13th Students’ Research Symposium 2023/2024
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29096
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Item The Moderating Impact of Financial Performance and Stock Returns on the Relationship Between Corporate Governance and Corporate Value. Evidence from Top-Rated Companies in Sri Lanka’s S&P SL 20 Index(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Abeywickrama, H. W. A. D. S.; Kethmi, G. A. P.Introduction: This research demonstrates how financial performance and stock returns moderate the link between corporate governance and corporate value. The study has been conducted on firms in the S&P SL 20 Index. It addresses how sound governance mechanisms affect firm value, and how stock returns and financial performance either enhance or suppress these impacts. Methodology: The study uses a quantitative research methodology where data from 20 listed firms in the S&P SL 20 index is analyzed over the period 2014 to 2024. To conduct this analysis secondary data from annual and quarterly reports were utilized. The diagnostic test used the Panel data analysis to assess the model's validity. Further, to analyze the moderate effect of stock return and financial performance regression models were developed. Findings: This analysis shows a significant relationship between corporate governance and corporate value, a weakly positive relationship. Stock returns moderate the relationship between better corporate governance and corporate value. Financial performance, which is measured through ROA and ROE also enhances the link between good corporate governance and corporate value. Conclusion: The study supports the importance of proper governance structures in the development of corporate values. The findings are informative for policymakers and investors, calling for efforts to build governance mechanisms in firms while relying on financial indicators and market conditions to increase firm value.Item Impact of Exchange Rate Movements on Stock Market Volatility: Evidence from Asian Emerging Markets(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Perera, L. A. D. K. S.; Kethmi, G. A. P.Introduction: Financial markets are important aspects of the world's economy while the stock market is a vital component of the financial market where shares of publicly listed companies are bought and sold. Stock market volatility is influenced by various factors, making it a key concern for participants. Among the factors that impact stock market exchange rate has a major impact. Focusing on emerging markets may provide more insightful results compared to developed markets. Emerging markets are more vulnerable to changes in the exchange rate, due to their heavy reliance on exports and foreign investments. The main objective of the study to investigates and compares the country-specific impact of exchange rate movements on stock market volatility in Asian emerging markets. Methodology: The independent variable of the study is exchange rate and dependent variable is stock market return volatility. This consists of daily stock market closing prices and daily USD exchange rates for China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan, and Thailand for a period of six years from 2018 to 2023. Stock indexes include SSE, BSE Sensex, JKSE, KOSPI, KLCI, PSEI, Taiwan Weighted, and SET. Data were sourced from Investing.com and Analyzed the data using EViews. Granger Causality Test and The Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model were used as data analysis techniques. Findings: The GARCH results confirm a significant impact of exchange rate movements on stock market volatility across all analyzed Asian emerging markets. In China, Korea, Malaysia, and Indonesia, the exchange rate coefficient is significant and negative, indicating that currency appreciation or stability reduces stock market volatility. Conversely, in India, Taiwan, Thailand, and the Philippines, the exchange rate coefficient is significant and positive, suggesting that exchange rate fluctuations increase stock market volatility. These findings underscore that exchange rate movements significantly impact stock market volatility in Asian emerging markets, with varied effects across countries. Conclusion: These findings underscore that exchange rate movements significantly impact stock market volatility in Asian emerging markets, with varied effects across countries. The empirical findings of this paper provide valuable insights for local as well as foreign investors regarding their equity investments while the findings are also appealing to the policy makers in devising monetary policies.Item The Impact of Exchange Rate Movements on Stock Market Volatility in South Asia’s Diverse Economies(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Perera, M. R. H.; Kethmi, G. A. P.Introduction: Comprehending the impact of exchange rate movements on stock markets reveals the interdependence of financial markets and the broader economy. The purpose of this study is to examine how changes in exchange rates affect stock market volatility in India, Sri Lanka, and Bangladesh. This approach highlights the similarities and contrasts between economies at different stages of development within the same region, making the results more pertinent to policymakers and investors. Methodology: This research investigates the period from 2014 to 2023 using daily time series data, with a focus on volatility modelling and causality analysis. The Augmented Dickey-Fuller test is used to ascertain whether the time series is stationary. Using the Granger Causality Test, the strength and direction of the correlation between stock returns and currency rates in Bangladesh, India, and Sri Lanka are then examined. Further analysis of the volatility dynamics is done using the GARCH (1,1) model, surpassing Granger causality's directional linkages and capturing time-varying stock returns. Findings: While the Granger causality test and the GARCH (1,1) model focus on distinct dimensions of causal links and volatility dynamics, respectively, their conclusions are broadly consistent across the three countries. Both tests demonstrated that Sri Lanka and India has significant correlations between currency rates and stock returns, implying a notable interaction between the two