ICBI 2024

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AI Evolution: Assessing Maturity, Addressing Challenges, and Seizing Opportunities
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Umar Baki, N.; Mohd Rasdi, R.
This article investigates the impact of AI-based automation technologies on workplace maturity levels, emphasizing the challenges and opportunities arising from their integration. Utilizing triangulation approaches, six case studies from various service industries, such as consulting, insurance, e-commerce, healthcare, education, and telecommunications were analyzed, focusing on the phases of experimentation and optimization in AI application. The primary challenges identified include ethical and legal concerns, resource constraints, resistance to AI adoption, and complexities in human-AI relationships. Conversely, the implementation of AI offers benefits such as increased productivity, enhanced customer satisfaction, and improved safety protocols. These findings are particularly relevant to the Sustainable Development Goal (SDG) of decent work, suggesting that AI can significantly contribute to equitable, inclusive, and sustainable economic growth by improving job conditions and workplace quality. The study provides practical insights for policymakers to develop incentives and regulations for Industry 4.0, promoting a holistic approach to AI utilization. Human resource professionals can leverage this research to devise tailored strategies based on their organization's AI maturity level, addressing challenges and seizing opportunities to advance AI implementation efforts. This study highlights the dual impact of AI in the workplace, demonstrating its potential to both disrupt and enhance various organizational practices, and aligns its findings with the global focus on promoting equitable employment opportunities.
An Examination of Valuers’ Perceptions on Property Valuation during an Economic Crisis: Evidence from Sri Lanka
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Mendis, B. S. N.; Perera, T. G. U. P.
Uncertainty, an inherent characteristic of property valuation, is a common phenomenon that cannot be avoided. Nevertheless, the material uncertainty in property valuation should be treated with special professional consideration by valuers. Most recently, Sri Lanka faced a severe economic crisis, increasing the likelihood of presence of material uncertainty in the valuation process. This paper aims to investigate whether there was an abnormal uncertainty in property valuation during the economic crisis of Sri Lanka and to identify the behavioural changes of professionals prompted by the crisis. Data for the study was collected through semi-structured interviews with 12 professional valuers who were selected purposively and analyzed using thematic analysis techniques in conjunction with the theoretical lens of prospect theory. The findings revealed that the valuers indeed experienced abnormal uncertainty in property valuation due to the economic crisis, leading to behavioural changes in valuers which were more subjective in nature. This paper recommends establishing a framework for addressing abnormal uncertainty in property valuation to ensure consistency within the profession. Furthermore, it recommends further investigations into abnormal uncertainty regarding specific property categories and valuation types, including statutory valuations.
Analysing the Factors Affecting to Women’s Engagement in Sri Lankan Labor Force
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Nanayakkara, N. W. H. G. K. K.; Hewaarachchi, A. P.; Kavinga, H. W. B.; Wijebandara, W. A. C.
Women's engagement in the workforce is a key factor in driving economic growth in Sri Lanka. Despite the country's advancements in recent years, women still face significant challenges that prevent them from fully participating in the workforce. The objective of this study is to explores the potential labor force of women in Sri Lanka and the factors affecting their participation, using data from the Labor Force Survey 2021. Analyzing data from 41,171 women out of 77,869 individuals using a binary logistic regression model, the study considered factors such as marital status, education level, age group, relationship to the head of the household, district, sector, ethnic group, religion, Sinhala literacy, and English literacy. The results showed that all the variables except for Religion, are statistically significant. Married and widowed women are less likely to participate in the labor force compared to never-married women, while separated and divorced women are more likely to participate. Women in districts like Nuwara Eliya, Kilinochchi, Kurunegala, Anuradhapura, Badulla, and Rathnapura have higher labor force participation rates. There is a notable gender gap in labor force participation, with males participating more actively than females; over half of the working-age female population remains economically inactive. Females constitute most of the unemployed demographic. Despite being more prevalent in urban and rural areas, labor force participation rates are higher in the estate sector. Most women abstain from job searches due to household responsibilities and education levels. Nearly half of discouraged women are concentrated in younger age groups, with 26% aged 25-34 and 21% aged 35-54. The study underscores the necessity of policy interventions to address barriers to women's labor market participation, especially in household duties and education, to enhance Sri Lanka's female workforce potential and contribute to its economic and social development.
Assessing Profitability of Sri Lankan Commercial Banks Amidst Crisis
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Gunasekara, H.M.A.L.; Ranasinghe, R.A.P.M.; Jayasinghe, G.D.C.T.
