11th Students' Research Symposium 2022
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/26042
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Item The Impact of Exchange Rate Volatility on Profitability of the Insurance Industry in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Weerasinghe, W.M.Y.P.; Weerasinghe, W.D.J.D.Design/Methodology/Approach: The study is a quantitative study taking 10 insurance companies operating in Sri Lanka as the sample. The companies were selected based on the data availability during the time period from 2012 to 2021. Following data are collected from secondary sources, Return on Assets (ROA), Exchange rates, Inflation rate, Annual GDP growth rate, Population growth rate, and Interest rate for this study. Exchange Rate Volatility used as independent variable and Inflation Rate, GDP Annual Growth Rate, Population Growth Rate, and Interest Rate use as the Control Variables. Return on assets used as dependent variables to measure the firm performance. The descriptive statistic, correlation analysis and regression equation are used for the purpose of analysing data. Findings: According to the findings of this study, overall, a negative impact of exchange rate volatility on ROA is shown. Further, the annual population growth rate, interest rate, GDP growth rate and inflation rate have a significant negative impact on ROA. Originality: The findings of this study can help the decision makers to be aware of the importance of Exchange rate volatility on improving the insurance firm’s performance to improve their competitive edge.Item The Impact of Covid-19 Pandemic on Financial Performance of the Insurance Companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Shamali, K.D.; Weerasinghe, W.D.J.D.Purpose: The primary objective of this study is to determine the impact of Covid-19 pandemic on the financial performance of the insurance companies listed on the Colombo Stock Exchange (CSE). Design/Methodology/Approach: This research study is quantitative research, and it follows the deductive approach. There are 27 companies in the Insurance sector however, there are 8 companies listed on the CSE. This study relating data were collected using the published annual reports for the period from 2015 to 2021. The secondary data were analyzed using descriptive statistics, the normality test, and the Wilcoxon signed rank test. Before and during the COVID- 19 pandemic, the liquidity ratio (LR), leverage ratio (LVR), Earning per Share (EPS), return on equity (ROE) and return on assets (ROA) were all measured individually in order to arrive at distinct results for those parameters. Findings: The findings indicated that the Covid-19 pandemic had a major negative impact on the Return on Assets and Return on Equity of the insurance companies. However, there had no meaningful impact on the leverage ratio and liquidity ratio during COVID-19 pandemic. Originality: Investors or potential investors should use the study's findings as a source of useful information when making investment decisions and managers can use this research to change or create long time decisions.Item Impact of Financial Literacy on Financial Risk Tolerance in the Context of Investment Decision-Making: Empirical Evidence from Individuals in Gampaha District(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Siriwardena, H.D.H.K.; Weerasinghe, W.D.J.D.Purpose: This study aims to examine the impact of financial literacy and demographic characteristics on the financial risk tolerance of the individuals in the Gampaha District, Sri Lanka. Design/Methodology/Approach: The study used deductive approach. The population of this study is comprised of 380 individuals in Gampaha District. The study used primary sources of data and data was collected using a close-ended questionnaire. Altogether 320 responses were collected while having an 84 percent of respondent rate. The descriptive statistics, correlation analysis and multiple regression model were used to analyze the data. Findings: The findings of the empirical analysis revealed that financial literacy and demographic characteristics such as age, gender, marital status, highest educational level, income and wealth are significant in determining the financial risk tolerance. It was evident that majority of respondents in Gampaha district make investment decisions by their own. Another important finding is that average financial literacy of a person in Gampaha district is 56.88%. Further, it was revealed that there was a strong positive relationship between financial literacy and financial risk tolerance level. The results prove that increasing people's financial literacy through various educational programmes is likely to increase demand for financial products with varying risk profiles. Originality: The study recommends that there should be a greater emphasis on financial education programme for enhancing the financial awareness among individuals in Gampaha district that positively