variables. Conversely, Bangladesh showed no significant interaction between the two. Furthermore, the GARCH model emphasized how historical volatility influences current volatility more than recent shocks, highlighting the significance of historical market conditions. Conclusion: Depending on variables including economic size, trade openness, exchange rate regimes, imports/exports reliance, and diversity, exchange rate changes have varying effects on stock market volatility across South Asian economies. To enhance risk management and resilience, future studies should concentrate on sector specific reactions and the consequences of global shocks, particularly in areas like South Asia.Item The Impact of Digital Finance literacy and financial socialization on Personal Finance management - Evidence from Undergraduates of University of Kelaniya(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kulasekara, K. M. A. Y.; Kethmi, G. A. P.Introduction: The purpose of this study is to understand the connection between the digital finance literacy and financial socialization on personal finance management among university students in Sri Lanka. Effective personal financial management is the cornerstone of building a secure and prosperous future. As the society continues to embrace the use of digitally enabled financial products, it becomes important to unravel the importance of digital finance literacy particularly for the young people who are in preparatory stages of joining the working world. Also financial socialization which is the socialization of families, peers and cultures affects the financial attitudes and behaviors. Methodology: The study identified a sample of 384 undergraduates at the University of Kelaniya. This study was carried out based on primary data and followed the survey questionnaire research strategy. Digital Finance attitudes, Digital finance knowledge, Digital finance awareness, Parental financial socialization, Peer influence on financial socialization, Media influence on financial socialization were used as independent variables and Personal finance management was used as the dependent variable. The major technique to collect data from the undergraduates was the five-point Likert scale questionnaire. A multiple regression analysis was conducted, and the SPSS statistical package was used to analyze the data. Findings: According to the study's findings, all of six independent variables had a statistically significant positive relationship with the dependent variable among the undergraduates in University of Kelaniya. Independent variables do not influence each other much because the results, inter-correlation matrix, VIF and tolerance values and Cronbach alpha value show all the data is more reliable. In light of the outcomes of the analysis, the authors nod towards the centrality of digital finance literacy and financial socialization, building on the cumulative research evidence. Conclusion: The final result highlights that the overall model is statistically significant, and the researcher suggests that future researchers might consider employing long-term panel surveys to monitor shifts in Digital financial behavior and attitudes over an extended timeframe.Item The Effect on Stock Market Volatility on Stock Prices By Using The Methods of Arch, Garch, And Egarch in Colombo Stock Exchange, Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Shajida, M. S. F.; Kethmi, G. A. P.Introduction: The purpose of the study is to examine the effect on stock market volatility on stock prices by using the methods of ARCH, GARCH, and EGARCH in Colombo Stock Exchange, Sri Lanka. Methodology: The researcher has chosen the S&P SL 20 Index in CSE, Sri Lanka for the study. In this regard, the secondary data was collected from the official website of CSE. Daily historical stock prices were the independent variables and forecasted stock volatility was the dependent variable. The model has been done using EViews 12 SV. 10 years span of data has been analyzed to find the most accurate forecasting model and the deviation between actual volatility and forecasted volatility. To check the accuracy between actual and the forecasted volatility, the error measurements called MAE, RMSE, MAPE, and TU were used. Findings: According to the study's findings, all three models confirmed that there is a significant relationship between actual and forecasted volatility, evident through the model's ability to capture key market patterns, including volatility clustering and persistence. While each model offers unique strengths, the ARCH model emerges as the most balanced option for general use. EGARCH is particularly useful in markets with asymmetrical responses, and GARCH provides reliable short-term forecasting but is less consistent overall. Conclusion: ARCH consistently performs well, making it the most balanced and reliable model overall. EGARCH effectively captures percentage errors and handles market asymmetries, proving useful for conditions requiring specific percentage accuracy. Finally, GARCH performs best in minimizing large deviations but falls short on other metrics, placing it behind ARCH and EGARCH in terms of consistent forecast reliability. The final result ranking emphasizes ARCH as the top choice for balanced accuracy, followed by EGARCH for specialized contexts, with GARCH providing strong but slightly less consistent performance.Item Stock Split Announcements and Their Impact on the Short Run Stock Price Performance: An Analysis of the Pre and Post Pandemic Stock Split Announcements in the Colombo Stock Exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Ratnayake, D. M. W.; Kethmi, G. A. P.Introduction: This study was done in order to analyse the short-run impact of stock split announcements in the Colombo Stock Exchange of Sri Lanka through a comparison of announcements made during the Pre-Covid and Post-Covid periods. With the use of secondary data, the event study methodology was used to recognize the abnormal returns that have occurred due to the announcement of a stock split. The main objective of the study was to recognize whether there has been any change in how the market perceives stock split announcements and whether there has been any change in the Pre- and Post-Covid eras. The study has been able to unfold that the negative sentiment that