Students’ Research Symposium - Department of Finance (SRS-DFIN)

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    Impact of Economic shocks on the Sri Lankan Agriculture sector Output and Employability
    (Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Pabasara, M.L.R.; Perera, L.A.S.
    Introduction - This study investigates how economic shocks affect Sri Lanka's service industry, which is a crucial part of the country's growing economy. The study concentrated on important service sectors, including real estate and ownership dwelling, financial services, insurance, trade and retail trade, transportation, storage, and communication. The study aims to understand how macroeconomic variables in the service sector, such as employment and output, are affected by economic shocks, such as changes in interest rates, exchange rates, and inflation. Methodology – This study utilizes secondary data obtained from various sources. Using a time series data set, the study examined the variables such as inflation rates, exchange rates, and fertilizer imports against output and employability. The collected data is analyzed using descriptive statistics, correlation analysis, and regression analysis. Findings & Conclusion – This study provides the influence of economic shocks on macroeconomic variables in the agriculture sector. wherein the inflation rate, exchange rate and fertilizer imports affect output but not the agriculture sector's employability. There are studies that support the findings exhibited in this study based on historical studies. Despite many limitations, this study will provide insightful information highlighting the significance of interest rate stabilization, moderate inflation, and exchange rate stability for long-term growth in the agriculture sector. Additionally, this study closes a significant knowledge gap that is unique to the Sri Lankan agriculture sector and offers a basis for well-informed decision-making in the face of economic uncertainties.
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    Impact of Financial Distress on Firms’ Performance: Evidence from CSE Food Beverage & Tobacco Industry and Consumer Durable & Apparel Industry
    (Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Lakshani, P.S.K.; Perera, L.A.S.
    Introduction - Financial distress arises when a corporation cannot meet payment obligations or when cash flow projections indicate that the company will soon be unable to meet its obligations. The Sri Lankan food, beverage, and apparel sectors play significant roles and contribute immensely to the country's GDP. This research aims to determine the significant effect of financial distress on companies listed in the consumer goods industry, food and beverages sector, and apparel sector in Sri Lanka. Methodology - Data was gathered from annual reports of 20 listed firms of two sectors on CSE from 2012 to 2021. Return on assets was used as the dependent variable, and Altman's Z-score was used as an independent variable to measure financial distress. Liquidity, leverage and net profit margin were used as the control variables. Data were analysed using SPSS, which included statistical tests such as descriptive statistics, multicollinearity, reliability and normality. Also, multiple regression results were used to test hypotheses. Findings - The study revealed that financial distress significantly affects the financial performance of firms in the apparel sector more than in the food and beverage sector. Conclusion - Finally, the researcher suggests that stakeholders, including regulatory authorities and researchers, are encouraged by the study to be more attentive to the operations of the apparel sector and the food and beverage sector to improve financial performance in the future.
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    The Impact of Financial Inclusion on Poverty Level in the South Asian Countries
    (Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Dodamgodage, P. A.; Perera, L.A.S.
    Introduction - This research studies the Impact of financial inclusion on poverty levels in South Asian countries. Poverty is one of the most critical problems confronting society today. Methodology - The study sample consists of Five South Asian countries. The data was collected from 2004 to 2021 to determine the impact of financial inclusion on poverty levels in South Asian countries. The number of Bank branches per 100000 adults, Number of ATMs per 100000 adults, Outstanding deposits with commercial banks (% of GDP), and Outstanding loans from commercial banks (% of GDP) represent the study's independent variables. The poverty Headcount ratio represents the Dependent variable. Panel data regression model is used as cross-sectional and time series nature of data through STATA software. Findings - Based on the results, Findings also revealed that the Number of ATMs per 100000 adults significantly impacts the Poverty level in South Asian countries, and the Financial Access dimension has a partially significant impact on the Poverty Level in South Asian Countries. Conclusion - The model results derived that the Financial Access dimension partially impacts the Poverty level. The impact of the Usage dimension is not significant on the poverty level. Number of Bank branches per 100000 adults, Outstanding deposits with commercial banks (% of GDP), and Outstanding loans from commercial banks (% of GDP) do not significantly impact the Poverty level in South Asian countries. The study's findings will guide decision-makers of the nations, Governments, academics, and other stakeholders in strategic planning and effective decisions.
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    The Impact of Financial Inclusion on Poverty Level; Evidence from Selected East and Southeast Asian Countries
    (Department of Finance, Faculty of Commerce and Management Studies University of Kelaniya Sri Lanka, 2024) Peiris, R.L.T.; Perera, L.A.S.
