9th Students' Research Symposium 2020
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/22681
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Item Factors Influence in Low Income Level Farmers’ Perception Towards Micro- Insurance in Sri Lanka; With Special Reference to North Western Province(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Karunarthna, K. K. O. J.; Basnayake, W. B. M. D.Introduction-The micro insurance concept is an important element in developing countries. Even if this phenomenon is most successful in several countries, micro insurance has less popularity in Sri Lanka due to the poor knowledge and wrong opinions in the society. Low accessibility to credit facilities has been devastating the lower-income level farming business in Sri Lanka. Therefore, the lower-income level farmers in Sri Lanka encounter difficulties as these farmers cannot directly access credit facilities to boom and develop their farm business activities, which has led to agricultural business setbacks in the country. This paper investigated how micro- insurance policy has influenced peace of mind among lower-income farmers in Sri Lanka. Design/Methodology/Approach - The study used a survey research methodology, with the sample of low income level farmers in North Western province of Sri Lanka as the scope of the study. The data for this study was extracted from the primary sources through good designed, structured questionnaires, using correlation regression analysis to analyse the extracted data. Moreover, this aims to determine the present and future relationship between the variables; Accessibility, Knowledge, Ability to pay, behaviour of agents. and the perception of low income level farmers to micro insurance. Findings-The findings revealed that using micro insurance as a health risks management tool among lower-income farmers in rural areas. Conclusion - the study concludes that Micro-insurance can mitigate the vulnerability among the lower-income level farmers in the country.Item The Impact of Internal Factors on Financial Performance of Life Insurance Companies in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Uduwana, G. W.; Basnayake, W. B. M. D.Introduction- The performance of the company plays a leading role towards the growth of the industry which ultimately leads to the overall success of the economy. Therefore, Organizational performance has attracted scholarly attention in corporate finance literature over the several decades. Nevertheless, a little attention has been paid for such when it comes to the insurance sector. Thus, the present study attempts to identify the factors determining the profitability of insurance companies operating in Sri Lanka by taking return on asset as dependent variable. Design/methodology/approach -The sample for this study includes the 10 Life insurance companies in Sri Lanka and it used the data pertaining to five financial years from year 2015. For the purpose of analysing the data, descriptive analysis, correlation analysis and regression analysis were conducted with the aim of testing hypotheses formulated for this research. Therefore, internal factors such as Age of the firm, Size, Liquidity, and leverage were regressed against Return on Assets. Findings-This study led to the conclusion that profitability of insurance companies in Sri Lanka is positively and significantly influenced by liquidity and Leverage while age and Size of the firm have an insignificant effect on the performance of Life insurers in Sri Lanka. Conclusion- Finally, the research recommends life insurance companies in Sri Lanka to perform better in terms of their return on assets where, they need to improve the leverages and liquidity to a certain level based on the results of the study.Item Impact of Financial Risks on Financial Performance of the Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Indika, L. H. R.; Basnayake, W. B. M. D.Introduction - Stability of the commercial banks is very important to the whole financial system in the world. Therefore, financial performance is a critical factor of the commercial banks. Commercial banks face various type of risks such as credit risk, market risk, operational risk, liquidity risk and legal risk which is vulnerable to the sustainable performance of the bank. Hence, the researcher aims to investigate the impact of financial risks on financial performance of the commercial banks in Sri Lanka. Design/methodology/approach -This study adopted a quantitative research approach using a sample of 10 licensed commercial banks in Sri Lanka for the 12 years’ period. Secondary data was collected using published annual reports. Hypotheses were tested using panel data regression model employing STATA statistical software. Findings– Capital adequacy ratio has negative insignificant relationship with Return on Equity (ROE) and positive significant relationship with Return on Assets (ROA), whereas Non-performing loan ratio (NPLR) has negative significant relationship with ROE and ROA. Cost to income ratio (CIR) shows an insignificant negative relationship with ROA and ROE. Liquid assets to total liability ratio (LATLR) shows the positive significant relationship both ROA and ROE. When considering Net loans to total assets ratio (NLTAR), has shown the positive relationship in both ROE and ROA. However, it is significant only with ROA. Also Net loans to deposit ratio (NLDR) has negative relationship with ROA and ROE and it is significant only with ROE. Degree of financial leverage (DFL) has negative significant relationship with both ROA and ROE. Interest rate of risk (IRR) shows a positive insignificant relationship between ROA and ROE. Conclusion-The final result emphasizes that the overall model is statistically significant, and researcher conclude that financial risk affect the financial performance of the commercial banks in Sri Lanka.Item