Commerce and Management
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Item The Impact of Exchange Rate Movements on Stock Market Volatility in South Asia’s Diverse Economies(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Perera, M. R. H.; Kethmi, G. A. P.Introduction: Comprehending the impact of exchange rate movements on stock markets reveals the interdependence of financial markets and the broader economy. The purpose of this study is to examine how changes in exchange rates affect stock market volatility in India, Sri Lanka, and Bangladesh. This approach highlights the similarities and contrasts between economies at different stages of development within the same region, making the results more pertinent to policymakers and investors. Methodology: This research investigates the period from 2014 to 2023 using daily time series data, with a focus on volatility modelling and causality analysis. The Augmented Dickey-Fuller test is used to ascertain whether the time series is stationary. Using the Granger Causality Test, the strength and direction of the correlation between stock returns and currency rates in Bangladesh, India, and Sri Lanka are then examined. Further analysis of the volatility dynamics is done using the GARCH (1,1) model, surpassing Granger causality's directional linkages and capturing time-varying stock returns. Findings: While the Granger causality test and the GARCH (1,1) model focus on distinct dimensions of causal links and volatility dynamics, respectively, their conclusions are broadly consistent across the three countries. Both tests demonstrated that Sri Lanka and India has significant correlations between currency rates and stock returns, implying a notable interaction between the two variables. Conversely, Bangladesh showed no significant interaction between the two. Furthermore, the GARCH model emphasized how historical volatility influences current volatility more than recent shocks, highlighting the significance of historical market conditions. Conclusion: Depending on variables including economic size, trade openness, exchange rate regimes, imports/exports reliance, and diversity, exchange rate changes have varying effects on stock market volatility across South Asian economies. To enhance risk management and resilience, future studies should concentrate on sector specific reactions and the consequences of global shocks, particularly in areas like South Asia.Item Assessment of Public Debt Sustainability Using Debt Dynamics Equation Approach:AComparative Study of Sri Lanka,India and Pakistan(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-11) Sandamali D.M.D.C.; Kumarasinghe P.J.; Kankanamge K.S.The enduring feasibility of government debt is a widely discussed issue that significantly affects the formulation of public policies. It has a critical impact on the fiscal development of a country, and it is an essential feature of well-established macroeconomic policy. This research focused on assessing public debt sustainability by using the debt dynamics equation modified by Chandia based on the original work of Romer. This research examines the sustainability of public debt in Sri Lanka, India, and Pakistan, focusing on the factors influencing variations in debt levels from 1990 to 2020. The initial section of the study highlights the factors that contribute to changes in debt stock. According to the analysis, the difference between the interest rate and growth rate, adjusted for the public debt stock, had a substantial effect on changes in debt levels in Sri Lanka, India, and Pakistan. Furthermore, the disparity between the primary budget balance and changes in reserve money negatively affected debt levels in both India and Pakistan. A separate annual sustainability assessment of public debt is performed for each of the three countries. The findings of the analysis are grounded in two conditions of debt sustainability. The study reveals that the countries in question have faced unsustainable or marginally sustainable debt levels for an extended period. It emphasizes the need for fiscal and monetary policymakers to intervene in order to establish sustainable public debt levels within these nations.Item Corporate Characteristics, Governance And Climate Change Disclosures In South Asian Context: A Signaling Theory Perspective(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Sonali, V.D.V.; Vijerathna, M.P.G.; Kannangara, S.D.P.P.Climate change has become a favorable and ponderable topic due to its irrevocable impact on human beings. People worldwide are experiencing horrible circumstances due to global warming. At present, researchers are considering climate change and its methods of mitigation, but the plethora of research studies has put off financial sector firms without considering their direct and indirect impact. Indeed, the banking sector influences climate change subtly and unswervingly. This study aims to investigate the extent of climate change disclosure level and the influence of corporate characteristics and governance on climate change-related disclosure in the banking sector in the South Asian region based on the signaling theory. This research has adopted a quantitative research methodology. Data were collected from a sample of 63 banks for the period from 2013 to 2021 in South Asian countries such as India, Pakistan, Bangladesh, and Sri Lanka, and R programming (R 4.30) and Python were used for the panel data analysis to validate the hypothesis. Findings revealed that bank age, size of the bank, and, independence of the board provide favorable signals to influence climate change disclosures in South Asian countries. This study adds to the existing body of knowledge on corporate characteristics including corporate governance and climate change-related disclosure in the banking sector because climate change practices are an upcoming and inescapable problem that humans can come across. Therefore, reporting the impact of climate change is very vital within the organizational context. For future research studies, the period and sample can further be increased by future researchers to broaden the scope of the study.Item The Impact of Ageing Population on Economic Growth in South Asia(Asian Social Science, 2019) Abeywardhana, D.K.Y.The share of working age population has declined all over the world. It is forecasted that this will continue for the coming years in all countries in South Asia. Low growth in working age population in South Asia will be effecting negatively for the economic growth. This paper studies whether the South Asia 2050 employment targets would be sufficient to compensate for the downward impact of demographic burden and whether the impact of demography on economic growth differs between South Asian countries. The results show that degreasing working age population is the main challenge the South Asian region faces. Further it shows that growth in GDP mainly depend on the demographic change. Population who contributed the economic development become maturing and dependents of their children. The consumption of the ageing population is very high as of higher spending on healthcare facilities. This effect badly on the economic growth in the region and cause lots of challenges to the nations.