ICBI 2015

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Value Relevance of Accounting Information and Implication on Stock Price Movement: Empirical Evidence from Listed Bank Finance and Insurance Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Jeyanthini, S.; Rubika, M.
The investigation of value relevance of accounting information and its implication for emerging markets have received dearth attention in the literature. This study evaluates the relation between the value relevance of accounting information and stock price movement, using data obtained from 20 listed Bank Finance and Insurance companies in Sri Lanka covering the period of 6 years from 2009 to 2014. In order to select the sample random, sampling method used. The research design of this study based on a quantitative approach and analysis secondary data. Data of the selected firms which are listed in the Colombo stock exchange (CSE) Sri Lanka were obtained from their websites. This study identifies value relevance of accounting information by three separate financial ratios: Earning per Share (EPS), Return on Equity (ROE) and Earning Yield (EY) as independent variable while Average share price (ASP) as a dependent variable of this study. The statistical tests were used includes: descriptive statistics, correlation and regression analyses. Through the multiple correlation analysis with the help of user friendly statistical software it is found, there is significant and positive association between ASP and EPS (P= 0.000, < 0.01). Which indicate that, as the EPS increases it would tend to increase the ASP of the company. On the other hand, there is significant and negative correlation between ASP and EY (P=0.045, < 0.05). Which indicate that, as the EY increases it would tend to reduce the ASP of the company. The study also illustrates that main accounting information proxies have strong predict powers on variations of market share price.
The Impact of Career Anchors on Job Satisfaction of Bank Managers in State Owned Commercial Banks of Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Wanigasekara, W.M.S.K.; Muthukumarana, P.P.S.
Intense customer care is one of the best practices adopted by the private sector commercial banks and this has become a critical success factor that differentiates their service from the service of state banks. Hence, employee job satisfaction is a significant matter of concern for the state banks to face this challenge and achieve service excellence. Therefore, this study investigates the impact of individuals’ selfconcept on job satisfaction in terms of career anchor concept proposed by Edgar Schein. A purposive sample of 108 managers from Bank of Ceylon and People’s Bank head office were selected by using simple random sampling technique. The independent variable representing career anchors includes the following three dimensions; talent based career anchors, need based career anchors, value based career anchors while the dependent variable job satisfaction was analyzed under two dimensions namely; intrinsic factors and extrinsic factors. There are four hypotheses were formulated using deductive approach. A self-administered questionnaire was distributed among the respondents to collect data for the research. Descriptive statistics were used to present the characteristics of the sample of the study. Furthermore the Pearson correlation coefficient and regression analysis were used to measure the impact of career anchors on job satisfaction. The study found that there is a significant impact of need based career anchors on job satisfaction whereas talent based and value based career anchors have no significant impact on job satisfaction of managerial staff at state owned commercial banks.
Relationship between Celebrity Endorsement and Brand Attitude: With Reference to Financial Services Sector Brands in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Dissanayake, D.M.R.; Ismail, N.
This study is focused on Sri Lankan service sector which has remarked a significant position in the local economy. The concept of Celebrity Endorsement has been tested in this study to evaluate on how it does relate with Brand Attitude towards financial services brands in Sri Lanka. It has followed a deductive approach in justifying the variables to conceptualize the variable relationships and measures were rationalized accordingly. Reliability was tested to verify the internal consistency of the variables. It has selected 160 respondents followed by stratified random sampling technique and hypotheses were tested by using correlation analysis via 2 tailed test. It revealed that celebrity characteristics namely Trustworthiness, Expertise and Attractiveness are highly correlated with Perceived Brand Attitude, and Similarity was found as weakly correlated factor with Perceived Brand Attitude. The characteristic of Respect was found as moderate level factor being correlated with Perceived Brand Attitude. It has proposed the propositions for the future studies referring to the research gaps found in Sri Lankan service sector followed by conclusion and notions for managerial implication at the end of the paper.
The Impact of Physical Evidences on Customer Store Loyalty with Special Reference to Supermarket Industry in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Thilina, D.K.; Liyanage, N.
