Commerce and Management
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Item The Effect of Strategic Flexibility on Strategy-Performance Nexus: A Conceptual Model(Faculty of Commerce and Management Studies, University of Kelaniya., 2018) Liyanage, A. S.; Weerasinghe, T. D.Many of the business strategies adopted by organizations fail as a result of inflexibility of such strategies in responding to market dynamics. Although there is a considerable number of research to indicate that the strategic clarity has a strong positive association with firm performance, there remains little theoretical and empirical evidence to explain the effect of strategic flexibility on firm performance. Hence, this concept paper draws on the Porter’s typology and the Miles and Snow’s typology to analyze how the strategic flexibility moderates the association between strategic clarity and firm performance. The paper concludes with a conceptual model that enables the testing of the discrete effect of strategic flexibility on firm performance which in turn will add insights to the said models in the study.Item The Effect of Financial Literacy on Firm Performance Through Mediation of Financial Access and Financial Risk Attitude: Evidence from Selected Trading MSME in Ratnapura District(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Witharama, Y. W. K. M.; Weligamage, S. S.Introduction: Micro, Small and Medium Enterprises (MSMEs) are important players in economic development as they provide employment and contribute significantly to the GDP of both developed and developing nations. MSMEs face challenges such as limited financial literacy, limited access to financing and poor risk management skills which at the end results in financial failure of the business. Entrepreneurs who can manage their firms more effectively and make informed decisions have access to increased resources and are more effective at managing risks. This study examines the Effect of Financial Literacy on Firm Performance Through Financial Access and Financial Risk Attitude as Mediators. Methodology: This quantitative and deductive approach was followed, by the positivism philosophy, in an attempt to examine the research problem logically. Primary data were collected from 150 MSMEs using structured questionnaires. Descriptive statistics, correlation analysis, and mediation analysis were conducted using SPSS to evaluate the hypothesized relationships among financial literacy, financial access, financial risk attitude, and firm performance. Findings: The findings indicate a strong positive relationship between the financial literacy of the MSMEs and their performance. Financial literacy was found to have a direct effect on performance and improved the ability to acquire financial resources and positive risk attitudes, which came as partial mediators. MSMEs with more financial knowledge found it easier to obtain funds, manage risks, and deal with market changes and thus made better performance. Conclusion: The analysis demonstrates that targeted policy measures and educational programs on financial literacy should be incorporated into the agenda of MSME owners’ empowerment. Statistics reveal that with better information, entrepreneurs’ judgment is clear, resources are allocated better, and complex financial networks are exploited. Making finance available through efficient and uncomplicated lending and customized financial aid is critical to sustaining liquidity and fostering growth. Also, constructive risk attitudes allow MSME owners to embrace risks and mitigate uncertainties with confidence. These actions are important for establishing a nurturing environment that guarantees the viability and growth of micro, small and medium enterprises in developing countries.Item The Effect of Capital Structure on Firm Performance: Evidence from Listed Diversified Financials Sector Companies in Colombo Stock Exchange: Pre- Crisis vs. Economic Crisis(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Ishanka, G. A. C.; Gunasekara, H. M. A. L.Introduction: This study investigates the impact of capital structure on the financial performance of diversified financial sector companies listed on the Colombo Stock Exchange (CSE) during pre-crisis (2014–2020) and crisis (2021–2023) periods. The objectives of the study are to evaluate the strength of the causal relationship between capital structure and firm performance of the listed diversified financial sector companies between the periods of 2014-2023 and to check whether there is a statistically significant impact between the capital structure and firm performance of the listed Diversified Financial sector companies before and during the economic crisis periods (2014-2023). This study addresses this gap by examining the effect of debt on three key performance metrics: Return on Capital Employed (ROCE), Return on Assets (ROA), and Tobin’s Q. Methodology: The research follows a quantitative approach using secondary data from 27 listed diversified financial firms. Panel data regression will be used for the analysis to evaluate the relationship between capital structure and firm performance, with firm age, size, tangibility, and sales growth as control variables. The economic crisis is incorporated as a dummy variable to assess its effect on firm performance. Descriptive statistics