Volume 4 - Issue 2 - 2024
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29487
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Item The Impact of Identified Determinants of Cryptocurrency Awareness among Young Sri Lankans(Department of Finance, University of Kelaniya., 2024) Madhusheka, K. K. K. G.; Jethusan, J.; Piyananda, S. D. P.Purpose: This study aims to investigate the impact of identified determinants of cryptocurrency awareness among young Sri Lankans, especially focusing on their financial literacy, financial market experience, computer self-efficacy, perceived benefits, and trust. Design/Methodology/Approach: This study employs a quantitative research design using a deductive approach. Accordingly, primary data collected from 375 undergraduates from different faculties at the University of Kelaniya was analyzed using descriptive statistics, correlation analysis, and regression analysis. Findings: The results of the study showed that there is a statistically significant impact of selected independent variables (financial literacy, financial market experience, computer self-efficacy, perceived benefit, and trust) on cryptocurrency awareness. In addition, the findings emphasize the importance of financial literacy and computer self-efficacy, suggesting the need for more educational initiatives to build up their awareness. The researcher recommended training programs for undergraduates to enhance digital skills, education on cryptocurrency risks, and collaboration with institutions to promote responsible investment and provide implications for academia and policymakers. Originality: As there are limited studies based on the social acceptance of cryptocurrencies among young Sri Lankans, this study uniquely focuses on young Sri Lankans, an under-researched demographic in the field of cryptocurrency adoption. While much of the existing literature centers on developed economies, this research highlights the importance of understanding cryptocurrency awareness in developing economies like Sri Lanka where economic conditions, technological infrastructure, and financial systems differ significantly.Item Stock Market Investing Intention Among Youth in Colombo District, Sri Lanka(Department of Finance, University of Kelaniya., 2024) Faiz, S.; Pathirawasam, C.Purpose: This study explores the investment interest of 20-29-year-old youth in Colombo District, Sri Lanka, specifically examining the influence of Psychological Behavior, Financial Literacy, Cost of Living, and Financial Risk Attitude on their propensity to invest in the stock market. Design/ Methodology Approach: Data was gathered through an online survey, yielding 297 valid responses after excluding outliers. The relationships between variables were analyzed using multiple regression. Findings: The results reveal that cost of living and psychological behavior significantly impact youth interest in stock market investment. At the same time, financial literacy and financial risk attitude show no significant influence on their investment decisions. Originality: This study offers a unique evaluation of factors affecting youth interest in stock market investment in Sri Lanka, addressing the low participation rate among this demographic. Practical Implications: The findings provide valuable insights for government agencies, investment firms, and policymakers, helping them understand the determinants of youth investment interest. This knowledge can inform the development of strategies to enhance youth engagement in the stock market, contributing to economic growth and national development.Item Socioeconomic Determinants of Per Capita GDP Growth in Pakistan: An Econometric Analysis(Department of Finance, University of Kelaniya., 2024) Ali, I.Purpose: This study explores the socioeconomic factors influencing per capita GDP in Pakistan by employing an econometrics analysis technique and an ARDL bounds testing methodology. The main goal of this research is to explore and measure both long-term and short-term relationships between per capita GDP and selected socioeconomic indicators. Design/Methodology/Approach: The analysis incorporates the ADF unit root test, a correlation matrix, and the ARDL bounds test. The sample consists of annual data from 2002 to 2022. Findings: The long-term analysis indicates that GDP growth rate and control of corruption have a significant positive impact on per capita GDP. On the other hand, government effectiveness, industry, military expenditure, and total debt are found to have negative effects on per capita GDP. In the short term, changes in GDP growth rate, government effectiveness, and unemployment rate are shown to have immediate effects on per capita GDP. The error correction term suggests a significant speed of adjustment back to the long-run equilibrium after a shock. The finding highlighted the critical role of macroeconomic stability and institutional quality in fostering economic growth. Policies aimed at improving government effectiveness, reducing military expenditure, and managing total debt are essential for improving per capita GDP. Strict control over corruption and steady GDP growth are crucial for achieving long-term economic prosperity and sustainability. Originality: This study provides a comprehensive analysis of the socioeconomic determinants of per capita GDP in Pakistan. It highlights both short-term and long-term impacts of macroeconomic stability and institutional quality, offering insights that can guide policymakers in promoting sustainable economic growth.Item Impact of Dividend Announcements on Share Prices: Evidence from Material Sector Companies Listed on the Colombo Stock Exchange(Department of Finance, University of Kelaniya., 2024) Suganya, D. F. J.; Vajeetharan, K.Purpose: Dividend announcements play a significant role in the financial market as it provides important information to investors regarding the financial health and future prospects of a company. The major aim of the study is to investigate the impact of dividend announcement on share prices and the informational content of dividend announcements pertaining to the listed material sector companies in Sri Lanka. Design/Methodology/Approach: A sample of 21 companies from the material sector was selected for the study. The daily closing stock prices and first and final dividend announcements for the period from 2017 to 2021 were used as the dependent variables and independent variables respectively. The event study method was employed to reach the findings. Findings: The findings of the study reveal that the dividend announcement leads to a positive market reaction and it supports the signaling theory. This study will be particularly useful to prospective investors in making decisions aligned with the dividend announcement pertaining to listed material sector firms in Sri Lanka. Originality: This study intends to examine the market reaction to dividend announcements specifically for material sector firms listed on the Colombo Stock Exchange in Sri Lanka, while previous studies have explored the signaling theory and market reactions to dividend announcements across all sectors in Sri Lanka. Further, it is unique in that it analyzes data collected during an abnormal situation in the country.Item Corporate Governance and Stock Liquidity: Evidence from Listed Companies in Sri Lanka(Department of Finance, University of Kelaniya., 2024) Weerasinghe, W. S.Purpose: This study aims to investigate the relationship between corporate governance and stock liquidity in listed companies in Sri Lanka. Design/Methodology/Approach: Corporate governance was evaluated using an index constructed of the board of directors, audit committee, remuneration committee, nomination committee, related party transaction review committee, frequency of meetings, and gender diversity. Stock liquidity was measured using the Amihud illiquidity ratio. A Quantitative research study was performed based on the data collected from 100 Sri Lankan listed companies excluding companies in the Banking, Finance, and Insurance sectors due to its inherent nature of being highly regulated. Findings: It was found that the mean (median) values of corporate governance of Sri Lanka are 0.706 (0.714) and the mean (median) values of stock illiquidity are 0.839 (0.379). The results of the correlation and regression analysis revealed that a weak association between corporate governance and stock liquidity relationship. Therefore, this study concludes that corporate governance has no significant impact on stock liquidity. Nonetheless, this study analyzed a limited sample of 100 companies, focusing primarily on board and its committee-related corporate governance attributes. Originality: This study provided new insights into relationship between corporate governance and stock liquidity which has a practical significance for managers, shareholders, investors, traders, financial analysts, and policy makers in Sri Lanka. It introduces a novel corporate governance index tailored specifically to Sri Lankan companies highlighting its potential improve the stock liquidity at both the company and market levels which will ultimately lead the country towards economic growth.