9th Students' Research Symposium 2020
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/22681
Browse
8 results
Search Results
Item Determinants of Profitability of Insurance Companies in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Ranaweera, R. L. V.; Weerasinghe, W. D. J. D.Introduction - Insurance sector in Sri Lanka is now being integrated into wider financial industry. Profitability of the aforesaid industry is key in maximizing its owner`s wealth. A key indicator of insurance companies’ profitability is return on assets. The main objective of this study is to identify and compare the determinants of profitability of Insurance Companies in Sri Lanka. Design/Methodology/Approach - The sample of this study includes top 10 insurance companies including both general and life insurance companies. The sample data covers a period of 5 years. Secondary data obtained from financial statements of individual insurance companies, IRCSL publications and related other journals. Descriptive Statistics, Correlation Analysis, Multiple Linear Regression and panel data analysis are the analysis tools used for data analysis. Findings - This research provide results found that there is a positive relationship between profitability and the firm’s age, volume of capital, loss ratio, economic growth as well as inflation rate. On the other hand, the rest of the explanatory variables shows that there is a negative relationship between profitability. Conclusion – It is concluded that when the maturity of an insurance company increases in terms of age and volume of capital the profitability of the insurance company increases. Further, when economic growth increases insurance products become more popular among policy holder and it increases the profitability.Item Factors Influencing Life Insurance Consumption in Western Province, Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Jayawardana, M. M. H.; Weerasinghe, W. D. J. D.Introduction – Insurance service play a major role in the business society. Whilst life insurance companies play a major role in the insurance market in Sri Lanka. Therefore, it is important to determine the factors influencing life insurance consumption in Sri Lanka. The main objective of this research is to study, determine the factors that influence life insurance consumption in Western province, Sri Lanka. Sub objectives are the find out the relationship between income, level of education, age, gender & no of dependent with life insurance consumption. Design/Methodology/Approach - A Survey was conducted for data collection through a structured questionnaire distributed to 203 life insurance policy holders from the western province Sri Lanka. The study follows the convenient sampling method to collect data. The analysis used in the study are descriptive analysis, correlation analysis, multiple regression analysis based on the hypotheses testing. Findings - The study found strong positive relationship of No of dependence with life insurance consumption. Conclusion - The study found strong positive relationship of No of dependence with life insurance consumptionItem Digital Banking Adaptation of Customers(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Abeysinghe, M. T. S. B.; Weerasinghe, W. D. J. D.Introduction - This research study is carried out to determine the factors affecting Digital Banking adaptation towards the customers in the Sri Lankan context and in order to examine the gap of the expectation of the banks’ accepted level of digital banking adaptation and the actual digital banking adaptation. Design/Methodology/Approach - This study has developed a conceptual framework based on the Technology Acceptance Model (TAM) which illustrates the relationship between selected factors affecting Digital Banking adaptation of customers. Perceived usefulness, perceived ease of use, perceived security were the independent variables whilst the Digital Banking Adaptation was the dependent variable. 196 digital banking users are used to collect data through a structured questionnaire. A multiple regression analysis was used to analyse the collected data. Findings - The study found a positive relationship of Perceived Usefulness, Perceived Ease of Use and Perceived Security towards Digital Banking Adaptation. Females more tend to use digital banking platforms than men. Level of education and digital banking usage has a positive relationship whilst profession and monthly income does not state a clear relationship. Digital banking was more popular in younger generation than the older. Conclusion - The final result emphasizes even though the digital banking is popular among the younger generation and mostly in female party still there is a vacuum in banking industry in using digital products due to various reasons. As the further research areas, the reasons for less adaptation for digital banking products could be suggested.Item Impact of Loan Portfolio Diversification on Performance of Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Samarasinghe, R. D. A. D.; Weerasinghe, W. D. J. D.Introduction - Credit risk related to commercial bank loans can be considered as one of the main risks faced by commercial banks. Therefore, commercial banks diversify their loan portfolio to improve performance and mitigate credit risk. Loan portfolio diversification refers to lending to different sectors without concentrating on a particular sector. The purpose of this study is to examine the impact of loan portfolio diversification on the performance of commercial banks in Sri Lanka. Design/Methodology/Approach - Hirschman Herfindahl Index was used to measure the loan portfolio diversification and performance measured based on CAMEL model. Interest Rate Spread and Bank size considered as the control variables. Data were collected from audited annual financial statements of commercial banks for a 5- year period. Data were analysed by using correlation and fixed effect panel regression model. Findings - The results reveal that there is a significant positive impact of loan portfolio diversification on commercial bank performance. Further, control variables bank size positively not significant links with commercial bank performance while interest rate spread has a negatively not significant impact on bank performance. Conclusion - It is confirmed that a diversified loan portfolio position leads to the healthy performance of commercial banks. The management should follow specific strategies about loan portfolio diversification