Commerce and Management
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Item The Impact of Product Diversification and Insurance Activity to Insurance Industry Performance: Moderating Effect of Insurance Penetration: Evidence from India, Pakistan, and Sri Lanka(Department of Finance, University of Kelaniya., 2024) Rathnasiri, S. M. H. G.; Buddhika, H. J. R.Purpose: The research focused on the insurance industry performance of India, Pakistan & Sri Lanka were supposed to find the impact of product diversification and Insurance activity towards industry performance measured by ROE. Further insurance penetration is considered a moderating variable and objectives same as mentioned above. Product diversification and Insurance activity are key indicators of the insurance industry and insurance penetration is a key indicator of country performance measurement. Methodology: This quantitative study considered countries of Sri Lanka, India, and Pakistan in the South Asian Region and considered the period data from 2012 -2022. The highest developed first three countries were considered for evaluation purposes and diversified (companies operating in both Life & General) insurance companies from each country. Findings: Both product diversification and insurance activity exhibit negative correlations with insurance industry performance, indicating that increasing either factor may result in lower financial performance for insurers in these countries. Furthermore, insurance penetration significantly moderates the relationship between product diversification and insurance industry performance. The three hypotheses formulated and stated that impact is negative for product diversification and insurance activity. Further stated that insurance penetration moderated the insurance industry's performance. Conclusion: The findings underscore the importance of prudent strategic planning and management for diversified insurance companies in India, Pakistan & Sri Lanka. Diversified insurance firms are advised to carefully weigh the trade-offs between diversification and profitability. While diversification can mitigate risk, it may also lead to diminishing the returns in long run.Item Efficiency and Performance of Microfinance Institutions: A Systematic Literature Review(Faculty of Commerce and Management Studies, University of Kelaniya., 2023) Herath, H. M. A. K.; Azeez, A. A.; Priyashantha, K. G.This study was conducted to find out common knowledge in the empirical literature pertaining to the performance and efficiency of microfinance institutions (MFIs), as well as the areas that require more attention for future research. The systematic literature review (SLR) technique was applied and the article selection and findings were reported according to the PRISMA guidelines. 69 empirical journal articles between 2013 and 2023 were included from Scopus database. (1) Efficiency of MFIs (Financial & Social efficiency) (2) performance of MFIs (Social & Financial Performance), (3) sustainable performance of MFIs, were identified as the three most common knowledge clusters. The review established that efficiency and conventional performance analysis of MFIs differ in methodologies and perspectives. Further, it was found that performance assessment, efficiency measurement, productivity, sustainability, and outreach of MFIs are infrequently investigated areas. Financial efficiency, social efficiency, financial performance, and social performance of MFIs were also identified as averagely investigated, creating avenues for more future studies. Thus, the study emphasized the need for further research diversifying perspectives on overall MFI performance to ensure lasting success.Item Impact of Financial Management Practices on Performance of Small and Medium Enterprises – Legitimacy Theory Perspectives(Faculty of Commerce and Management Studies, University of Kelaniya., 2021) Tharmini T.; Lakshan A.M.I.The study aims to find out the impact of financial management practices (FMPs) on performance of Small and medium enterprises (SMEs) in Sri Lanka from the lens of the Legitimacy Theory. Primary data was collected from the SME owners/managers. Self-administered questionnaires were issued to collect data. The sample was selected through stratified simple random sampling method from the registered SMEs. Data were analyzed and evaluated by using Descriptive Statistics, Independent sample t-test, Correlation analysis and regression analysis. The results revealed that Accounting Information System, Financial reporting and analysis has moderate level adoption, Working capital management has high level adoption and Financial planning and control has low level of adoption in SMEs. Further, Financial reporting and analysis and Working capital management is significantly impact on the performance of SMEs. Accounting Information system and financial planning and control is not significantly impact on performance of SMEs. The findings revealed that there is a significant difference in the application of FMPs among small sized enterprises and medium sized enterprises. FMPs are highly applied by medium sized enterprises than small sized enterprises. The study also found out that lack of accounting knowledge and cost of hiring professional accountants are the major challenges faced by SMEs to adopt the FMPs. Eventually, this study recommends to SME owners to adopt FMPs (at a higher level) and government and other regulatory bodies to create suitable policies and standards to mitigate the challenges. SMEs practice important FMPs to obtain the society's impression as social responsible organizations (in terms of legitimacy within ‘social contract’). Accordingly, application of FMPs aims to legitimise company behaviour by ensuring the profitability, survival and growth to influence the society’s perceptions about the SMEs by way of higher number of employments, use of domestic raw materials and payment of taxes. This study contributes to the theory by bringing in SMEs perspectives in to the Legitimacy theory. Further, it contributes to practice and literature by carrying new insights on the impact of FMPs on performance of SMEs in the Sri Lankan context.Item IMPACT OF EMPLOYEE RECOGNITION ON EMPLOYEE ENGAGEMENT WITH MEDIATING EFFECT OF INTRINSIC MOTIVATION: A STUDY OF MARKETING STAFF AT XYZ FINANACE COMPANY IN SRI LANKA(Department of Human Resource Management, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Devindi, M. P. H. T.; Welmilla, I.The purpose of this study was to examine the impact of employee recognition on employee engagement with mediating effect of intrinsic motivation among marketing Staff at XYZ Finance Company in Sri Lanka. This study employed a quantitative research approach with a cross-sectional survey design to examine the impact of employee recognition on employee engagement, with intrinsic motivation as a mediating factor. The target population consisted of marketing staff at XYZ Finance Company in Sri Lanka, totaling 180 employees. Using Morgan’s sample size table, a sample of 123 employees was selected through a proportionately stratified