Browsing by Author "Piyananda, S. D. P."

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Determinants of Dividend Pay-Out Ratio of Listed Commercial Banks in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Rammandala, R.G.I.P.; Piyananda, S. D. P.
Introduction – This research study has been carried out to identify the determinants of dividend pay-out in listed commercial banks in Sri Lanka in order to fill the gap using information from listed commercial banks in Sri Lankan context. Design/Methodology/Approach – This study was incorporated with the determinants of dividend pay-out as return on equity, return on assets, return on assets, earnings per share, firm growth and financial leverage, while the firm size is standing as a control variable. The research has adopted a quantitative research method and study selected 10 listed commercial banks during the period of 2015 to 2019. And also Panel Estimated Generalized Least Square (EGLS) (Cross-section random effects) regression method is used to analyse the collected secondary data. Findings – Based on the key findings of the study, Earnings Per Share is negatively significant and financial leverage and firm size are positively insignificant towards dividend pay-out. And also it is proved that the preceding year dividend payment is also influenced the current year dividend pay-out. Conclusion - The final result emphasizes that the overall model is statistically significant and the researcher is concluded that considered determinants are influencing the firms’ dividend policy and also recommended that there is a need of dividend policy makers should be emphasized at large on profitability that influences the dividend policy out to listed commercial banks hence enhancing the shareholder value.
Electronic Banking and Banks’ Performance a Study on Sri Lankan Commercial Banks
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Madusinghe, M. N. M.; Piyananda, S. D. P.
Introduction - Numerous studies have investigated the impact of Electronic banking on the performance of banks in many countries over the world. Some studies have found the positive impact of E-banking on the bank performance while some studies have revealed the negative impact. So, the purpose of this study is fulfilling this empirical gap in the literatures. Methodology - Automatic teller machine (ATM), internet and mobile banking and Credit & Debit cards are used as key independent variable as components of Electronic banking. Return on Assets (ROA) and Cost to Income Ratio are used as key dependent variables. Furthermore, bank size is used as the control variable. Ten commercial banks listed in Colombo Stock Exchange are used as sample of the study. Secondary data collected through the financial statement and the annual reports of the banks for ten years’ period from 2010/11 to 2018/19. Ordinary least square regression model is used to analyse the data collected. Findings -The current study found statistically significant impact of Electronic banking on banks’ performance. According to that, there is a positive significance impact of ATM on Cost to income and negative significant impact on ROA and credit cards and credit cards has a negative significant impact on ROA and positive significant impact on Cost to income. Although, there is no impact of internet and mobile banking on bank performance based on ROA but there is a significant negative impact of internet and mobile banking on Cost to income. Conclusion – The research study recommends to the management of commercial banks which are slow in electronic innovation adoption, to move in and adopt various innovations in their operation in order to shore up their performance. This study recommends to policy makers to develop appropriate strategies and policies to boost the performance in the Sri Lankan Banking System by considering electronic innovations.
Factors Affecting to Customer’s Adoption of Mobile Banking in Sri Lanka: Special Reference to People’s Bank
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Madushan, S. J. S; Piyananda, S. D. P.
Purpose: In the modern world, mobile banking concept is most important thing in the banking industry. But in Sri Lankan context, mobile banking usage is low. To avoid this situation bank must identify what are the factors affected to customers adapting to mobile banking and bank must address directly to these factors. This study examined the effect of perceived usefulness, perceived trust, social influence, convenience, awareness and perceived risk to customer adoption of mobile banking based on People’s Bank. Methodology: This study was conducted in customer perspective by using people’s bank customers in Colombo and Gampaha district. The study observed perceived usefulness, perceived trust, social influence, convenience, awareness and perceived risk as independent variables and mobile banking adoption as the dependent variable. This is a quantitative research study where a structured questionnaire was disseminated among more than 300 banking customers’ users under convenience sampling method and 249 respondents were responding correctly. Findings: The results of the study show that there is no significant influence from social influence and perceived risk on mobile banking adoption in the Sri Lanka. But according to the findings, perceived usefulness, perceived trust, convenience and awareness have significant impact of mobile banking adoption in Sri Lanka Conclusion: Perceived usefulness, perceived trust, convenience and awareness have significant impact of mobile banking adoption in Sri Lanka. Further, the study has revealed that there are some limitations in the study and provided suggestions to future researchers to make an effective and reliable result from the study.