This study aims to examine whether the Covid 19 pandemic and the post pandemic economic crisis have damaged the primary profitability of commercial banks. This study uses annual data from 2011 to 2023 for ten leading public and private domestic commercial banks in Sri Lanka. The results have been obtained using panel regression models and mean comparison tests. This study identified that the primary profitability measured by ROA is lower during health crisis and economic crisis periods and it achieves statistical support under comparison tests. The negative impact on ROA is dominant in the first Covid 19 year (2020) and the first economic crisis year (2022) than other periods. Further, comparison tests show that the impacts of any crisis are not superior to one another. However, when controlled for the bank-specific and macroeconomic factors, the negative differential effect of both crises fails to achieve statistical significance, indicating that Covid 19 and post- pandemic economic crisis have impacted domestic commercial banks weakly. This is the first kind of study to uncover that the domestic commercial banks have managed to maintain their primary profitability without a large injury to ROA during the health crisis and economic crisis years, helping them remain resilient during the crisis period.
Corporate Characteristics, Governance And Climate Change Disclosures In South Asian Context: A Signaling Theory Perspective
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Sonali, V.D.V.; Vijerathna, M.P.G.; Kannangara, S.D.P.P.
Climate change has become a favorable and ponderable topic due to its irrevocable impact on human beings. People worldwide are experiencing horrible circumstances due to global warming. At present, researchers are considering climate change and its methods of mitigation, but the plethora of research studies has put off financial sector firms without considering their direct and indirect impact. Indeed, the banking sector influences climate change subtly and unswervingly. This study aims to investigate the extent of climate change disclosure level and the influence of corporate characteristics and governance on climate change-related disclosure in the banking sector in the South Asian region based on the signaling theory. This research has adopted a quantitative research methodology. Data were collected from a sample of 63 banks for the period from 2013 to 2021 in South Asian countries such as India, Pakistan, Bangladesh, and Sri Lanka, and R programming (R 4.30) and Python were used for the panel data analysis to validate the hypothesis. Findings revealed that bank age, size of the bank, and, independence of the board provide favorable signals to influence climate change disclosures in South Asian countries. This study adds to the existing body of knowledge on corporate characteristics including corporate governance and climate change-related disclosure in the banking sector because climate change practices are an upcoming and inescapable problem that humans can come across. Therefore, reporting the impact of climate change is very vital within the organizational context. For future research studies, the period and sample can further be increased by future researchers to broaden the scope of the study.
Determinants of Hydrogen Bond Financing Costs: Gender Balanced Boards & Bond Maturity Type Risk
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Duppati, G.
This study examines whether board female representation and bond maturity type risk individually or jointly affect the issuing firms’ hydrogen bonds financing costs. It predicts that corporations with higher female representation on their boards have lower financing costs than issuing organizations with lower female representation. This paper addresses its research issues by examining a sample of 212 corporate and government institutions across 36 countries engaged in the issuing of Hydrogen green bonds, namely callable bonds or maturity bonds. The data is obtained from the Bloomberg database. This study addresses the research concerns mentioned using a variety of statistical estimating techniques, including regression techniques (OLS and Quantile) and propensity score matching tests. The theories considered in the study include masculinity theory, agency theory, and the study's findings. The study results confirm that female representation is a very important determinant of the hydrogen bond financing costs and are robust to testing with different samples, specifications, and explanations. Despite a significant negative relationship between female board representation and financing costs, firms in the lower segment of the bond coupon rate distribution experience a decrease in bond coupon rates with increased female board representation, as compared to the 50th, 75th, and overall average distributions. This suggests that gender diversity may have differential effects depending on the firm's bond financing conditions.
Environmental Accounting Disclosure and Financial Performance: Evidence from Listed Manufacturing and Service Sector Companies in Sri Lanka
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Naveendya, J.B.S.; Madhushani, P.W.G.
The most challenging environmental issues that the world is facing today are climate change and global warming, which stem from business operations. Hence, it is the responsibility of the business sector to protect the environment and society. Thus, the observation intends to examine the impact of environmental accounting disclosure on the financial performance of manufacturing and services sector companies listed in the Colombo Stock Exchange, Sri Lanka. The methodology was a quantitative survey approach involving a sample of 28 manufacturing and 17 service sector companies over consecutive financial years from 2012 to 2022. The content analysis technique was used to measure the level of environmental accounting disclosures. The Environmental Accounting Disclosure Index (EADI) was prepared based on eight environmental accounting disclosure items. The regression analysis revealed a significant positive impact of environmental accounting disclosures and the firm’s financial performance of manufacturing companies but not service companies. The results of this study will make it easier for regulators and those who prepare annual reports for highly environmentally sensitive industries to set the foundation for environmental accounting disclosure practices that lead to improved financial performance.
