability of the insurance industry in Sri Lanka. At present COVID-19 pandemic is very crucial to the profitability of any industry. As a consequence, it is expected that this impact transposes into the nature and methods of insurance risky ventures, and thus drastically change the business models of the insurance industry both in the short and long run. Despite the abundance of predictions and potential implications, the literature lacks investigations that target the short-run economic impact of the COVID-19 pandemic on the insurance industry. Design/Methodology/Approach: The analysis is based on 10 insurance companies listed on the Colombo Stock Exchange and also the study is based on secondary data over a period of the past four years from 2018 to 2021. Correlation, regression analysis, and descriptive statistics were applied in the analysis. Firm size, premium growth, solvency ratio, Confirmed COVID Cases, Reinsurance dependency, Inflation, GDP Growth were used as firm-specific factors and ROA was used to measure the profitability of the firm. Findings: The study shows that there is a significant impact exists the between COVID-19 pandemic and the insurance industry’s profitability. This Conclusion: The study provides directions for the management of the insurance sector of Sri Lanka in relation to its profitability dimensions during a pandemic. The proactive actions were taken by the insurance companies during the Covid-19 appreciated and it is highlighted how sensitive the profitability indicators for the chosen strategies.
The Impact of Portfolio Management on Banks’ Profitability: With Special Reference to Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Jayalakshanage, A.S.D.; Fernando, J.M.B.R.
Introduction: The impact of portfolio management and profitability of Commercial Banks in Sri Lanka has not adequately addressed in the previous literature. There are a few studies which have provided specific information about the impact of portfolio management and corporate performance on commercial banks in Sri Lanka. However, the investigation of the investment in long-term financial investment, loans and liquidity assets on bank’s profitability is an unexplored area. Therefore, this study attempts to address this research gap by examine the relationship between portfolio management and profitability of Commercial Bank in Sri Lanka. Design/Methodology/Approach: The study used data from 8 banks of the listed commercial banks covering a period of 8 years from 2013 to 2020. A simple random sampling technique is used for this study. This research used secondary data. The study used return on the investments in liquidity assets, invest in loans and invest in long-term financial instrument as the measurement of the independent variables (portfolio management) and Return on assets and Return on investment are used as the proxies for the dependent variable. Panel regression employed to investigate the issue. Findings: Result appears that the long-term investment has significant impact on ROA and return on loan has significant impact on ROE. The results indicate the long-term investment and loan portfolios of the banks contributing significantly for the banks’ overall profitability. Conclusion: This study facilitates banks in making decisions with regards to their portfolio management. Fundamentally, these research findings are important for bank managers, academic researchers and industry player to identify the impact of a portfolio management on bank performance of a Sri Lankan Commercial Banks.
The Impact of Risk Management on the Financial Performance of Listed Insurance Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Nishan, K.S.; Fernando, J.M.B.R.
Introduction: Risk, if not adequately managed, can lead to the demise of most businesses, particularly those whose core business is risk management on a day-to-day basis. Risk management should therefore be at the heart of an organization's operations, with risk management techniques integrated throughout the whole organization's processes, systems, and culture. Thus, the goal of this research is to determine the impact of risk management strategies used by Sri Lankan insurance companies on their financial performance. Design/Methodology/Approach: The study employed an exploratory research design, with 28 registered insurance companies in Sri Lanka as the target population. Secondary data was employed in the study. 15 insurance companies were contacted for secondary data. Secondary data was gathered over a six-year period from 2015 to 2020 using published sources as well as data from IRCSL's financial statements. Panel regression analysis was used in the research. Underwriting risk, market risk, liquidity risk, and operational risk were used as proxies for risk management whereas the return on asset is the proxy for financial performance. The firm size was used as a moderating variable and the type of insurance as the control variable. Findings: Underwriting risk, market risk, operational risk showed a significant and positive relationship with the return on assets ratio and the moderating effect of firm size on the relationship between liquidity and financial performance also show a positive and significant impact. Liquidity risk showed a significant negative relationship with the return on assets. Conclusion: The study suggests that Sri Lanka's listed insurance companies should consider reducing their costs and claims through appropriate estimating pricing and valuation techniques. Furthermore, insurance companies should provide sufficient diversification of the insurance policy portfolio in order to earn higher premiums that can cover other losses when they occur. The findings imply that good management of a firm's operations results in lower operating expenses, which leads to an increase in the proportion of net premiums to total assets, which improves a firm's performance. To cut expenses and improve financial performance, insurance companies should employ efficient operations management procedures.