Browsing by Author "Piyananda, S.D.P."

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Analyzing The Impact of Customers’ Behavioural Intention to The Use of Mobile Banking in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Amarasinghe, I.P.; Piyananda, S.D.P.
Introduction: Providing of different types of facilities is an essential factor towards the attractiveness of the customers in banking industry in Sri Lanka. This study attempts to identify the factors that influence the customer’s behavioral intention to use mobile banking applications in Sri Lanka. Design/Methodology/Approach: This study observed s perceived risk, trust, ease of use, usefulness, and the relative advantage as independent variables with behavioral intention to use mobile banking applications as the dependent variable. This is a quantitative study, and the sample will select according to the convenient sampling technique and a self-administered questionnaire will use for the purpose of collecting data. Correlation analysis and regression analysis were used to analyze the collected data. Findings: According to the R-square value in regression analysis 42.90% of variation in customers’ behavioral intention the o use mobile banking is affected by the change in independent variables. According to moderator analysis, age has become a significant moderator on the relationships between perceived trust, perceived usefulness, and perceived ease of use with customers’ behavioral intention to use mobile banking in Sri Lanka. Conclusion: The result emphasizes that the overall model is statistically significant, the researcher concludes that perceived usefulness is the only variable, which reported a significant impact t customers’ behavioral intention to use mobile banking and age has no significant moderation impact on the relationships between perceived risk and relative advantages with the dependent variable.
Bank-Specific Determinants of Risk Management Efficiency: Evidence from Listed Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Piyananda, S.D.P.; Chandrasena, S.M.; Fernando, J.M.R
This study aims to identify the significant bank specific determinants of risk management efficiency of the listed commercial banks in Sri Lanka, by covering the financial statements of 11 banks during the period of 2008 to 2014. Panel regression analysis employed as the data analysis tool. Capital Adequacy Ratio (CAR) has been used as the dependent variable as the proxy for risk management efficiency and credit risk, liquidity risk, market risk, return on assets (ROA), banks’ size, and operational efficiency selected as the determinants of bank efficiency. Results revealed that the credit risk, liquidity risk, ROA, operational efficiency and banks’ size are the important factors of determining the degree of CAR of commercial banks in Sri Lanka. Further as shown by the results of the study, independent variables collectively have high effect on the dependent variable since the explanatory power of the model is approximately 67%.
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.
A Comparative Evaluation Between the Economic Crisis (2008) and the Covid-19 Impacts in the Stock Market
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Fernando, N.; Piyananda, S.D.P.
Introduction: This study determines the most influenced crisis between the economic crisis (2008) and the COVID-19 pandemic in the share market performance. Design/Methodology/Approach: The study sample consists of six Asian countries, and the data were collected from 2006 to 2008 for the economic crisis and from June 2018 to June 2021 for the COVID-19. This study has been used the positivist research paradigm, deductive approaches, and quantitative research methods to track down the most influenced crisis. Regression analysis (based on the ARIMA model), descriptive analysis, and ARIMA model (for forecasting) were employed to analyze the data. Log returns of each country have been used as the dependent variable, while Lags of the log-returns and dummy variable (Pres-crisis and during the crisis) have been used as the independent variables. Findings: Both crises had shown a negative impact on the share market. However, based on the study results among the two crises, the economic crisis had created a significant negative impact compared to the COVID-19 pandemic. Furthermore, During the economic crisis period (2008), DSEX had shown the highest negative impact where NEPSE in the COVID-19 recession. ASPI is the least affected index during both phases among the six indices. However, according to the ARIMA model, future ASPI returns will be negative. Conclusion: The final result emphasizes that both crises have negatively affected the share market performance while the economic crisis had created the highest impact. Therefore, there is a negative relationship between the crisis and the share market performance.
A Comparison between All Share Price Index and Standard and Poor’s Sri Lanka 20 Index
(University of Kelaniya, 2014) Piyananda, S.D.P.; Fernando, C.S.P.K.; Senevirathne, G.H.S.H.
