11th Students' Research Symposium 2022
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/26042
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Item The Dynamic Relationship of Domestic Credit and Stock Market Liquidity of the Commercial Banks on the Economic Growth of the Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kumara, A.G.D.M.; Gunasekara, A.L.Purpose: Domestic credit and Stock market liquidity are the most important components of the economy in any country. Both of these two components have been identified as highly impacted factors that affect economic growth in the studies. This study examines the dynamic and significant impact and the relationship between domestic credit and stock market liquidity on economic growth. Design/Methodology/Approach: The researchers use the quantitative research method and positivism philosophy. Researchers have collected secondary data from 2011 to 2021 on the selected research variables from Central Bank and other economic publications for the study. Also, domestic credit and stock market liquidity have been identified as independent variables and economic growth has been identified as dependent variables. Findings: The correlation analysis shows that the domestic credit has a weak negative and significant correlation to economic growth. Further, stock market liquidity has a weak, negative, and insignificant correlation to economic growth. Originality: This study covers the Covid-19 period and it is a novelty in this study.Item Moderating Role of Corporate Governance on the Nexus between Capital Structure and Firm Performance: Evidence from Consumer Service Sector(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kodippili, C.U.; Gunasekara, A.L.Purpose: The purpose of this research paper is to identify the moderating effect of Corporate Governance on the relationship between accounting base financial performance i.e., ROA, and ROE and Capital Structure of 12 consumer service sector firms listed in CSE main board. Design/Methodology/Approach: This study uses secondary data gathered from annual reports for the period of 2012 to 2021. In this study, multiple regression method is used under random effect regression model approach on panel data. Findings: The findings of the research's regression analysis indicate a negative relationship between the ROE and the independent variable of debt equity ratio (DER) and three moderating variables of board composition (BCOM), board size (BSIZE) and CEO duality (CEOD). When consider the moderating effect only CEO duality shows the significant impact to the DER and ROE. When considering return on assets (ROA) as the dependent variable, only DER has a significant impact on ROA. That means only DER that significantly effects on ROA in consumer service sector companies in Sri Lanka. Additionally, the moderating variables are not shown any significantly impact to the ROA. Originality: Considering corporate governance factors as moderating factors is a novelty in this study.Item Determinants of Financial Literacy: Analysis of the Influence of Financial Behavior and Financial Attitudes(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Navodani, R.B.G.S.D.; Gunasekara, A.L.Purpose: The purpose of this study is to identify the determinants of financial literacy and examine the most significant determinant of the financial literacy in Sri Lanka. This study focuses on how financial behavior and financial attitude impacts on the financial literacy in Sri Lanka. Design/Methodology/Approach: The research has used the quantitative approach to investigate this notion and gathered data from 400 individuals between only 18 and 60 years old in all nine provinces in Sri Lanka in order to achieve the research objectives. This research used a simple random sampling technique. In this study, the main source of data gathering approach is questionnaires. Findings: Based on the study's findings, the hypotheses test shows that the financial behavior and financial attitude are significantly impact to the financial literacy in Sri Lanka. As a result, the researchers suggest that the efforts needed to be made to include the importance of risk diversification, the time value of money, the calculation of compound interest, the importance of budgeting, effective savings strategies and money management skills debt in financial literacy programmes. Originality: This study considers the whole Sri Lanka to identify whether the financial behavior and financial attitude impacts financial literacy. This is a novelty of this study.Item Relationship Between Liquidity Position and Firm’s Profitability: Evidence from Colombo Stock Exchange(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Fonseka, W.A.L.M.; Gunasekara, A.L.Purpose: Organizations are always seeking to retain talented and motivated employees. Thus, they will maximise the performance of the organization. However, to what extent the employees need to be motivated still needs to be resolved. This study has focused on identifying different determinants of executive