Commerce and Management

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Author: search.filters.author.Gunasekara, A. L.Subject: search.filters.subject.Colombo Stock Exchange

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    Is the Market Efficiency Static or Dynamic – Evidence from Colombo Stock Exchange (CSE)
    (Faculty of Commerce and Management Studies, University of Kelaniya., 2018) Fernando, P. N. D.; Gunasekara, A. L.
    The study tests the weak form efficiency of the Colombo Stock Exchange (CSE) and the consistency of the concept. In this study, daily market closing index values of (All Share Price Index) ASPI of CSE for five years, from June 2010 to June 2015, without adjustments, have been selected as the sample. Both parametric tests and non-parametric tests have been used in this study. The evidence presented in this study confirms that CSE is not weak form efficient within the sample period and is consistent with the findings of previous studies. Therefore, the fact that Efficient Market Hypothesis as a dynamic concept is debatable as studies over the past have consistently confirmed that CSE is not in weak form efficient, although the efficiency of most markets is dynamic.
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    The Impact of Exchange Rates on Stock Market Performance in Sri Lanka
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Rajapaksha, R. A. R. A.; Gunasekara, A. L.
    Introduction: The relationship between exchange rates and stock market performance in developing economies is a topic of great interest to investors, researchers and policymakers. This paper examines the impact of exchange rates on the S&P SL20 index in Sri Lanka. This includes the exchange rate behavior of the USD, EUR, GBP, AUD and JPY against the Sri Lankan rupee. Apart from other factors in the economy, the behavior of exchange rates has made a difference in economic development and investor decisions. Therefore, the purpose of the research is to explore the relationship between exchange rates and the stock market in Sri Lanka in the short and long term. Methodology: This paper used monthly data from January 2010 to July 2024. After conducting unit root tests using ADF analysis for stationarity of all variables, the strength of association between the dependent and independent variables is measured through a correlation analysis. The ARDL model elaborates on the short- and long-run impacts, as well as using a GARCH model that captures the effect of the volatility of exchange rates on stock market returns. Descriptive statistics represent data development through the study period with the help of tables or graphs. Findings: Descriptive statistics show positive means for all variables but non-normal distributions with skewness and kurtosis. The ADF test confirmed stationarity, thus enabling further analysis. The USD has a significant negative impact, and both short- and long-run dynamics are highlighted through the ARDL model. The ARCH test does not show heterogeneity, while the GARCH model confirms volatility clusters and emphasizes the strong influence of the USD. The results emphasize that not all exchange rate movements have the same impact on the performance of the S&P SL20, and that some currencies strongly determine its performance. Conclusion: This paper highlights the relationship between exchange rates and stock market performance in Sri Lanka. Foreign exchange stability is important for market outcomes and suggests currency stabilization strategies that minimize market crashes. Investors should consider how to manage their investments against the exchange rate to maximize returns when investing in the stock market. Due to the large differences between past literature reviews and the current database and the differences in the variables considered, the current research is bound to shed new light on the short-run and long-run relationship.
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    Behavioral Factors Affecting to Selection of Brokerage Firm in Colombo Stock Exchange by Retail Investors.
    (8th International Conference on Business & Information ICBI – 2017, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2017) Fernando, C. S. P. K.; Gunasekara, A. L.; Weerasingha, W. D. J. D.; Dasanayake, D. M. A. S. N.
    This study examines the behavioral factors affecting to the selection of a stockbroker by retail customers, referring to the Behavioral Finance theory. This study is driven by two main objectives, to determine the main factors affecting to the selection decision and to identify the importance levels of the behavioral influences on the individual investors when selecting a stock brokerage firm. This research has used primary data collected through a distribution of a structured questioner and as a sample 60 individual investors were chosen using random sampling technique. However, only 47 questionnaires were returned and analyzed using five-point scale method. Exploratory Factor Analysis identified five main factors as Overconfidence and Gambler’s Fallacy Factors, Anchoring and Ability Bias Factors, Market Factors, Herding Factors and Firm Image Factors. The Reliability Test revealed that there is an internal consistency of each factor. Further, the findings suggest that the Firm Image Factor and Market Factor have the highest importance level for the selection decision whereas Herding Factor has lowest importance level.