Impact of Electronic Banking on Bank Financial Performance: Evidence from Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Perera, D. M. T. R.; Basnayake, W. B. M. D.Introduction - Electronic Banking offers many advantages to banks and customers making them comfortable with ease and faster services. With the advancement and rapid increase in the usage of Information and Communication Technology (ICT) in financial sector, Sri Lankan Banks also have adopted electronic banking to deliver their services which has an impact towards the performance of the banks. Nevertheless, little research paid attention on the impact of E-banking on the performance in Sri Lankan context and hence, this study aims to examine the impact of E-banking on bank financial performance. Design/Methodology/Approach - This study adopted an explanatory research design. The researcher has selected the variables such as Electronic card banking, Accessibility of Mobile Banking, Net fee & Commission Income, Number of ATM and Bank size as independent variables and financial performance as the dependent variable. Data were collected via Annual reports & websites. The study used ten commercial banks from 2010 to 2019. The results were analysed using E-views. Findings – As per the analysis, impact of Electronic Card Banking (ECB), Net Fee Commission Income (NFCI) and Electronic Banking on bank financial performance were significant. However, impact of Accessibility of Mobile Banking, Number of ATM and bank size on bank performance were insignificant, Conclusion – It is concluded that there is an impact of Electronic Banking on Bank Financial Performance. to move in and adopt various innovations in their operation to shore up their performance. Thus, it is recommended to policymakers to develop appropriate strategies and policies to boost the performance in the Sri Lankan Banking System by considering electronic innovations.Item The Impact of Financial Inclusion on Performance of Listed Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Rasika, W. A.; Basnayake, W. B. M. D.Introduction – Financial inclusion is recognized as a vehicle to economic growth and reduce the poverty. The disparity in financial inclusion in different countries within Asia is highly significant. Financial inclusion is the usage and accessibility of the affordable financial services and products to the deprived, low income and disadvantage sector of the population. The primary objective of this study is to investigate the impact of financial inclusion on the performance of listed commercial banks in Sri Lanka. Design/Methodology/Approach – the study used annual data of 10 commercial banks from year 2015 to year 2019. Performance of commercial banks measured by ROA and financial inclusion measured by number of ATMs, number of bank branches, loans to deposit ratio and credit cards. This study follows a quantitative analysis. With the use of STATA statistical software, the collected data will be analysed using regression analysis method. Findings – The study found there is a significant impact of financial inclusion on financial performance of listed commercial banks in Sri Lanka. When considering the impact of financial inclusion indicators individually, it shows different results on financial performance of commercial banks. Bank embranchment, use of credit cards have significantly impacted the performance of the banks while impact of number of ATMs, loans to deposit ratios on financial performance were insignificant. Conclusion - It is suggested to develop the infrastructure of financial services that allows individual and corporate bodies to take advantage of financial services, hence banks can improve their performance. Moreover, it is recommended banks to continue to embrace the use of mobile banking in their operations as the access to a mobile equipment of the people increases every day. The banks can give options for the people to get the access for the banks through the mobile and technical appliance rather than opening up a branch which would be cost worthy compared to the opening up a bank branch.Item Impact of Online Banking on Financial Performance of Commercial Banks in Sri Lanka: Evidence from Commercial Banks on Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Hasna, M. J. F.; Basnayake, W. B. M. D.Introduction - Any electronic payment system which allows customers of a financial institution to carry out financial transactions through the financial institution’s internet-accessed website or application is called online banking. The study examines the impact of online banking on the financial performance of licensed commercial banks in Sri Lanka. Design/Methodology/Approach - - A sample of 10 licensed commercial banks in Sri Lanka was used for this study. Data were collected from annual reports of sample banks for the period of five years from 2015 to 2019. Financial Performance was measured in terms of return on assets (ROA) while net fee and commission income (FEE), number of ATMs (NATM), mobile banking (Mob) and internet banking (Int) were used to measure the online banking and number of branches (NB) and total assets growth (TAG) were used to measure control variable; bank size. Data were analysed under descriptive statistic, correlation analysis and regression analysis using E-Views packages. Findings - The findings reveal that FEE has insignificant positive impact on ROA. Significant negative relationship was identified between NATM and ROA and mobile banking and ROA, and internet banking and ROA. Further study revealed that NB has a negative insignificant impact on ROA and TAG has a negative impact on ROA. But overall online banking has significant impact on banks’ financial performance. Conclusion - The study fulfils the existing research gap in the area of online banking in Sri Lanka. These findings will help for future studies relating