Volume 04 - 2015
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/13915
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Item Predictability of Stock Returns Using Financial Ratios: Empirical Evidence from Colombo Stock Exchange(University of Kelaniya, 2015) Wijesundera, A.A.V.I.; Weerasinghe, D.A.S.; Krishna, T.P.C.R.; Gunawardena, M.M.D.; Peiris, H.R.I.The purpose of this research is to examine the ability of the historical financial information in constructing a resilient value portfolio for investors by predicting stock returns in the Sri Lankan context. One of the most imperative and interesting phenomena for the investors and the analysts would be the stock returns from the financial markets. The present study will aim at mainly to assess correlation between financial ratios and the predictability of stock returns for companies listed on the Colombo Stock Exchange. This study applies ordinary least squares (OLS) techniques to estimate the predictive regressions in form of simple and multiple models of panel data sets. For the current study, 60 listed companies were selected and 10 years of data has been analyzed from 2004 to 2013. The results highlighted that ROE, EPS and MV/BV have a significant positive relationship with the stock return which is followed by a simple equation to predict the future stock returns. Hence the investors should consider these ratios of the companies and movement in these ratios in selecting a resilient portfolio to invest.Item The Relationship between Board Characteristics and Earnings Management: Evidence from Sri Lankan Listed Companies(University of Kelaniya, 2015) Kankanamage, C.A.This paper aims to examine the impact of board characteristics on earnings management in Sri Lanka during the period from 2012-2015. The current study uses the ordinary least squares regression (OLS) to examine the effect of board on earnings management for a sample of 160 listed firms in Sri Lanka from 2012-2015. Kothari, Lenon and Wesley (2005) performance adjusted discretionary accrual model used to measure the earnings management by using the discretionary accruals. Findings revealed that there is a significant relationship between board size, board composition, board financial expertise and board meetings and earnings management of the firms. Thus effective board of a firm is contributing to enhance the financial reporting quality and transparency. The findings of this study would provide useful information for regulators and the practioners in the country to understand the significance of board characteristics of firms to constrain the earnings management and enhance the financial reporting quality and transparency. Further results provide useful information to the investors and other stakeholders in evaluating the existence of effective board characteristics in advance to put the confidence of the financial reporting quality and make their decisions.Item Model-Based Analysis of Student Satisfaction in Open Distance Learning(University of Kelaniya, 2015) Perera, M.J.R.; Abeysekera, N.Student satisfaction in Open Distance Learning (ODL) is a widely researched and admired feature in modern world. There are enormous number of research studies done on this ground with different variables affecting the student satisfaction. Since the Learners are coming from different societies, cultures, family backgrounds, educational backgrounds with different information technology skills it is very difficult to fulfill their requirements for satisfaction. But it must be explicable that the competitiveness of higher education rivalry being in the higher education field. The purpose of this study was to find out the significant factors affecting student satisfaction in Open distance learning at the Open University of Sri Lanka (OUSL). Based on literature, the famous modified service quality (SQ) model of SERVQUAL was applied in this study. The independent variables were Assurance, Empathy, Responsiveness, Reliability, and Website Content and the dependent variable was Student Satisfaction. Data were collected by using a self-administered questionnaire from 244 undergraduate students of OUSL. The analysis was based on descriptive and inferential statistics. The results have revealed Assurance, Reliability, and Website content in ODL were statistically significant with student satisfaction in ODL and results would contribute to administration of OUSL to improve the quality of service process.Item Factors Affecting Purchase Decision for Indian Two Wheelers in Sri Lankan Market(University of Kelaniya, 2015) Weerasiri, R.A.S.; Mendis, A.S.M.G.Within the past decade two wheeler usage indicates a rapid growth in Sri Lankan market. Among the two wheeler population, Indian two wheeler brads representing a huge portion.. In this research study researcher put effort to find out what are the factors effect on decisions of consumers on Indian two wheelers as a novel research. Main purpose of this study was to identify why Indian two wheeler brands becoming more popular and which factors effect on the purchasing decision and open up the gateway to study on this area among this study. Researcher’s previous working experience at Automotive Industry was lead to conduct the study. Data were collected from four districts representing the Sri Lankan population using questionnaire. According to the literature review researcher employed six variables namely Price, Technology and Design, Product Awareness, Spare Parts Availability, After Sales Services and Economic Conditions. Data was gathered from two wheeler users and non-users who are having ether two wheeler or willing to have a two wheeler. The findings also revealed several implications for marketers to better segmentation and targeting in the automobile industry especially on two wheeler sales. Further contribution of the demographic factors such as age, gender, income level, education level how far impacted on the purchasing decisions of the two wheelers and those are helpful to marketing managers to develop their strategies. Ultimately the study provides important insides how the variables are impact on purchasing decisions towards the Indian two wheelers at the Sri Lankan market.Item Equity Market Volatility Behavior in Sri Lankan Context(University of Kelaniya, 2015) Morawakage, P.S.; Nimal, P.D.Colombo Stock Exchange (CSE) in Sri Lanka is at its first level of emerging markets. Volatility of emerging markets are considered to be high and characterized by complex features. Therefore, this study focusses on examining the volatility behavior of Colombo Stock Exchange with advanced econometric models. Here GARCH, EGARCH and TGARCH models are used to capture the complex volatility features. It is observed that volatility clustering and leverage effect exists in Colombo Stock Exchange. Further, negative shocks creates more volatility compared to a positive shocks generated in the market. TGARCH model assuming student-t probability distribution function is more suitable to explain the volatility in Colombo Stock Exchange among the models described above according to the Akaike and Schwarz information criteria.Item Market Orientation, Innovativeness and