This research studies the daily returns of the two main indices in Colombo Stock Exchange; namely the Standard and Poor’s Sri Lanka 20 and All Share Price Index, to examine the nature of their return distribution and volatility. The main objective of the paper is to investigate whether any one index outperforms the other in terms of its returns and volatility. Data is collected for a sample period of 12 months and analyzed using the SPSS statistical software. A normality test was carried out to explore the nature of return distribution and it is found that the return distribution of both ASPI and S&P SL 20 index are not normally distributed. Positive value of skewness and kurtosis of the two indices further reinforces this fact. Levene’s test shows there is no statistical difference in variance of indices. Further the independent sample t test and Mann-Whitney U test infer that there is no statistically significant difference between the mean returns of the two indices. Nevertheless the results of the return per unit of risk show that ASPI reports a higher return per unit of risk compared to S&P 20.
The Effect of Financial Innovation on Licensed Commercial Banks Performance in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2020) Soysa, R.W.D. S; Piyananda, S.D.P.
Introduction –Technology change and competitiveness has spurred financial innovations and the innovation in the financial sector has developed the commercial banking sector in Sri Lanka. This study attempts to identify the effect of financial innovation on financial performance of licensed commercial banks in Sri Lanka. Design/Methodology/Approach – This study incorporated with bank performance through financial innovation whereas financial innovation variable comprises with mobile banking, internet banking, number of ATM’s and number credit cards. The study follows the purposive sampling method to collect secondary data from 10 licensed commercial banks during the period of 2011 to 2019. Findings - Based on the analyzed result every dependent variable contains stationarity and model residuals are normally distributed whereas analysis has followed a fixed effect model and it includes mobile banking is positively significant towards financial performance of commercial banks whereas internet banking and number of ATM’s are negatively significant towards financial performance of commercial banks. Conclusion - The result emphasizes that the overall model is statistically significant, and researcher conclude that there is a relationship between financial innovation and commercial bank performance hence different financial innovations affect differently towards commercial bank performance.
Effects of the Exchange Rate Volatility on Financial Performance of Licensed Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Wasana, W.E.; Piyananda, S.D.P.
Purpose: The question of whether there exists a relationship between the volatility of exchange rates and the financial performance of licensed commercial banks in Sri Lanka was the subject of this research. Design / Methodology/ Approach: The study used three types of variables as dependent variable, independent variables, and control variables. Dependent variable was financial performance. The independent variable was exchange rate volatility while control variables were inflation, interest rate, and bank size. Secondary data was collected from the banks’ consolidated financial statements as well as the Central Bank of Sri Lanka. The study used the quantitative approach. The study also used panel data analysis using STATA Software Version 13.0 to aid in data analysis. Findings: The study established the existence of a negative association between exchange rate volatility and banks’ performance as measured by the returns on assets ratio. Negatively association between interest rate and ROA. There is a negative relationship between inflation change and ROA also. The bank size had a positive relationship with financial performance. Originality: Exchange rate volatility had an influence on commercial banks’ financial performance in Sri Lanka during the study period. The co-relation findings portrayed a weak negative connection between the FX volatility and the profits of banks over the study period. The correlation findings a medium negative connection between the interest rate, inflation change, and the profits of banks over the study period. The bank’s total assets increased over the research period. Bank size significantly influenced financial performance at a 95% confidence level. The exchange rate also significantly influences financial performance at a 90% confidence level at a 0.1 significant level.
The Factors Affecting Foreign Reserves in Sri Lanka: Does the Covid-19 Pandemic Matter?
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Amarasiri, W.T.H.I.; Piyananda, S.D.P.
Purpose: The purpose of the study was to determine the factors affecting Foreign Reserves in Sri Lanka and whether the Covid-19 pandemic has impacted foreign reserves in Sri Lanka. Design/ Methodology/ Approach: To identify the factors that affect foreign reserves the data has been collected from the year 2015 to Month September 2022. To examine the factors affecting foreign reserves, the dependent variables of Export, Import, Exchange rate, Inflation rate, and Covid-19 have been taken as the dummy variable. This study focuses on the factors affecting foreign reserves and whether Covid-19 has a significant impact on foreign reserves special reference to Sri Lanka. The study employed an econometric model to analyze the time series data which are obtained from the Central Bank of Sri Lanka’s Monthly Economic Indicators Reports from 2015 to month of September of 2022 and the sample has been captured as the monthly data. This study uses the Johansen Co- Integration method and Vector Error Correlation term (VECM) to identify the long-run relationship between the foreign reserves and the mentioned macroeconomic factors. Findings: The results indicate that the Export, Import, Exchange rate and Covid-19 situation have a significant impact on foreign reserves in long run. In the short run, the significant variable is only the Export. The unexpected disease of COVID-19, the situation has had a significant impact on the current financial crisis in Sri Lanka. However, the deep financial crisis caused changes in some macroeconomic variables, and in the short run, there may be another factor affecting the changes in foreign reserves. Originality: The study implies the reasons and the finding about that factors in detail and the study found that some dependent variables have a significant impact on foreign Reserves in Sri Lanka.
