Browsing by Author "Buddhika, H.J.R."

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Board characteristics and firm performance: Evidence from the Life Insurance Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Jayasundara, J.M.D.N.; Buddhika, H.J.R.
Purpose: The purpose of this study is to test the hypothesis about the impact of board characteristics on the life insurance firms‟ performance in Sri Lanka. The data used for the study is derived from eight consecutive years from 2014-2021 annual reports of 13 life insurance firms operating in Sri Lanka. Design/Methodology/Approach: This study employed publicly available data from financial databases and annual reports of 13 sample life insurance companies in Sri Lanka which are registered with the Insurance Regulatory Commission of Sri Lanka (IRCSL), for the past eight years from 2014-2021. The annual reports published by the respective companies and the statistical reviews of the Insurance Regulatory Commission of Sri Lanka are used to collect data about the life insurance companies. The Return on Asset (ROA) and Return on Equity (ROE), this study measures the performance of life insurance companies in Sri Lanka. Multivariate regression analysis on panel data is used to find the impact of the board characteristics, such as CEO duality, the Board size, Board independence, Audit committee size Audit committee independence and the performance of the life insurance companies. Findings: The results show audit committee size and audit committee independence have positively impacted the life insurance firms' performance in Sri Lanka while CEO duality, board size and board independence show a negative impact. The outcome emphasizes the importance of good board characteristics in Sri Lankan life insurance companies needed to perform well in the insurance industry. Originality: This finding guided life insurance firms how to manage their board composition to lead to better performances of the organization.
Determinants of Low Insurance Penetration in the Sri Lankan Life Insurance Market
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Arachchi, K.D.G.; Buddhika, H.J.R.
Purpose: Insurance penetration is the most popular measurement in the insurance sector. The main goal of this study is to identify the Determinants of Low Insurance Penetration in the Sri Lankan Life Insurance Market. Sri Lanka has a considerably low insurance penetration when compared with other main south Asian countries. Higher insurance penetration indicates the capability and confidence of the insurance industry. Insurance penetration serves as a benchmark for measuring the progress of the insurance sector. Many studies have been undertaken in the framework of foreign nations, but just a handful in the context of Sri Lanka. Design/Methodology/Approach: It was decided that an insurance penetration research study should be conducted to emphasize the factors of insurance penetration in the Sri Lankan setting. According to previous studies, some independent variables affect insurance penetration, which was Inflation rate, Income, Literacy ratio, and dependency ratio. And the data was gathered over 22 years from 2000 to 2021. This study was conducted as quantitative research and for the analysis of data, this research uses the EWIEWS statistical software to find outs the relationship between the independent variables and the dependent variable (life insurance penetration). Findings: Most of the independent variables are significant to the life insurance penetration in Sri Lanka long run as well as the short run. Not only that, but this study also examines if there is any difference between the pre-war-the post-war and the pre covid and post covid. Originality: This study guided the government of Sri Lanka to focus on factors leading to low insurance penetration ad further weight on those to improve the insurance penetration in Sri Lanka.
Factors affecting for customer satisfaction in using motor insurance policies in sri lanka with special reference to the western province
(Department of Library and Information Science, University of Kelaniya, Sri Lanka, 2023) Harischandra, G.D.L.P.; Buddhika, H.J.R.
This study mainly investigates the Factors affecting Customer Satisfaction using motor insurance policies in Sri Lanka, what is the relationship between customer satisfaction and service quality, customer loyalty, customer knowledge, technical quality and customer interaction and identifies the highest contributing factor towards customer satisfaction in motor insurance. The whole research population was 385 motor insurance policyholders in the Western province of Sri Lanka. This study used a self-structured questionnaire to collect data. The questionnaire was developed to collect primary data with a five-point Likert scale. Collected primary data were analysed using SPSS and to extend the objectives of the research, data were analysed using descriptive statistical techniques, correlation coefficients analysis, and regression analysis. According to the reliability and validity test, the results were at the accepted level According to Pearson’s Correlation test, the null hypothesis of the research was rejected and the alternatives were accepted which proved that there was a significant positive impact of all the selected independent variables on customer satisfaction in motor insurance policies. The final result highlights that the overall model is statistically significant, and the researcher suggests that hence the results are not representative of the whole country, other studies should be conducted considering other provinces of Sri Lanka.
Factors Determine the Demand for Microinsurance Among Low-Income Households in Galle District
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) JAISA, M.J.S.; Buddhika, H.J.R.
