Symposia & Conferences
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Item Internationalization of Sme’s, and Economic Downturn in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Silva, G.H.R.B.; Fernando, P.N.D.Introduction & Objectives: Small and Medium-sized Enterprises (SMEs) play a crucial role in the global economy, making substantial contributions to employment, innovation, and overall economic growth. Recognizing SMEs as the backbone of the economy, the Government of Sri Lanka acknowledges their significance, constituting over 75% of the total number of enterprises, providing 45% of employment, and contributing to 52% of Gross Domestic Production. In today's globalized world, the internationalization of SMEs has emerged as a vital factor for economic growth and development. In present, firms Small and Medium Enterprises to remain competitive in the market, internationalization is important. However, various economic indicators, including gross national product, unemployment, interest rates, and exchange rates, have influenced this internationalization. Consequently, the recent economic downturn has also impact on internationalization of Small and Medium Enterprises in Sri Lanka. This study aims to investigate whether there is a significant impact of an economic downturn on the internationalization of SMEs in the country. Methodology: A quantitative research approach is adopted to measure phenomena based on numerical analysis methods. To address the research question, time series regression analysis is employed to determine the significance of the relationship between economic downturn and SME internationalization. Secondary data are collected through export development information to measure the depended variable of internationalization of small and medium enterprises, and other secondary data are collected to assess key economic indicators such as Gross Domestic Production fluctuations, Unemployment, Interest rate and Exchange Rate in Sri Lanka. The research sample take as consists of all the export-oriented SMEs in Sri Lanka for the study. Findings & Conclusions: Internationalization of Small and Medium Enterprises is significantly influence by Gross Domestic Production, Unemployment and Exchange Rate with the significance at 5% level. Interest Rate is not a significant factor in the Internationalization of Small and Medium Enterprises. Gross Domestic Production and Exchange Rate positively impact the Internationalization of SME and Unemployment negatively impact with the Internationalization of SMEs in Sri Lanka. Unstable GDP, changes in exchange rates, a shortage of skilled workers, and job migration are major factors affecting the measurable aspects of an economic downturn. Finally, this study findings more important to policy makers and business ownersItem The Effect of Risk-Based Capital (Rbc), Net Premium Growth, and Claim Expenses (Claim Ratio) on the Financial Performance of the Life Insurance Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Vijayantha, G.V. Malin; Fernando, P.N.D.Introduction & Objectives: The insurance sector stands as a crucial component of Sri Lanka's non-banking financial sector, playing a significant role in bolstering the national economy. The financial stability and performance of Life Insurance Companies are of utmost importance, considering their primary function of risk management and providing protection against financial losses. Therefore, it is essential for these companies to identify the factors influencing their financial performance; and maintain a sound financial condition at any given time to meet their obligations to policyholders. This study seeks to examine the impact of Risk-Based Capital, Net Premium growth, and claim expenses on the financial performance of life insurance companies in Sri Lanka. Methodology: Data for analysis were sourced from quarterly publications of the Insurance Regulatory Commission of Sri Lanka (IRCSL) covering the period from the 1st quarter of 2016 to the 2nd quarter of 2022. The study focuses on the entire population of 16 IRCSL-approved life insurance companies in Sri Lanka, ensuring an identical sample and population. The analytical approach involves employing time series data regression techniques using EViews 12. The research findings are applicable not only to the Sri Lankan insurance sector but also offer insights for insurance companies operating in the wider Asian region. Findings & Conclusions: The study reveals that Risk-Based Capital (RBC), Net Premium growth, and Claim expenses significantly impact the financial performance of life insurance companies in Sri Lanka. Notably, Risk-Based Capital and Claim expenses negatively affect financial performance, as measured by Return on Assets (ROA). Conversely, Net Premium growth has a positive influence on the financial performance of life insurance companies, as proxied by ROA. These empirical results provide practical guidance for insurance companies looking to optimize their strategies in the Sri Lankan and broader Asian insurance markets. Finally, this research can be used as a basis for making a policy related decisions for the regulators, investors and customers on financial performance, Risk based Capital, net premium