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.
How Does Loss Aversion Mediate the Relationship between Personality Traits and Investment Decision-Making?
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Jayawardena, A.M.A.; Nanayakkara, N.S.
This research finds evidence of the mediating role of loss aversion in the relationship between personality traits and investment decision-making among individual investors of the Colombo Stock Exchange. In Behavioural Finance expected utility maximization is replaced by the Prospect Theory, and it emerges as a fundamental descriptive theory for the study, attempting to uncover the subtle interplay between big five personality traits— conscientiousness, extraversion, agreeableness, neuroticism, and openness to experience— - and investment decision making. The study employed a quantitative research approach utilizing a convenience sampling technique, with 351 individual investors contributing to the research. Data collection was carried out through a structured questionnaire. The study adopts a cross-sectional time horizon, and Structural Equation Modelling was used to analyze the data with the help of SmartPLS4 statistical software. The study identified significant relationships between personality traits and investment decision-making. Specifically, openness to experience and agreeableness were positively associated with investment decision-making, while extraversion, openness to experience, and conscientiousness were significantly related to loss aversion. Mediating analysis revealed that loss aversion fully mediates the relationship between extraversion and conscientiousness with investment decision-making, and partially mediates the relationship between openness to experience and investment decision-making. The study’s findings highlight that considering personality traits in investment decision-making can help financial practitioners in Sri Lanka and similar economies tailor investment strategies, improve investor education
Impact of Financial Literacy, Financial Stress, Self-Efficacy, and Coping Strategy on Help-Seeking Behavior and Academic Performance During Economic Crisis in Sri Lanka: With Special Reference to University of Kelaniya Undergraduates
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Sathsarani, K.P.G.; Weligamage, S.S.
Sri Lankan citizens, including university students, have faced significant economic challenges, financial instability and maintaining their academic performance during the financial and economic challenges period. This study aimed to examine the impact of financial literacy, financial stress, self-efficacy, and coping strategy on help-seeking behavior and academic performance among undergraduates during an economic crisis in Sri Lanka. Data were collected from 324 students at the University of Kelaniya using a questionnaire consisting of both close-ended questions and 5-point Likert scale-type questions. The convenience sampling technique was used to ensure practical accessibility and was placed on the sample's representativeness, considering students from diverse socioeconomic backgrounds, academic disciplines, and various academic levels. Financial Literacy, Financial Stress, Self-Efficacy and Coping Strategy, and Help-seeking Behavior were used as the independent variables, and help-seeking behaviour and academic performance were used as Dependent variables. Data was tested using frequency distribution, descriptive, validity and reliability checking, correlation and regression analysis through inferential statistics. All variables, including financial stress, financial self- efficacy, financial literacy, coping strategy, help-seeking behaviour, and academic performance, exhibit alpha values above 0.7, meeting the accepted threshold for reliability. Correlation analysis results reveal significant relationships between help-seeking behavior and various factors. Strong positive correlations were observed with all independent variables, and all are statistically significant at the 0.05 level. These results imply that individuals facing higher financial stress are more inclined to seek help, linked to perceived financial self-efficacy, financial literacy, and coping strategies. The findings highlight the interconnected nature of these variables in influencing help-seeking behavior during economic challenges. The study's findings also revealed that financial stress and coping strategies significantly impact students' help-seeking behavior and academic performance. The study also found that financial self-efficacy and financial literacy had a significant impact only on academic performance. This study recommended developing comprehensive financial wellness awareness programs among undergraduates and enhancing financial literacy and coping skills to manage their academic performance.
Information System Success Factors and Its Influence On The Adoption Of E-Government Services In Sri Lanka
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Nethmini, U. T.; Parameswara, N. P.; Endagamage, D. M.