Performance in E-Learning Programme of Sri Lankan Universities(University of Kelaniya, 2015) Vaikunthavasan, S.; Samarakoon, S.M.A.K.The purpose of the study is to explore the market orientation, innovativeness and performance of the government Universities in Sri Lanka. Sri Lankan Universities were the unit of analysis. Data for this study were collected from the faculty heads or coordinators of Higher education programmmes in government Universities in Sri Lanka. Convenient sampling method was adopted, structured questionnaires were issued directly and sent through the mail to collect data and one hundred and fourteen respondents were gathered in this study. The MARKOR was used to measure the Market Orientation. Correlation and regression analysis were used in order to identify the association among market Orientation, innovativeness and performance. Three market orientation measures included intelligence generation; intelligence dissemination and responsiveness to intelligence were used to investigate their relationships with Innovativeness and performance. All three measures were found to be statistically significant and positively related to the Innovativeness and performance of the course programmes Universities in Sri Lanka. Based on the studies, the Universities were suggested to follow proper market oriented strategy in higher education system, it will lead to optimum performance achievement.Item Does the Mode of Opportunity Identification Influence the Innovativeness of Small Businesses? A Study in Sri Lanka(University of Kelaniya, 2015) Upananda, W.A.; Kumara, U.E.S.There is a growing concern about the heterogeneity of the nature of small businesses in a given context. The difference between opportunity discovery and creation (mode of opportunity identification) may explain this heterogeneity. Then the wealth creating ability also may vary with the mode of opportunity identification although entrepreneurship literature is silent in this regard. Then the purpose of this study is to explore the wealth creating potential (innovativeness) of small businesses with regard to the mode of opportunity identification. Entrepreneurship literature informs that opportunity discovery under risk is different from opportunity creation under uncertainty although these terms has been used interchangeably. Few studies show that context may have influence over the opportunity identification. Few studies show that entrepreneurs who create opportunities are ordinary and attempt to avoid uncertainty while those who discover opportunities are unique in ability of discovering opportunities and bear some risk. However studies which explore the relationship between the wealth creating potential and mode of opportunity identification are rare. Exploring gaps in research knowledge base on the nature of businesses emerged under opportunity discovery and opportunity creation with regard to research question ‘How the mode of opportunity identification influences the innovativeness of small businesses’. In consistent with entrepreneurship literature, the nature of business viewed in this study as wealth creating potential. This study builds on theories and assumptions pertinent to opportunity discovery and creation and employs case study method to explore the behaviour of small business owners in rural and urban settings. The rationale of selecting rural setting is that rural entrepreneur has no prior business experience to understand the probability of outcomes while urban entrepreneurs have prior business experience to understand the probability of outcomes to take calculated risk. This study has selected six cases after screening 178 cases in the rural setting and 111 cases in the urban settings in the North Western Province of Sri Lanka in 2010. Analysing within cases and cross cases employing pattern matching technique, this study shows that businesses created in the rural context are comparatively non-innovative than those small businesses discovered under opportunity risk.Item Productivity, Performance and Technical Efficiency in Banking: The foreign Bank’s Saga in the Context of Financial Reforms in India(University of Kelaniya, 2015) Joseph, B.; Krishnan, B.; Ramanathan, H.N.; Suresh, T.R.This paper is an attempt to examine the total productivity growth of foreign banks for the period 2002-2003 to 2013-2014. Data of ten major foreign sector banks for twelve years were used for the analysis and interpretation. Malmquist Productivity Index and Input oriented CRS data envelopment analysis are being used to measure the productivity of these banks over the years. Along with the productivity of foreign sector banks, their performances were also determined through ratios. The results show that the foreign sector banks has obtained an excellent mean TFP of 1.06 and nine foreign sector banks has obtained an eligible score of one which depicts that foreign sector banks are doing well in the country. The excellent performance of foreign sector banks in the banking industry is further substantiated with the ratios. The study has revealed that by enlarging the scope of foreign banks will obviously bring growth, development and technological advancement in the Indian banking Sector.Item The External Auditor’s Opinions and the Stakeholders’ Purposes: An Empirical Analysis in Sri Lanka(University of Kelaniya, 2015) Wickramasingha, S.R.M.; Nanayakkara, K.G.M.This paper specially investigate the Sri Lankan audit opinions and its’ effect to the investors’ decision making. It has been conducted the market-based model with a sample of thirty one (31) listed manufacturing companies on the Colombo Stock Exchange; the dependent variable “Stock Return” serve as proxy for Investors’ Decisions and independent variables are “Audit Opinions” published in Sri Lanka. The study use Anova test for the study. This research study’s final consequence is robust the notion of the audit opinions are not informative value to the investors’ decisions.Item Financial Stability in a Moderately Competitive Banking Market: Evidence from the Sri Lankan Banking Sector(University of Kelaniya, 2015) Liyanagamage, H.D.D.C.Banks in the developing countries are competing in an environment where the financial infrastructure or the prerequisites for such competition is lacking. Therefore there is a current debate in banking literature regarding the effect of bank competition on the stability of the banking sector. The present paper provides new and rather scarce evidence of effects of banking sector competition on financial stability of the Sri Lankan banking sector during the period 1996 to 2010. By analyzing a comprehensive set of panel data the study reveals that the Sri Lankan banking sector is moderately competitive as per Panzar and Rosse H-Statistic and, highly unstable as per Z- score. The results of the core analysis provide evidence for a U shape relationship between competition and stability in the Sri Lankan banking sector during the sample period. Hence, a different approach emerges, with underdeveloped countries giving a stronger role to competition authorities to understanding the complex relationship between competition and stability in the financial sector.