Browsing by Author "Weligamage, S. S."

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Effect of Firm Size on Firm Financial Performance: with Special Reference to Licensed Commercial Banks in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Dilshan, W. A. D. S.; Weligamage, S. S.
Introduction - Higher performance of the banking industry is important for the development of the financial sector. This study investigates the effect of firm size on firm financial performance with special reference to licensed commercial banks in Sri Lanka. Design/Methodology/Approach - This study is used the secondary data collected from relevant banks’ annual reports. The time period of this study was 2014-2019. The sample of this study consisted of ten licensed commercial banks registered in CSE in Sri Lanka. The sample was selected based on the asset size respectively. The regression analysis, descriptive statistical analysis and correlation analysis are used to analyse the data by using SPSS software. Findings - According to the regression results, there is a significant influence of firm size on firm financial performance under the regression models. Conclusion - In this study, the total assets of LCBs were used to measure the firm size and this study found that, there was a significant negative difference of ROE. Not only that when firm size measured in terms of total deposits also, there was a significant positive change of ROE of LCBs in Sri Lanka.
Effect of Loan to Deposit Ratio on Bank Profitability: Evidence from Banking Industry in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Udari, G. A. C.; Weligamage, S. S.
At present banking industry is very dynamic and very competitive and bankers have to take better decisions to survive in the banking industry in Sri Lanka. This paper aims to investigate the effect of loan to deposit ratio on bank profitability with special reference to banking industry in Sri Lanka. The study used the secondary data collected from relevant banks’ annual reports for a period of five years from 2015-2019 and sample consisted of ten licensed commercial banks registered in CSE in Sri Lanka. The sample was selected based on the total asset size. The Loan to Deposit ratio included in this study as the independent variable and the dependent variable is denoted as profitability which is measured by Return on Assets (ROA). The regression analysis, descriptive statistical analysis and correlation analysis were used to analyse the data by using SPSS software.In this study, the loan to deposit ratio of LCBs were used to measure the bank profitability and this study found that, there was a significant negative difference of ROA. According to the regression results, there is a significant influence of loan to deposit ratio on bank profitability. Results indicated that when increasing loans to deposit ratio, the bank profitability will decrease. Therefore, these findings suggest that the Sri Lankan banking industry should formulate more effective and strong bank policies and regulations to stability of banking sector
The Effect of Non-Performing Loans on Profitability of Commercial Banks in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Kapilarathne, M. Y. G. J. A. C.; Weligamage, S. S.
Sri Lanka commercial Banks have remained with persistent challenge of managing non-performing loans that are considered to have effects on its profitability. Together with the banking sector, the government has developed different ways of reducing non-performing loans. This study seeks to find out the effects of nonperforming loans on profitability of commercial banks in Sri Lanka. The study used commercial banks registered and operational in Sri Lanka as at CBSL in 2018. Profitability calculated by return on assets and used as a dependent variable and non-performing loans ratio is used as independent variable. Capital adequacy, operational efficiency and liquidity are used as control variables to enhance the validity and accuracy of the tests. The research selected 11 commercial banks during the period of 2014 to 2018 and used the secondary data. Descriptive Statistics, Multiple Linear Regression and Pearson Correlation were used for data analysis and Stata has been used as statistical software to analyse the collected data. The study indicates that there is negative effect of nonperforming loans ratio on return on assets, confirming that non-performing loans negatively affects profitability of commercial banks in Sri Lanka. There is a positive and significant relationship between Return on Assets and Capital Adequacy. When considering the relationship between Return on Assets and Liquidity there is a positive insignificant relationship and there is a negative relationship between Return on Assets and Operational Cost Efficiency. Managers of Commercial banks in Sri Lanka have to work hard to enhance profitability of commercial banks and reduce occurrences of nonperforming loans. This paper therefore provides an insight to commercial banks, central bank and other stake holders on the effect of nonperforming loans on profitability of commercial banks in Sri Lanka and provides a basis for further research.
Effect of Student Engagement, Student Satisfaction, and Perceived Learning in Online Learning Environment: Perspective of Management Students
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Pramod, J. A. T.; Weligamage, S. S.