employees' motivations related to the general insurance industry in Sri Lanka and the mediating impact of employee motivation on organizational performance. Purpose: This research study aims to examine the relationship between liquidity position and firm’s profitability pre and during the Covid-19 pandemic period taking evidence from Colombo Stock Exchange (CSE) Design/Methodology/Approach: The Sample of the study consist with 44 companies from CSE and the data are collected from the period of 2017 to 2021, where 2017-2019 period is considered as per Covid pandemic period; 2020-2021 period is considered as during the Covid pandemic period. This study use panel regression model considering ROA and ROE as dependent variables and Current Ratio (CR) and Quick Ratio (QR) as the independent variables. Findings: The results of the study show that the QR is significantly and positively related to both ROA and ROE during the Covid-19 period. Originality: This study is a first attempt to examine the relationship between liquidity position and firm’s profitability, pre and during the Covid-19 pandemic period in Sri Lanka.Item Determinants of Non- Performing Loans in the Banking Sector: Evidence from Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kumara, G.S.P.; Gunasekara, A.L.Purpose: In Sri Lankan context, Non-Performing Loans of banks have significantly increased during last few years due to the pandemic, and it has bad effect on bank performance. Nonperforming loans have a negative impact on banks' profits directly. Therefore, this study aims to identify determinants of non-performing loans and banking sector taking evidence from Sri Lanka. Design/Methodology/Approach: The sample of the study consists of 10 banks as included CSE main board in Sri Lanka. 10 years from 2012 to 2021 was used as the period for data collection. All the collected data were analyzed using STATA software, which included statistical tests such as multicollinearity, normality, and panel regression analysis. Finding: The findings show that return on equity ratio had a statistically significant negative relationship with the dependent variable (non-performing loans). while other variables (capital adequacy ratio, loan to deposits ratio, return on assets ratio, public debt as % of GDP, Annual average inflation rate, interest rate) are statistically insignificant. Also, the control variable firm size is statistically insignificant. Hence, banks should focus more on these dimensions while making a concerted effort to reduce non-performing loans. Originality: This study considers the pandemic period and it’s a novelty in this research.Item Impact of Company Internal Factors on Debt Policy of the Listed Entities in Colombo Stock Exchange(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Darshika, K.M.W.; Gunasekara, A.L.Purpose: This study aims to examine the impact of institutional ownership, managerial ownership, free cash flow, asset structure and dividend policy on debt policy of listed firms by also considering the Covid 19 period. Design/Methodology/Approach: This study uses secondary data, that is, the financial reports of main board companies listed on the Colombo Stock Exchange 2019-2021. Purposive sampling using 92 data is being used in the research. Random effect regression analysis and conventional assumptions are the analysis methods employed in this study. Findings: The findings demonstrate that institutional ownership, free cash flow, and asset structure significantly improve debt policy, whereas managerial ownership and dividend policy have no impact. Originality: The sample period of this study covers the pandemic period. This is a novelty in this study.Item Impact of Board Size, Gender Diversity, CEO Duality and Board Independence on Firm Value: Evidence from Diversified Finance Companies Listed in CSE(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Fernando, H.N.J.; Gunasekara, A.L.Purpose: This study aims to examine the impact of board diversity on firm value of listed diversified financial companies listed in the Colombo Stock Exchange (CSE) in Sri Lanka. Design/Methodology/Approach: To examine the research objectives diversified financial sector is taken as the population. In this regard, data is collected from diversified financial firms listed in main board of CSE. Board size, gender diversity, CEO duality and board independence are employed as independent variables in this study, while the firm value is the dependent variable. All the collected data were analyzed using STATA software, which included statistical tests such as multicollinearity, normality, and panel regression analysis. Findings: According to the study's findings, board size had a statistically significant positive relationship and gender diversity, and firm age had a statistically significant negative relationship with the dependent variable (firm value) while other three variables (Board independence, CEO duality and firm size) are statistically insignificant. Hence data set having heteroskedasticity and autocorrelation, cluster