Introduction: Microinsurance is the product that concerns low-income households in the world. This study provides a summary of the research of factors determining the demand for microinsurance among low-income households in the Galle district. The purpose of this study is the analysis and identify which are the factors impacting the demand for microinsurance among low-income households. Design/Methodology/Approach: The research is quantitative and regression analysis is used to find out the relationship between factors. The sample size is limited to the 250 low-income households in the Galle district and the random sample method used. Primary data are collected through well-designed questionnaires online and printed; the data were analyzed by using SPSS 23 software. Finding: This research discloses that age, gender, marital status, occupation, income, expenditure, educational level, number of children in the family, knowledge about microinsurance trust on microinsurance are determining the demand for microinsurance. This study gives more information about major factors that determine the demand for microinsurance among low-income households and provides some recommendations for getting decisions about increasing the population of microinsurance in the Galle district. Conclusion: Based on research findings it is proved that low-income householders have microinsurance for a certain level and the majority do not aware. Therefore, the insurance companies who target the low-income householders must focus on the methods of popularizing the brand and promotional activities to get higher involvement of them.
Factors Effecting on Life Insurance Demand during the Covid-19 Pandemic
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Fernando, M.S.S.N.; Buddhika, H.J.R.
Purpose: The covid-19 has been a worldwide pandemic and it needs studies related to the effect of people’s demand for insurance during the pandemic which is an important way to transfer risk. And apart from that as an investment method during the pandemic, life insurance plays a vital role. However, there is a lack of research linking covid-19 and people’s demand for insurance. Covid-19 has been a worldwide pandemic which will greatly affect people’s behaviour. Current studies have examined the impact covid-19 on people’s investment consumption and risk-taking behaviour, but there is a lack of research linking covid-19 and people’s demand for insurance which is an important way to transfer risk. In this research, I complement the literature by exploring the impact of covid-19 pandemic and with that situation how people demand life insurance policies. Design/Methodology/Approach: The researcher chose the western province as the population of this research and in this regard, data was collected from life insurance policyholders who live in the three districts which are Colombo, Gampaha and Kalutara district in the western province according to the ratio of population. The data were analyzed by using SPSS software which included statistical tests. Findings: The study aimed to identify the factors that affect life insurance demand during the covid-19 pandemic by focusing on 04 independent variables; dependency ratio, income, economic condition, and social factors. During the study, the researcher identified the above independent variables have a neutral impact and statistically significant relationship between them. Originality: This study found and further guides future factors effect for Life Insurance Industry in Sri Lanka during the Covid 19 period and this would be strong output for similar incidents that will happen in future.
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).
How Does Firm Specific Risk Impact for the Firm Performance of Insurance Industry in Sri Lanka
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Sooriyaarachchi, S.K.R.N.; Buddhika, H.J.R.
Risks and uncertainties unique to the operations and functioning of insurance businesses are referred to as insurance-specific risks. Thus, using a sample size of 27 companies, the study examines how these insurance-specific risks affect profitability in Sri Lanka over an 11-year period (2012–2022). Insurance- specific risk for independent variables has been measured using three variables: reinsurance, technical provisions, and underwriting risks. Firm performance was assessed using the return on equity as the dependent variable. The Ex-Post Facto Research Design, on which the study is based, makes use of previously gathered data. Their yearly reports provided secondary data for the study. The fixed effect regression model's findings demonstrated that, whilst underwriting risk had a negative and negligible effect on return on equity, technical provision risk and reinsurance risk had a negative and significant influence. According to the study's findings, the insurance companies listed in Sri Lanka will become less profitable as reinsurance and technical provision risks rise. According to the study, insurance companies in Sri Lanka should adequately account for unpaid claims by evaluating their liabilities and considering their experience in order to create a thorough process for efficiently tracking and managing their unpaid claims. Additionally, Sri Lankan listed insurance companies will take into account their risk retention ratios and reinsurance policies. Listed insurance companies must also improve their capacity to pay the majority of claims on their own.
Impact of Electronic Banking on Operational Performance of Commercial Banks in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2020) Prabodhi, W. A. D.; Buddhika, H.J.R.
Introduction- Information and Communication Technology (ICT) is essential for financial markets for faced and sustain the competition. However, a limited number of studies have been conducted in Sri Lanka to determine the impact of e-banking on banks' profitability in Sri Lanka. This study critically investigated the effect of e-banking on operational performance in Sri Lanka. Design/Methodology/Approach- The secondary data gathered during the year 2014 to 2019 concerning fee and commission income on internet banking, number of branches, number of ATMs, from the published annual reports of ten selected banks systematically. Regression analysis processed to determine the effects of electronic banking on profitability. The descriptive statistics, Pearson correlation were used for the data analysis through E-Views 11 statistical software. Findings – Based on the results, the fixed-effect model found a significant positive relationship among IB (Internet Banking) on ROA, negative significant with ROA and BN (Branch Netwok), ATMs. Also, the insignificant relationship between ROE and IB. CIT (Cost to Income ration) and IB have negative significant, and other variables are a significant relationship with CIT. Conclusion: Results proved that; e-banking has significantly contributed to the banks' operational performance in Sri Lanka.