Online education can be identified as a flexible education delivery system that can be applied to distance educational purposes, and this system creates an opportunity for teachers and students to reach each other when they cannot participate in traditional classrooms. The purpose of this study is to investigate the effect of student engagement, student satisfaction, and perceived learning in an online learning environment. A deductive approach and quantitative designs were used, 306 samples were included, and data was collected via a self-administered questionnaire using convenience sampling. Course structure, learner interaction and instructor presence were used as independent variables, student engagement as mediating variables and improved student learning and student satisfaction as dependent variables in the study. Descriptive and demographic data analysis, reliability analysis, correlation and regression were used to analyze survey data. Findings revealed that course structure, learner interaction and instructor presence have a statistically significant impact on improved student learning and student satisfaction. The finding of the study has also shown that student engagement is a significant mediator between course structure, learner interaction, instructor presence, perceived learning, and student satisfaction. To ensure the effectiveness of the online learning system and student satisfaction, teachers should give much attention to course structure design, which enhances learner interaction and learning.
Effects of quality of work-life on turnover intention: evidence from Sewing Machine Operators in Sri Lankan apparel industry
(Department of Human Resource Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Karunanayake, D. R. N. S. K.; Weligamage, S. S.
High employee turnover among sewing machine operators (SMOs) is one of the critical problem facing apparel industry in Sri Lanka as it create high cost to the organizations. The purpose of this study was to investigate the effects of Quality of Work Life (QWL) on turnover intention among the sewing machine operators in apparel industry in Sri Lanka. This study covered sewing machine operators in Sri Lanka with the sample size of 350 and data were collected through a structured questionnaire. Findings revealed that the majority of the respondents were females and 91% of the respondents were young. The results also illustrated that there is a relationship between QWL and turnover intention and the study further indicated that most of the respondent were dissatisfied with their work life and showed their willingness to leave. According to the results of Pearson’s Correlation analysis, it was found that QWL were negatively and significantly correlated with turnover intention of SMOs. The study further indicated that there is a strong negative relationship between these two variables. Regression analysis shows that 56% of the turnover intention among SMO’s was explained by QWL. This study concluded that satisfied employees will positively contribute to the organizational goals and assured that quality of work life will not only attract young and new talent but also retain the existing talent.
An Examination of Herd Behaviour: Evidence from Colombo Stock Exchange
(Faculty of Commerce and Management Studies University of Kelaniya, Sri Lanka, 2020) Abeysekera, S. M; Wijesinghe, D. C; Weligamage, S. S.
Traditional Finance theory presumed that equity market participants take decisions based on rational platforms. However, recent market incidents witnessed investors’ decision making process is fueled with irrational behaviour like herding. Herding behaviour is a dominated behavioural biases which depict investors take decisions based on imitating other investors’ behavior. The lack of research regarding herding, done in emerging markets especially in Sri Lankan context and the inconclusive results of the studies undertaken, were the key motives for this study. Hence, this study attempts to examine the herding behaviour among investors in Colombo Stock Exchange (CSE) and to identify herding among Bull and Bear market phrases. The daily share return of 20 companies in S&P 20 index from 2007 to 2018 were taken for the study and All Share Price Index is used as the proxy for market returns. The model, Cross Sectional Absolute Deviation (CSAD) and Cross Sectional Standard Deviation (CSSD) were used to detect market-wide herding. Results obtained fail to find any evidence regarding Herding in Colombo Stock Exchange during the Period of Study. Significant but positive coefficient values attached to CSAD method implied the absence of Herding in overall market as well as bull and bear phrases. CSSD method further implied the absence of Herding behaviour during the period of study. Further, this study reflects investors in CSE purely look at risk return properties of individual counters rather than following other investors behaviour. It reflects majority of investors in CSE purely take decisions based on rational analysis of price sensitive risk return information rather than based on irrational behavior like herding. Lacking the behavioral biases like herding among the capital market participants transmit a message to regulators and policy makers to develop sound capital market infrastructure based on rational finance theories. Investors should rely on logical information to avoid being bias before taking their investment actions.
Factors affecting job satisfaction of class III officers of Sri Lanka administrative service
(Department of Human Resource Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Jayasena, S. D. N. S.; Weligamage, S. S.