    Introduction - This research studies the Impact of financial inclusion on poverty levels in the East and Southeast Regions. Methodology - The sample of the study consists of ten East and Southeast Asian countries, and the data was collected from 2013 to 2022 to determine the impact of financial inclusion on poverty levels in the countries belonging to East and Southeast Asian countries. Number of Bank branches per 100,000 adults, Number of ATMs per 100,000 adults, Outstanding deposits with commercial banks (% of GDP) and Outstanding loans from commercial banks (% of GDP) represent the study's independent variables. The poverty headcount ratio represents the dependent variable. Panel data regression model is used as cross-sectional and time series nature of data. Findings - Based on the results, Findings also revealed that the number of Bank branches per 100,000 adults, the Number of ATMs per 100,000 adults and Outstanding loans from commercial banks (% of GDP) significantly impact the Poverty level in East and Southeast Asian countries and Financial Access dimension has a significant impact on the Poverty Level. In contrast, the financial usage dimension has a partial significance on the poverty level in the East and Southeast Asian Countries. Conclusion - The final results of the three models derived that the Financial Access dimension significantly impacts the Poverty level. The impact of the Usage dimension is partially significant on the poverty level. The number of Bank branches per 100,000 adults, Number of ATMs per 100,000 adults and outstanding loans from commercial banks (% of GDP) significantly impact the Poverty level in East and Southeast Asian regions. The findings of the study will guide decision-makers of the countries, governments, academics, and other stakeholders in making their strategic planning and effective decisions.
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    Impact of Loan Portfolio Diversification on Performance of Licensed Commercial Banks in Sri Lanka
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2020) Rathnamalala, R.I.B.A.M.I.; Perera, L.A.S.
    Introduction: The empirical studies provide mixed evidence on the relationship between loan portfolio diversification and loan portfolio concentration with the bank performance. This research study is one of the research that has been carried out in the Sri Lankan context with the objective of, determine the impact of loan portfolio diversification on performance of licensed commercial banks in Sri Lanka. Design/ Methodology/ Approach: Nonprobability sampling technique is used to select 10 banks out of 26 licensed commercial banks in Sri Lanka for the period of 2010 to 2019. Data were analyzed by using correlation and fixed effect panel regression model. The independent variables of product wise diversification and sector wise diversification calculated from the measurement of Hirschman Herfindahl Index. Return on asset has taken to measure the bank performance and Interest Rate Spread, Capital Adequacy, Liquidity and Bank Size are used as control variables for identifying the model. Findings: There is a significant negative impact on product wise loan diversification on bank performance and significant positive impact on sector wise loan diversification on bank performance. Further, control variables of interest rate spread, and bank size have a significant negative relationship with bank performance while Capital Adequacy has a significant positive relationship with bank performances. Conclusion: According to the product wise loan diversification bank can earn more profit from concentration strategy while under the sector wise loan diversification bank performance can be improved by following diversify strategy.
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    Impact of Fintech on Economic Growth: Evidence from Asian Countries
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Tashikala, H.A.L.; Perera, L.A.S.
    Purpose: Fintech, otherwise called internet finance or digital financial inclusion, simply refers to an amalgamation of finance and information technology. The objective of this study is to examine the effect of Fintech to the economic growth of Asian countries. The sub objectives are to find out whether there is any impact of depth of ATM’s, depth of Credit Cards, depth of Debit Cards and depth of POS terminals on the economic growth of Asian countries. Design/Methodology/Approach: The research uses descriptive statistics, and the panel data regression technique is used to analyze the study. And uses deductive research logic and a quantitative research approach. The total population consists of all Asian Countries. Eight countries were selected as the sample. All the data collected falls into the period between 2009 -2020. Findings: The Research analysis has followed a fixed effect model and it includes Depth of ATMs and Depth of Debit Cards which are significant towards economic growth. Depth of Credit cards and Depth of POS terminals shows insignificant relationship with economic growth. The results emphasize that the overall model is statistically significant, and researcher conclude Fintech and economic growth of Asian countries have a significant relationship. Originality: This is one of the pioneer studies conducted on FinTech and economic growth for South Asian countries.
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    Determinants of Financial Literacy with Special Reference to Young Adults in Western Province of Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Malavithanthila, M.K.T.N.; Perera, L.A.S.