In the contemporary landscape, the Sri Lankan government places great emphasis on harnessing digital technology to enhance the efficiency and effectiveness of its services (ICTA, 2020). However, the mere integration of digital technology into government services does not inherently guarantee substantial improvements; rather, its impact largely hinges on citizens' willingness to utilize these e-government services (Dayaratna-Banda & Dissanayake, 2022). Furthermore, the uptake of e-government services remains relatively low in Sri Lanka (Withanage et al., 2022). Hence, it becomes imperative to explore the factors that influence a citizens' intention to adopt e-government services. Drawing on the DeLone and McLean IS success (D&M) model, the study aims to examine the influence of Security, System Quality, Information Quality and Service Quality on the citizens’ intention to use e-government services. The study adopts a deductive approach and follows a quantitative research design. To examine the hypotheses, we distributed 350 questionnaires to Sri Lankan citizens who have internet access and have utilized online passport application, birth/marriage/death certificate, and vehicle revenue license services. The sample size was calculated using Cochran’s Sample Size Formula. The survey was conducted via a Google Form, and we received responses from 250 individuals. Analysis of the data indicated that Security, Service Quality, and Information Quality shows a significant impact on the intention to use e-government services. However, our findings did not show a significant impact of System Quality on the intention to use e-government services. This research fills a theoretical gap by revealing the influence of security and quality- related factors on the intention to use e-government services in Sri Lanka. Understanding these key factors will guide policymakers in formulating strategies to enhance the citizens' intention to use government websites for information and transactions. The study could be further extended to include other e-government services and a larger sample size representing the population.
Learning from Career Preparedness: Examining the Influence of Person-Environment Fit on Decent Work Expectations
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Qi Kou; Roziah Mohd Rasdi; Ehikioya Hilary Osolase
The impact of person-environment fit on decent work expectations was less explored among economically disadvantaged students. The main purpose of the study is to investigate the influence of person-environment fit on decent work expectations, and to examine the mediating effect of career preparedness on this relationship among Chinese students with financial constraints. Data were collected from several universities in China consisting of 356 economically disadvantaged college students (Mage = 20.3 years, SD = 1.27, 71.9% female). Structural equation modelling analysis was employed to examine the hypotheses of the study. The findings showed that person-environment fit significantly influenced decent work expectations directly and indirectly through career preparedness. A new contextual support (i.e. person-environment fit) was identified, and revealed the learning mechanism of career preparedness between P-E fit and decent work expectations. Insights into theory and practice are put forward.
Psychological Consideration to Engage Employees for Knowledge Sharing in Service Organizations
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Hasan, I.; Kabir, E.B.; Kamal, N.
Knowledge is the most incremental asset for organizations. Researchers, practitioners, and academics are establishing different arguments on the thought and established different models and concepts to make the organizations effective. Sharing knowledge among employees is an effective way for an organization to produce innovativeness. Engaging employees in this exercise is often difficult for organizations since employees hoard knowledge and have a fear of future consequences. Different studies address these issues and emphasize the importance of employees’ psychological considerations in enhancing employee knowledge-sharing behavior within organizations. Psychological considerations determine long-term employability. However, psychological elements like employee well- being and empowerment positively affect employee behavior. Psychological well-being refers to employees' personal progress and life happiness. Psychological empowerment involves autonomy, knowledge, meaningfulness, and employee commitment to managerial techniques. Thus, psychological well-being and empowerment improve employee satisfaction, ethics, and work engagement to ensure employee knowledge-sharing behavior. Though the psychological elements manifest strong ties with knowledge sharing, the availability of the literature is scanty, especially in countries like Bangladesh. The study objective is to address these gaps and develop a research model where psychological well- being and empowerment are considered influencing factors to reduce the fear of sharing and improve knowledge-sharing behavior in service organizations in Bangladesh. This study utilized a quantitative approach, employing Partial Least Squares regression (PLS)- based Structural Equation Modeling (SEM) to test the hypotheses. A survey questionnaire was used to collect data from various service organizations, e.g., banks, telecom, etc. The result of this study also confirms that psychological considerations impact employee knowledge-sharing behavior across organizations. The finding of this study produces an interesting outcome for policymakers, practitioners, and academic and industry-related people who are connecting knowledge-sharing behavior in the context of Bangladesh and showing a unique way to manage the organization to become competitive. The results also demand future research initiatives, and the model can be used in a similar economy to develop a generalized understanding to make the organization effective.
Pushed To the Brink: A Conceptual Paper on How Overwork Climate and Abusive Supervision Fuel the Intention to Quit Among Employees in Malaysian Banks
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Mohd Fuzi, N.; Mohd Rasdi, R.; Wan Abdullah, W.A.