The Sri Lanka Administrative Service (SLAS) is the main administrative service of the Sri Lankan Government, with civil servants engaged both in the Central Government as well as in the provincial councils. Purpose of this research was to identify the factors affecting Job Satisfaction of Grade III officers of Sri Lanka Administrative Service (SLAS) and to identify the level of satisfaction. Primary Data were gathered using a structured questionnaire and structured interviews. The data were summarized using descriptive statistics. Through correlation and regression analysis the factors affecting Job Satisfaction of Grade III officers of SLAS were identified. Findings revealed that demographic variables and Pay, Promotion, Supervision, Fringe Benefits and Contingent Rewards are the determinants of Job Satisfaction of the target population. Further it was suggested that increasing the Base Pay, introducing a performance based promotion scheme, fair distribution of training opportunities and granting transport facilities will increase the level of Job Satisfaction.
Factors Affecting Job Stress among Bank Employees: Evidence from People’s Bank Corporate Banking Division
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Sudeema, K. V. M.; Weligamage, S. S.
Introduction – Job stress has vital importance and has become a key challenge for the organizations because of its strapping impact on the performance of an individual as well as of the organization. Job stress is considered as the harmful physical and emotional response that occurs when there is a poor match between job demands and capabilities, resources or needs of the employees. Therefore, there is a need to identify that to what extent the organizational role related factor are the causes of occupational stress among bank employees. Design/Methodology/Approach - The study aimed to investigate the contributing factors of job stress among bank employees’ Special referred to the People’ bank corporate banking division, Colombo, Sri Lanka. For this purpose, people’s banks were investigated, and it was carried out on a sample of 104 bank employees. Simple random sampling was applied to select a representative sample and standard questionnaire was used to collect data. Role conflict, role ambiguity, work overload and work family conflict were used as the independent variables and the job stress was used as the dependent variable. Correlation coefficient analysis was used to test the research hypothesis and regression analysis and descriptive analysis were used for the other analysis. Findings - It was found that the measurement scales met the acceptable standard of reliability analysis. The research found that job stress has a significant positive relationship with the role conflict, role ambiguity, work overload and work family conflict. However, Role conflict and Role ambiguity have strong positive correlation and workload and family conflict have a moderate positive relationship. Conclusion - Most of the employees feel that they feel stress at work and bank should apply proper methods to reduce the level of stress.
Human Capital Disclosure Practices: Comparative Study of Banking, Insurance and Finance Industries in Sri Lanka.
(8th International Conference on Business & Information ICBI – 2017, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2017) Weligamage, S. S.
In an organizational context, human capital is the most valuable capital compared with other resources such as physical, financial and informational and disclosure of those assets in the financial statements have become the key differentiating agent among players in the same industry. The objective of this study is to identify the human capital voluntary reporting trend in banking, insurance and finance sector companies in Sri Lanka. The study is based on secondary data and collected from published annual reports of the selected banking insurance and finance companies over the period of 2010 and 2015. The sample consists of 25 licensed commercial banks, 31 finance companies and 9 insurance companies which were listed in Colombo Stock Exchange in 2011/2012 and 2015/2016. Content analysis method was adapted to analyze the data recorded using human capital disclosure framework identified through literature. The findings indicated that the most of the companies concern on safe the working environment for their employees such as employee-related regulatory framework, their policies and safety works. More disclosure related to the quality and skills of the staff recruitment policy also can be seen. Employee-related measurement was the most reported sub component in human capital over the selected time horizon by the sector and employee relation, training and development were the next highest reported subcomponents. However findings also revealed that human capital reporting trends in annual reports are still unorganized and unsystematic due to a lack of proper disclosure framework and a consistent approach for reporting human capital. Findings also revealed that lack of usage and disclosure on human capital valuation measurements in annual reports. Therefore it suggests establishing a harmonized standards and guidelines to guide companies for proper measurement, management and reporting human assets.
Impact of Behavioral Factors on Investment Decisions: Evidence from Western Province Investors in Colombo Stock Exchange (CSE)
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Mendis, H. N. S.; Weligamage, S. S.
