Browsing by Author "Basnayake, W.B.M.D."

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A Case Study Review of Strategic Acquisitions of Synergic PLC
(Staff Development Unit, Faculty of Commerce & Management Studies, University of Kelaniya, 2015) Morawakage, P.S.; Kulathunga, K.M.K.N.S.; Basnayake, W.B.M.D.; Wijesinghe, M.R.P.; Chandrasena, S.M.; Piyananda, S.D.P.
Synergic Holding PLC initiated operations in 1991 as a software development company. It was incorporated as a private limited company in 1998 and obtained a listing in the Colombo Stock Exchange in June 2011. Soon after the incorporation they became the sole authorized distributor for DELL Computers in Sri Lanka. Gerrys Synergic (Pvt) Ltd started as a joint venture with Gerrys Holdings (Pvt) Ltd in Pakistan, fulfilling Mr. Alok Pathirathne’s (the founder of Synergic Holdings PLC) dream of ‘going global’. Synergic Company’s move towards furniture retail, from IT related activities was the first instance they adopted the diversification strategy. At present the Synergic Holding PLC is rated as one of Sri Lanka’s most energetic and aggressive conglomerates. The diversified key sectors are Information and Communication Technology, Healthcare, Retail, Financial Services, Automobiles and Leisure. This case study specifically underlines the strategic acquisition of Rovel PLC which took place in the year 2014. Rovel PLC initiated its operations in 1989, in a small retail outlet. Today, Rovel’s flagship department store is a 36,000 square foot, lavishly appointed store and it owns 20 other outlets in many strategically important locations. Rovel operates at the top end of the retail fashion market, where it has carved out a niche through a highly focused approach targeted at the upper-middle and higher-income groups, Rovel has maintained its leadership position by providing a modern, world-class retail environment that has become the standard for the South Asian region. Rovel is not only Sri Lanka’s leading fashion brand, but with a wide array of products, it is also Sri Lanka’s only genuine department store. Rovel has achieved the status of an iconic brand with its tireless ability to reinvent itself at regular intervals. The recent acquisition of Rovel PLC by Synergic Holdings has created a major upheaval amongst the business community and the media. One main intention behind the said acquisition was Synergic’s motive of working with Parkson, the largest shareholder of Rovel. However the withdrawal of Parkson from Rovel PLC left Synergic’s efforts futile. Also after the said acquisition, Synergic’s excessive borrowings have resulted with its Fitch Rating being downgraded by two notches. The boards of directors now are contemplating about the survival of the company with its existing structure.
Corporate governance and profitability evidence from Sri Lankan banking industry
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Herath, H.M.S.L.; Basnayake, W.B.M.D.
Effect of Credit Risk Management on Financial Performance: Evidence from Commercial Banks in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2020) Wijerathna, W.R.L.S.; Basnayake, W.B.M.D.
Introduction – Credit risk is the primary focus of any risk management approach in commercial banks, which is defined as the risk of loss due to debtors’ non-payment of a loan or a line of credit which may include either the principal and interest, or both. With the banking systems’ increased involvement in all facets of the economy, the impact of credit risk on a bank’s profitability has been the foremost focus of many researchers. Therefore, in this study the objective is to identify the impact of credit risk management on financial performance of commercial banks in Sri Lanka. Design/methodology/approach – The investigation was performed using panel data regression for a sample of 12 out of 26 licensed commercial Banks of Sri Lanka during 2011-2019. Descriptive statistics, correlation matrix and panel regression analysis were used to analyze the collected secondary data. Findings – The results suggested that non-performing loan, Capital Adequacy have significant negative impact on Return on Equity while the Cost Per Loan Asset has positive impact on Return on Equity. Conclusion – This study has laid some groundwork to explore the impact of credit risk management on financial performance of Sri Lankan commercial Banks. Accordingly, based on above findings, it is recommended the Sri Lankan commercial banks to develop credit risk management policies and strategies to increase the financial performance.
Impact of Corporate Governance on Corporate Social Responsibility Disclosure: Empirical Evidence from Listed Companies of Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Madhurangi, M.I.; Basnayake, W.B.M.D.
