Symposia & Conferences
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Item Relationship between Income Source Diversification and Financial Performance of Commercial Banks in Sri Lanka(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Dilrukshi, K.K.S.; Thilakarathne, P.M.C.Profitability of commercial banks highly depends on the net interest income generating activities. Due to the profitability and stiff competition, banks have changed their income sources, by diversifying into non-interest income generating activities. The objective of the study is to investigate the impact of income source diversification on financial performance of commercial banks in Sri Lanka. The study used secondary data of 15 commercial banks covering the period of 2008- 2017. Diversification Index used as diversification indicator while Return on Assets (ROA) and Return on Equity (ROE) used as performance indicators. There are some control variables like asset size, growth rate, equity ratio and loan ratio added to the model to ensure that there is no any affect for the relationship between bank income diversification and bank performance from those variables. Descriptive statistics, correlation and regression analysis have used as analytical tools of the study. Results revealed that there is a positive relationship between income diversification and bank performance despite the fact that degree of diversification being not in the peak within Sri Lankan context. Additionally asset size, loan ratio and asset growth variables are not significant variables to the both ROA and ROE models and equity ratio variable shows a significant negative relationship with bank performance in both modelsItem Determinants of Financial Performance of Listed Banks in Sri Lanka(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Chandrapala, C.N.C.; Thilakarathne, P.M.C.The main purpose of this study examines the bank specific factors which are determined the financial performance of listed banks in Sri Lanka. Bank size (BS), Capital ratio (CAR), Liquidity (LIA), Deposits to assets (DEA), Operating expense to assets (OPA), and Loan to assets (LOA) as independent variables and financial performance as the dependent variable. This research return on assets (ROA) and return on equity (ROE) used measure the financial performance. The study conducted with panel data and utilized the sample frame interim financial reports of listed banks in Sri Lanka. Multiple regression model used analyze the data including 220 observations of 11 listed bank in Sri Lanka over the period 2013-2017.Regression model were analyzed by using E- Views software package. The result reveal that bank size, loan to assets and deposits to assets have significant positive relationship with both financial performance measures and liquidity has significant negative relationship with return on equity (ROE). In view of these findings, banks financial performance is determine by the bank specific factors therefore bank management have more significant influence on determine the financial performance of banks listed in Sri Lanka. The result of the study are value to both academic and policy makers