This study investigates the predictors of turnover intention among employees in the Malaysian banking sector, focusing on the role of overwork climate and abusive supervision. The banking industry in Malaysia is characterized by high work pressure and competitive demands, making turnover intention a critical concern for organizational performance and human resource management costs. The emphasis on overwork climate and abusive supervision as primary predictors stems from their pronounced influence on stress levels and job dissatisfaction within this high-pressure context. These factors are posited to be more salient in determining employees' decisions to leave, compared to other potential predictors. This study will employ a quantitative research approach, employing a cross-sectional survey design to collect data from a representative sample of banking employees in Malaysia. The data will be analyzed using Structural Equation Modelling (SEM) to assess the direct and indirect effects of overwork climate and abusive supervision on turnover intention. By understanding the relationships between these variables and turnover intention, this study seeks to contribute to the existing body of literature, offering a nuanced understanding of the unique work dynamics present in the Malaysian banking sector. The anticipated findings aim to inform management practices by highlighting the importance of addressing overwork and abusive supervision as key strategies for reducing turnover rates. Ultimately, this research aspires to enhance employee satisfaction and commitment, thereby promoting a more stable and productive workforce.
Simulating Stock Prices Using Geometric Brownian Motion in the Malaysian Stock Market.
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Ramly, K.R.; Kethmi, G.A.P.; Herath, H.M.N.P.
Among these mathematical models, the Geometric Brownian Motion (GBM) model plays a pivotal role in predicting stock prices. Bursa Malaysia, the financial sector's foundation, offers a vibrant venue for securities trading, which is essential to the growth of the country's economy. This study aims to evaluate the GBM model’s performance in various market contexts in Malaysia, particularly considering different market capitalizations and industry sectors over various time frames. The sample for this study includes companies from the sectors of Financial Services, Property, Industrial Products & Services, and Transportation & Logistics and Daily stock price data obtained from Yahoo Finance from 2019 to 2023 used in the study. The methodology involves applying GBM to simulate short-term and long-term stock prices and evaluating the accuracy using statistical measures MAPE and RMSE. The findings reveal that the GBM model exhibits high accuracy in short-time forecasting across a diverse range of stocks, however, its efficiency diminishes over more extended forecasting periods also large-cap stocks yield more stocks and more accurate short-term predictions, also the model’s effectiveness varies significantly across the sector. This study establishes the model's effectiveness in short-term forecasting but cautions against its reduced accuracy for long-term predictions under varying market conditions. The research emphasizes the importance of a multifaceted approach to financial modelling, highlighting the need for careful application in long-term investment strategies and policy development within markets like Bursa Malaysia.
The Impact of Integrated Reporting on Firm’s Performance: Comparison between Financial and Non-Financial Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Nishantha, A. C.; Wanigasekara, W. A. D. K. J.
The purpose of this study is to examine the impact of IR adoption on the firm’s performance of Financial and Non-Financial public listed companies (PLCs) in the Colombo Stock Exchange (CSE) Sri Lanka and observe the disclosure pattern of integrated reporting (IR). For this quantitative study, sample panel data were collected from the integrated annual reports of 56 PLCs (23 financial PLCs and 33 non-financial PLCs) published from 2018 to 2022. The level of IR adoption (IRDIN) was used as the independent variable, while Return on Assets (ROA), Return on Equity (ROE), and total sales growth (GRO) are considered the financial, operational, and growth variables respectively. Tobin’s Q and Price Earning (PE) ratio were selected as market-related variables. The control variables were Firm size (FIRMSIZE) and Leverage (LEV). Descriptive analysis was performed in this study with the help of Eviews latest version and Robust regression analysis was employed to analyze the impact of the level of IR adoption on firms’ performance. Findings deduced from the empirical results show that IRDIN positively and significantly impacts all four performance variables (ROA, ROE, GRO, Tobin’s Q) of non-financial PLCs. IRDIN on Financial PLCs positively and significantly affected financial (ROA) and operational (ROE) based variables. Furthermore, the content analysis shows an increasing pattern of revealing the indicator elements constructed by the sample PLCs.This study adds value to the existing limited literature on IR disclosure and firm performance in Sri Lanka by incorporating content analysis and regression analysis to understand how firms respond to the stakeholders' demand for value creation. Using data mining and applying big data analytics of annual reports in eXtensible Business Reporting Language (XBRL) format are highly promising for future research.
