10th Students' Research Symposium 2021 (Full Papers)

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Effect of financial performance on share prices during the covid-19 pandemic: special reference to the listed bank, financial, and insurance sector in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Apasinghe, N.V.N.N.; Fernando., J.M.B.R
Introduction- COVID-19 is a major health emergency recognized around the world. The investors invest in various types of investment avenues such as shares, treasury bonds, treasury bills, debentures and etc. Among these instruments, investment in company shares is an attractive way of profitable investment as far as the capital market is concerned. Most of the stakeholders are mainly concerned about the share price of the entity in the process of resource allocation. Hence this study examines the effect of financial performance on share prices during the COVID 19 pandemic. Design/Methodology/Approach- The study used deductive approach. The study employed a survey questionnaire to collect the data and the sample consist with 113 respondents. Willingness to pay, accessibility, affordability, and consumer trust were used as the factors affecting introduction of micro-insurance schemes. Design/Methodology/Approach: This study used panel data consisting of 20 listed banks, and financial and insurance sectors in Sri Lanka covering the period from 2018 to 2020 at the Colombo Stock Exchange. Return on assets, return on equity, return on investment, and earnings per share were used as financial performance measures and used two control variables; Board size and Firm Size. The study employed Ganger Causality test to find the effect of financial performances on the selected companies’ share prices. Findings- The study reveals that financial performance variables are Granger-cause average share price at its levels of significance during the COVID 19 pandemic consistent with the literature. Conclusion – This study can assist the banking, finance, and insurance sector in Sri Lanka to get a better understanding of the financial performance of the share price during a pandemic. Stakeholders and bank managers will be able to use the results and findings from the results of this study and they can make more reliable and effective decisions during a pandemic.
Factors affecting in introducing micro-insurance for the self-employed people in Kurunegala district
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Amarasekara, M.S.P.C.G.; Fernando., J.M.B.R
Introduction-The objective of this study is to examine the factors that affect the enhancement of outreach of Micro Insurance Services available for the self-employment sector in the Kurunegala district. The concept of micro-insurance is more prevalent in third world countries and the need for financial services for the poor is now universally accepted. Micro Finance (MFI) was launched to provide a formal risk protection scheme and minimize poor household facilities and the idea of micro-insurance was born. Design/Methodology/Approach- The study used deductive approach. The study employed a survey questionnaire to collect the data and the sample consist with 113 respondents. Willingness to pay, accessibility, affordability, and consumer trust were used as the factors affecting introduction of micro-insurance schemes. Findings- Willingness to pay, accessibility, affordability, consumer trust in income has significant positive effect on the implementation of micro-insurance. The hypotheses were tested using simple regression analysis, and all alternative hypotheses were accepted and null hypotheses were rejected. Conclusion – The study relevels that industry professionals and insurance companies need to pay attention to the factors such as willingness to pay, accessibility, affordability, consumer trust in deciding their micro-insurance schemes. Thus, insurance companies can introduce new eye-catching insurance schemes to eliminate or mitigate the impact of these barriers.
Factors determine the demand for microinsurance among low-income households in Galle district
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Jaisa, M.J.S.; Buddika, H.J.R.
Introduction- Microinsurance is the product that concerns low-income households in the world. This study provides a summary of the research of factors determining the demand for microinsurance among low-income households in the Galle district. The purpose of this study is the analysis and identify which are the factors impacting the demand for microinsurance among low-income households. Design/Methodology/Approach- The research is quantitative and regression analysis is used to find out the relationship between factors. The sample size is limited to the 250 low-income households in the Galle district and the random sample method used. Primary data are collected through well-designed questionnaires online and printed; the data were analyzed by using SPSS 23 software. Findings- This research discloses that age, gender, marital status, occupation, income, expenditure, educational level, number of children in the family, knowledge about microinsurance trust on microinsurance are determining the demand for microinsurance. This study gives more information about major factors that determine the demand for microinsurance among low-income households and provides some recommendations for getting decisions about increasing the population of microinsurance in the Galle district. Conclusion – Based on research findings it is proved that low-income householders have microinsurance for a certain level and the majority do not aware. Therefore, the insurance companies who target the low-income householders must focus on the methods of popularising the brand and promotional activities to get higher involvement of them.