    Purpose: The aim of this study is to investigate and evaluate the factors affecting financial literacy among the young adults of western province of Sri Lanka. The fact that this study expands on the idea of financial literacy and its factors is one of its strengths. Design/methodology/approach: The research has a quantitative survey-based data collection, and it also uses both structural equation modeling (SEM) and Regression analysis. The population of the study is the young adults that is young adults whose age is between 17 to 30 in Western province of Sri Lanka. The sampling method of the study is convenience sampling, and the sample size was determined using Cochran’s formula which is 384.91. Findings: The results of the study showed that the young adults are more confident with financial literacy, financial behavior, financial knowledge, and financial experience whereas they should concentrate more on improving their financial goals, financial decisions and financial wellbeing. With the help of the regression models, it also proved that financial Technology is a new determinant of financial literacy and the model built showed the interrelationship between the financial literacy determinants. Originality: This study fills a gap in the body of knowledge about the several variables that affect financial literacy. It offers data to aid decision-makers in creating plans to improve societal financial literacy.
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    The Impact of Extended Service Quality Dimensions on Customer Satisfaction in the Life Insurance Industry in Western Province, Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Wijeruwan, M.P.N.K.; Perera, L.A.S.
    Purpose: In insurance industry service quality is a crucial factor because the services offer by the company are not visible, the quality of the Service is intangible, and it is difficult to assess quality of the service at the point of purchasing the service. Hence the objective of this study is to examine the impact of service quality dimensions on customer satisfaction in life insurance industry in Sri Lanka. Design/ Methodology/ Approach: The study empirically evaluated five service quality dimensions; Reliability, Responsiveness, Tangibility, Assurance, Technology and Corporate Image and their impact on life insurance customer satisfaction. The service quality measured by SERVQUAL model. Technology and Corporate Image are the newly introduced service quality dimensions to the insurance industry in Sri Lanka. The sample consisted of 277 life insurance customers in Western Province and primary data were gathered through a structured questionnaire among the respondents. Findings: The results demonstrated that there is a significant impact from Reliability, Assurance, Responsiveness, Technology and Corporate Image to the customer satisfaction. But Tangibility has an insignificant impact to the customer satisfaction in Insurance industry. Originality: This study concluded that Technology, Corporate Image, and Responsiveness are the key factors that influence mostly on customer satisfaction in life insurance industry in Sri Lanka. In the light of the results, extended service quality dimensions have an impact of customer satisfaction in Life Insurance Industry in Sri Lanka.
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    The Impact of Monetary Policy on Economic Growth and Unemployment: Evidence from Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Ruwindrika, K.R.S.; Perera, L.A.S.
    Purpose: The purpose of this study is to identify what is the relationship between financial Management practices (fixed asset management, working capital management, accounting information systems, financial reporting analysis), and the financial performance of small and medium-sized enterprises in Matale district, Sri Lanka. Purpose: Economic growth and unemployment are some of the major macroeconomic problems in Sri Lanka for decades. In finding answers to these macroeconomic problems governments make use of fiscal policy and monetary policy. Therefore, the primary objective of this study is to examine the effects of monetary policy tools on economic growth and unemployment of Sri Lanka for the period of 1975 to 2021. Design/ Methodology/ Approach: This study focuses on GDP, Unemployment, and monetary policy tools such as Interest Rate, Money Supply and Exchange Rate. Further trade balance, capital formation, labor force and wages are considered as control variables in the study. The annual time series data are collected from 1975 to 2021. Research uses descriptive statistics, correlation, and regression models to analyze the data. Findings: The results show that the inflation rate, interest rate and money supply have a positive and exchange rate has a negative relationship with GDP. Inflation rate and money supply have positive with unemployment, but interest rate and exchange rate have negative relationship with unemployment. Inflation and exchange rates are significant but inflation rate and money supply insignificant with unemployment.
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    Financial Inclusion and Income Inequality: Evidence from South Asian Countries
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kaushalya, M.L.M.; Perera, L.A.S.
    Purpose: This study investigates the impact of financial inclusion on income inequality for five south Asian countries such as Sri Lanka, India, Bangladesh, Pakistan and Maldives over the 2007 to 2021. Design/Methodology/Approach: All the data collected as a secondary data and Data for all variables will be collected from the World Bank database, World Governance Indicators, International Labor Organization, the International Monetary Fund, and some national reports from 2007 and 2021. The variables underwent multiple regression model analysis to identify the predictability of the explanatory variables on GINI index. Findings: The research found that there is a positive significant impact of financial inclusion on income inequality in south Asian countries. As well as there is a positive significant impact of the number of commercial bank branches per 100,000 adults, school enrollment, government effectiveness and unemployment on income inequality. There is a negative significant impact of Number of ATMs per 100,000 adults on income inequality. Originality: The results showed that except for SE and GE, the remaining variables of BRANCHES, ATM and unemployment had a significant impact on income inequality. The overall result showed the positive significant impact of financial inclusion on income inequality.