Students’ Research Symposium - Department of Finance (SRS-DFIN)
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Item Impact of Corporate Governance on The Firm Performance: A Study of Listed Companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Peiris, M.A.P.K.; Gunasekara, H.M.A.L.Introduction: The main objective of this study is to examine whether there is any relationship between corporate governance and the firm performance. Design/Methodology/Approach: This study uses data from 32 companies listed in the Colombo Stock Exchange (CSE) from 2019 to 2020. The Annual Reports of applicable companies in the corresponding year are used to collect data. Board Size, CEO duality and proportion of non-executive directors are considered as the independent variables The dependent variable is the firm performance (EPS, ROA and ROE). The control variables are firm size (SIZE), the number of years a given firm’s stock has been traded on CSE (AGE) and leverage (LEV) of the firm. The analysis is mainly carried out using Multiple Regression. Findings: Regression results show that Board Size is negatively associated with firm performance. Additionally, the attendance of outside directors has a negative impact on the performance. Further, there is a positive relationship between leadership structure and firm performance. Conclusion: Larger Board Size is unfavorable for a company and CEO duality enhances the firm performance.Item Relationship Between Exchange Rate and Stock Market Performance in Sri Lanka Before the Covid-19 Period(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Nawadeniya, S.N.S.N.P.; Gunasekara, H.M.A.L.Introduction: This research study examines the Relationship Between Exchange Rate and Stock Market Performance in Sri Lanka Before Covid-19 Period. Design/Methodology/Approach: The sample of the study is ten years of monthly data of All Share Price Index (ASPI) and Exchange Rates. The sample period is from April 2009 to March 2019. Dependent variable is ASPI, and the independent variable is the Exchange Rate (USD). Unit root test, Johansen cointegration test and Granger causality test are used to analyze the data. Findings: According to the results, no long-run relationship between the Exchange Rate and ASPI is found. The Granger Causality Test shows a marginally significant relationship between the ASPI and Exchange Rate. Conclusion: The final result emphasizes that the relationship between Exchange Rate and ASPI is weak.Item Factors Affecting Clothing Sector Small Scale Business Performance Under Covid 19: Evidence from Colombo District Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Mohamed, M.U.; Gunasekara, H.M.A.L.Introduction: This study examines factors affecting the small-scale clothing business performance under COVID 19. Design/Methodology/Approach: This study used small clothing business performance as the dependent variable. The price, quality, openness economy and presence of the branded store are used as the independent variables. The Simple and Multiple Linear Regression models were used to analyze the data. Findings: The findings of the study show that the clothing sector small business performance has a negative significant impact on price. The quality has a positive significant impact on the clothing sector small business performance. The Openness economy and the presence of branded store has a negative significant impact on the clothing sector small business performance. Conclusion: The findings of this study show that during COVID 19, the demand for clothing SMEs is elastic. Further, clothing SMEs are threatened by international competition.Item The Impact of Board Meetings Frequency on Firm Performance(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Madhushani, W.N.; Gunasekara, H.M.A.L.Introduction: The purpose of this study is to investigate the impact of Board Meetings Frequency on Firm Performance in capital goods sector firms listed on Colombo Stock Exchange (CSE). Design/Methodology/Approach: Data were collected from 17 capital goods sector firms from 2015 to 2020. Panel Regression has been used as analyzing technique. Board meeting frequency, audit committee meeting frequency, remuneration committee meeting frequency and related party transaction committee meeting frequency were used as independent variables and Return on Assets (ROA) and Return on Equity (ROE) were used as dependent variables. As control variables, Firm size and board size were used. Findings: According to the data analysis, Board meeting frequency shows a marginally significant positive impact on ROA and a positive significant impact on ROE. Related party transaction committee meeting frequency is the only variable that has a significant impact on both ROA and ROE. Conclusion: The study fulfills the existing research gap. Therefore, Board meetings impact on the firm performance after controlling for other effects. Future studies can consider qualifications and years of service of the board members and ratio of board attendance on the effectiveness of the various committee meetings.Item The Impact of Covid 19 Pandemic on Financial Performance: Evidence from Life Insurance Companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) De Zoysa, M.N.D.; Gunasekara, H.M.A.L.Introduction: This study determines the most influenced crisis between the economic crisis (2008) and the COVID-19 pandemic in the share market performance. Introduction: The COVID 19 pandemic has severely impacted the national economy and business financial performance. This study aims to examine whether there is a significant difference in the financial performance of Life Insurance companies in Sri Lanka before and during the COVID 19 Pandemic and identify the impact of COVID 19 on the financial performance (ROA) of Life Insurance companies. Design/Methodology/Approach: The sample is 6 life insurance companies listed under the Colombo Stock Exchange. The sample includes quarterly observations from 2019 to 2021. The Wilcoxon signed-rank test and Panel Regression methods are used to analyze the data. Findings: According to the result of the Wilcoxon signed-rank test, ROA, Revenue and GWP Growth are statistically different before and during the COVID period. The Panel Regression Results show that the differential effect of COVID 19 on ROA during the COVID period is positive. Conclusion: COVID 19 has significantly impacted the financial performance of Life Insurance companies. The positive differential effect of COVID 19 on ROA shows that the profitability is recovering from the setback.Item Testing the Weak Form Efficiency of Emerging Colombo Stock Exchange (CSE)(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Gunasekara, H.M.A.L.Efficient Market Hypothesis is a dynamic concept. A market which was not efficient in the past could be efficient today due to the changes occurring in the capital market environment. In an efficient market nobody can predict the returns and enjoy abnormal returns as the prices already reflect all the available information. Efficient Market Hypothesis can be studied under three forms as weak form efficiency, semistrong form efficiency and strong form efficiency. This study attempts to test the weak form efficiency of the Colombo Stock Exchange (CSE) and to determine what strategies to follow to make profits in CSE. In this study, daily market closing index of ASPI of CSE for five years, from June 2010 to June 2015, without adjustments, has selected as the sample. Both parametric tests and non-parametric tests have been used in this study. This study has used, Augmented Dickey-Fuller Unit Root Test, Autocorrelation Test and Runs Test for analyzing data. Augmented Dickey-Fuller Unit Root Test revealed that the ASPI index series in First Difference is stationary. Therefore, the log returns of the ASPI have been considered for the statistical tests in this study. Autocorrelation Test revealed that the return predictability exists in the CSE and confirmed that CSE is not weak form efficient within the sample period. The results of the Runs Test, which is a non-parametric test, are also consistent with the Autocorrelation Test and confirmed that the CSE is not weak form efficient within the sample period. Therefore, Technical Analysis techniques are valid in the CSE and can be utilized to generate excess returns. However, inclusion of transaction cost to the model will provided more opportunity for further studies.