Impact of covid – 19 pandemic on debt securities in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Krishanth, P.; Buddika, H.J.R.
Introduction- This study is conducted on the debt securities of Sri Lanka during the COVID – 19 pandemic. This study explores the impact of the COVID – 19 pandemic outbreak and the relevant factors on the debt securities yield in Sri Lanka. Design/Methodology/Approach- The study consists of COVID-19 confirmed cases, inflation rate, interest rate, economic growth rate and foreign investment and the data was collected for the period of January 27th, 2020, to August 31st, 2021. This study uses the time-series regression model to evaluate the impact of the daily increase in the COVID confirmed cases during the pandemic on the debt securities yield. Findings- According to the results, the interest rate and foreign investment exhibited a significant positive relationship with the debt securities yield. The variables inflation rate and economic growth rate displayed a significant negative relationship with the debt securities yield. Moreover, the COVID-19 confirmed cases had an insignificant positive moderation impact on the debt securities. Conclusion – The outcome of the study emphasizes that the overall model is statistically significant, and the study concludes that there is a positive relationship between the COVID-19 confirmed cases and the debt securities in Sri Lanka.
The impact of covid19 pandemic on the profitability of the insurance industry in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Thilakarathna, U.H.L; Fernando., J.M.B.R
Introduction -The main purpose of conducting this research is to examine the effect of the COVID-19 pandemic on the profitability of the insurance industry in Sri Lanka. At present COVID-19 pandemic is very crucial to the profitability of any industry. As a consequence, it is expected that this impact transposes into the nature and methods of insurance risky ventures, and thus drastically changes the business models of the insurance industry both in the short and long run. Despite the abundance of predictions and potential implications, the literature lacks investigations that target the short-run economic impact of the COVID-19 pandemic on the insurance industry. Design/Methodology/Approach - The analysis is based on 10 insurance companies listed on the Colombo Stock Exchange and also the study is based on secondary data over a period of the past four years from 2018 to 2021. Correlation, regression analysis, and descriptive statistics were applied in the analysis. Firm size, premium growth, solvency ratio, Confirmed COVID Cases, Reinsurance dependency, Inflation, and GDP Growth were used as firm-specific factors and ROA was used to measure the profitability of the firm. Findings – The study shows that there is a significant impact exists the between COVID-19 pandemic and the insurance industry’s profitability. Conclusion: The study provides directions for the management of the insurance sector of Sri Lanka in relation to its profitability dimensions during a pandemic. The proactive actions were taken by the insurance companies during the Covid-19 appreciated and it is highlighted how sensitive the profitability indicators for the chosen strategies.
The impact of electronic banking service quality on customer satisfaction during the pandemic period
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Priyankara, W.M.; Weligamage, S.S.
Introduction- Due to Coronavirus spread in the community, customers looked for more and more electronic banking services other than traditional banking services during the pandemic period. This study aims to see the impact of electronic banking service quality on bank customer satisfaction during the COVID – 19 pandemic n Sri Lanka. Design/Methodology/Approach- The study was based on the quantitative approach and used primary data targeting four commercial bank electronic banking services used customers and 182 electronic banking service holders included in the study. Findings- Findings revealed that the electronic banking service quality dimensions such as reliability, assurance, security & privacy, ease of use variables have a significant positive impact and empathy dimension has a negative impact on customer satisfaction during the COVID – 19 pandemic periods in Sri Lanka. Conclusion – Based on the findings of this study electronic banking service quality dimensions, commercial banks in the Sri Lankan banking industry should focus on reliability, assurance, security & privacy, ease of use, and empathy.
Impact of enterprise risk management on underwriting profit of insurance companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Madhushan, T.S.; Buddhika, H.J.R.
