Browsing by Author "Perera, P.A.S.D."

Now showing 1 - 5 of 5

The Analysis of Determinants of Profit Growth: Evidence from Sri Lankan Food, Beverage & Tobacco Companies Listed in Colombo Stock Exchange Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Devage, W.S.D.V.A.; Perera, P.A.S.D.
Purpose: The aim of this study is to estimate the impact of current ratio (CR), current liability to inventory (CLI), total asset turnover (TAT), net profit margin (NPM), sales growth (SG), and company size (FS) on profit growth (PG) of listed Food, Beverage & Tobacco Companies in Sri Lanka Design/Methodology/Approach: The study followed deductive research logic, positivism philosophy and a quantitative approach. A total of 50 Food, Beverage & Tobacco companies listed on the Colombo Stock Exchange (CSE) is considered as the population. The sample size of collecting data of 20 Food, Beverage & Tobacco companies were analyzed using a purposive sampling technique and the data estimation method used the random effect panel data regression model processed using STATA 16 application. Findings: Random effect model reveals that the CR and CLI ratios have a negative effect on PG, while the TAT, NPM, SG and firm size ratios have a positive effect. The study’s findings suggest that higher sales growth combined with efficient operations and low liquidity can lead to higher company profits. Also, it was found that except for the determinant Sales Growth (SG), all other variables had a statistically insignificant impact on Profit growth (PG). Originality: The researcher proved that CR, CLI, and sales growth ratios have a negative effect on profit growth while TAT, NPM, SG and FS have positive effect on profit growth.
Effect of Earning Per Share and Price Earnings Ratio on the Share Price Before and During Covid 19: Evidence From CSE
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Ahamedha, M.A.S.; Perera, P.A.S.D.
Purpose: The purpose of this research on “Effect of earning per share and price earnings ratio on share price of listed companies in CSE before and during Covid-19” is to give some idea of the relationship between share prices and related variables. Design/Methodology/Approach: In this study, the researcher used earnings per share and price-earnings ratio as the independent variables and share price as the dependent variable. The researcher adopted a descriptive and causal-comparative research design to conduct the study. Diversified financial companies listed in CSE were the study population, and the researcher selected 20 companies as the study sample. Data were collected through the annual reports of the selected sample and descriptive statistical analysis, correlation analysis and multiple regression analysis were used in the data analysis process of the study. Findings: Correlation analysis revealed a significant correlation between earnings per share and share price and an insignificant correlation between the price-earnings ratio and share price. The regression result denotes a statistically significant moderate impact of both independent variables on the dependent variable before covid-19 and a significantly weak impact of independent variables on the dependent variable in after covid-19. Originality: As per the findings of the study, the researcher concluded that investors in the diversified financial sector are sensible not only on return but also on the risk of the investment.
Impact of Bank-Specific and Macroeconomic Factors on the Profitability of Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Shrimalshani, M.K.S.; Perera, P.A.S.D.
Purpose: This study aims to examine how macroeconomic and bank-specific factors affect the profitability of commercial banks in Sri Lanka. The balance panel data regression model was used to attain the study objective and to respond to the research questions. Design/Methodology/Approach: All bank-specific and macroeconomic profitability determinants for the ten years from 2012 to 2021 were the subject of secondary data collection. Twelve licensed commercial banks, including private and state banks, made up the study sample. To examine the impact of bank-specific and macroeconomic factors on banks’ profitability, the study separately generated two regression models using STATA 15.0. In addition to being dependent variables, ROA and ROE were used in the study as proxies for banks’ profitability. As independent variables, the exchange rate, GDP growth rate, inflation, lending interest rate, unemployment, BOP, operating margin, deposits, loans to assets, debt to equity, capital adequacy, loans to deposits, and asset size were used. The fixed effect was used to analyze both ROA model and ROE model as suggested by the Hausman test. Findings: According to research, there is a positive correlation between commercial banks’ profitability as measured by ROA and the following variables: Ex. rate, GGR, inflation, BOP, operating margin, and loan-to-deposit ratio. The remaining factors were discovered to be negatively linked with ROA. The Ex. rate, GGR, inflation, BOP, operating margin, loans to total assets, debt to equity and capital adequacy were positively associated with ROE. In contrast, the rest of the variables negatively correlated with ROE. Ex. rate, inflation, operating margin, Loans to Assets, Deposit, DE, Asset Size and LD had a significant impact in deciding how they affected banks’ profitability.
The Impact of Financial Literacy on Financial Decision-Making in Business: Evidence from Economic Enterprises of Nuwara Eliya Dedicated Economic Center
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Jayakumar, M.M.V.; Perera, P.A.S.D.
Purpose: The purpose of this study is to investigate the significant effect of financial literacy and its impact on financial decision making in business of vendors in Nuwara Eliya Dedicated Economic Center. Further, this study explores the impact of subjective financial literacy, financial knowledge and financial background on financial decision making in business. Design/Methodology/Approach: The population of this study consisted of 138 vendors in Nuwara Eliya Dedicated Economic Center. A sample of 131 vendors were selected using convenience sampling technique and primary data was collected through a structured questionnaire. The independent variable of the research is financial literacy with the dependent variable being financial decisions. Financial Literacy consists of three dimensions namely, subjective financial literacy, financial knowledge, and financial background whereas the financial decisions are measured by financing decisions, investment decisions and working capital decisions Data was analyzed using the techniques of correlation, regression and ANOVA by using the IBM SPSS Statistics Version 23 Software. Findings: The results revealed that financial literacy significantly positively impacts on financial decision making of vendors in Nuwara Eliya Dedicated Economic Center. It was further revealed that the vendors who are having a sound financial background or experience in business more than 10 years were successfully managing their business, though they don’t have a sound educational background. Originality: It was revealed that their knowledge on financial matters based on experience has a significant impact on making sound financial decisions. The findings recommend the necessity for effective financial literacy programs focusing especially on financial knowledge to facilitate informed financial decisions of these vendors.
The Impact of Financial Ratios on Stock Return before and during Covid-19: Empirical evidence from Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kavindhya, U.D.P.; Perera, P.A.S.D.
Purpose: The purpose of this study was to examine the impact of financial ratios on stock return before and during Covid-19 in Sri Lankan context using data collected from the companies listed in Colombo Stock Exchange. Design/Methodology/Approach: The data was collected as two samples. 2016- 2019 was considered as before Covid-19 and 2020-2021 was considered as during Covid-19 for 60 companies listed under consumer durables and apparel, consumer services, and food and beverage and tobacco sectors in CSE. The study used four financial ratios as the independent variables; Return on asset, current ratio, debt to equity ratio, and price to earnings ratio and stock return as the dependent variable. The analysis was conducted using a multiple regression model via STATA software to understand the impact of financial ratios on stock return. Findings: The results indicated that the price-to-earnings ratio has a significant impact on the stock return before covid-19, and the remaining financial ratios; current ratio, and debt to equity had an insignificant impact on stock return. During Covid-19, all financial ratios had a statistically insignificant impact on stock return. Originality: It was revealed that their knowledge on financial matters based on experience has a significant impact on making sound financial decisions. The findings recommend the necessity for effective financial literacy programs focusing especially on financial knowledge to facilitate informed financial decisions of these vendors.