In Sri Lanka, when concentrating on previous researches on supermarket environment, the main focus has gone towards how far the customer service has affected on customer satisfaction or customer loyalty. However, other than the service quality there are so many areas to be looked at on the super market environment. There has been no such research conducted to study how physical evidences are made an impact on consumer behavior in super market environment. Therefore, there is a gap on identifying variables, which affect on consumer behavior other than the service quality in Sri Lankan supermarkets. Consumer mind is changing time to time but it is questionable whether that change is captured by retailers when designing their strategies. The overall study focused on whether there is an impact on the physical evidence used in supermarkets towards achieving customer store loyalty. This survey has covered the five major supermarkets in Sri Lanka. The sample is consisted of 100 customers those who are doing shopping at supermarket. To carry out the research there were four physical evidence elements selected such as layout, signage, lighting and signboards of supermarkets. Through the research findings there are several aspects of the customer store loyalty was revealed. One of those is present context customers are moving from general trade to modern just because of the opportunity that they getting to compare prices of the goods, quality and specifications of each products unlike in the general trade shopping. The next reason is most of the people love to have family shopping specially in supermarkets. Nowadays this has become a new trend in supermarkets.
Study on the Possibilities of Utilizing HRIS for Improving of an Efficiency of HR Department in the Banking Context
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Hapugoda, L.
When going through all the activities which are practicing in the Human Resources Divisions of the all banks which are representing the Financial Sector of the Banking Industry will be basically the same in the Sri Lankan context. In the banking business HR functions and activities can be identify as a supportive function for the smooth operations of Core Banking Services. Considering about the Banks HR operations and activities, many HR Professionals are doing all hundreds of manual works for achieving its HR objectives. Therefore the Author thoroughly believes that using of effective Human Resource Information System (HRIS) will help to minimize the hundreds of manual works, mal practices & save human hours. So that it will help HR Professionals to involving more Strategic HR activities including strategic decision making in order to achieving its strategic business objectives. Further effective use of HRIS will definitely help to eliminate such manual works, mal practices from the Banking Industry as well. Case study approach and critically reviewing of Literature and observations used as Methodology of this study and all Conclusion and Recommendation are based on the discussion.
Income recognition of a loan with increasing rentals (Stepping up Loans): A case study on a selected Sri Lankan company
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Kawshalya, P.; Perera, P.
In consequence to introduction of Sri Lanka Accounting Standards (SLFRS and LKAS) compatible with International Financial Reporting Standards (IFRS), by the Institute of Chartered Accountants of Sri Lanka with effect from 1st January 2012, The Company being a registered finance company with public accountability, is required to apply provisions of the full set of accounting standards and in the preparation of the financial statements in compatible with these new accounting standards, company has encountered numerous issues regarding the deviations from the requirements of the accounting standards. Out of them, this case study discuses in detailed one of the main issues that was identified during the preparation of financial statements of this company. This company provides range of different types of loans to its customers and among them it was identified a loan category with a specific feature. This loan type is called as “Stepping Up” loans and the special feature in this loan is its monthly installment changes (increases) in every 12 months. Therefore the monthly installments in first few years are relatively lower than the monthly installments of the final years of the loan agreement. In the interest income recognition of these types of loans company has encountered a problem because Sri Lanka Accounting Standard (LKAS) 39 – ‘Financial Instruments: Recognition and Measurement’ requires recognizing the interest income of loans using effective interest method where in the first two years of the loan agreements the monthly rental is not even enough to recover the interest of these loans which is calculated using effective interest method.
Role of Facebook: A Review
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Padmasiri, M.K.D.; Kawshalya, P.
This study is a literature review regarding the role of Facebook in teaching, marketing and relationship management. The literature identifies various roles are playing in todays globalized world. As literature declares Facebook plays roles in various fields such as, marketing, online games, education, teaching, romantic relationship management, managing relationship among friends, and stakeholder engagement. The current study limits its investigation in to selected roles of Facebook due to develop a narrow scope for this review. Hence selected roles of Facebook are academic teaching, marketing and romantic relationship management. One finding of the Bullock, 2011, is using blogging tools to further develop relationships with undergraduate and graduate students and engage them in meaningful discussions outside of class time. According to the studies of Beukeboom, 2011, Facebook plays a major role in romantic relationship management which creates emotional outcomes as relationship satisfaction and trait jealousy. Scolbe, 2006 argues that network is important in changing the way of business talk with customer and Bonsón, 2013 and Dholakia, 2010 indicates that Facebook plays a role as a communication channel in marketing at business level. Among them researchers have identifies FB plays an important role in connecting the social networks but to develop the scope to this study selected roles of FB are, FB in academic teaching, FB in marketing, FB in romantic relationship and FB in online games. Based on the discussion, it can be concluded that Facebook plays an important role in various fields.
A Study of the Organizational Culture for Knowledge Sharing in Selected Banks Branches
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Pushpamali, N.N.C.