Firm Specific Factors Impact on Company Financial Performance of Life Insurance Companies in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Godawela, G. D. S. M.; Piyananda, S. D. P.
Introduction - Insurance can be a critical environment in all markets and a key component of the economic system that tackles both individual and structural risks. Insurance companies serve as the bedrock of each country's risk management, guarantee financial stability, act as a vital part of the financial intermediation chain, and offer an outlet for long-term accumulation of resources. The insurance industry also plays a vital role in helping to address risk, helping to get jobs, and providing a market for insurers and financial investment services such as bonds and shares as a source of government tax revenue. Not only does the success of every company play a task in increasing the stock value of that individual company, but it also contributes to the expansion of the whole industry, which eventually results in the economy's overall prosperity. Design/Methodology/Approach - The impact of business-level characteristics (firm age, leverage ratio, current ratio, ratio (risk)) on insurance performance was discussed during this analysis. A primary measure of the success of the insurance company is employed as a variable in Growth in Written Premium (GWP), whereas age, current ratio, leverage ratio, and loss ratio are independent variables. Over the 2014 to 2019 period, the sample contains 14 life assurance companies. Findings - Multivariate analysis findings show that the firm age, current ratio, leverage ratio, and the loss ratio of insurers are statistically important and negatively associated with Growth in Written Premium. Conclusion - The final results of the multivariate analysis indicate that the firm age, current ratio, leverage ratio, and loss ratio of insurers are statistically relevant and negatively linked to Written Premium development.
The Impact of Corporate Governance Board Characteristics on Earnings Management: Evidence from Listed Manufacturing Firms in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Randika, W. K.; Piyananda, S. D. P.
During the past two decades some companies have failed to manage their internal controls and corporate structure effectively. The purpose of this study is to tap the study attempts to examine the actual compliance with the corporate governance board practices by selected listed manufacturing firms in Sri Lanka and more important to examine the relationship between corporate governance board theories and their effect on earnings management. This study incorporated with agency theory sustains a theoretical foundation for the need for corporate governance best practices in controlling earnings management whereas corporate governance variable comprises five types of board characteristics including board independence, CEO duality, board meetings, board size and board members with financial expertise, financial leverage and firm size considered as the control variables. Although there are number of studies done to identify the impact of corporate governance board characteristics on earnings management, there are contradictory results. The research has adopted a deductive research method and the study selected 24 listed manufacturing firms during the period of 2012 to 2019. Also panel least square regression method has initially used to analyse the collected data. The study found that board independence, directors in the board having financial, accounting expertise has a negative significant impact on real earnings and board size and firm size has a positive significant impact on real earnings. CEO duality, board meetings and financial leverage are not individually significant to the model. The study fulfils the existing local research gap in the area of board characteristics on earnings management in Sri Lanka. These findings will help for future studies relating to corporate governance board characteristics on earnings management.
Impact of Financial Reporting Quality on Corporate Performance: Evidence from Companies Listed in Colombo Stock Exchange
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Fernando, L.A.R.; Piyananda, S. D. P.
Financial reporting is one of the most important products of accounting system that tries to provide necessary information for users to make decisions on the evaluation of an economic enterprise's profitability and performance. Financial reporting quality can be defined as the faithfulness of the information generated by the financial reporting process. Quality of financial reporting can affect companies’ profitability, Liquidity, Efficiency, Stock prices and company performance. This study aims to examine the impact of financial reporting quality on corporate performance, using Real Earnings method. We can divide Company performance in two main categories called financial performance and Market performance. Financial performance measured by using Return on Assets (ROA) and Return on Equity (ROE) and Market performance measured by using Market Value (MV) and Tobin’s Q (TQ). Firm Size, Earnings per Share, Debt to Equity Ratio were used as control variables. For this research collect secondary data from the Annual reports (financial statements) of listed companies in the CSE for the period of 2012-2019. The findings of the study were that all the control variables have significant impact on financial performance and market performance. The study concluded further that insignificant relation existed between FRQ and firm performance. This study has concentrated on the importance of the quality of financial reporting on the performance of the organizations. The manufacturing industry needs to improve the quality of financial reporting. In order to make the investment opportunities attractive, the assurance of a trustworthy financial