Introduction: This study investigates the impact of behavioral factors on investment decisions among investors in the Western Province of Sri Lanka, specifically within the Colombo Stock Exchange (CSE). Behavioral finance, which integrates psychological insights into financial decision-making, challenges traditional financial theories that assume rational investor behavior. The primary objective is to examine how behavioural factors (such as representativeness, availability bias, anchoring, overconfidence, loss aversion, framing effects, mental accounting, and regret aversion) influence investment decisions. Methodology: A structured questionnaire was used to collect quantitative data from 100 investors, employing a snowball sampling method. The data were analyzed using exploratory factor analysis, descriptive factor analysis, and regression analysis to identify the relationships between behavioral factors and investment performance. Findings: It reveals that behavioral biases significantly impact investment decisions, leading to systematic errors and suboptimal outcomes. Overconfidence and anchoring biases were found to have a strong influence, while loss aversion and regret aversion also played critical roles in shaping investor behavior. The study concludes that understanding these factors can help improve investor education and decision-making strategies, ultimately contributing to better financial outcomes and market stability. Conclusion: The study concludes that behavioral factors significantly impact investment decisions among investors in the Colombo Stock Exchange (CSE). Key findings include that loss aversion and regret aversion lead to conservative investment practices and suboptimal outcomes. Overconfidence and anchoring biases result in reliance on easily recalled information or historical performance patterns, causing poor future predictions. Mental accounting influences decision-making by categorizing investments into different "buckets." The disposition effect shows that investors sell winning stocks too early and hold onto losing stocks for too long, negatively impacting performance. Understanding and mitigating these biases can improve investor education and decision-making strategies, contributing to better financial outcomes and market stability. The study highlights the need for tailored investor education programs and incorporating behavioral insights into advisory practices.
The Impact of Credit Risk on Bank Profitability: Evidence from Licensed Commercial Banks in Sri Lanka
(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Sumanathilake, D. M.; Weligamage, S. S.
Introduction - Lending is one of the main incomes generating activity in commercial banks. Credit risk occurs in connection with lending. Among the different risks facing by banks risks, credit risk is considered as one of the major determinants of bank profitability because of the number and diversity of stakeholders affected. Design/Methodology/Approach - The objective of the study is to assess the impact of credit risk on profitability of licensed commercial banks in Sri Lanka for the period 2015 to 2019. Thirteen commercial banks were selected for the study and data was collected through published annual reports and using Eviews Statistic Software was performed Descriptive analysis, Correlation and Regression analysis. Findings - This study found that non-performing loan (NPL) ratio has a insignificant negative impact on Return on Assets (ROA) ratio, while total loan to total deposit (TLTD) ratio has significant negative impact on Return on Assets (ROA) ratio. Furthermore, non-performing loan (NPL) ratio has significant negative impact on Return on Equity (ROE) ratio, while total loan to total deposit (TLTD) ratio has insignificant negative impact on Return on Equity (ROE) ratio. Conclusion -Findings of this study contribute to formulate efficient and effective credit risk management control policies for licensed commercial banks in Sri Lanka.
Impact of Stereotype Threat on Workplace Wellbeing: A Study on Women Executive Staff of State Universities in Sri Lanka
(Department of Human Resource Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2024) Ethulgama, W. M. D. K.; Weligamage, S. S.
Research based on Contemporary management theories reveals that stereotype threat is a significant obstacle in establishing an inclusive organizational work environment. The main objective of this study was to investigate the impact of stereotype threat on workplace wellbeing of a selected population. The selected population was women executives, employed in 17 state universities of Sri Lanka. The sample size was 190. Sampling technique was stratified random sampling. Data were collected through an online survey. Data analysis was done using SPSS software. Results showed that, there was a statistically significant, moderate negative correlation between stereotype threat and workplace wellbeing r(98) =-0.350 , p < 0.05. Moderation effect of gender identification and mediation effect of identity separation on the relationships between stereotype and workplace wellbeing was non-significant. The conclusion was that there is a significant negative impact of stereotype threat on workplace wellbeing of the population.
Impact of Strategic Human Resource Management on Organizational Performance of the Cable Industry in Sri Lanka
(Department of Human Resource Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Karunarathna, K.; Weligamage, S. S.
The financial year of 2017 and 2018 marked drastic changes to the cable industry in Sri Lanka due to unexpected and unfavorable economic and external trends. As a result, the cable industry underwent a huge transition in terms of diminishing profits, losing the existing competitive edge and facing difficulties in sustaining in the market. Therefore, as a long term solution, the cable industry shifted their management focus from managing imitable resources to managing people for better results for their long term sustainability. Hence this research is an attempt to explore the impact of Strategic Human Resource Management (SHRM) on Organizational Performance of the Cable Industry in Sri Lanka and the mediating role played by Organizational Climate. Accordingly, three variables were conceptualized; Strategic Human Resource Management as the independent variable; organizational performance as the dependent variable; and organizational climate as the mediating variable. For the purpose of the study 126 respondents of the managerial staff of the cable industry was selected using systematic random sampling to obtain their views. Questionnaires were distributed to the respondents personally via email and data were collected which were analyzed using inferential and descriptive statistics. The research findings revealed that there is a positive linear relationship between SHRM and organizational performance, SHRM and organizational climate and organizational climate and organizational performance and that there is a mediating effect of organizational climate on the relationship between SHRM and organizational performance.