Corporate Social Responsibility (CSR) and Corporate Governance (CG) being the two folds of the same coin, conceding the good practices undertaken on the good CG becomes the critical feature of CSR. Hence, it is more likely that the companies engage in extensive CSR activities to disclose the same, indicating socially responsible behavior. Accordingly, this paper aims to examine the impact of corporate governance on the corporate social responsibility disclosure of Sri Lankan listed companies. The STATA software was applied to investigate the impact of CG on CSR disclosure of 30 high market capitalized listed companies in the Colombo Stock Exchange (CSE) from 2016 to 2018. CSR Disclosure Index (CSRDI) was applied to measure the CSR reporting. The board size, independent directors, women directors, foreign ownership, and CEO duality were considered the proxies for CG with two control variables: Company Size and Profitability. Higher t-values for foreign directors and company size indicate a significant influence on CSR reporting. Regression results prove that the foreign directors positively affect the CSR disclosure, while the board size, women directors negatively affect the CSR disclosure. The independent directors show no significant impact on CSR disclosure. In line with the findings, it is concluded that compliance with corporate governance best practices directly impacts the company’s performance. This study provides empirical support for agency theory and legitimacy theory perspectives in developing economies.
Impact of Income Diversification on Performance: Evidence from Sri Lankan Commercial Banks
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Wijethilaka, E.T.S.; Basnayake, W.B.M.D.
This study addresses an important strategy by evaluating the empirical relationship between bank income diversification and bank performance. The main objective of the study is to investigate the impact of income diversification on bank performance of Sri Lankan listed commercial banks. This data set of the study covers Sri Lankan commercial banks during the sample period of 2010-2014. There are some control variables added to the model. Based on the findings of the research there is a positive relationship between bank income diversification and bank performance despite the fact that degree of diversification being not in the peak within Sri Lankan context. Additionally asset size and asset growth variables are not significant variables to the both ROA and ROE models due to lack of risk management, information technology, human capital, geographical diversification and lower cost of capital within commercial banks in Sri Lankan context. But equity variable shows a significant negative relationship with bank performance in both models.
Impact of Strategy Execution on Organizational Performance: A Review
(9th International Conference on Business and Information (ICBI-2018), Department of Management Studies and Toc H Institute of Science and Technology, India, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Basnayake, W.B.M.D.
The present paper reviews and summarizes the key findings on impact of strategy execution on organizational performance. This paper attempts to discuss the nature of strategy formulation and strategy implementation, focusing on the problems encountered by organizations in getting the strategy right. The dilemmas of strategy execution are explored and finally the importance of risk based strategy execution and strategic typology and firm performance are discussed. With the companies devoting more time in strategy formulation, than strategy implementation, it has been found that strategy execution receives less attention than strategy formulation leading organizations to suffer in the face of the challenging, volatile and competitive environment in which the company operates. The findings of the current review support the general conception that it is organization’s failure to recognize underline causes towards poor strategy execution compared to strategy formulation. Therefore, investigations are to be conducted further in future research studies.
Relationship between Corporate Social Responsibility Disclosure and Financial Performance in Sri Lankan Domestic Banking Industry
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Abeysinghe, A.M.I.P.; Basnayake, W.B.M.D.
The purpose of this study is to examine the relationship between corporate social responsibility (CSR) disclosure and financial performance in domestic commercial banks in Sri Lanka. The researcher selected six high performance domestic commercial banks as a sample for a period of five years starting from 2009 to 2013.CSR disclosures and firm size have been identified as independent variables and financial performance identified as the dependent variable in this study. The researcher used secondary data for the purpose of analysis. This study employed return on equity to identify the financial performance (FP), GRI index G3 guidelines to identify the CSR disclosure level of the banks and firm size measured by logarithm of total assets of the banks. Through the result of the research it has been concluded that the null hypothesis can be rejected since there is a negative relationship between CSR disclosures and financial performance of selected domestic commercial banks. Researcher identified FP will not be totally depended on CSR disclosure. Bank performance varies with the different time periods, economic condition and other macro factors. The researcher further identified that CSR disclosure level in private banks is higher than the state banks even though the firm size of private banks are smaller than the state banks.