and t-tests are used to identify differences in firm performance between pre-crisis and crisis periods. Findings: The findings indicate a significant negative relationship between the debt-to-equity ratio and all three performance indicators (ROCE, ROA, and Tobin’s Q) and ROA, ROCE are significantly impacted by the Economic Crisis and Tobin’s Q is not impacted by the Economic Crisis. Conclusion: Capital Structure and Firm Performance is a highly discussed topic among researchers. However, studies done on specific sectors are very rare in the Sri Lankan context. Furthermore, the study has incorporated the economic crisis as well. Therefore, this study will provide insights into future research on this topic.Item The Effect of Capital Structure on Firm Performance: Evidence from Listed Capital Goods Sector in Colombo Stock Exchange: Pre-Crisis vs. Economic Crisis(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Madhushika, N. G. S.; Gunasekara, H. M. A. L.Introduction: This study investigates the impact of capital structure on the financial performance of firms in the capital goods sector listed on the Colombo Stock Exchange (CSE) in Sri Lanka. The analysis covers the period from 2014 to 2023, distinguishing between the pre-crisis (2014-2020) and economic crisis (2021-2023) periods to understand the role of the economic crisis as a dummy variable. Firm performance is measured using Return on Assets (ROA), Return on Capital Employed (ROCE), and Tobin’s Q, while the debt-to-equity ratio serves as the independent variable. Control variables include firm size, age, tangibility, and sales growth. Methodology: Using a quantitative approach, secondary data from 22 listed firms were analyzed using panel data regression through descriptive analysis, correlation analysis, panel regression analysis, and t-tests. The study used a positivism approach. Random effect panel regression models were used to analyze the data. Findings: The findings indicate a significant negative relationship between the debt-to-equity ratio and all three performance indicators (ROCE, ROA, and Tobin’s Q) and ROA, ROCE are significantly statistically impacted by the Economic Crisis and Tobin’s Q is not statistically impacted by the Economic Crisis. Conclusion: The study concludes that higher debt ratios negatively affect firm performance, with this impact being more pronounced during an economic crisis. The findings highlight the need for firms to adopt timely capital structure decisions, especially in uncertain economic conditions.Item The Impact of Entrepreneurship Education on Small Businesses’ Performance(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Nimeshi, G.K.S.; Edirisinghe, S.D.For each country entrepreneurial venture segment is considered as a major important factor of productivity, employment and economic growth. A developing country like Sri Lanka requires entrepreneurs to stimulate the economy. However, given the Sri Lankan context, most of Sri Lankan entrepreneurs’ failure is due to lack of entrepreneurship education. While the number of entrepreneurship education programs is growing, their impact is under researched and studies paint an unclear picture of the impact of entrepreneurship education. Therefore this research study aims to contribute to the understanding of the impact of entrepreneurship education on the firm’s performance. According to the literature, firm performance can be measured by using financial and non-financial factors. In this study, three measures were identified under the financial factors according to past literature. Namely profit growth, sales growth, and return on investment. Additionally non-financial performance is measured by using factors such as, customer satisfaction, employee satisfaction, and owner satisfaction. The study also tests how this relationship varies with moderator variable, namely, gender. The study will be conducted in Sri Lankan context in Gampaha district. Proportionate random sampling technique will be used to select the sample of 150 small firms. A self-administered questionnaire will be used in this study as the research instrument. Both descriptive and inferential analytical tools will be used to analyze the data. The study will provide insight into the Sri Lankan context and it will contribute to understanding the importance of entrepreneurship education to owners of small firms.Item Corporate Governance and Firm Performance(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Panditharathna, K.M.This study examines the relationships between corporate governance attributes on firm performance of listed financial sector companies in Sri Lanka. Empirical analysis focused on 56 companies registered in the Colombo Stock Exchange (CSE) covering the industries of banking, finance and insurance for the years 2012, 2013, 2014 and 2015. The study used Ordinary Least Squares (OLS) method to analyze the data. The study finds that relationship between corporate governance and firm performance are not strong. Board size, proportion of independent directors and the proportion of female directors have not significant relationship with performance measures. But board effectiveness has a significant positive relationship with ROE. This study enables to companies to evaluate and restructuring of their board to enhance the performance