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.
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 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.
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.
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.