growth and claim expenses.Item Impact of Dividend Policy on Firm Value: With Special Reference to Banking Sector(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Hettiarachchi, I.; Fernando, P.N.D.Introduction: This research study the impact of dividend policy on firm value in Sri Lankan banking sector. Design/Methodology/Approach: The sample of the study consist of highest market capitalization ten banks listed in Colombo Stock Exchange and the data was collected over the period of 2016 to 2020 to determine the impact of dividend policy on firm value in Sri Lankan banking sector. Market value of bank represent the dependent variable of the study and yearly dividend payment of banks represent the independent variables of the study. Panel data regression model is used as is has cross section and time series nature of data. Findings: Based on the results of the analysis among selected variables for the study dividend policy has positive significant relationship with firm value and it derived dividend policy has significant impact on firm value in Sri Lankan banking sector. Conclusion: The finale results of the model derived dividend policy has significant impact on firm value in Sri Lankan banking sector. The findings of the study will guide decision makers of the banks, potential investors, academics and other stakeholders for making their strategic planning, profit allocation and making decisions on managerial implication of banking sector.Item Financial Stress of Small and Medium Scale Entrepreneurs: A Review(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2019) Jayasekara, B.E.A.; Fernando, P.N.D.; Ranjani, R.P.C.Financial stress became contemporary issue in the globe, directly and indirectly affects the individual’s behavior and disorders their physical and mental health. The main objective of this study is to critically evaluate the literature on financial stress and to build a financial stress mitigating framework. The study identified different aspects and different measures of financial stress, level of financial stress of small and medium entrepreneurs, consequences of financial stress and methods of mitigating financial stress. The study finds out that the financial stress caused for depression, anxiety, poor academic performance, unscheduled absences from work and also negatively effect on health, self-esteem, marriage satisfaction, parenting role and family functioning. The financial stressed individuals have a tendency to write cheques with insufficient funds in the bank, regret marketing purchases, make minimum payments, more like to pay interest, less likely to save regularly. To overcome the financial stress, necessary to develop problem solving and financial management skills, develop effective handling of economic hardship, introduce more flexible repayment plans for the loans; improve positive financial behaviors and budgets. The financial stress is less with those who are employed, older, having a lower debt load percentage, and perceives better health and a better family relationship.Item Growth and Value Investment Strategies in a War Affected Market: Evidence from Colombo Stock Exchange(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Fernando, P.N.D.; Buddhika, H.J.R.The objectives of this study are to investigate whether the value stocks outperform the growth stocks and to identify whether there is a structural break with the end of the twenty-year war prevailed in Sri Lanka. Finance literature, specifically related with value and growth agreement in developed capital markets, has concluded with contradictory results and the attention towards frontier markets such as Sri Lanka is poor. Current strategy incorporates Wilcoxon Rank Test and Chow Test for daily data for period from 2000 to 2018. The study found that the higher returns enjoyed by the investors who invested in growth portfolios in war period. In post-war period, the value portfolio returns outperform growth portfolio returns. Further, no structural break was detected during the period. The results revealed that the contribution of the value stocks were higher in post war period (2009-2018).Item Stock Market Performance under Different Presidential Terms: Evidence from Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Piyananda, S.D.P.; Fernando, P.N.D.Colombo Stock Exchange (CSE) plays a vital role in the growth of the key sectors of Sri Lankan economy. Even though there are several macro and firm specific factors effect on stock market performance, the main focus of this study is to examine the performance of CSE under different government leadership in Sri Lanka during the period from 1994 to 2014. This study mainly consider about the stock market indicators such as, All Share Price Index (ASPI), market turnover, market capitalization, turnover ratio, average market return etc. under different presidential terms. The sample period has divided in to four main presidential terms. Based on the indicators calculated to reflect the average market return, volatility and risk for each presidential term and based on the statistical analysis performed for each presidential term it was revealed that performance of stock market is superior under presidential term II (from 1999-2005).