13th Students’ Research Symposium 2023/2024
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29096
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Item The Impact of Green Banking Practices on Bank Financial Performance, Study Based on Commercial Banks of Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Amarasiri, G. D. M. N.; Fernando, J. M. R.Introduction: This study focused on the Impact of Green Banking Practices on Bank Financial Performance Study Based on Commercial Banks of Sri Lanka. Local or foreign researchers have not done any research considering the recent effect of green banking practices by evaluating the quantitative data on financial performance. Methodology: To address the three objectives; impact of green costs on the bank’s financial performance, the impact of corporate governance and its moderate relationship between green banking practices and banks’ financial performances, the effect of country regulation, and moderate the relationship between green banking practices and the financial performance of 10 licensed commercial banks in Sri Lanka under registration in the Colombo Stock Exchange, this study uses six variables including one dependent variable, one independent variable, two moderate variables, and two control variables. The study used secondary data from banks' annual reports and worldwide Governance Indicators from 2015 to 2023 and used panel regression to analyze the data. Findings: The study found green costs are negatively significant with ROA, demonstrating that short-term costs related to green initiatives could have a negative impact on short-term financial performance. While country regulatory, and corporate governance showed a significant positive relationship with ROA. Conclusion: This research suggests that bank financial performance is significantly impacted by green cost, green governance, and green country. Strong corporate governance procedures are crucial for promoting sustainable growth.Item The Impact of Sustainable Finance Literacy and Perceived Environmental Values on Sustainable Investment Attitudes: Evidence from Individual’s Western Province in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Ekanayke, E. M. T. S.; Fernando, J. M. R.Introduction: Today, the sustainability concept has become a more trending concept than in the past, and with the rapid development around the world, various kinds of environmental issues occur. To mitigate them, the sustainability concept needs to be followed. This study aims to empirically test the impact of sustainable finance literacy and perceived environmental values on sustainable investment attitudes. Methodology: This study collected data from individuals who reside in the Western Province of Sri Lanka during the period of October 2024 – November 2024. Using a quantitative approach, this study collected primary data from individuals through a questionnaire, including questions related to sustainable finance literacy, perceived environmental values, and sustainable investment attitudes. Gender, age, education level, and income level are used as moderate variables. Findings: The results of the study revealed that there is a significant impact between sustainable finance literacy and sustainable investment attitudes, as well as between perceived environmental values and sustainable investment attitudes. Demographic factors such as age, gender, education level, and income level also have a significant impact on sustainable investment attitudes. Conclusion: The findings of the study imply that, to stimulate sustainable investments in developing countries, regulatory authorities and sustainable fund issuers such as financial corporations can enhance promotional campaigns and workshops aimed at increasing awareness and understanding of sustainable finance literacy.Item The Effect of Green Banking Practices on Banks’ Financial Performance: Evidence from Licensed Banks of Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Perera, M. P. N.; Fernando, J. M. R.Introduction: This study explores the impact of green banking practices on the financial performance of licensed banks in Sri Lanka, focusing on three key dimensions: green costs, country regulations, and corporate social responsibility (CSR) initiatives. The objectives are to examine how green costs affect financial performance, assess the moderating effect of country regulations on this relationship, and analyze the role of corporate social responsibility spending in enhancing financial performance. The research aims to provide actionable insights for the banking industry and policymakers to implement financial strategies with sustainability goals by addressing these objectives. Methodology: The study adopts a quantitative methodology, utilizing secondary data from the annual reports of ten licensed local banks with the highest market capitalization in Sri Lanka from 2018 to 2023 and also Worldwide Governance Indicators. The data sample of the study is the ten Licensed Domestic Banks with the highest total market capital in Sri Lankan banking industry. Descriptive statistics and regression analysis were used to assess the relationships between variables, and structural equation modeling was used to ensure the robustness of the results. Findings: The findings show a positive significant relationship between green costs and financial performance, with sustainable investments enhancing profitability through operational efficiency. CSR activities also show a strong positive impact, reinforcing the value of corporate accountability in driving financial growth. On the other hand, strict country regulations were found to have a negative impact on financial performance, highlighting the challenges of balancing environmental compliance with operational flexibility. Conclusion: The study concludes that green banking practices, especially when combined with strategic CSR initiatives, offer significant financial and reputational benefits. Policymakers are encouraged to design balanced regulatory frameworks that promote environmental objectives while minimizing compliance costs for banks. These findings highlight the strategic importance of sustainability in achieving long-term financial and environmental goals.Item The Impact of Financial Distress on Firm Performance: Evidence from Listed Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Madhushika, A. M. S. L.; Fernando, J. M. R.Introduction: Financial distress indicates the firm's risk of bankruptcy or financial instability. This study aims to identify the effect of financial distress on firms' performances during the economic crisis (2019–2023) and before the crisis (2015–2023) and analyze consumer services, capital goods, and food, beverage & tobacco sectors, which have the highest market capitalization. Methodology: This study collected data from 113 firms listed on the Colombo Stock Exchange under three sectors for a sample period of nine years, from 2015 to 2023. Using a quantitative approach, this study collected secondary data from the annual reports of the selected companies. The Altman Z-score was used as the explanatory variable to reflect the financial distress of the companies selected. Return on assets was used to measure the firm performance of the selected companies. Further, firm size and inflation rate were used as the control variables, and corporate governance was used as a moderate variable. Panel regression models were used in this study to analyze the data in STATA and SPSS software to test some hypotheses. Findings: The results of the study revealed that there were significant differences in financial distress before and during the crisis, with the compounded effects of financial distress and crisis periods further declining the firm's performance. Also, there are significant differences in financial distress levels between the three sectors, and corporate governance acts as a critical moderating factor, and its effectiveness varies across sectors. Conclusion: The findings of the study have practical implications for the strategic leaders of the three sectors. The study underscores the importance of early distress detection and adaptive governance practices to enhance firm performance, especially improving firm performance during economic crises.Item The Economic Policy Uncertainty Impact on Firms’ Capital Structure Evidence from Consumer Services Sector in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Harshani, M. M. E.; Fernando, J. M. R.Introduction: This study investigates the impact of Economic Policy Uncertainty (EPU) on the capital structure decisions of consumer services firms listed on the Colombo Stock Exchange in Sri Lanka. Specifically, it examines (1) the relationship between EPU and market leverage (ML), and (2) the effect of EPU on book leverage (BL). Methodology: Utilizing a quantitative research approach, the analysis is based on panel data from 2014 to 2023. The study covers 10 consumer service companies in Sri Lanka over a ten-year period. EPU data was collected from the EPU index scores provided by the World Bank, while other variables were gathered from audited annual reports and DataStream. Findings: The findings reveal a significant negative relationship between EPU and both ML and BL, suggesting that heightened economic uncertainty prompts firms to adopt more conservative financial strategies. Among the control variables, firm size shows a positive correlation with leverage, indicating that larger firms are better positioned to access debt markets. Profitability, on the other hand, has a negative relationship with leverage, as more profitable firms tend to rely on internal financing. Other variables, including tangibility, EBIT, GDP, and board size, exhibit limited or no significant influence on leverage decisions in the context of high EPU. Conclusion: These findings underscore the critical role of EPU in shaping corporate financial strategies and highlight the continued relevance of firm-specific factors. When economic policy uncertainty rises, companies tend to reduce borrowing, resulting in lower market and book leverage. Policymakers should aim to create a stable economic environment and enforce transparent risk disclosure practices to enhance market resilience. Meanwhile, firms should implement robust financial strategies to navigate uncertainty effectively, and investors may prefer companies with lower debt exposure during volatile periods.