reporting can only be achieved if the internal control within the organizations is strong enough. Which will eventually avoid from any kind of misstatements and fraudulent financial reporting within an organization. Financial reporting is one of the most important products of accounting system that tries to provide necessary information for users to make decisions on the evaluation of an economic enterprise's profitability and performance. Financial reporting quality can be defined as the faithfulness of the information generated by the financial reporting process. Quality of financial reporting can affect companies’ profitability, Liquidity, Efficiency, Stock prices and company performance. This study aims to examine the impact of financial reporting quality on corporate performance, using Real Earnings method. We can divide Company performance in two main categories called financial performance and Market performance. Financial performance measured by using Return on Assets (ROA) and Return on Equity (ROE) and Market performance measured by using Market Value (MV) and Tobin’s Q (TQ). Firm Size, Earnings per Share, Debt to Equity Ratio were used as control variables. For this research collect secondary data from the Annual reports (financial statements) of listed companies in the CSE for the period of 2012-2019. The findings of the study were that all the control variables have significant impact on financial performance and market performance. The study concluded further that insignificant relation existed between FRQ and firm performance. This study has concentrated on the importance of the quality of financial reporting on the performance of the organizations. The manufacturing industry needs to improve the quality of financial reporting. In order to make the investment opportunities attractive, the assurance of a trustworthy financial reporting can only be achieved if the internal control within the organizations is strong enough. Which will eventually avoid from any kind of misstatements and fraudulent financial reporting within an organization.
Predictability of Stock Returns Using Financial Ratios: Empirical Evidence from Colombo Stock Exchange
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Dias, R.; Piyananda, S. D. P.
The purpose of this study is to examine the predictability of stock return using financial ratios in Sri Lankan context including the macroeconomic variables using data collected from the listed Companies in Colombo Stock Exchange. The investigation is performed using panel data procedures for a sample of 37 manufacturing firms listed on the Colombo Stock Exchange during 2014-2018. Descriptive statistics, correlation matrix and panel regression analysis are used to analyse the collected secondary data. The results suggested that the study used the Earning per Share, Dividend Per Share, Earning Yield, Dividend Yield, Book Value to Market Value as Independent variables and Market Capitalization, Inflation, and Gross Domestic Production as the Control variables. Some of the Variables are statistically significant and better predictor of the stock return those are, EPS, DPS, DY and BV to MV. All of the control variables are statistically insignificant to predict the stock return using Financial Ratios. The final results emphasize that the overall model is significant and the researcher conclude that the Financial ratios can be used to predict the stock returns. But all the control variables are statistically insignificant and cannot predict the stock return. This study has laid some groundwork to explore the predictability of stock returns using financial ratios of Sri Lankan listed companies upon which a more detailed evaluation could be based.
The Role of Investor Perspectives on Cryptocurrency Integration in Sri Lankan Investment Portfolios Using the Black-Litterman Model
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Abayakoon, V. D. W.; Piyananda, S. D. P.; Herath, H. M. N. P.
The study examines the integration of cryptocurrencies into investment portfolio diversification, emphasizing the influence of investor opinions on their portfolio strategy in Sri Lanka. The study has investigated how investor views impact portfolio optimization when cryptocurrencies are included into their investment portfolios. The Black-Litterman model was employed to assess this influence, incorporating historical prices of conventional equities, cryptocurrencies and other relevant financial data. The S&P20 index of the Colombo Stock Exchange represents the conventional equities while Bitcoin and Ethereum were used to benchmark cryptocurrencies for the study period of 2021 to 2023. The timeframe was strategically chosen to encapsulate both the pre-and post-COVID eras in Sri Lanka, thereby capturing the nuances of economic recovery from the crisis and the economic downfall. The findings from this timeframe indicate that incorporating investor views produced superior risk-return outcomes that significantly enhanced portfolio performance. The analysis emphasized that the post-implementation of investor viewpoints, the portfolio’s volatility and anticipated returns align more closely with the investors’ expectations. Accordingly, even with the high volatility of cryptocurrencies, the portfolio achieves optimal returns and Sharpe ratios with reduced overall volatility. This demonstrates the Black- Litterman model's efficacy in addressing the challenges posed by integrating cryptocurrencies into investment portfolios. The study highlights the potential of investor- informed strategies to improve portfolio diversification and the performance of their stock portfolio by incorporating cryptocurrencies. This provides novel insights to Sri Lankan investors, policymakers and portfolio managers on optimizing portfolio performances encompassing investor views and cryptocurrency investments.