IPRC - 2015

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/156

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Factors Effect on Employee Turnover Intention: Evidence from Leasing Industry in Sri Lanka
(Faculty of Graduate Studies, University of Kelaniya, 2015) Wickramasinghe, A.I.N.K.; Abeywardhana, D.K.Y.
This study investigates the turnover of young and fresh employees in the leasing industry in Sri Lanka. Employee turnover has become a common phenomenon and it results in career changes and job mobility. Nevertheless, every single organization will have to deal with the turnover of employees. However, the turnover of desirable employees may have a significant impact on the organization, rather than the less productive ones. This research is based on the major factors that influence job satisfaction and in turn will reflect on an employee‘s intention to quit or not. Annual reports in the leasing industry show that the turnover ratio fluctuates from 8% to 25%. The key factors to be considered are, work-family life balance, career development opportunities, compensation and benefits, perceived supervisory support, employee performance management and job security. Previous researchers have focused on western countries aiming at all levels of employees. This study conducted is based on 14 leasing companies with a sample of 116 young employees. The qualitative research method was used where a questionnaire survey forms were handed over to the participant‘s age between 22 and 32 to fill, using simple random and snowball sampling technique. Correlations and regression tests were performed. The results indicate that the turnover intentions on particular variables were more complex than previously assumed. Main reasons for turnover intentions were the work-family life balance, career development opportunities and perceived supervisory support. Piecemeal investigations of this sector provide inadequate information; hence dearth of information on the finance sector in Sri Lanka is a major weakness.
A Review of Capital Structure Theories
(Faculty of Graduate Studies, University of Kelaniya, 2015) Abeywardhana, D.K.Y.
Capital structure is still a puzzle among finance scholars. So far, researchers have not yet reached a consensus on the optimal capital structure of firms by simultaneously dealing with the agency problem. Purpose of this study is to review various capital structure theories that have been proposed in the finance literature to provide clarification for the firms‘ capital structure decision. Starting from the capital structure irrelevance theory of Modigliani and Miller (1958) this review examine the several theories that have been put forward to explain the capital structure. Three major theories of capital structure emerged over the years following the assumption of the perfect capital market of capital structure irrelevance model. Trade off theory of capital structure assumes that firms have one optimal debt ratio and firm trade off the benefit and cost of debt and equity financing. Pecking order theory (Myers, 1984, Myers and Majluf, 1984) assumes that firms follow a financing hierarchy whereby minimize the problem of information asymmetry. But neither of these two theories provide a complete description why some firms prefer debt and others prefer equity finance under different circumstances. Another theory of capital structure has introduced recently by, Baker and Wurgler (2002), market timing theory of capital structure. This theory explains the current capital structure as the cumulative outcome of past attempts to time the equity market which implies that firms issue new shares when they perceive they are overvalued and that firms repurchase own shares when they consider these to be undervalued. Market timing issuing behaviour has been well established empirically by others already, but Baker and Wurgler (2002) show that the influence of market timing on capital structure is regular and continuous. So the predictions of these theories sometimes acted in a contradictory manner and Myers (1984) 30 years old question ―How do firms choose their capital structure?‖ still remains.