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 Transparency and Disclosure and Financial Distress on the Financial Performance: Evidence from Licensed Commercial Banks in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Nanayakkara, K. A. D. C. M.; Samarawickrama, A. J. P.Introduction: Transparency and disclosure and financial distress are the critical factors affecting the financial performance of bank institutions. This research presents the relationship between these factors and the financial performance of commercial banks operating within the Sri Lankan market. The primary aim of this research is identifying the impact of transparency and disclosure and financial distress on the financial performance in licensed commercial banks in Sri Lanka. Methodology: The sample of the research consists with eighteen licensed commercial banks in Sri Lanka for a period of 2014 to 2023. Transparency and disclosure and financial distress were considered as the independent variables of the regression models. The firm performance of the licensed commercial banks was considered as the dependent variable which was measured based on return on assets and return on equity. Descriptive analysis, correlation analysis and panel data regression were engaged to analyze the data in this study. Findings: The findings revealed that transparency and disclosure has a negative and insignificant impact on firm performance measured by return on asset and financial distress has a positive and insignificant impact on return on asset. Also, the analysis revealed that transparency and disclosure has negative and insignificant impact on return on equity and financial distress has a negative and significant impact on return on equity. Conclusion: The study concluded that in Sri Lankan context, transparency and disclosure have a negative impact on return on asset, and financial distress has a negative impact on return on asset. However, these variables have no significant impact on ROA. And the transparency and disclosure and financial distress have a negative impact on return on equity. Financial distress is significant, and transparency and disclosure have an insignificant impact on ROE.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 Financial Leverage and Working Capital Management on Financial Performance: An Analysis Before and During the Economic Crisis: Evidence from Listed Companies in The Food, Beverage, and Tobacco Industries of Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wijesingha, R. M. D. L.; Gunasekara, A. L.Introduction: This investigation focuses on examining whether financial leverage and working capital management impact on financial performance of companies, particularly before and during the economic crisis. Special attention is given to financial performance indicators such as Return on Assets and Return on Equity. Methodology: This study analyzes panel data covering ten companies over ten years of the Food, Beverage, and Tobacco sector. Here, the company was selected based on market capitalization. Using a quantitative approach, secondary data has been obtained from the annual reports of the selected companies for this study. The independent variables are Total Debt Ratio, Inventory Conversion Period, Average Receivable Period, Average Payable Period, and the dummy variables are Covid-19, Economic Crisis, and Full Crisis Period. Control variables are Firm Size, Sales Growth, and Asset’s Tangibility. Also, a t-test and regression were mainly used for the analysis. Findings: According to t-test results, there is no statistical difference between pre-crisis and during-crisis groups. In the regression analysis, it was found that the economic crisis and Covid-19 have impacted the financial performance of the Food, Beverage, and Tobacco sector. Conclusion: It highlights the importance of effective financial leverage and working capital management practices to enhance resilience even during economic crises. It also provides valuable guidance for managers, investors, and policymakers seeking to enhance performance during challenging periods and provides a foundation for future research on capital strategies in emerging economies during economic crises.Item The Impact of Environmental, Social and Governance (ESG) Factors on Financial Performance - Evidence from Licensed Banks in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Dilhani, G. H. M. S.; Dissanayake, D. M. U. H.Introduction: In this context, the integration of Environmental, Social, and Governance (ESG) factors has emerged as one of the critical determinants of financial performance in banking, especially in emerging markets such as Sri Lanka. The study will try to establish how ESG practices have influenced the financial performance of licensed banks in Sri Lanka, focusing on Return on Assets (ROA) and Return on Equity (ROE). Methodology: This study collected data from 10 licensed banks in Sri Lanka over a sample period of fifteen years, from 2009 to 2023. Using a quantitative approach, this study collected secondary data from the annual and sustainability reports of the selected banks. Environmental, social, and governance (ESG) factors were used as the independent variables of the banks selected. Both Return on Equity and Return on Assets were used to measure the financial performance of the selected banks. Further, bank size, leverage ratio, and dividend yield were used as the control variables. A series of fixed-effects panel regression models was used in this study to analyze the data. Findings: The results of the study revealed that there is a positive and significant impact between Environmental, Social, and Governance (ESG) factors and ROE and ROA, whereas all the other hypotheses were accepted. In conclusion, this study revealed that the ESG factors significantly impact the financial performance of the licensed banks in Sri Lanka. Conclusion: The study concludes that ESG integration is no longer solely a regulatory or ethical requirement but also a strategic imperative for financial performance and competitive advantage. It is encouraged that the licensed banks in Sri Lanka adopt comprehensive ESG frameworks with a view to ensuring sustainability and profitability.Item The Impact of Capital Structure on Financial Performance: Evidence from Life Insurance Firms Listed on the Colombo Stock Exchange (CSE) In Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Devindi, G. A. H.; De Zoysa, R. P. S.Introduction: The optimal capital structure levels and capital structure decisions that impacts on how a firm performs have been a great dilemma for many. Capital structure decisions have an impact on the growth and profitability of a firm, as these decisions enable firms to maximize their shareholders' wealth. The major research objective was to determine to identify the impact of capital structure on the financial performance of life insurance companies listed at the CSE in Sri Lanka. Methodology: To justify the research findings, a descriptive research design was used to describe the relationship between the dependent variables and independent variables. The data collected for examination purposes was purely secondary, as it was extracted from the annual reports and financial statements of the listed firms. The target population was all the life insurance firms listed on the CSE. Eight firms were listed and formed part of the study’s population. Data analysis was done via multiple regression analysis, descriptive statistics, and correlation analysis. For the significance level of the hypothesis, a confidence interval of 95 % was used. The analytical model used was financial performance as the dependent variable, taking ROA as the measure. Total debt ratio, debt-to-equity ratio, and leverage were the independent variables. Firm size and growth rate were the control variables. The financial ratios were calculated using a Microsoft Excel spread sheet using data obtained for a seven-year period (2017–2023). Findings: The findings show debt to equity, firm size, and growth rate are all positively and significantly associated with financial performance, while total debt ratio and leverage are not significantly associated with financial performance. The findings reveal that capital structure affects the financial performance of life insurance firms at the CSE. Conclusion: In view of this, it is recommended that life insurance firms that are capable of funding their operations through retained earnings do so and reduce their borrowings, as this will boost their overall performance.Item Impact of Risk Management on Firms’ Financial Performance: Evidence from Licensed Commercial Banks in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Sandeepani, W. R. N.; Piyananda, S. D. P.Introduction: This study investigates how methods for risk management affect Sri Lankan commercial banks with permissions and their financial results. Effective risk management is now essential to maintaining the profitability and security of banks in a financial environment that is becoming more and more uncertain. The research focuses on key risk factors: nonperforming loans (NPL), loans and advance (LA), loan loss provision (LLP), liquidity ratio (LR), and return on equity (ROA). The study investigates financial statements from seven commercial banks out of the twenty-four commercial banks that are listed on the Colombo Stock Exchange. They are selected under the sufficient of data category and other banks excluded due to the insufficient of data. Methodology: All the data collected as secondary data from annual report from 2019 to 2023 of each bank and the data analyzed by using regression analysis. The data set was analyzed using EVIEWS software. Furthermore, the firm’s performance measured by Return on Asset and risk management measured by loan loss provision, loans and advances, non-performing loans and capital adequacy ratio. Findings: Loans and advances (LA) represent a critical role in improving financial performance, as the analysis shows that they have a statistically significant and positive impact on ROA. On the other hand, ROA is not significantly correlated with Loan Loss Provisions (LLP), Non-Performing Loans (NPL), Liquidity (LIQ), or the Capital Adequacy Ratio (CAR). While the model explains a moderate proportion of the variation in ROA, the adjusted R-squared suggests room for improvement in predictive accuracy. The overall model is statistically significant, with no evidence of autocorrelation in the residuals. Conclusion: In conclusion, these findings highlight the urgent need for more empirical and theoretical research to strengthen the model's explanatory power, improve its predictive stability, and provide a more comprehensive, complex understanding of risk management's multiple influence on bank performance, operational efficiency, and financial stability.Item The Impact of Claims payments on Profitability: Evidence from General Insurance Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kiel, W. P. W.; Tennekoon, S. T. M. S.Claims cost is the biggest expenditure for the insurance company. Claims settlement is an essential part of an insurance contract because it is critical to both the insured and the insurer. The primary purpose of this study is to empirically investigate the impact of claim payments on the financial performance of general insurance companies in Sri Lanka. The methodology employed in this study is deductive and quantitative. The study is based on secondary data from 10 general insurance companies from 2015 to 2022 and data were collected through annual reports of the companies and IRCSL handbooks. The research has employed Return on Assets as the dependent variable, while net claims, loss ratio, and expense ratio are the independent variables of this study. Data was tested through descriptive analysis, correlation analysis, and regression analysis under STATA software to analyze the data. The research findings show a significant positive relationship between net claims and Return on Assets, while there is a negative relationship and significant impact between loss ratio and Return on Assets. However, the results also show a negative and insignificant relationship between Return on Assets and loss ratio in general insurance companies in Sri Lanka. In conclusion, there is a significant impact of claims payments on the profitability of general insurance companies in Sri Lanka. The study's findings will be helpful for insurance companies and future academic research in the context of general insurance companies of Sri Lanka. Findings will be helpful for the insurance companies to manage their claims operations effectively to retain their existing customers while maintaining healthy profit from the operations.