Sustainable Development in Sri Lankan Banks: A Non-Financial Disclosure Analysis
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Rathnayake, R. M. D. L. D.; Weligamage, S. S.
Many scholars in other countries have studied the bank's contribution toward sustainable development Goals (SDGs) but not much yet in Sri Lankan Context. This study aims to contribute to the ongoing discussion about Sri Lankan bank contribution toward SDGs. A score is derived from four variables using the literature such as business model, ownership, integrated reporting, and stock market listing to identify the Sri Lankan banks' contribution to the SDGs and the extent of reporting about SDGs. The information mentioned by the banks about sustainable development in the non-financial reports has been considered through manual content analysis using the 16 banks over the period of three years. The results of the study revealed that banks are paying more attention to SDGs that more benefit the business. Different approaches of banks to SDGs can be seen. The study's findings confirm that there are differences in the attitudes of the banks toward the SDGs. Integrated reporting affects changes in the contribution of banks and business models, ownership, and stock market listing have less impact. This study is useful for bank managers and decisionmakers to develop policies to support organizations in contributing to the SDGs and for taking strategic advantage to implementing the SDGs.
The Effect of Financial Literacy on Firm Performance Thorough Mediation of Financial Access and Financial Risk Attitude: Evidence from Selected Manufacturing MSME in Ratnapura District
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Yatawatta, Y. S. K.; Weligamage, S. S.
Introduction: The study assesses the effect of financial literacy on the growth of manufacturing micro, small and medium enterprises (MSMEs) in Ratnapura District, Sri Lanka while examining access to finance and financial risk as mediating variables. This study is based on the premise that MSME sector is critical in the economic development of a nation through employment creation, growth of the Gross Domestic Product (GDP), and investment in innovations. Even with this significance, financial literacy remains an area of concern especially in as far as the ability of MSMEs to have access to formal financial systems and making rational economic decisions is concerned. Methodology: A quantitative methodology was adopted that used a self-administered structured questionnaire designed for 145 MSME owners/managers. Data were analyzed using SPSS with the aid of regression and mediation analysis using Hayes’ Process Macro. Financial literacy, financial access, financial risk attitude and business performance were measured with the use of verified and standardized constructs. Findings: Having knowledge of finance leads to greater business results through more integration into the economy and a more diversified risk attitude. In addition, MSME loans, credit and other financial services are more accessible as financial education enables better risk assessment. Mediation analysis assists in establishing that financial literacy, firm performance and financial access, and financial risk attitude are all closely interrelated in a cause and effect cycle where each is mediating the other. Conclusion: Financial literacy in the case of owners of MSMEs is crucial in increasing their financial inclusion and risk profile therefore improving the success of their businesses. There is need for financial education, also measures to correct the problem of illiteracy should be taken. Other possible mediating variables and frameworks could be investigated in future studies and other geographical areas or sectors could be incorporated.
The Effect of Financial Literacy on Firm Performance through Mediation of Financial Access and Financial Risk Attitude: Evidence from Selected Service MSME in Rathnapura
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Sugathadasa, B. V. S. N.; Weligamage, S. S.