Knowledge has become the most vital resource for gaining competitive advantage. Banks has recognized the relevance and importance of sharing knowledge among employees. The purpose of this research paper is to analysis the factors that influence on knowledge sharing in selected bank branches. Research identified several factors; trust, collaboration, communication among staff, information system, reward systems, organizational structure, management practices, shared vision and employee union facilitate knowledge sharing in organizations. The questionnaire was used for data collection. Gathered data was analyzed in descriptive statistics using SPSS software. Study reveals that Information systems, sharing a common vision and trust among employees exist at a higher level in the selected organizational culture as knowledge sharing elements than other identified factors. Findings of this study provide useful information and support to extend the understanding of banks in motivating their employees to engage in knowledge sharing practices.
The Impact of Visual Merchandising on Impulsive Buying Decision: A Study Based on Super Market Industry in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Sandamali, W.A.L.; Kumara, D.W.
The supermarket concept was initially started in Sri Lanka at 1980’s and the particular industry began to expand after the year 2000. The supermarket industry is at the growing stage of the Industry Life Cycle. The Visual Merchandising of supermarket outlets were focused in this study and major purpose was to examine the consumer reaction to the Visual Merchandising in supermarkets in Sri Lanka. As this study was empirical in nature, categorized as deductive research and designed as quantitative research. The study was based on both primary and secondary data. 150 respondents were selected for the sample from Kiribathgoda, Wattala and Colombo. A questionnaire was designed to obtain customer’s attitudes regarding major variables of Visual Merchandising in their impulsive buying decisions. Visual Merchandising was grouped into four variables namely Store layout, Product Display, Cleanliness and Lighting. Further moderating variables namely Impulsiveness and Payment method were tested to identify moderate impact on relationship between visual merchandising and impulsive buying behavior The impact of independent variables on dependent variables was analyzed with the help of correlation and multiple regression model. The impact of moderate variables on relationship between visual merchandising and impulsive buying behavior was tested based on hierarchical regression model. This study revealed that, among the four visual merchandising dimension named, product display and lighting have significantly influence on impulse buying behavior. Factors like Store layout and cleanliness are moderately influence the impulsive buying behavior. The overall conclusion is that visual merchandising has significant impact on impulsive buying decision of customers in Sri Lanka. Further the findings show that there was a significant moderating impact in payment method on visual merchandising and impulsive buying behavior. As per the regression output impulsiveness has significant impact on relationship between visual merchandising and impulsive buying behavior.
Financial Literacy and Credit Choice of Consumer Credit Users in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Lasantha, S.A.R.; Pathirawasam, C.
Financial literacy of individuals matters in credit decisions specially when choosing among different credit alternatives. This study investigates the financial literacy level of consumer credit users in Sri Lanka and their credit choice. For this purpose primary data was collected from 445 individuals using a survey instrument. Individuals have displayed a moderate level of financial literacy and it is found that there is no significant difference between the financial literacy levels of males and females. Despite the financial literacy level, most individuals have resorted to high cost credit cards compared to low cost bank borrowings. This may imply a behavior that deviate from the rationality. It demands further research to determine the possible factors affecting the deviation from rationality. Further this research finds that individuals below the age of 25 have lower financial literacy level. It may imply that they are susceptible to higher credit related risks.
Quality of Work Life on Employees Job Involvement and Affective Commitment
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Victor, L.D.
Human beings are highly associated with emotion and intelligence. Therefore, the requirement to fulfill human need hierarchy is a rather important aspect especially on satisfaction and motivation. Ironically, by providing QWL, organizations are keen on tapping employees’ job involvement and commitment. This research studies the Quality of Work Life on Employees Job Involvement and Affective Commitment of private bank employees in the Batticaloa District. The data for this study was collected from 200 employees selected from private banks in Batticaloa District. Three variables are considered to this study, namely, Quality of Work Life on Employees Job Involvement and Affective Commitment. The researcher used the questionnaire to collect the primary data. Descriptive and inferential statistics were used to analyses the data, Mean and standard deviation was used in the descriptive statistics to find out the influence of each factor in the dependent variable. And the correlation and regression was done to find out the relationship between independent and dependent variable. The researchers used SPSS 19.0 to analyze the data. In general, researcher found that all the factors are in moderate level. And the Quality of Work Life, Job Involvement and Affective Commitment have the significant impact between each other. The research findings presented have demonstrated that satisfactory Qualities of Work Life enhance Job Involvement which relates to Affective Commitment. Therefore, organizations should strive to provide good Quality of Work Life to obtain the best results from their employees.
Identifying the Factors Affecting Non-Performing Advances: Lending Officers Perspective
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Gunaratne, N.; Wijayanayake, A.