and improve commercial bank performance while making high attention about the loan portfolio position of the bank.Item Impact of Commodity Prices and Macroeconomic Variables on Stock Market Performance - Evidence from Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Madhushankha, H. K. S.; Weerasinghe, W. D. J. D.In Sri Lanka, the stock market performance is impacted by numerous variables. Out of these variables, this research study has been carried out to determine the impact of commodity prices and macroeconomic variables on stock market performance in Sri Lanka. This study incorporated two models by using stock prices generated through ASPI and S&P SL20 index as dependent variables. As the commodity variables, tea, coconut, rubber, gold, silver, aluminium and crude oil were used whilst as macroeconomic variables, real GDP, inflation rate and exchange rate were used. Aforesaid variables are used as independent variables. Vector Error Correction Model is used as the main analysis along with descriptive analysis, correlation analysis along with related tests. The results emphasize that commodity prices of tea, rubber, coconut, gold, silver, aluminium and crude oil have insignificant long run relationship with ASPI and S&P SL 20 & Tea and Rubber prices have a short run impact towards ASPI while only rubber prices impacted to S&P SL20 in short run. Macroeconomic variables of real GDP, exchange rate and inflation rate have insignificant long run relationship with ASPI and S&P SL20 and Exchange rate has a short run impact to both ASPI and S&P SL20 index. It is concluded that there is no relationship between the commodity prices and stock market performance except for tea and rubber prices. Meanwhile, real GDP, exchange rate and inflation rate have an impact on stock market performance.Item The Impact of Accounting Variables on Stock Price: Evidence from the Colombo Stock Exchange(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Dissanayake, D. M. C. R.; Weerasinghe, W. D. J. D.The measurement of financial statements using accounting variables to determine the share price movement has become one of the main concerns today. The primary objective of the study is to examine the impact of accounting variables on the stock price. This research study analyses a 5-year period. The accounting variables identified in the study is EPS, DPS, ROE and PAT. The sample of the study is 150 firms representing 20 sectors using random stratified sampling techniques. The main analysis used in the study are descriptive analysis, correlation analysis, multiple regression analysis based on the hypotheses testing. The findings of the study are that EPS and DPS has a significant positive relation with share price of CSE listed entities whilst the ROE and PAT has a significant negative relation with share price of CSE listed entities. Under sector analysis number of the sectors show a significant positive relation between accounting variable and share price. It is concluded that share price is affected by accounting variables which represents the firm performance. Share price represents the wealth of the shareholders. Thus, to maximize the shareholders it is required to increase the firm performanceItem Relationship Between Macro Economics Variables and Stock Market Performance: with Special Reference to Colombo Stock(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Bandara, R. M. K.; Weerasinghe, W. D. J. D.There has been an extensive debate on the relationship between economic variables and stock market performance especially in the context of emerging markets. However, there is mix results obtained multiple times. The primary objective of this study is to examine the impact of macroeconomic variables on stock market performance with special reference to the Colombo Stock Exchange. This research is based on secondary data. Exchange rate, Balance of Trade, Money Supply, and Inflation rate are categorized into macro-economic variables as independent variables and both ASPI and S&P SL20 index return are considered as dependent variables. Descriptive Statistics, Correlation Analysis, Multiple Linear Regression are the analysis tools used for data analysis. All macroeconomic variables show a week negative correlation with both ASPI and S&P SL20 returns. During the sample period, all variables indicate low volatility relating to correlation of variation and all independent variables show insignificant relationships other than the balance of trade with ASPI. Only M2b shows the insignificant relationship with S&P SL20 whilst other independent variables were significant with S&P SL 20 based on the analysis. It is understood that most of the macro economic variables affect the changes in the stock market’s performance. At the same time, it is suggested to direction of the relationship between macroeconomic variables and stock market performance as the further research areas.Item The Effect of Liquidity on Profitability Reference to The Listed Entities in the Colombo Stock Exchange(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Bandara, M. L. C. S.; Weerasinghe, W. D. J. D.Liquidity & profitability plays a material role in success in business operations but two concepts are opposed to each other. Further, two concepts are salient in deciding the firm growth, survival, and future too. The main purpose of the study is to find out the effect of liquidity on profitability reference to the listed entities in the Colombo Stock Exchange (CSE). The study is based on a quantitative approach. The data was collected from annual reports available in the CSE website relevant to 17 sectors excluding banks, insurance, and diversified financials over a 5-year period. Descriptive statistics, correlation analysis, regression analysis and hypothesis testing were used as tools and analysis. The findings of the study are quick ratio and cash ratio shows a positive impact with Return on Equity (ROE) and Return on Assets (ROA). Whereas, the current ratio, shows a negative impact with ROE and the current ratio is insignificant in ROA. According to the sector analysis there is a negative impact between liquidity and profitability. The current study examined that, there is a positive relationship between liquidity and profitability reference to the listed entities in the Colombo Stock Exchange. It means when liquidity increases the profitability increases. However, finding optimum level in liquidity in maximizing the profitability is suggested as further research area.