impacts the risk tolerance level.Item A Study of Purchasing Power Parity in South Asian Countries(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Karunawardhana, S.S.; Weerasinghe, W.D.J.D.Design/Methodology/Approach: This research explores the validity of the purchasing power parity (PPP) hypothesis utilizing monthly data of South Asian countries throughout the period of 2015 to 2022. This research study is conducted based on secondary quantitative data. Out of the 8 South Asian countries 5 countries were selected as the sample (i.e., Bangladesh, Bhutan, India, Maldives, and Sri Lanka) based on the data availability. In the study, data analysis for short run purchasing power parity is done using the Vector Error Correction Method (VECM). Data analysis for long-run purchasing power parity is done using the co-integration method. Findings: PPP appears to be supported in a panel of South Asian regions, according to panel results. This study also discovered that there is a long-term relationship between price and exchange rate, even while VECM analysis reveals a short-term correlation between exchange rate and price differential as well as a bidirectional causal relationship between price and exchange rate. Originality: Investigations of the validity of purchasing power parity in the South Asian context are relatively limited. Therefore, this study contributed to the dearth of study by adding new knowledge to existing knowledge and filling the empirical gap in the South Asian context.Item Determinants of Non-Performing Loans in Licensed Commercial Banks and Impact of Covid 19 on Nonperforming Loans: Evidence from Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Weerakoon, K.W.H.M.Y.R.; Weerasinghe, W.D.J.D.Purpose: The purpose of this study is to ascertain the determinants of the non-performing loans and identify the impact of COVID19 on non-performing loans in licensed commercial banks in Sri Lanka. Design/Methodology/Approach: The study employed panel data methodology to investigate the effect of bank specific and macroeconomic factors on non-performing loans. This study takes secondary/ quantitative data. Panel unit root test has been undertaken in order to test the stationary of the variables. Hausman test and Breusch-Pagan Lagrange multiplier test were used to select the appropriate model out of pooled, random and fixed effect. The research conducted for pre-pandemic period (2012-2019) and period with the pandemic (2012-2021) to identify the impact of COVID19 on non-performing loans using selected 20 licensed commercial banks. Findings: Findings revealed that return on assets and loan loss provision has a significant positive influence, while loan to assets ratio positively associated with non-performing loan and no significant impact in both periods. Bank size has a significant negative influence. Real GDP growth rate, unemployment rate and lending interest rate were highly significant in both periods. Contrary to literature, inflation rate has a positive insignificant relationship with nonperforming loans. Originality: The findings of the study which details the determinants of non-performing loans of licensed commercial banks in Sri Lanka is beneficial for different stakeholders. The findings of the study might be used as a directive input in developing regulatory standards regarding lending policies in banking sector in Sri Lanka.Item Determinants of Commercial Banks’ Lending Behavior in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Gimhana, K.P.S.; Weerasinghe, W.D.J.D.Purpose: This study aims to examine the determinants of lending behavior of commercial banks in the Sri Lanka. Commercial banks are critical to the growth and prosperity of the economy. There are 24 commercial banks in Sri Lanka, both locally and internationally owned. Design/Methodology/Approach: The two theories, Portfolio theory and Bank Lending & Loanable Fund theory have been revisited through this study. Further, two parameters are used to calculate the sample size. They are long-term banking activities, as well as the availability of each bank's data during the time-period under consideration. This study relied on secondary data, and it spanned eleven-year period from 2010 to 2020. The key sources of secondary data for this study are annual reports from local commercial banks and annual reports. Altogether, 23 commercial banks in Sri Lanka sampled for the study. The descriptive statistics, correlation, and multiple regression analysis were used to analyze the collected data. Findings: The finding implies that commercial banks' lending is dependent on depositor's money. It means that as the ability of the bank to mobilize more deposits, the amount of loan granted to the customer will improve. Originality: It is investigated that to attain profitability and liquidity, Sri Lankan commercial banks should improve their methods for mobilizing public deposits and build a robust liquidity management mechanism, according to the report.