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 Financial Risk on Financial Performance Before and During the Crisis: Evidence from Listed Consumer Service Sector Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wedaarachchi, W. A. T. N.; Gunasekara, H. M. A. L.Introduction: The purpose of this study is to investigate the impact of financial risk on the financial performance of listed consumer service sector companies in Sri Lanka before and during the crisis. This research aims to identify whether the financial performance measures and financial risk measures have been statistically different before and during the crisis and to identify the causal relationship between financial risk and financial performance. Methodology: Panel regression analysis is used in the study to investigate how operational risk, liquidity risk, market risk, and credit risk impact Return on Equity (ROE) and Return on Assets (ROA). Nineteen listed consumer service sector companies were selected, and the sample period was from 2016 to 2023. Secondary data was collected from the annual reports and websites. For testing the statistical difference between before and during the crisis, this study used a sample t-test with unequal variances and the Wilcoxon rank sum test. Findings: Operational risk and market risk have a significant positive impact on both ROE and ROA, while liquidity risk has a statistically insignificant effect on both ROE and ROA. Credit risk has a negative but significant relationship with both ROE and ROA. According to the sample t-test with unequal variances and Wilcoxon rank sum test, all variables are statistically different between the periods before and during the crisis. Conclusion: This study highlights the critical role of effective financial risk management in sustaining profitability during economic crises. While operational and market risks were associated with improved financial outcomes, higher credit risk severely impaired financial performance. The significant decline in both ROE and ROA during the crisis emphasizes the vulnerability of consumer service sector companies to economic disruptions.Item Dividend Policy and Shareholder Wealth of Listed Financial Service Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Anojan, K.; Gunasekara, H. M. A. L.Introduction: Dividend policy is a key topic in corporate finance, traditionally linked to firm valuation and shareholder wealth. This study examines how Dividend Per Share (DPS), Dividend Payout Ratio (DPR), Dividend Yield (DY), and Return on Equity (ROE) influence Earnings Per Share (EPS). Focusing on Sri Lanka's financial sector from 2014–2023, it explores whether disciplined dividend policies enhance profitability per share amid economic challenges. Methodology: The research uses secondary data from eight listed financial institutions, encompassing both banking and non-banking entities. Key variables (DPS, DPR, DY, ROE, and EPS) were analyzed using multiple regression. Hypotheses tested include the positive effects of DPS, DPR, DY, and ROE on EPS, with descriptive statistics and data integrity checks conducted to support the analysis. Findings: Results reveal significant positive links between dividend policy variables, ROE, and EPS. Firms with robust dividend practices and efficient equity utilization exhibit stronger EPS. This suggests that dividends serve as signals of financial health, reflecting governance quality and resource efficiency, while supporting overall profitability. Conclusion: The study highlights a significant relationship between dividends and EPS. Stable dividends may indicate strong fundamentals and foster market confidence, particularly in emerging markets like Sri Lanka. Managers, investors, and policymakers can use these insights to align dividend strategies with long-term profitability goals. Future research is encouraged to explore causality and broader contextual applications.