Foreign Direct Investment as a Determinant of the Performance of Share Market in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sewwandi, N.B.A.A.; Piyananda, S.D.P.
Purpose: The purpose of this study is to examine the factors that affect foreign direct investment and stock market performance. Design/methodology/approach: The quantitative method was applied in this research. This study covers the years 2012 to 2021 and collects monthly data. Focus on the discovery of a long-term relationship between FDI and stock market development in Sri Lanka. And discover that a shock to FDI considerably affects the performance of the stock market in Sri Lanka. The data was collected using the secondary data collecting method, and the Autoregressive Distributed Lag (ARDL) approach was applied to analyze the data in this study. Findings: According to the study's findings, there is a Positive relationship between Sri Lanka's stock market performance and net foreign direct investment. The performance of Sri Lanka's stock market will improve with an increase in foreign direct investment. Originality: Foreign direct investment has a direct and indirect impact on the performance of the stock market, as it can invest directly in shares and open new businesses with the board of investment's approval.
Impact of Bank-Specific Determinants on Financial Performance: With Special Reference to Commercial Banks in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Dharmakeerthi, S.; Piyananda, S.D.P.
Introduction: Banks play an important role in a country's financial system, especially during economic downturns. banks are therefore essential for the functioning of economies since they act as financial intermediaries. An effective banking system supports effective payments, boosts savings and investments, and consequently supports rapid economic growth. The purpose of this study is to generate new knowledge by analyzing the impact of internal factors of a bank on the financial performance of commercial banks in Sri Lanka, using share market performance as a proxy. Methodology: The banking system plays a major part in providing better financial services to the people in a country. This study aims to examine what extent bank internal factors impact the profitability of commercial banks in Sri Lanka. Capital adequacy, Operating cost efficiency, credit risk, and Liquidity, are considered as bank internal factors while return on assets is considered as the profitability measure of this study. Panel data has been collected from published financial statements of thirteen commercial banks listed on the central bank for the period of ten years from 2013 to 2022. The study employs panel regression analysis through STATA software as the primary method for data analysis to investigate the impact and relationship of bank-specific factors on the financial performance of commercial banks, addressing the main research questions. Conclusion: Commercial banks’ financial performance is significantly influenced by the efficiency level of operating cost, and credit risk, with 1% and 5 % significant levels respectively. capital adequacy has a positive and insignificant impact on profitability while liquidity risk insignificant impact on the profitability of commercial banks in Sri Lanka. The finding of this study provides information to present and future investors for making the best decision on which internal factors should be well analyzed when they make investments in the banking sector in Sri Lanka.
Impact of Board Structure on Financial Performance: Evidence from Licensed Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dinelka, W.P.S.; Piyananda, S.D.P.
Purpose: This research studies the impact of board structure on financial performance evidence from Licensed Commercial Banks in Sri Lanka Design/Methodology/Approach: The sample of the study consists of the highest market capitalization ten banks listed in the Colombo Stock Exchange and the data was collected over the period of 2012 to 2021 to determine the impact of board structure on financial performance evidence from Licensed Commercial Banks in Sri Lanka. Return on Asset (ROA), Return on Equity (ROE), and Return on Capital Employed (ROCE) represent the Dependent Variables of the study and Board Size, Board Composition, CEO Duality, and Women Participation in Board (FMB) represent the dependent variables of the study. Panel data regression model is used as cross-sectional and time series nature of data. Findings: Based on the results, Findings also revealed that Board Size, Board Composition, and Women’s Participation on Board significantly impact ROE and ROCE Board Composition negatively affected ROA and it derives Board Structure Characteristics have a significant impact on the Firm’s Financial Performance in Licensed Commercial Banks in Sri Lanka. Originality: The results of the three models are derived from Board Structure Characteristics has a significant impact on firm Financial Performance in Licensed Commercial Banks in Sri Lanka. The Board Size, Board Composition, and Firm Size have a significant impact on Firm Financial Performance, but Women’s Participation in Board (FMB) has an insignificant impact on Firm Financial Performance in Licensed Commercial Banks in Sri Lanka. The findings of the study will guide decision-makers of the banks, potential investors, academics, and other stakeholders in making their strategic planning, profit allocation, and making decisions on the managerial implication of the banking sector.