to the online banking. Moreover, it is recommended that banks embark on educating and creating awareness among their customers regarding online banking while developing strategies that can minimize the cost and maximize the benefit of online banking.Item Impact of The Fintech on Profitability of Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Dilshan, T. D. N.; Basnayake, W. B. M. D.Introduction - In today’s rapidly growing world, banks are having an increased rate of competition from other nonfinancial institutions that are providing e-commerce services and financial services to their customers. This research study tries to fill the gap of the limited previous studies that investigate according to existing research studies conducted by various researches related to impact of FinTech on the profitability of the banks. Design/Methodology/Approach - This study incorporated with Bank profitability through the impact of Financial Technology (FinTech). Purposive Random sampling method was used in choosing the sample. The research has adopted a descriptive research method and the study selected 10 listed commercial banks during the period of 2010 to 2019. Also panel least square (PLS) regression method has initially used to analyse the collected data. Findings - Based on the analysed results, every variable contains stationarity and analysis has followed a fixed effect model and it includes Investment in IT which is positively significant towards bank profitability whereas total assets is negatively significant. Use of a mobile app and Introduction of an online payment gateway shows positive and negative insignificant relationships respectively. Conclusion - The final result emphasizes that the overall model is statistically significant, and researcher conclude uptake of Fintech and Profitability of Commercial Banks in Sri Lanka have a significant relationship with bank profitability.Item Impact of Corporate Governance on the Financial Performance of Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Balasooriya, B. N. P. K.; Basnayake, W. B. M. D.Introduction – Commercial banks in Sri Lanka are playing an important and specific role in the economy. With the significant impact of failures in banks on the Sri Lankan economy, it brings the importance to study this phenomenon of corporate governance due to the existence of little literature. In today's modern business world, corporate governance has been one of the most important topics and this has attracted the attention of many researchers. Hence, this study attempts to examine the impact of corporate governance on the financial performance of the commercial banks. Design/Methodology/Approach - The study used commercial banks registered and operational in Sri Lanka. To measure the financial performance, return on assets and return on equity have been used as the dependent variable and as the independent variables, board independence, the board size, CEO duality, and audit committee have been used. Firm size and firm age were used as the control variables to enhance the validity and accuracy of the tests. The research has adopted a descriptive statistic and multiple regression analysis as the research method and the study selected 10 commercial banks from 2014 to 2018. The analysis was conducted using SPSS statistical software. Findings -. As per the correlation analysis, there is a significant weak negative relationship between board independence and ROE while there is a weak positive relationship with the board size. Moreover, ROA and board size have an insignificant weak negative relationship and with the board independence there is an insignificant weak positive relationship. Conclusion – This paper provides the level of the impact of corporate governance variables on the commercial banks’ performance. The Sri Lankan economy has to strengthen the corporate governance practices to improve financial performance. Nevertheless, good corporate governance practices will help prevent financial collapses and fraudulent activities within the corporate world.Item The Effect of Corporate Governance Elements on CSR Reporting; Empirical Evidence from Listed Companies of Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Madhurangi, M. I.; Basnayake, W. B. M. D.Corporate social responsibility (CSR) is a company’s commitment to manage the social, economic and environmental effects of its operations responsibly and in line with public expectations. The purpose of this paper is to investigate the corporate social responsibility (CSR) reporting information of listed companies in Colombo Stock Exchange (CSE) and explores the potential effects of corporate governance (CG) elements on CSR reporting disclosures. This study selected high market capitalized 30 listed companies in CSE for the analysis because of the availability of the annual reports of 2016, 2017 and 2018. The dependent variable is CSR reporting while independent variables are Board size, Independent Directors, Women Directors, Foreign Ownership, and CEO Duality and control variables are Company Size and Profitability. The study results show that the composition of foreign directors in the board and company size are significantly correlated with Corporate Social Responsibility Disclosure Index (CSRDI), whereas board size, boards with female directors and CEO duality have a negative association with CSR reporting. Composition of independent directors and profitability have positive relationship with CSRDI but it is insignificant. Findings suggested that there is no impact of board size, composition of independent directors, boards with female directors, CEO duality and profitability on the CSR reporting of the Sri Lankan context. This study provides empirical support for agency theory and legitimacy theory perspectives in developing economies and ratifies previous studies' findings from developing economies.