ICBI 2014

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/10229

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Author: search.filters.author.Chandrasena, S.M.

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    Macro-Economic and Internal Determinants of Share Prices in Sri Lanka A Case from Colombo Stock Exchange- Banking Sector
    (University of Kelaniya, 2014) Chandrasena, S.M.; Fernando, C.S.P.K.; Ranaweera, R.M.C.S.
    The focus of this study is to identify the relationship between internal and macro-economic determinants on share prices in Sri Lankan based banking companies in the Colombo Stock Exchange (CSE). The study uses panel data pertaining to the banking sector over the period of seven years from 2006 to 2012. The fundamental purpose of this research is to ascertain the syndicate effect of profitability, dividend payout ratio, return on asset, Gross Domestic Production (GDP) and inflation (Independent variables) with share prices (Dependent variable). A sample of 7 listed banks has been selected from the CSE for the study. The basic objectives are to identify the relationship between share prices and selected independent variables and to capture the impact of unobserved data on share prices. Pool regression model and fixed effect model are employed to meet the objectives of the study. The results of the pool regression model show that profitability of the firm and GDP have a positive significant impact on market stock prices. By capturing the impact of unobserved data the entity fixed effect model reveals that certain banks had firm specific effects on share price. The time fixed effect model shows that favorable time periods cause to make favorable changes in share prices.
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    An Empirical Analysis of Liquidity in S&P SL 20 Index of Colombo Stock Exchange
    (University of Kelaniya, 2014) Fernando, C.S.P.K.; Chandrasena, S.M.; Perera, H.A.N.D.
    This study analyzed the liquidity formation in the recently introduced index to the CSE, the S&P SL 20. The main focus of the study was the depth of trading liquidity. Three possible influences on depth; timing, market condition and trading volume, were identified. Regression and correlation analyses were used to test developed assertions. First regression model tested the impact of time on share price. Second regression model tested the impact of time on share volume. Finally, the impact of share volumes on share price was tested with correlation analysis. A highly and continuously trading stock sample was drawn from the S&P SL 20 index as to test the variables at their ceiling liquidity. The results shows there were no material impact from any of the variables studied on trading liquidity of sample stocks.