Introduction- Enterprise risk management is the modern concept that was used by financial companies to manage their risk. This study was conducted to examine the impact of enterprise risk management on underwriting profit in insurance companies in Sri Lanka. Design/Methodology/Approach- The secondary data was collected from the sample of nine insurance companies in Sri Lanka for the period of eight years from 2013 to 2020. The drawing sample data was tested using panel data regression inference the results throughout pool ordinary least square, fixed effect and random effect models. Findings- The researcher used correlation analysis to measure the association between Enterprise risk management and underwriting profit. Conclusion – According to the finding of this study chief risk officer, risk committee, independent board of directors, solvency margin, leverage and external stakeholders showed a negative relationship between underwriting profit and only size showed a positive relationship between underwriting profit. Moreover, the result of this study found that there was a significant negative impact from solvency margin on underwriting profit and, there was a significant positive impact on the size of underwriting profit in insurance companies in Sri Lanka
The impact of risk management on the financial performance of listed insurance companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Supun, Nishan K.; Fernando., J.M.B.R
Introduction: Risk, if not adequately managed, can lead to the demise of most businesses, particularly those whose core business is risk management on a day-to-day basis. Risk management should therefore be at the heart of an organization's operations, with risk management techniques integrated throughout the whole organization's processes, systems, and culture. Thus, the goal of this research is to determine the impact of risk management strategies used by Sri Lankan insurance companies on their financial performance. Design/Methodology/Approach - The study employed an exploratory research design, with 28 registered insurance companies in Sri Lanka as the target population. Secondary data was employed in the study. 15 insurance companies were contacted for secondary data. Secondary data was gathered over a six-year period from 2015 to 2020 using published sources as well as data from IRCSL's financial statements. Panel regression analysis was used in the research. Underwriting risk, market risk, liquidity risk, and operational risk were used as proxies for risk management whereas the return on asset is the proxy for financial performance. The firm size was used as a moderating variable and the type of insurance as the control variable. Findings – Underwriting risk, market risk, and operational risk showed a significant and positive relationship with the return on assets ratio and the moderating effect of firm size on the relationship between liquidity and financial performance also show a positive and significant impact. Liquidity risk showed a significant negative relationship with the return on assets. Conclusion – The study suggests that Sri Lanka's listed insurance companies should consider reducing their costs and claims through appropriate estimating pricing and valuation techniques. Furthermore, insurance companies should provide sufficient diversification of the insurance policy portfolio in order to earn higher premiums that can cover other losses when they occur. The findings imply that good management of a firm's operations results in lower operating expenses, which leads to an increase in the proportion of net premiums to total assets, which improves a firm's performance. To cut expenses and improve financial performance, insurance companies should employ efficient operations management procedures.
A study of awareness and usage of e-banking services among women with special reference to Kundasale division, Kandy
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Athukorala, A.A.M.; Samarawikrama, A.J.P
Introduction- This research study investigates the awareness and usage of e-banking services among women in Kundasale Division, Kandy District. Design/Methodology/Approach- For this purpose, nine hypotheses were proposed and tested. In this study, Usage of e-banking services is measured by the eight components; Demographic factors, awareness, convenience, security, cost effective, perceived risk, attitude, Knowledge and accessibility. More over researcher has examined the impact of demographic factors to the awareness to e-banking services. Sample size comprises of 214 respondents from women who lived in Kundasale division, Kandy District. Sample was selected using convenience sampling technique and data was collected through primary sources. To collect the primary data, questionnaire was used. The statistical methods of Regression analysis were used for the testing of the research hypotheses. Findings- Results revealed demographic factors, convenience, attitude, knowledge and accessibility and security, cost effective and perceived risk has insignificant impact on usage of e-banking services among women. Also, the women demographic factors have significant impact on the awareness of e-banking services. Conclusion- The final results emphasize that the overall model for demographic and awareness and usage of e-banking services has significant impact on the usage and awareness of e-banking services among women and out of this demographic factors only marital status examined the insignificant and when considering factors affects only three factors (convenience, attitude, knowledge and accessibility) were significant while security, cost effective and perceived risk were not significantly impact on the awareness and usage of e-banking services among women in Kundasale Division, Kandy.