13th Students’ Research Symposium 2023/2024
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29096
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Item The Influence of Managerial Ownership and Firm Size on Debt Policy Evidence from Listed Manufacturing Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Abdullah, M.; Ranjani, R. P. C.Introduction: This study looks at how managerial ownership and firm size affect debt policy in listed manufacturing companies in Sri Lanka, using data from the Colombo Stock Exchange (CSE) from 2013 to 2023. It shows that when managers own shares, it reduces conflicts between managers and shareholders, while firm size impacts borrowing capacity and leverage. The research provides useful insights into how these factors influence debt policies in Sri Lanka and fills gaps in existing studies, offering practical guidance for better financial decision-making. Methodology: In this study, a quantitative approach was used, analysing panel data from 10 companies listed on the Colombo Stock Exchange (CSE) over the past 11 years. The main variables examined were managerial ownership (measured by the percentage of shares held by management), firm size (measured by total assets), and debt policy (measured by the debt-to-equity ratio). Multiple regression analysis was conducted, along with diagnostic tests like the variance inflation factor (VIF) and autocorrelation tests, to ensure the reliability of the data and the accuracy of the results. Findings: The study shows that more managerial ownership leads to higher debt because it aligns managers’ interests with shareholders. It also finds that larger companies use less debt, likely due to stronger financial positions. The analysis highlights differences in ownership and firm sizes, and the diagnostic tests confirm the results are reliable.Item The Effect of Company Growth, Managerial Ownership, and Debt Policy on Dividend Policy: Evidence from Manufacturing Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Madhubhashini, H. B. S.; Ranjani, R. P. C.Introduction: The study probes into the effect of company growth, managerial ownership, and the debt policy on dividend policy of listed manufacturing companies in Sri Lanka. Dividend policy is the most important component of corporate finance decisions in company's trade-off between shareholder returns and the growth and financial viability of the company. This research adopts a quantitative approach in analyzing datasets from the top10 capital goods manufacturing companies of the Colombo Stock Exchange from 2014-2023. Methodology: The study attempts to fill the existing in literature with regards to manufacturing in Sri Lanka by studying three important variables of dividend policy, growth of the company, ownership by management, and debt policy. For these variables, a conceptual framework was developed to show the impact of where dividend policy would be taken as the dependent variable. Secondary data like financial statements and annual reports would be analyzed using regression models and correlation techniques via STATA software. Findings: The research has produced a significant positive impact between growth in a company and dividend policy; thus, the higher the rate of company growth, the greater the number of dividends distributed. Although a positive impact exists between managerial ownership and dividend policy, that impact is found not to be significant. The study established a significant negative impact between the debt policy and dividend policy, meaning that higher debt levels restrict a company from paying dividends. Conclusion: The findings underscore the importance of company growth as a key driver of dividend policy in Sri Lankan manufacturing firms. Managerial ownership demonstrates a positive impact however, the absence of statistical significance indicates the role of more critical factors. The negative effect of debt policy on dividends emphasizes the careful management of levels of debt by companies to sustain returns to shareholders. This study, thus, provides critical insights for investors and policymakers in the understanding of dividend policies in manufacturing.Item Effect Of Board Characteristics on Quality of Sustainability Reporting in Listed Manufacturing Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Hansani, M. V. D.,; Ranjani, R. P. C.Introduction: The main objective of this study to assess the relationship between board characteristics and the quality of sustainability reporting in listed manufacturing companies in Sri Lanka. Methodology: In this study, it takes the board characteristics as the independent variable. The level of sustainability reporting is dependent variable and ultimately hopes to examine the relationship between board characteristics and the level of sustainability reporting. Board independence, board size, board financial expertise, and board gender are all factors to consider when evaluating board attributes. GRI standards are used to evaluate the level of sustainability reporting. Based on the scoring system developed by (Dragomir, 2010) calculated sustainability reporting quality, analyzed multiple regression models, and identified whether board characteristics affected sustainability reporting quality. Findings: Statistical analysis revealed that there is a no significant impact of board characteristics on quality of sustainability reporting.Item Behavioral Bias Factors on Making Socially Responsible Investment Decisions: Evidence from Individual Investors in Gampaha District(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Sandakelum, H. R.; Ranjani, R. P. C.Introduction: This research investigates how behavioral biases such as herding, overconfidence, and loss aversion affect socially responsible investment (SRI) among individual investors in Gampaha District, Sri Lanka. It aims to fill empirical and geographical gaps in the field of behavioral finance by exploring the adoption of ESG-focused investments in a developing country's context. Methodology: 386 responses were collected through a questionnaire distributed to 400 investors, and they were subjected to quantitative analysis. The validity and reliability of the questionnaire were tested through a pilot test, and statistical techniques such as correlation and regression were performed using SPSS software. Findings: The study found that biases such as herding, overconfidence, and loss aversion positively affect socially responsible investment (SRI) decisions. Herding shows that investors tend to follow their friends instead of making independent choices. Overconfidence can lead to underestimating and ignoring their advice, especially regarding ESG factors. Loss aversion leads them to think higher in SRI compared to traditional investments, limiting their involvement in ESG investments. Accordingly, this implies that these biases create barriers to the wider adoption of ESG investments. Conclusion: Through the study, exploring SRI decision-making in Sri Lanka, a largely under-researched context in Sri Lanka, advances knowledge related to behavioral finance and SRI. It proposes policy interventions to improve financial literacy and reduce cognitive bias, promoting a more informed and sustainable investment culture. It also highlights the importance of investor behavior in driving sustainable investment trends while providing valuable insights for research scholars, financial professionals, and policymakers by addressing empirical and geographical gaps.Item Behavioral Bias Factors on Making Socially Responsible Investment Decisions: Evidence from Individual Investors in Colombo District(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Shashipaboda, M. M. S.; Ranjani, R. P. C.Introduction: This research investigates the impact of behavioral biases on socially responsible investment (SRI) decisions among individual investors in the Colombo District, Sri Lanka. It focuses on three specific behavioral biases: Herding, Overconfidence, and Loss Aversion. The study aims to fill empirical and geographical gaps in the field of behavioral finance by exploring the adoption of ESG-focused investments in a developing country context. Methodology: The study used a quantitative approach, and the data were collected by distributing a Likert scale questionnaire among 385 individual investors. The following statistical tools were employed to assess the relationship between the variables: reliability test, descriptive analysis, correlation analysis, and regression analysis. Findings & Discussion: Further, the findings reveal a significant positive correlation between herding, overconfidence, loss aversion bias, and socially responsible investment decisions. Also, the regression analysis highlights that loss aversion bias has the most significant impact, followed by overconfidence and herding. Conclusion: According to the results obtained, they underscore the importance of addressing behavioral biases to promote rational decision-making in socially responsible investing. This study helps policymakers, financial institutions, and investment advisors to design targeted strategies to mitigate the negative impact of these biases. Understanding these biases correctly could enhance investor awareness as well as the preference towards the SRI.