The Role of Investor Perspectives on Cryptocurrency Integration in Sri Lankan Investment Portfolios Using the Black-Litterman Model
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Abayakoon, V. D. W.; Piyananda, S. D. P.; Herath, H. M. N. P.
The study examines the integration of cryptocurrencies into investment portfolio diversification, emphasizing the influence of investor opinions on their portfolio strategy in Sri Lanka. The study has investigated how investor views impact portfolio optimization when cryptocurrencies are included into their investment portfolios. The Black-Litterman model was employed to assess this influence, incorporating historical prices of conventional equities, cryptocurrencies and other relevant financial data. The S&P20 index of the Colombo Stock Exchange represents the conventional equities while Bitcoin and Ethereum were used to benchmark cryptocurrencies for the study period of 2021 to 2023. The timeframe was strategically chosen to encapsulate both the pre-and post-COVID eras in Sri Lanka, thereby capturing the nuances of economic recovery from the crisis and the economic downfall. The findings from this timeframe indicate that incorporating investor views produced superior risk-return outcomes that significantly enhanced portfolio performance. The analysis emphasized that the post-implementation of investor viewpoints, the portfolio’s volatility and anticipated returns align more closely with the investors’ expectations. Accordingly, even with the high volatility of cryptocurrencies, the portfolio achieves optimal returns and Sharpe ratios with reduced overall volatility. This demonstrates the Black- Litterman model's efficacy in addressing the challenges posed by integrating cryptocurrencies into investment portfolios. The study highlights the potential of investor- informed strategies to improve portfolio diversification and the performance of their stock portfolio by incorporating cryptocurrencies. This provides novel insights to Sri Lankan investors, policymakers and portfolio managers on optimizing portfolio performances encompassing investor views and cryptocurrency investments.
Understanding GCC Banks: Credit risk, Interest Charges, and Operating efficiency
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Duppati, G.; Maamari, B.E.
This study empirically examines two research questions: First, whether the Credit Risk increases the operating efficiency of banks? And second, whether Interest Charges Influences the relationship between Credit Risk and Operating Efficiency? This study uses the secondary data and it is drawn from EIKON DataStream for the period 2005 to 2022. The sample size of the study includes 50 banks of the GCC region, covering eight states, which includes: Abu Dhabi, Dubai, Saudi Arabia, Sharjah, Kuwait, Oman, Qatar and UAE. For addressing the research questions raised in this study, we employ different regression techniques that include the fixed effects (FE) model and System dynamic panel-data estimation test to ensure robustness of the results. Our results show that high interest rates benefit the 25th and 75th percentiles, but the firm's ability to adapt, innovate, and restructure in response to the changing financial environment will determine how much they benefit lower efficiency quantiles. Banks that overcome these challenges may become more competitive, efficient, and streamlined. While higher interest rates increase financing costs and financial constraints for lower- efficiency banks, they can also spur good transformation.
Why do Consumers Return Products?: Online Product Return Behavior of Young Female Consumers with Special Reference to the Fashion Industry in Sri Lanka
(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Bandara, W.M.H.P.; Geethanjali, W.M.D.K.
E-commerce is getting increasingly popular around the world. Following the COVID- 19 epidemic, e-commerce in Sri Lanka surged considerably. The fashion industry is a well-known industry that sells products to consumers via online channels such as social media and websites. Young, tech-savvy female consumers are becoming increasingly important in online retailing specifically in the fashion industry. Online product returns are a relatively new field in the Sri Lankan setting, therefore researchers utilized qualitative methodology to study the unique phenomena. In this study, the researchers identified the factors influencing online product returns among young female (Gen Z) consumers in the Sri Lankan context. 20 semi-structured interviews were conducted with both buyers and sellers to gather data for the study. The purposive sampling technique is used to select the respondent for the study. A thematic analysis was used to analyze the interview data. Researchers categorized the factors under three main themes such as customer requirement mismatch, cultural issues, and late deliveries. In addition, the researchers discovered customer recommendations for online fashion retailers to reduce online product returns. Furthermore, the researchers explored the fraudulent practices of consumers such as intentional damage to the product by reviewing bad comments, not paying for the delivery, placing the order without paying upfront, and not buying the product. In addition to that, researchers identified recommendations from customers to retailers to reduce online product returns. The implications of this study will help online fashion retailers reduce product returns by understanding customer expectations.