Introduction: This study examines how the literacy of businesses in the service sector in the Ratnapura District, Sri Lanka can be related to their performance. Micro, Small and medium-sized enterprises are the engine of the economy and the main providers of jobs, but they face such difficulties as financial management that is not enough and the difficulty in accessing financial resources. Through the use of financial risk attitude, the research gives financial access golden to the mediating roles and it analyses the connection between financial literacy and MSME performance. This study pursues the gaps found in the current literature and gives real-time advice on how the performance of the MSME in the region can be enhanced. Methodology: The study engaged in the quantitative methodology which included the participation of 168 MSME owners and managers from the service sector of the Ratnapura District. The data can be collected as structured questionnaire and analysis was done by using SPSS, a statistical software program. This strict methodology made it possible to derive conclusions that are statistically valid. The research passed through the very specified factors of production; these include; financial literacy, financial access, financial risk attitude, and MSME performance, in which the study placed its major focus on their interactions. Findings: The results demonstrate a clear, and statistically significant correlation between financial knowledge and MSME performance. At the same time, the research has brought out the mediating roles of both financial access and financial risk attitude in this relation. Besides, financial education not only grants a better access to fund, it also brings the creation of the strategy of investment and risk-taking among MSMEs' holders and managers. A calculated mindset, that is; a risk-taking oriented mindset, also creates a strong bond between business activity and excellence. The findings reveal the intricate relations between the performance of MSME, the financial literacy of the individuals, their access to money and of course, their risk-taking approach in the field of maintenance of the infrastructure. Conclusion: This study is beneficial in comprehending the impacts of financial knowledge on the MSME performances in Ratnapura in particular. Consequently, the report underlines the necessity of financial literacy programs with focus subjects and development of special financial instruments for accuracy in satisfying the effects of MSME owners. There is the potential for growth and sustainability for the targeted regions with the guidance of policymakers and financial institutions. Through addressing some of the research open ends, the study presents options for feasible recommendations for MSMEs' prosperity in the service sector that are also valuable to researchers.
The Effect of Financial Literacy on Firm Performance Through Mediation of Financial Access and Financial Risk Attitude: Evidence from Selected Trading MSME in Ratnapura District
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Witharama, Y. W. K. M.; Weligamage, S. S.
Introduction: Micro, Small and Medium Enterprises (MSMEs) are important players in economic development as they provide employment and contribute significantly to the GDP of both developed and developing nations. MSMEs face challenges such as limited financial literacy, limited access to financing and poor risk management skills which at the end results in financial failure of the business. Entrepreneurs who can manage their firms more effectively and make informed decisions have access to increased resources and are more effective at managing risks. This study examines the Effect of Financial Literacy on Firm Performance Through Financial Access and Financial Risk Attitude as Mediators. Methodology: This quantitative and deductive approach was followed, by the positivism philosophy, in an attempt to examine the research problem logically. Primary data were collected from 150 MSMEs using structured questionnaires. Descriptive statistics, correlation analysis, and mediation analysis were conducted using SPSS to evaluate the hypothesized relationships among financial literacy, financial access, financial risk attitude, and firm performance. Findings: The findings indicate a strong positive relationship between the financial literacy of the MSMEs and their performance. Financial literacy was found to have a direct effect on performance and improved the ability to acquire financial resources and positive risk attitudes, which came as partial mediators. MSMEs with more financial knowledge found it easier to obtain funds, manage risks, and deal with market changes and thus made better performance. Conclusion: The analysis demonstrates that targeted policy measures and educational programs on financial literacy should be incorporated into the agenda of MSME owners’ empowerment. Statistics reveal that with better information, entrepreneurs’ judgment is clear, resources are allocated better, and complex financial networks are exploited. Making finance available through efficient and uncomplicated lending and customized financial aid is critical to sustaining liquidity and fostering growth. Also, constructive risk attitudes allow MSME owners to embrace risks and mitigate uncertainties with confidence. These actions are important for establishing a nurturing environment that guarantees the viability and growth of micro, small and medium enterprises in developing countries.
The Mediating Effect of Knowledge Management on Intellectual Capital and Value Creation: Evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya., 2023) Karunarathne, W. V. A. D.; Weligamage, S. S.; Wanigasekara, W. A. D. K. J.
This paper aims to investigate the impact of Intellectual Capital on Value Creation mediated through Knowledge Management in Sri Lankan companies. The ‘static’ and the ‘dynamic’ aspect of knowledge and the theoretical models, which are based on the relationship between Intellectual Capital and Knowledge Management forced the authors to address this research problem. The study was based on the top corporate personnel’s views collected through a self-administered questionnaire. Out of 297 Public Listed Companies listed on Colombo Stock Exchange and 517 private companies registered in Ceylon Chamber of Commerce, 263 companies were selected as the sample. Value creation was measured through both non-financial value drivers and financial value drivers, which was an innovative feature of this study. The data was analyzed using multivariate analysis through Partial Least Square Structural Equation Modeling. The findings confirmed a partial mediation of knowledge management. Further, findings revealed a significant and positive impact of intellectual capital on value creation and a significant positive impact of intellectual capital on knowledge management. The impact of knowledge management on value creation was also a significant positive one.