The Impact of Capital Structure on Firm Performance
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Kumara, G.L.A.M.; Piyananda, S.D.P.
Introduction: The purpose of this analysis is to look at and investigate through empirical observation the impact of capital structure on firm performance. This study examines the impact of capital structure on firm performance of the material business sector in Sri Lanka. Design/Methodology/Approach: Data were gathered from 16 material firms from 2012 to 2020. This study used statistical methods such as descriptive analysis, correlation analysis, and regression analysis have been used to analyze financial data of the preceding nine years. The data were collected from the referring nine years’ annual reports. In this analysis used to measure the capital structure affection for the firm performance, Equity to Assets ratio used as independent and ROA ratio as the dependent variable. To work out the relative significance of capital structure variables on firm performance analysis has used control variables such as size, growth, liquidity. Findings: In this research, Equity Asset was recorded as a significant positive relationship ROA. And also, Firm Growth was recorded as a significant relationship with ROA. However, Firm size and Liquidity were recorded as having an insignificant relationship with ROA. This study used Panel Data Analysis to gather data to assess the impact of capital structure on the firm performance through the STATA package. Conclusion: According to overall statistical results the relationship between the capital’s structure and the Firm Performance shows that there is a positive relationship.
The Impact of Corporate Governance on Firms’ Financial Performance: Evidence from Listed Banks in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Piumali, K.G.A.P.; Piyananda, S.D.P.
Introduction: Today, corporate governance has become a worldwide issue, and the rapid development of corporate governance compliance can be evidenced in many jurisdictions around the world. This study aims to empirically test the impact of corporate governance on a firm’s financial performance. Methodology: This study collected data from 10 firms listed on the Colombo Stock Exchange for a sample period of eleven years, from 2011 to 2022. Using quantitative approach, this study collected secondary data from the annual reports of the selected companies. Board size, board activism, the number of non-executive directors, board independence, and the gender of the board members were used as the explanatory variables to reflect the corporate governance of the companies selected. Both return on equity and return on assets were used to measure the financial performance of the selected company. Further, firm size was used as the control variable. A series of fixed-effects panel regression models was used in this study to analyze the data. Findings: The results of the study revealed that there is a significant impact between ROA and the gender of the board members, whereas all the other hypotheses were rejected. In conclusion, this study revealed that the gender of the board members significantly impacts the financial performance of the listed banks in Sri Lanka. Conclusion: The findings of the study have practical implications for the strategic leaders of the banking industry, as they shall consider women with quality skills, experience, and strong decision-making abilities when making decisions on women's recruitment as board members. Because women are relatively emotional when making decisions, it can affect their financial performance.
The Impact of Corporate Governance on Firms’ Financial Performance: Evidence from Listed Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Pathirana, D. P. H. N. M.; Piyananda, S.D.P.
Introduction: financial performance is a subjective measure of the accountability of an entity for the results of its policies, operations, and activities quantified for an identified period in financial terms. Thus, having a structured corporate governance mechanism in place within the business organization is helpful for them to enhance their financial performance. This study aims to investigate the impact of features of corporate governance on the financial performance of listed entities in Sri Lanka from the non-financial sector. Methodology: To achieve the study objective annual data collected from 20 listed companies for the sample period from 2017-2022 were used in conducting the data analysis. Both Return on Asset (ROA) and Return on Equity (ROE) were used as proxies for financial performance indicators while Board Size (BSIZE), Board Composition (BC) and Board Gender (BGENDER), Audit Committee Size (ASIZE) were used as corporate governance indicators. Descriptive analysis, panel regression and correlation techniques were used in analyzing the data. Findings: The estimation regression analysis findings showed that there is a negative and significant relationship between BC and ROE which is a contradictory finding with that of the previous studies. Also, study findings revealed that there is a significant positive relationship between ASIZE and ROE. Conclusion: The study finding has practical implications highlighting the fact that listed entities shall think of the size of their audit committee together with the composition as it has a direct impact on financial performance of listed entities.