Core income generation source for any commercial bank is “Lending”. The asset value of a bank is several times of its equity. The largest portion of asset base of a bank consists of advances to customers. Non Performing Advances are the main threat to an asset base of a bank. Deterioration of even a small portion of its asset base would severely impact the equity and the stability of a bank. Hence, Key function of any bank is managing Non-performing Advances. The purpose of this research is to identify factors affecting to Non-Performing Advances in the perspective of Lending Officers context. Identified four factors by the author are Training and knowledge of the Lending Officers, Risk assessment, Monitoring and follow up and financial stability of the borrower. The principal under the research is common to all commercial banks in general. The survey was carried out using Simple random sampling method for selection of Lending Officers. Quantitative method was used to gather data through a selfadministered questionnaire. Relationships for the identified factors were analyzed using SPSS 17.0 software through Spearman’s coefficient of correlation. Recommendations of the study are that Non-performing Loans could be managed through enhancing the Training and Knowledge of Lending Officers by adequate credit exposure. Further, it is recommended that, bank need to consider Risk assessment and financial stability of the borrower. Also, continuous monitoring and follow up of Loans.
The Perception of Mobile Banking Adoption among the Students Community: With Special Reference to Eastern University
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Subramaniam, V.; Maheswaranathan, S.
The banking industry gained the opportunity to improve the quality of services offered to their customers with a mechanism that marked the way for the introduction of sophisticated services at a negligible cost. M - Banking is one of the above and plays important role in various daily and routine activities. Banking transaction is one of a transaction process which is transformed by information technology through mobile phones. Mobile banking (M-banking) has dramatically grownup according to the increasing number of mobile device users. In recent years, Mobile banking has become a useful platform to easily access banking services. Therefore, the intended of this study is to find out the factors that contribute to the perception of mobile banking for the student’s community. Using convenience sampling method 100 students were selected from six faculties of the Eastern University, Sri Lanka and primary data were collected through administrated structured questionnaire. Considering the three variables such as perceived usefulness, perceived ease of use, and perceived security concern, this study was carried out among the student community. The main finding of this study indicates high level of perception in adaption of mobile banking among the student community.
Relationship between Corporate Social Responsibility Disclosure and Financial Performance in Sri Lankan Domestic Banking Industry
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Abeysinghe, A.M.I.P.; Basnayake, W.B.M.D.
The purpose of this study is to examine the relationship between corporate social responsibility (CSR) disclosure and financial performance in domestic commercial banks in Sri Lanka. The researcher selected six high performance domestic commercial banks as a sample for a period of five years starting from 2009 to 2013.CSR disclosures and firm size have been identified as independent variables and financial performance identified as the dependent variable in this study. The researcher used secondary data for the purpose of analysis. This study employed return on equity to identify the financial performance (FP), GRI index G3 guidelines to identify the CSR disclosure level of the banks and firm size measured by logarithm of total assets of the banks. Through the result of the research it has been concluded that the null hypothesis can be rejected since there is a negative relationship between CSR disclosures and financial performance of selected domestic commercial banks. Researcher identified FP will not be totally depended on CSR disclosure. Bank performance varies with the different time periods, economic condition and other macro factors. The researcher further identified that CSR disclosure level in private banks is higher than the state banks even though the firm size of private banks are smaller than the state banks.
Implementation of a Cross Docking System to Coca Cola Beverages Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Sanjeewa, H.K.A.C.; Ratnajeewa, D.R.
The Coca Cola Beverages Sri Lanka Limited is a leading multinational carbonated soft drink manufacturer in Sri Lanka. It is involved in almost the entire supply chain process; from manufacturing to distribution. Therefore use of proper supply chain management practices is essential. Warehousing and distribution which is a main part of the supply chain plays a vital role in its operation. Since all the finished goods have to be delivered to distributors around the country, its transportation cost is considerably high. The aim of this research is to reduce transportation cost by implementing the supply chain management concept of cross docking. Secondary data collected from company records and systems were used for the analysis. The current transportation cost and the transportation cost through the cross docking center is calculated and analyzed through a comparison. Then a cost benefit analysis is done to analyses the feasibility. Through the analysis it is concluded that it is feasible to use the concept of cross docking and many additional benefits which include time saving, better service levels and reduction of contribution to the carbon foot print. Finally recommendations are given to establish and carry out the cross docking operations.
International Advertising in Multiple Cultures: A Review
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Athapaththu, H.K.S.H.
International advertising entails dissemination of a commercial message to target audiences in more than one country. International advertising can, therefore, be viewed as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and the advertising agencies that create ads and buy media in different countries. In some cases the advertising message relates to the firm and its activities like its corporate image. In other cases, the message relates to a specific product or service marketed by the firm. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. Based on these differences in target audiences firms or the advertising agencies need to consider different degrees of two types of advertising strategies, standardization and adaptation.