was there towards stock split announcements in the Pre-Covid era has evolved towards a more positive sentiment in the Post-Covid era with the development of capital markets in Sri Lanka. Methodology: By constructing this study using the event study methodology, I have looked at the time period running up to the announcement and have analysed the post-announcement period as well by looking at the reaction of the split announcements on the average abnormal returns, cumulative average abnormal returns, and the t-statistic of the average abnormal returns. Through these avenues, the change in perception of these stock split announcements can be identified. Finding: While during the Pre-Covid era there has been a negative sentiment towards stock split announcements with negative Average Abnormal Returns of -0.64%, there has been a drastic change in the Average Abnormal Returns in the Post-Covid period indicating a return of 15%, showing a change in the perception that has evolved with the development of Sri Lankan capital markets. With various new developments in the economy and new innovations, the investor sentiment has also changed into seeing more opportunities with stock splits. Conclusion: Through the findings of this study, we can conclude that the stock split announcements in the Pre-Covid era, which were perceived to be negative by the market, have changed into a more positive perception during the Post-Covid period in creating more opportunities for market participants in the short run. With continuous analysis, it can be seen that the new developments and changes of the market have facilitated this sentiment, and for future research, a continuation of such trends can be analysed. Therefore, it is important to follow the impact of stock split announcements for short-run performance of stock prices.Item Impact of Financial Literacy on The Investment Behavior of Retired Employees in the Western Province of Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Samudira, J. P. R.; Kethmi, G. A. P.Introduction: Sri Lanka is one of the rapidly aging regions in South Asia. Retired employees face financial challenges because they have limited income sources during retirement so they should pay attention to the risk when making investments. Retired employees need sufficient income to survive and they make sound investments by investing their gratuity, which depends on their financial literacy levels. This study investigates the impact of financial literacy on the investment behavior of retired employees in the Western Province of Sri Lanka with the mediate effect of risk tolerance, risk perception, and risk aversion. Methodology: 385 retired employees from the districts of Colombo, Gampaha, and Kalutara were surveyed using a structured questionnaire as part of the study's quantitative methodology. Regression and correlation analyses were used to examine the data. Findings: The findings highlight that financial literacy increases the ability of retirees to make rational investments which leads to their financial freedom and security. The results show that financial literacy and investment behavior are significantly and positively correlated with risk tolerance, perception, and aversion. Higher financial literacy among retirees is associated with greater risk assessment which in turn leads to more successful investing behavior. Conclusion: The study can be useful to policymakers and financial institutions to assist in developing programs, which will effectively address the needs of retirees and promote their independence and financial freedom. The findings also extend literature on the impact of financial literacy on investment decisions especially in developing nations like Sri Lanka.Item How Performance Indicators Have Changed in The BPO Industry in Sri Lanka over the Last Decade(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Perera, G. W. A. K. C.; Kethmi, G. A. P.Introduction: The Business Process Outsourcing (BPO) industry in Sri Lanka has undergone significant transformations over the past decade. This study seeks to investigate these changes, particularly focusing on the performance indicators that have evolved with the integration of advanced technologies. Innovations such as Artificial Intelligence (AI) and Robotic Process Automation (RPA) have redefined the industry, enhancing operational efficiency and introducing new benchmarks for competitiveness. Additionally, regulatory frameworks like the General Data Protection Regulation (GDPR) and the adoption of International Financial Reporting Standards (IFRS) have influenced how firms measure and maintain performance standards. Methodology: This research adopts a mixed-methods approach, utilizing both qualitative and quantitative data to explore the impact of AI and RPA on key performance indicators. A combination of interviews with industry experts and an analysis of secondary data on global and local BPO trends was conducted. Special attention was given to metrics such as cost efficiency, time management, customer retention, service quality, adaptability, accuracy, error rates, and trend detection. The study also evaluates how regulatory frameworks like GDPR and IFRS have reshaped privacy and compliance metrics. Findings: The study highlights that the adoption of AI and RPA has substantially improved accuracy and efficiency in the Sri Lankan BPO sector. Indicators such as trend detection, error rates, and service quality have seen notable enhancements. However, challenges remain, including response bias in qualitative data and difficulties in comparing performance across different regions. Moreover, regulatory compliance has emerged as a critical factor influencing global competitiveness. These findings suggest that while technological advancements are vital for staying competitive, addressing regional disparities and improving data accuracy are equally crucial. Conclusion: The research underscores the need for Sri Lankan BPO firms to align with emerging global performance benchmarks to remain competitive. Addressing limitations like response bias, enhancing data reliability, and understanding regional context factors can help the industry better adapt to evolving market conditions. By tackling these challenges, the Sri Lankan BPO sector can position itself as a key player on the global stage.