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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 Foreign Portfolio Investment and Earnings Quality: Evidence from Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya., 2021) Wijesinghe, M. R. P.; De Silva, A. L. C. M.The development flows signs renewed foreign interest in the stock market during mid-2017, recording an all-time high in foreign purchases. With the realization of investment opportunities and potential in capital markets in Sri Lanka, foreign investors actively participated in trading in CSE making volatility in Foreign Portfolio Investment (FPI), which lead the researcher to investigate the determinants of FPI under company performance (ROA, ROE and OPM), market-specific factors (MC, MI and BETA), earnings quality (EQ) measured by total accruals (TA) and macro-economic variables (IR and GDP) using evidence from Sri Lanka. Using the three dependent variables of TNFP, TFP, and TFS the researcher analyzed quarterly data for the period from 2011 to 2016 under panel data regression model and concluded, ROE, MC, MI, BETA, GDP Growth and IR has a significant relationship with foreign portfolio investment where the results suggested earnings quality does not have any impact on foreign portfolio investment. The findings of the study are especially useful for potential investors, regulators and the interested parties of investment decisions.Item Is the Market Efficiency Static or Dynamic – Evidence from Colombo Stock Exchange (CSE)(Faculty of Commerce and Management Studies, University of Kelaniya., 2018) Fernando, P. N. D.; Gunasekara, A. L.The study tests the weak form efficiency of the Colombo Stock Exchange (CSE) and the consistency of the concept. In this study, daily market closing index values of (All Share Price Index) ASPI of CSE for five years, from June 2010 to June 2015, without adjustments, have been selected as the sample. Both parametric tests and non-parametric tests have been used in this study. The evidence presented in this study confirms that CSE is not weak form efficient within the sample period and is consistent with the findings of previous studies. Therefore, the fact that Efficient Market Hypothesis as a dynamic concept is debatable as studies over the past have consistently confirmed that CSE is not in weak form efficient, although the efficiency of most markets is dynamic.Item Predictability of Stock Returns Using Financial Ratios: Empirical Evidence from Colombo Stock Exchange(University of Kelaniya, 2015) Wijesundera, A.A.V.I.; Weerasinghe, D.A.S.; Krishna, T.P.C.R.; Gunawardena, M.M.D.; Peiris, H.R.I.The purpose of this research is to examine the ability of the historical financial information in constructing a resilient value portfolio for investors by predicting stock returns in the Sri Lankan context. One of the most imperative and interesting phenomena for the investors and the analysts would be the stock returns from the financial markets. The present study will aim at mainly to assess correlation between financial ratios and the predictability of stock returns for companies listed on the Colombo Stock Exchange. This study applies ordinary least squares (OLS) techniques to estimate the predictive regressions in form of simple and multiple models of panel data sets. For the current study, 60 listed companies were selected and 10 years of data has been analyzed from 2004 to 2013. The results highlighted that ROE, EPS and MV/BV have a significant positive relationship with the stock return which is followed by a simple equation to predict the future stock returns. Hence the investors should consider these ratios of the companies and movement in these ratios in selecting a resilient portfolio to invest.Item The External Auditor’s Opinions and the Stakeholders’ Purposes: An Empirical Analysis in Sri Lanka(University of Kelaniya, 2015) Wickramasingha, S.R.M.; Nanayakkara, K.G.M.This paper specially investigate the Sri Lankan audit opinions and its’ effect to the investors’ decision making. It has been conducted the market-based model with a sample of thirty one (31) listed manufacturing companies on the Colombo Stock Exchange; the dependent variable “Stock Return” serve as proxy for Investors’ Decisions and independent variables are “Audit Opinions” published in Sri Lanka. The study use Anova test for the study. This research study’s final consequence is robust the notion of the audit opinions are not informative value to the investors’ decisions.