The Impact of Corporate Governance on Firms’ Financial Performance: Evidence from Listed Finance Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Kaushalya, A.K.G.D.; Piyananda, S.D.P.
Introduction: Corporate governance is a widely regarded core organizational concept that is crucial for the development, sustainability, and competitiveness of businesses. Strong business ethics, sensible policies and processes, and effective monitoring systems are thus regarded as elements of a system of competent corporate governance. The main objective of this study was to investigate the impact of Corporate Governance on the financial performance of listed finance companies in Sri Lanka. Methodology: Return on Assets (ROA) and Return on Equity (ROE) were used as proxies for firms performance whereas explanatory variables include Board Size, Board Composition, Audit Committee Size, Goard Gender. The sample picked out 20 listed finance companies based on companies with the highest market capitalization in financial statements as of 31st August 2023. The secondary data were collected through the annual report in these listed finance firms. Secondary data were collected using documentary information from the Company's annual report for the period 2018 to 2022. Data analysis was conducted using techniques such as, panel regression, descriptive analysis, and correlation analysis. Findings: Looking at the overall correlations suggests that factors such as board size, board meetings, board gender, and firm size have more positive impacts on ROA and ROE. And board composition has negative impacts on return on assets. But overall, these variables are not significant impact on ROA and ROE. Understanding the corporate governance mechanisms on financial performance is an important area of interest to academics, practitioners, and regulators. Conclusion: The empirical result of the study shows that all the CG variables (board size, board independence, and board gender) have positive and insignificant impacts on financial performance at 5% level of significance with the following, respectively. This suggests that board size is essential to achieving board effectiveness and increased firm performance, which is consistent with the findings of earlier studies. This finding is supported with the previous empirical finding of Mohammed Ibrahim and Buhari Baba (2019) who found positive association between board size, board independence, and board gender and firm performance.
Impact of Covid 19 Pandemic to the Working Capital Management Practices of Manufacturing Firms in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Kaushalya, M.K.K.; Piyananda, S.D.P.
Introduction: The Purpose of this study is to examine the Impact of the COVID 19 pandemic on the working capital management practices of manufacturing firms in Sri Lanka. Design/Methodology/Approach: The sample includes 49 companies out of 56 companies from the capital goods, materials, consumer durables, and apparel sectors that were listed in the Colombo Stock Exchange over the period of 2019 to 2022 to determine the impact of COVID 19 pandemic to the working capital management practices. The study is conducted as quantitative research with the deductive research approach. The sample has been selected using the solvin formula. The working capital management was measured using the cash conversion cycle, average collection period, average payable period, and the inventory conversion period, and the firm’s performance was measured using the return on asset. The Wilcoxon Sign Rank test is used to analyze the data. Findings: After analyzing the before and after pandemic situation, the average collection period and return on assets have a significant impact on the manufacturing companies in this pandemic period while the cash conversion cycle, average payable period, and inventory conversion cycle have no significant impact. Conclusion: According to the results, the average collection period and the return on assets has made a statistically significant impact because of this COVID 19 while cash conversion cycle, average payable period, and inventory conversion period shows no significant impact due to this pandemic situation in the manufacturing companies listed in CSE.
The Impact of Credit Risk on Financial Performance of Listed Licensed Commercial Banks in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Premarathna, S.T.M.; Piyananda, S.D.P.
Purpose: Based on the current crisis in Sri Lanka credit risk appears to be the biggest threat to banks. The substantial portion of non-performing loans on the bank's balance sheet affects its performance and reduces its profitability. This paper aims to analyze the impact of credit risk on the financial performance of listed commercial banks in Sri Lanka. Methodology: The secondary data from 10 commercial banks in Sri Lanka were collected for the sample period of 2013-2022 referring to their annual reports. Return on Asset (ROA) and Return on Equity (ROE) were used as proxies for financial performance indicators while Non-Performing Loans (NPLs), Capital Adequacy Ratio (CAR), and Loan Loss Provision (LLP) were used as credit risk indicators. The study employed descriptive statistics, panel regression analysis, and correlation analysis for data analysis. Findings: The study shows that non-performing loans (NPLs) demonstrated a significant impact on ROA and ROE. Conclusion: The practical implications of the study suggest that banks should aim to maintain adequate capital reserves, implement effective risk management strategies, consider firm size, monitor financial leverage, and engage in continuous research and regulatory compliance. To thrive in a dynamic financial landscape, commercial banks should stay updated on the latest research and industry best practices.