Impact of enterprise risk management on underwriting profit of insurance companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2021) Madhushan, T.S.; Buddhika, H.J.R.
Introduction- Enterprise risk management is the modern concept that was used by financial companies to manage their risk. This study was conducted to examine the impact of enterprise risk management on underwriting profit in insurance companies in Sri Lanka. Design/Methodology/Approach- The secondary data was collected from the sample of nine insurance companies in Sri Lanka for the period of eight years from 2013 to 2020. The drawing sample data was tested using panel data regression inference the results throughout pool ordinary least square, fixed effect and random effect models. Findings- The researcher used correlation analysis to measure the association between Enterprise risk management and underwriting profit. Conclusion – According to the finding of this study chief risk officer, risk committee, independent board of directors, solvency margin, leverage and external stakeholders showed a negative relationship between underwriting profit and only size showed a positive relationship between underwriting profit. Moreover, the result of this study found that there was a significant negative impact from solvency margin on underwriting profit and, there was a significant positive impact on the size of underwriting profit in insurance companies in Sri Lanka
Impact of Financial Knowledge, Financial Attitude & Internal Locus of Control on Financial Management Behavior Among Young Adults in Sri Lanka: Special Reference to Colombo District
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Koralage, N.H.; Buddhika, H.J.R.
Introduction: The purpose of the study is to evaluate the Impact of Financial Knowledge, Financial Attitude & Internal Locus of Control on Financial Management Behavior among Young Adults in Sri Lanka: Special Reference to Colombo District. Design / Methodology: The researcher chose Colombo district to conduct the study. In this regard, data was collected from young adults in the Colombo district using a survey questionnaire. Financial knowledge, financial attitude and internal locus of control were employed as independent variables in this study, with financial management behavior as the dependent variable. data were analyzed independently using SPSS software, which included statistical tests such as multicollinearity, reliability, normality, and regression analysis. For all the variables, descriptive statistics were used to determine the mean values of respondents' perspectives. Findings: According to the study's findings, that internal locus of control has a strong positive effect on the dependent variable, while financial knowledge has a moderate positive effect on the dependent variable. Financial attitude does not have a statistically significant effect on the dependent variable. Cronbach alpha values demonstrate the data is more reliable According to the regression results. Conclusion: The study investigated the impacts of financial knowledge, financial attitude, and internal locus of control on financial management behavior among young adults. It found that financial knowledge and internal locus of control have significant impacts on financial management behavior, while financial attitude has no significant impact.
Impact of Financial Literacy on Individual Financial Behavior of Management Undergraduates in Sri Lanka: Evidence from University of Kelaniya
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Wijerathna, G.N.; Buddhika, H.J.R.
Sri Lanka continuous within the top ranks of literacy in Asia in recent times. But the financial literacy level of Sri Lankans is not at a satisfactory level based on the latest evidences. The level of financial literacy is crucial for university students who represent the future as a dynamic segment of the society which will be the vital ability for undergraduates to behave financially in day-to-day life. However, undergraduates are suffering from financial problems. This study attempted to answer this problem to measure the level of financial literacy and identify the impact of financial literacy on the financial behavior of management undergraduates of the University of Kelaniya, Sri Lanka. Thus a questionnaire was designed conceptual framework was deployed and it consists of five dimensions of financial literacy (Money management, savings, insurance, investment and credit and borrowings) as independent variables on dependent variable; financial behavior. A sample was decided based on a stratified random sampling technique, which comprises 296 undergraduates representing third and fourth-year students in the Faculty of commerce and management studies. A structured questionnaire used to collect data, and five hypotheses formulated where, descriptive statistics, correlation analysis and regression analysis used as the analytical tools. The study revealed that the level of financial literacy of management undergraduates of the University of Kelaniya was moderate. At the same time, regression analysis depicted that financial literacy and all the dimensions significantly impact financial behavior except financial literacy on credit and borrowing. These results imply the necessity of workshops, educational programs, and updated degree programs introducing subjects related to personal finance for university students to enhance financial literacy.
The Impact of Product Diversification and Insurance Activity to Insurance Industry Performance: Moderating Effect of Insurance Penetration: Evidence from India, Pakistan, and Sri Lanka
(Department of Finance, University of Kelaniya, Sri Lanka, 2024) Rathnasiri, S.M.H.G.; Buddhika, H.J.R.
