International Journal of Accountancy
Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/29866
Browse
2 results
Search Results
Item Determinants of Banks’ Profitability: Empirical Evidence from Sri Lanka(Department of Accountancy, University of Kelaniya, Sri Lanka., 2024) Ruwanthika, W. M. T.; Wijekoon, W. M. H. N.; Gunathilaka, R. C.The objective of this paper is to examine the effect of bank specific, industry specific and macro-economic determinants namely, bank size, capital adequacy, credit risk, liquidity risk, operating cost efficiency, assets management, diversification, market concentration, inflation and interest rate on Sri Lankan commercial banks’ profitability over the period from 2010 to 2019. The study used quantitative research approach and analyzed secondary data using E views software of 11 Sri Lankan commercial banks over a period of 2010 to 2019. Multiple panel regression method was used to investigate the effects of bank specific, industry specific and macro-economic determinants on the profitability of commercial banks in Sri Lanka. The result of the study suggests that bank size, capital adequacy, asset management and interest rates bring positive effects on the banks’ profitability, while credit risks bring negative effects on commercial banks’ profitability. This study is one of the pioneering studies examining the determinants of the profitability of commercial banks in emerging economies. The implications of this study would be helpful for policy makers and regulatory bodies in revising their existing practices for developments in the banking sector in achieving the economic growth. Further, this study sheds light on Sri Lankan commercial banks to understand the significant determinants on their overall profitability and set strategies to accordingly.Item Effect of Socio-demographic Factors (Age, Occupation and Education) on Behavioral Biases of Individual Investors’ Decision-making Evidence from The Colombo Stock Exchange(Department of Accountancy, University of Kelaniya, Sri Lanka., 2021) Gunathilaka, R. C.The purpose of this paper is to investigate the effect of age, occupation and education on the relationship between behavioral biases and financial decision-making of individual investors based on The Colombo Stock Exchange (CSE). This study considers overconfidence bias, representativeness bias, disposition effect and herd-mentality bias on the financial investment decision-making of individual investors, taking steps to fill the empirical gap and practice gap in Behavioral Finance context. A questionnaire was utilized to collect data and the sample consisted of 114 individual respondents. Finally, data of 100 investors was analyzed by using Partial Least Square-Structural Equation Modeling approach. The study revealed that age moderates the relationship between disposition effect and investment decisions of individual investors. Further, occupation also moderates the relationship between herd-mentality bias and individual investors’ investment decisions. This study is one of the pioneering studies examining the effect of socio-demographic factors of age, occupation and education on the relationship between behavioral biases and individual investors’ decision-making, Further, this study sheds light on the rare prior studies that relate socio-demographic factors to behavioral biases of individual investors’ decision-making, particularly in emerging markets context while expanding the extant literature in Behavioral Finance.