Browsing by Author "Morawakage, P.S."

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A case study on modern supply chain management practices
(Naval and Maritime Academy, Naval Base, Trincomalee, Sri Lanka, 2016) Morawakage, P.S.; Perera, A.S.
A Case Study Review of Strategic Acquisitions of Synergic PLC
(Staff Development Unit, Faculty of Commerce & Management Studies, University of Kelaniya, 2015) Morawakage, P.S.; Kulathunga, K.M.K.N.S.; Basnayake, W.B.M.D.; Wijesinghe, M.R.P.; Chandrasena, S.M.; Piyananda, S.D.P.
Synergic Holding PLC initiated operations in 1991 as a software development company. It was incorporated as a private limited company in 1998 and obtained a listing in the Colombo Stock Exchange in June 2011. Soon after the incorporation they became the sole authorized distributor for DELL Computers in Sri Lanka. Gerrys Synergic (Pvt) Ltd started as a joint venture with Gerrys Holdings (Pvt) Ltd in Pakistan, fulfilling Mr. Alok Pathirathne’s (the founder of Synergic Holdings PLC) dream of ‘going global’. Synergic Company’s move towards furniture retail, from IT related activities was the first instance they adopted the diversification strategy. At present the Synergic Holding PLC is rated as one of Sri Lanka’s most energetic and aggressive conglomerates. The diversified key sectors are Information and Communication Technology, Healthcare, Retail, Financial Services, Automobiles and Leisure. This case study specifically underlines the strategic acquisition of Rovel PLC which took place in the year 2014. Rovel PLC initiated its operations in 1989, in a small retail outlet. Today, Rovel’s flagship department store is a 36,000 square foot, lavishly appointed store and it owns 20 other outlets in many strategically important locations. Rovel operates at the top end of the retail fashion market, where it has carved out a niche through a highly focused approach targeted at the upper-middle and higher-income groups, Rovel has maintained its leadership position by providing a modern, world-class retail environment that has become the standard for the South Asian region. Rovel is not only Sri Lanka’s leading fashion brand, but with a wide array of products, it is also Sri Lanka’s only genuine department store. Rovel has achieved the status of an iconic brand with its tireless ability to reinvent itself at regular intervals. The recent acquisition of Rovel PLC by Synergic Holdings has created a major upheaval amongst the business community and the media. One main intention behind the said acquisition was Synergic’s motive of working with Parkson, the largest shareholder of Rovel. However the withdrawal of Parkson from Rovel PLC left Synergic’s efforts futile. Also after the said acquisition, Synergic’s excessive borrowings have resulted with its Fitch Rating being downgraded by two notches. The boards of directors now are contemplating about the survival of the company with its existing structure.
A COMPARATIVE STUDY ON GENERAL DECISION MAKING STYLES OF MIDDLE LEVEL MANAGERS BETWEEN PRIVATE AND PUBLIC SECTOR ORGANIZATIONS IN SRI LANKA
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Gunasekare, U.L.T.P.; Morawakage, P.S.
In this study decision making styles of middle level managers in three government departments and three private companies were studied to find out their general decision making styles and further a comparison was done between these two sectors. Literature sl,lggests five decisions making styles such as rational decision making, institutive decision making, dependent decision making, avoidant decision making and spontaneous decision making. These five decision making styles were observed among the selected sample and questionnaire GDMS instrument developed by Scott and Bruce (1995) was administered among twenty numbers of managers in each sector. Analysis was done using descriptive statistics. Results disclosed that there is a vast different between government sector and private sector middle level managers in making decisions. Most of the government managers display dependent and avoidant decision making styles while private sector managers display rational and spontaneous decisions making styles. Key words - general decision making styles, rational decision making, institutive decision making, dependent decision making, avoidant decision making ,spontaneous decision making.
Credit risk management and shareholder value creation: with special reference to listed commercial banks in Sri Lanka
(University of Kelaniya, 2016) Perera, L.A.S.; Morawakage, P.S.
