13th Students’ Research Symposium 2023/2024

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29096

Browse

Has files: YesSubject: search.filters.subject.Financial literacy

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    The Effect of Financial Literacy on Firm Performance Thorough Mediation of Financial Access and Financial Risk Attitude: Evidence from Selected Manufacturing MSME in Ratnapura District
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Yatawatta, Y. S. K.; Weligamage, S. S.
    Introduction: The study assesses the effect of financial literacy on the growth of manufacturing micro, small and medium enterprises (MSMEs) in Ratnapura District, Sri Lanka while examining access to finance and financial risk as mediating variables. This study is based on the premise that MSME sector is critical in the economic development of a nation through employment creation, growth of the Gross Domestic Product (GDP), and investment in innovations. Even with this significance, financial literacy remains an area of concern especially in as far as the ability of MSMEs to have access to formal financial systems and making rational economic decisions is concerned. Methodology: A quantitative methodology was adopted that used a self-administered structured questionnaire designed for 145 MSME owners/managers. Data were analyzed using SPSS with the aid of regression and mediation analysis using Hayes’ Process Macro. Financial literacy, financial access, financial risk attitude and business performance were measured with the use of verified and standardized constructs. Findings: Having knowledge of finance leads to greater business results through more integration into the economy and a more diversified risk attitude. In addition, MSME loans, credit and other financial services are more accessible as financial education enables better risk assessment. Mediation analysis assists in establishing that financial literacy, firm performance and financial access, and financial risk attitude are all closely interrelated in a cause and effect cycle where each is mediating the other. Conclusion: Financial literacy in the case of owners of MSMEs is crucial in increasing their financial inclusion and risk profile therefore improving the success of their businesses. There is need for financial education, also measures to correct the problem of illiteracy should be taken. Other possible mediating variables and frameworks could be investigated in future studies and other geographical areas or sectors could be incorporated.
  • Thumbnail Image
    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.