The Impact of Financial Literacy on Individual Investment Decisions: Mediating Role Of Risk Tolerance With Special Reference to Undergraduates in Western Province, Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Dilshan, W.M.T.E.; Piyananda, S.D.P.
Introduction: One of the important elements influencing the financial investment decisions of both individual and institutional investors is financial risk tolerance, which has a significant impact on financial planning and financial counseling. In this study, the researcher investigated the effects of financial literacy on investment decisions with mediating effect of risk tolerance, by using the population of university undergraduates in Sri Lanka. Methodology: The sample was comprised of 200 undergraduates from four public universities in the western province. The study made use of primary data sources. By using a closed-ended questionnaire, data was gathered. A total of 200 replies were gathered, with 95 percent of them being recorded. Measures of central tendency were used in the study as descriptive statistics to describe the data. Multiple linear regression was used in the investigation. The independent variable was financial literacy, and the dependent variable was investment decisions. Furthermore, risk tolerance was used as the mediating variable. Findings: The results of the empirical investigation showed that financial risk tolerance is significantly influenced by investment decisions. This study has explored the mediating role of risk tolerance, and it demonstrated that higher levels of financial literacy make undergraduates more tolerant towards risk which in turn makes a better and more satisfying investment decision-making performance. Conclusion: In this regard, raising undergraduates' financial literacy through a variety of initiatives is likely to raise demand for financial products with diverse risk profiles, which will in turn aid the financial sector's expansion. As a result, this study has several consequences for politicians, financial advisors, and investors. The findings also support the value of financial education programs in raising financial literacy among university undergraduates.
Impact of Forensic Audit on Fraud Detection and Prevention of Sri Lankan State Banking Industry: A Qualitative Study
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kaushalya, P.M.I.N.; Piyananda, S.D.P.
Purpose: Forensic audits are the audits that examine and evaluate a firm's or individual's financial records to derive evidence used in a court of law or legal proceeding. This study set out to investigate the effect of forensic audit services on fraud detection in state banks in Sri Lanka. Design/Methodology/Approach: The study was conducted using the Qualitative method and thematic analysis method. The primary data was collected from over 05 interviews with two major state banks. Findings: This research has implications for theory as well as empirical application in business and policy-making areas. It can help the Sri Lankan banking industry upgrade its approaches, identify weaknesses, and compare its detection mechanisms with international firms. Originality: This research will be very useful to those who are seeking information about forensic auditing which is used in the Sri Lankan state banking industry and identifying methods for the banking industry could improve its fraud handling
Impact of Liquidity Risk on the Performance of Licensed Commercial Banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Walpita, W.D.N.P.; Piyananda, S.D.P.
Purpose: The objective of this study is to identify the significant liquidity risk factors and the impact of them on both top line and bottom-line performance indicators of commercial banks. Therefore, a bank should endeavor to achieve both sides' goals, which are respectively profitability and liquidity. This study identifies the relationship between several liquidity measurements and their impact on bank performance. Design/Methodology/Approach: The dependent variable, the Return on Total Assets and the Return on Total Equity are used as measures of profitability and to measure the relation between liquidity risk management. The independent variable, which is the liquidity level is measured by using the Liquidity Coverage Ratio, Loans to Deposit, Financial Gap to Total Asset, Cash Reserves, and NPL Ratio. The sample selected by the author is 12 listed commercial banks that are Systematically important banks in Sri Lanka used in data analysis for the period of 2012–2021. Findings: The present study expects to fill the gap in the existing literature of banks on the impact of liquidity risk and macroeconomic determinants on Sri Lankan commercial banks’ profitability by providing new empirical evidence. The results of the present study have significant contributions to the existing stock of literature by comprehensively clarifying and analyzing the current state of Sri Lankan commercial banks’ profitability. Originality: When it comes to making good decisions, the causes of information overload can become a burden, according to this study. The results of this study will therefore aid in managing both financial and non-financial information and assist future researchers in identifying research needs.