Consumer attitude towards purchase intention for cosmetic products
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Kumudhini, N.
The cosmetic industry is one of the fastest growing and essential, but cut-throat industries in the world as well as in Sri Lanka. As such, it is useful to identify the Consumer Attitude towards Purchase Intention for Cosmetic Products. This study attempted to gain knowledge about influence of Consumer Attitude towards Purchase Intention. This research was an exploratory type research with a qualitative prospective and the population of the study consisted in above 15 years old consumers of Batticaloa District. To achieve the goals of this research, the data were collected from convenience sample of 200 Eastern University Students those who are lived in Batticaloa District. The respondents provided the data by means of a close-ended questionnaire. Pearson’s Correlation was used for testing the hypotheses. Data analysis was conducted using SPSS19 Software. This study empirically examines that Consumer Attitudes (CA) as the independent variable and Purchase Intention for Cosmetic Products (PIC) as the dependent variable. While both the variables individually have high level attributes, the Pearson’s correlation analysis explores a positively significant linear relationship between CA and PIC. This implies that the PIC can be predicted with the nature of CA. The correlation coefficient between the CA and PIC indicates that the CA is useful to explain the variation in PIC.
Risk Management and Internal Controls: FRC’s Risk Guidance
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Wijesinghe, K.D.G.N.
The Turnbull Report was first published in 1999 and set out best practice on internal control for listed companies. In October 2005 the Financial Reporting Council (FRC) issued an updated version of the guidance with the title 'Internal Control: Guidance for Directors on the Combined Code. This was superseded by the FRC's Risk Guidance 2014. In this article board responsibilities for risk management and internal controls, exercising the risk management and internal controls, monitoring and review of the risk management and internal controls, related financial and business reporting under new FRC guidance are examined. As a conclusion it is emphasized that integrating risk management and internal controls may benefits to the organization by creating competitive advantage.
The Role of Women Entrepreneurs in Establishing a Sustainable Development in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Ambepitiya, K.R.
Woman has become a significant role in the economic development of any country. They contribute and support the economy extensively is different ways of being employed in different sectors. There are many women running successful businesses and some of them are very successful with entrepreneurial skills. It is a known fact that now many successful and world’s enormous enterprises are owned and run by women. Many of them are actual or potential owners of trademarks, service marks, trade name as well as of industrial designs, patents and copyright. In developing countries some women are running small enterprises and many cooperatives that are proving so successful. Women entrepreneurs in both developed and developing countries are, socially powerful in education and making a positive impact to the society. It is important to study how women in business and their skills can be utilized in order to achieve a sustainable economy for Sri Lanka. The objectives of this study have scattered in the study of women entrepreneurs to a sustainable economy, social system, and ecology. A descriptive research methodology is used for this study and administered to a selected sample from a specific population included with women in businesses and executives who are from private and public sector offices. The study consists of six month duration which uses a questionnaire as the survey instrument. Using the survey, it has resulted significantly the women entrepreneurs can be positioned to play an important role in promoting sustainable practices in economics, social system and ecology, to result a sustainable development. The researcher concludes the study by observing the positive effect on the economy and the development, the Women entrepreneurship is a key to the developing world to promote sustainable practices in business.
A Study of Pawning Lending Recovery of Advance Portfolio in ABC Bank
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Kaluarachchi, Y.D.
Considering the global effect due to fall of gold prices, it is necessary to protect the bank as well as customer who borrowed urgent financial needs based on gold-back lending. As a result it is essential to take up risk mitigation measures through risk management process. Available literature reveals that, there are many methods introduced to mitigate gold-bank loans risks and banks still have not considered implementing measures to mitigate possible risks likely to occur. Hence main purpose of this study is to analyze pawning lending recovery of advance portfolio on ABC Bank. In order to identify the factors that affect to gold-bank loans risks, researcher, and responses to eighty questionnaires were collected from bank staff covering three regions namely, North, East and Gampaha. Data were analyzed using Statistical Package of Social Science (SPSS). Mainly the there is a difference among the bank staff attitude towards minimizing lending risks and provide policy makers to re-think in their planning to take suitable timely action. Hypothesis developed proved that there is a relationship and this has been proved with the correlation between advance portfolio of pawning lending managerial decision, risk analysis, risk management and high margin lending. These findings could directly benefit to application of other regions as a risk mitigation measure. Also results will appropriate to use for other banks for possible actions to be taken for risk mitigation in pawning lending recovery process.