option was done to fix those errors. According to the regression results, board size is more effective in increasing value of diversified financial companies listed in CSE. Originality: The novelty of this study is that this research considers the whole the diversified financial companies listed in the Colombo Stock Exchange (CSE) and considers the Covid 19 period within the sample.Item Factors Affecting the Capital Structure of Sri Lankan Nonfinancial Sector Before and During the Covid-19 Pandemic(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Gallage, K.S.S.; Gunasekara, A.L.Purpose: This study attempts to find the factors affecting to capital structure before and during the COVID-19 pandemic taking empirical evidence from the Sri Lankan non-financial-sector companies listed in Colombo Stock Exchange. Design/Methodology/Approach: This study uses secondary data from 2019 to 2021. The data are gathered from the listed firm’s annual reports. The explanatory variables of this study are Size, Profitability, Tangibility, Growth, Risk, and the COVID-19 dummy variable. Further, Total Debt and Long term Debt are the dependent variables used for the analysis. Findings: The results reveal a significant negative impact from profitability to the total debt ratio before the pandemic period. However, it is positive and not significant during the pandemic period. Further, during the pandemic period, the size of the firm shows a positive significant impact on total debt ratio while growth of the firm shows a negative significant impact on the total debt ratio. In the case where the long-term debt ratio is considered as the dependent variable, tangibility has a positive significant impact before and during the pandemic. Originality: Studies linked to COVID-19 and its impact on capital structure is rare in relation to Sri Lanka. In this context, this study uncovers the association between firm specific factors and capital structure under the pandemic in Sri Lanka.Item Impact of Financial Leverage, Size & Asset Structure on Firm Value: Evidence from Non-Financial-Service Firms in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dumankorala, H.S.; Gunasekara, A.L.Purpose: This study aims to identify the impact of financial leverage, firm size, and asset structure on firm value, with a focus on non-financial service firms listed on the Colombo stock exchange. Design/Methodology/Approach: The study is conducted based on quantitative approaches by using financial information from 121 non-financial service firms listed on the Colombo Stock Exchange during the time period from 2018 to 2021 and considering the COVID-19 impact. Regression analysis is used to recognize the impact of financial leverage, firm size, asset structure, and COVID-19 on firm value. This study used financial leverage, firm size, asset structure, and COVID-19 as the independent variables and firm value as the dependent variable. Findings: The results show that financial leverage and COVID-19 have statistically insignificant impact on the firm value, while firm size and asset structure have a statistically significant relationship with firm value at 5% level. Originality: This study supports the expansion of existing knowledge on the topic of the impact of financial leverage, firm size, and asset structure on the firm value of non-financial service firms and helps policymakers develop policies on corporate finance and develop strategies to increase firm value and performance by considering factors affecting firm value.Item Impact of Exchange Rate and Inflation on the Performance of Foreign Portfolio Inflows to Colombo Stock Exchange Sri Lanka: Pre and During Covid – 19 Periods(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dissanayake, D.A.S.D.; Gunasekara, A.L.Purpose: The objective of this research is to investigate whether the exchange rate, Inflation rate fluctuations, and covid-19 impact on foreign portfolio inflows (FPI) to Colombo Stock Exchange (CSE) Sri Lanka. Design/Methodology/Approach: This Study is based on secondary and time series data. This study uses 8 years monthly data from 2015 January to 2022 November. The data were collected from the Central Bank report and CSE Data library of Sri Lanka. The study used foreign purchases to measure the study's dependent variable, foreign portfolio investments. Exchange rate, inflation and covid-19 are the independent variables. The VAR, Granger causality test, Variance decomposition and impulse response are used as methods to examine the relationship between Inflation rate, Exchange rate and covid-19 on FPI. Findings: The results show that there is positive significant relationship between Inflation Rate and FPI while in Exchange rate and covid-19 have a negative impact on FPI. Originality: Studies that examine the association between salient macroeconomic effects and foreign portfolio inflows considering the pandemic period are rare in the context of Sri Lanka. Therefore, this study is a first attempt that examine above matter in the context of Sri Lanka.