of the company while contributing to the economic development of the country. Findings of prior study are more focused to the developed countries. This study fills that research gap and contribute to the present literature on corporate governance in the industries of banking finance and insurance.Item An Empirical Study on Corporate Ownership Structure and Firm Performance: Evidence from Listed Companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Chandrasena, S.M.; Kulathunga, K.M.K.N.S.Ownership structure, whether it is concentrated or dispersed, is one of the main determinants of organizational performance. Theories of corporate governance insist on dispersed ownership and segregation of ownership and management. In most of the emerging countries a concentrated form of ownership is evident in listed companies. Therefore the objectives of this study are twofold; to investigate whether ownership structure has an impact on firm performance and to examine whether concentrated ownership has an impact on firm performance, in companies listed in Sri Lanka. Researchers have considered a sample of seventy six (76) non-financial listed companies in CSE during the period of 2008 to 2014. A time fixed effect model is applied into the panel regression analysis and a Generalized Least Squares (GLS) regression model is chosen. Findings suggest that a significant relationship exists between ownership structure and firm performance. Empirical evidence further elucidates that institutional ownership has a significant positive relationship with firm performance, which can be justified based on the ‘active monitoring argument’. Significant negative relationship between individual ownership and firm performance can be argued based on ‘manager discouragement argument’. Concentrated ownership too has a significant positive relationship with firm performance, supporting the wellknown agency theory propositions.Item Corporate governance and company performance(Department of Accountancy, University of Kelaniya, 2015) Dehipegedara, B.Corporate governance and its impact to the company performance are much debated areas. In the past incidental research has shown significant relationship between various corporate governance features and corporate performance. Good corporate governance is effect to the lower risk of the investors, attaching more investments and improving the performance of companies. And also agency theory suggested that a better governed firm should have better performance and higher valuation due to lower agency cost. For example, better governed U.S. firms have higher Return On Equity and higher Return On Assets.(Gompers, Ishii, and Metrick (2003)).However impact of corporate governance is vary between developing countries and developed countries. This study examines the relationship between corporate governance features and company performance in Sri Lanka. Some of corporate governance variables are Board size, Proportion of non-executive directors, leadership style and Board committees and ROE and ROA can be used as Performance measures. The selected sample is 20 listed firms from top 25 listed companies in the business today top 25 2012- 2013. Data collection methodology is secondary sources. Data will be obtained by Annual reports. Data will be analyzed by using SPSS model to obtain quantitative measures of descriptive statistics, regression analysis and correlation. The importance of this analysis is, it provides the evidence to find the positive relationship between Board sizes, Board committee, Non-executive directors’ impact, leadership structure firm performance which results in higher return.Item Corporate Governance and Firm Performance: A Study of Sri Lankan Beverage, Food and Tobacco Companies(University of Kelaniya, 2014) Kawshalya, P.; Aruppala, D.Corporate governance is a highly discussed topic which received the attention of corporate world during the last decade due to the paramount importance embodied within it for the company performance and stability. Basically corporate governance means the set of rules by which management of the company is directed and controlled. It attempts to ensure that managers and other insiders of an organization take measures or adopt mechanisms to safeguard the interest of stakeholders. With the global financial crisis which affected many of the world business giants, companies are highly concerned to improve their corporate governance practices and therefore today researchers also have a great awareness to carry out researches in this area. However currently in Sri Lanka context less researches available on Corporate Governance. This study focuses on “Corporate Governance and Company Performance” considering all Beverage, Food and Tobacco companies listed in Colombo Stock Exchange as at December 2013. Data was analyzed using the data of financial year 2012/13. Data was analyzed using SPSS statistical software and hypothesis were tested performing descriptive statistics, correlation analysis and regression analysis for collected data. According to the findings of the research corporate governance does not make a significant influence on companies ROE, ROA and EPS. Thus, study concludes that the determinants of corporate governance used in the study are not correlated to the performance measures of the organization.