The main aim of this study is to investigate the effect of credit risk management on the shareholder value in listed commercial banks in Sri Lanka. The research has used only the secondary data for the purpose of analysis and the sources of data include the annual reports of selected quoted public banks. This study employed return on shares to measure the shareholder value while non-performing ratio, Capital adequacy ratio and Loans to deposits ratio have been used as the indicators of the credit risk management of the banks. Regression models were employed to do the empirical analysis and focuses on the descriptions of the output obtained from the SPSS. The findings reveal that credit risk management has a significant effect on shareholder value in all eight banks. Among the three credit risk management indicators, NPLR has the most significant effect on the return on shares. Through the results of the study it can be concluded that null hypothesis can be rejected since there is a significant relationship between credit risk management and shareholder value.
Credit Risk Management and Shareholder Value Creation: With Special Reference to Listed Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, L.A.S.; Morawakage, P.S.
The main aim of this study is to investigate the effect of credit risk management on the shareholder value in listed commercial banks in Sri Lanka. The research has used only the secondary data for the purpose of the analysis and the sources of data include the annual reports of selected quoted public banks in Sri Lanka. This study employed return on shares to measure the shareholder value while non-performing ratio, capital adequacy ratio and loans to deposits ratio have been used as the indicators of the credit risk management of the banks. Regression models were employed to do the empirical analysis. Further the output obtained from the SPSS package was used to interpret the findings. The findings reveal that credit risk management has a significant effect on shareholder value in all eight banks. Among the three credit risk management indicators, Non-Performing Loan Ratio (NPLR) has the most significant effect on the return on shares. Through the results of the study, it can be concluded that null hypothesis can be rejected since there is a significant relationship between credit risk management and shareholder value.
DETERMINANTS OF PROFITABILITY UNDERLINING THE WORKING CAPITAL MANAGEMENT AND COST STRUCTURE OF SRI LANKAN COMPANIES
(2010) Morawakage, P.S.; Lakshan, A.M.I.
Efficient working capital management is an integral part of the overall corporate strategy to create shareholder value. Researchers investigated the relation between the companies? working capital, cost structure and their profitability. This relationship is examined using correlation and regression analysis. In this research, researchers have selected a sample of 65 Sri Lankan companies listed on Colombo Stock Exchange for a period of 5 years from 2003-2007, researchers have studied the effect of different variables of working capital management and cost structure on the profitability of Sri Lankan Companies including the Debtors turn over in days, Inventory turnover in days, Creditors payable in days, and working capital cycle representing the working capital and Administrative, Selling and Finance expenses representing the cost structure . The results suggest that managers can increase corporate profitability by reducing the number of inventory turn over days and increasing the creditors payable days in order to minimize the length of the working capital cycle. Increase in creditors payable days would give opportunities to the company for further investments. Also it suggests that the spending on selling and distribution would not increase the profitability and more finance cost would hinder the profits of the companies.
Equity Market Volatility Behavior in Sri Lankan Context
(University of Kelaniya, 2015) Morawakage, P.S.; Nimal, P.D.
Colombo Stock Exchange (CSE) in Sri Lanka is at its first level of emerging markets. Volatility of emerging markets are considered to be high and characterized by complex features. Therefore, this study focusses on examining the volatility behavior of Colombo Stock Exchange with advanced econometric models. Here GARCH, EGARCH and TGARCH models are used to capture the complex volatility features. It is observed that volatility clustering and leverage effect exists in Colombo Stock Exchange. Further, negative shocks creates more volatility compared to a positive shocks generated in the market. TGARCH model assuming student-t probability distribution function is more suitable to explain the volatility in Colombo Stock Exchange among the models described above according to the Akaike and Schwarz information criteria.
Equity Market Volatility Behavior in Sri Lankan Context
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Morawakage, P.S.; Weerasinghe, W.D.J.D.