Purpose: The research focused on the insurance industry performance of India, Pakistan & Sri Lanka were supposed to find the impact of product diversification and Insurance activity towards industry performance measured by ROE. Further insurance penetration is considered a moderating variable and objectives same as mentioned above. Product diversification and Insurance activity are key indicators of the insurance industry and insurance penetration is a key indicator of country performance measurement. Methodology: This quantitative study considered countries of Sri Lanka, India, and Pakistan in the South Asian Region and considered the period data from 2012 -2022. The highest developed first three countries were considered for evaluation purposes and diversified (companies operating in both Life & General) insurance companies from each country. Findings: Both product diversification and insurance activity exhibit negative correlations with insurance industry performance, indicating that increasing either factor may result in lower financial performance for insurers in these countries. Furthermore, insurance penetration significantly moderates the relationship between product diversification and insurance industry performance. The three hypotheses formulated and stated that impact is negative for product diversification and insurance activity. Further stated that insurance penetration moderated the insurance industry's performance. Conclusion: The findings underscore the importance of prudent strategic planning and management for diversified insurance companies in India, Pakistan & Sri Lanka. Diversified insurance firms are advised to carefully weigh the trade-offs between diversification and profitability. While diversification can mitigate risk, it may also lead to diminishing the returns in long run.
Impact of the Firm Specific Factors on Share Prices of Diversified Financial Companies in Colombo Stock Exchange
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Jayarangi, W.C.; Buddhika, H.J.R.
Introduction: The aim of this research is to explore the correlation among financial performance, Cost of Equity (Ke), and Integrated Reporting Quality (IRQ) within the context of listed diversified financial institutions in Sri Lanka. Introduction: The stock exchange is a key measure of a country's economic strength and development. In the distribution Because share prices are random, they play an important role in the market. As a result, many research have been conducted to study various aspects impacting share price. However, in the context of Sri Lanka, there were few study associations that attempted to find this. Design / Methodology: The most influential factors were chosen in this investigation. response to variations in the Colombo Stock Exchange (CSE) share price, as well as to explore the impact of Those elements have an impact on the share price. This study's sample consisted of 43 Diversified Financials companies and only 20 companies the Colombo Stock Exchange. (CSE) from 2013 to 2023. The independent variables are Earnings per share (EPS), Dividend per Share (DPS) and return on equity (ROE), Price to earnings ratio(P/E), Debt to total assets (DPS). The dependent variable is Share Price (SP). This study analysis has done through Descriptive analysis, Correlation analysis and Regression analysis. Conclusion: Consequentially, this study was found; there is a significant impact between Share price (SP) with Earning per Share (EPS), Dividend per Share (DPS) Price to earnings ratio(P/E), Debt to total assets ratio and Return on Equity (ROE) respectively further strong positive relationship between Earning per Share (EPS) and Share Price (SP) as well as Dividend per Share (DPS) has strong positive relationship between Share Price.
The Mediating Impact of Employee Motivation Variable on the Relationship between Determinants of Motivation and Organizational Performance
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Fernando, J.A.H.P.; Buddhika, H.J.R.
Purpose: Organizations are always seeking to retain talented and motivated employees. Thus, they will maximise the performance of the organization. However, to what extent the employees need to be motivated still needs to be resolved. This study has focused on identifying different determinants of executive employees' motivations related to the general insurance industry in Sri Lanka and the mediating impact of employee motivation on organizational performance. Design/Methodology/Approach: This study attempted to bridge the gap by analysing the impact of determinants of employee motivation on employee motivation and organizational performance. This study sought to find the impact between the independent variables (Financial benefits, non-financial benefits, Management and Leadership factor, and Organizational factor), mediation variable and dependent Variable (Organizational Performance) through thirteen different hypotheses. Employee Motivation is measured as the mediating variable in the relationship between Determinants of Employee motivation and Organizational Performance. This study gathered Primary data from 369 executive employees of eight leading general insurance. Data were collected with a structured questionnaire and SPSS software has been selected as the key software for data analysis According to the research findings. Findings: The linear output supports for identify the linear relationship between independent variables and dependent variables within the study contexts and organizational factors and financial benefits are statistically significant with Employee Motivation and Organizational Performances. Originality: This study will particularly help the general insurance sector to make the right decision to retain their employees.
Value Investment Strategy vs. Growth Investment Strategy: Evidence from Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Buddhika, H.J.R.
Comparing the performance of value and growth companies has been tested regularly in most developed markets. However, importance given to this phenomenon in emerging countries, especially in Sri Lanka, is very low. This study examines about the Value and Growth companies of the Colombo Stock Exchange (CSE) since 2000 to 2014. The variables considered for evaluation are P/E ratio, P/BV ratio and Dividend Yield on monthly basis. This research has used only secondary data for the purpose of analysis and data extracted from annual reports of Colombo Stock Exchange (CSE), and the annual reports of selected quoted public companies. To avoid the thing-trading problem, the sample was selected based on number of trading days during the year. Then used a bench mark rate for all three ratios and selected value and growth companies. Companies which provide contradicted results within three ratios were excluded and remaining companies were considered for the analysis.