Colombo Stock Exchange (CSE) in Sri Lanka is at its first level of emerging markets. Volatility of emerging markets are considered to be high and characterized by complex features. Therefore, this study focusses on examining the volatility behavior of Colombo Stock Exchange with advanced econometric models. Here GARCH, EGARCH and TGARCH models are used to capture the complex volatility features. It is observed that volatility clustering and leverage effect exist in Colombo Stock Exchange. Further, negative shock creates more volatility compared to a positive shock generated in the market. TGARCH model assuming student-t probability distribution function is more suitable to explain the volatility in Colombo Stock Exchange among the models described above according to the Akaike and Schwarz information criteria.
Equity Risk Premium Puzzle: Evidence from Indonesia and Sri Lanka
(Bulletin of Indonesian Economic Studies, 2019) Morawakage, P.S.; Nimal, P.D.; Kuruppuarachchi, D.
This paper investigates the equity risk premium puzzle in the Indonesian and Sri Lankan stock markets in order to identify the relationship between the volatility of excess returns and the equity risk premium. The asymmetric impact of negative shocks on the equity risk premium is also examined using threshold and exponential GARCH-M models. We analyse data on the excess returns of the Indonesian and Sri Lankan stock markets from 2004 to 2013, and we find that the impact of the conditional volatility of excess returns on the equity risk premium is not significant in either country. Instead, we find an impact from negative return shocks on the equity risk premium only in Sri Lanka. Therefore, we conclude that investors are not compensated for the conditional volatility of the excess returns in these two markets, while Sri Lankan investors are compensated for the risk of negative shocks.
Residential Housing risk and returns and their importance to responsible investors and social housing providers: Evidence from Australia
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Morawakage, P.S.
The Australian housing market is severely unaffordable. Australia forecasts demand for one million social and affordable dwellings by 2036. The social housing sector in Australia struggles to finance private investments to meet the rising demand for affordable houses. Increasing Socially Responsible Impact (SRI) investors are an excellent source of finance for the affordable housing sector. However, housing associations and relevant government institutions have not paid sufficient attention to the SRI investors as a source of housing finance. SRI investors consider the environmental, social, and governance (ESG) performances in their investment process. Therefore, this study evaluates the Australian social housing sector’s ability to attract SRI investors. This study aims to connect socially responsible impact investors and social housing associations as a solution to the lack of private investments for the provision of much-needed affordable housing. First, the downside risk measures are collected from the residential housing market transactional data in Brisbane, Australia and ESG-related investments. Then four focus-group discussions are conducted with industry experts to support the impact evidence required by SRI investors. We also apply a multifactor asset pricing model to estimate the risk parameters of affordable housing submarkets and expensive submarkets. Finally, a three-dimensional portfolio optimization technique is employed to evaluate the profitability of responsible investors’ investment portfolios after incorporating affordable housing assets. It was found that affordable housing submarkets have more downside protection and risk-adjusted returns than other real estate and ESG-related investments. The multifactor asset pricing model shows that the affordable housing submarkets have the lowest risk exposures. Focus-group discussions provide strong impact evidence on the ESG performance of the affordable housing industry. The results of this study demonstrate that affordable housing is a safe and sound investment that provides the social impact and profitability required by socially responsible impact investors.
Volatility Modeling and its Impact on Risk premium in Emerging markets
(2015) Morawakage, P.S.
This study examines different volatility models to capture the stock market volatility in two emerging markets Indonesia and Sri Lanka. Further the relationship between volatility and risk premium in both markets are analyzed to test the risk return trade off in those markets. GARCH, EGARCH and TGARCH models are used to capture the volatility and GARCH-M model is used to analyze the risk return relationship. In both markets it is observed that volatility clustering, leverage effect and nonlinear effect are significant by considering daily ASPI return observations from 2004 to 2013. Relationship between volatility and risk premium is not significant according to the GARCH-M model.