sampling, followed by simple random sampling to ensure equal representation. For data analysis, reliability analysis, correlation, and ANOVA were conducted to examine relationships between variables. Hayes' PROCESS macro was used for mediation analysis to assess the indirect effect of intrinsic motivation on the relationship between employee recognition and engagement. The study revealed that employee recognition significantly impacts employee engagement and intrinsic motivation partially mediates this relationship, with a significant indirect effect. As a recommendation, organizations should identify ways to motivate employees, which in turn boosts engagement. Practical implications emphasize the need for organizations to design tailored recognition programs that meet employees' intrinsic and extrinsic needs to enhance retention and performance. This study contributes to the limited literature on employee engagement strategies within Sri Lanka's finance industry, with recommendations for expanding research into diverse sectors and generations to validate and extend the findings.Item Non - Interest Income and Performance of Commercial Banks in Sri Lanka(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Karunarathne, W.G.S.M.; Aruppala, W.D.N.Non interest income of banks improve the total income, since banks can expand the source of income by diversifying their income while reducing business risks. Accordingly, non-interest income is an extra source of income for commercial banks which is essential to enhance their profitability. ATM technology, personal lending and loan quality are among the main microeconomic factors driving the performance in non-interest income in the commercial banking sector. This study investigated impact of non-interest income on bank performance in case of licensed commercial banks in Sri Lanka for the period of 2007 to 2017. 26 licensed commercial banks were selected as sample of the study. The study conducted based on secondary data which was collected from audited annual reports and published database of the Colombo Stock Exchange and data analyzed by using E-Views statistic software. The results reveal that relying on non-interest income activities may adversely affect bank performance. Findings suggest that only a small proportion of banks present an increase in efficiency level with inclusion of non-interest income, while no significant changes are seen on most banks’ efficiency levels. Also, further finds that the relationship between the share of non-interest income to the net operating revenue and the bank efficiency score is not significantItem Spirituality: A Boon for Organizational Performance.(8th International Conference on Business & Information ICBI – 2017, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2017) Mathew, G. C.; Prashar, S.; Ramanathan, H. N.; Arunchand, C. H.Organizational management is one of the contemporary delinquents, most of the organizations have to address. The issues like job satisfaction, employee commitment and employee performance are the crucial factors of organizational management. Spirituality is a prominent and actual factor that can speed up satisfaction, commitment and performance. A substantial research gap connecting spirituality with job satisfaction, employee commitment and employee performance exist. This study reconnoiters the link between spirituality and job satisfaction and the influence of job satisfaction on employee commitment and performance. The study adopted a survey method to collect data from teachers from six different streams. To measure convergent and discriminant validities, Confirmatory Factor Analysis (CFA) was adopted and later tested the structural model framework and research hypotheses. Findings of the current study suggest that spirituality has a direct influence on employee satisfaction and also endorse the linkages between job satisfaction, employee commitment and performance.Item COOPERATION NETWORK CLIENT- FOURNISEUR AND PERFORMANCE OF PARTICIPATING COMPANIES: INTEGRATION OF CULTURAL CONTEXT.(Department of Marketing Management, University of Kelaniya,Sri Lanka., 2017) Djamen, R.The network is a polysemous notion which, whether it is the object of a plentiful literature, remains complex to understand. We can define this concept, also known under the appelation of " virtual company " (Byrne, on 1993), " reticular organization " (Paché and Paraponaris, on 1993), " modular company " (Brilman, on 1995), or still " begun transactional " (Frery, on 1997), " as an implicit or explicit association of agents, industrial companies and services(departments), institutions evolving in domains often complementariness and having for object to move closer to varied resources, to develop relationships of trust between the members of these groups and to reduce the costs of obtaining of these resources, decreasing in this fact the short and long-term uncertainty on the market " (OECD, on 1993, in Joffre, on 1998). The cultural context is indeed at the heart of the shares of cooperation, although this dimension is untold, as if it was obvious, as if the common objectives transcend these differences of conception and management of the collective action, as if the willingness was enough, or as if the common professional culture (entrepreneur, jurist, etc.) allowed a natural dialogue between the peers. This research aims at encircling the ins and outs of the normative impact of the theories of the cooperation. She results in the perspectives in commercial transactions of B to B even in international transactions (deals), in particular by proposing a railing of reflection for the adaptation to the specific contexts. She results naturally in tracks of deepening of the interrogation on the cultural context in the interbegun ways of cooperation.Item The Effect of Corporate Governance on Performance of the banking Industry in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Lekamge, A.L.I.C.; Thilakarathne, C.R.In the worst financial crisis, the banking sector faces to more difficulties. According to the studies that difficulties build on the lack of corporate governance in banks and companies. Purpose of this study was to identify the impact of Corporate Governance for the Banking Profitability in Sri Lanka. Board size, Board Ownership, Management ownership and the Board balance were used as the determinant factors and the Return on Assets was used for the performance indicator. Nine listed Commercial Banks over nine years were selected for the analysis. Descriptive analysis, Pearson Correlation and the regression analysis methods were used to find out relationship between the corporate governance and banking performance. One main model constructed under the regression analysis. Result of the analysis were found that there was significant relationship between Board size and the Board ownership. There was no significance relationship between Management Ownership and the Board Balance. According to the analysis the overall model is significant and the Corporate Governance is significantly affected to the Profitability of the banking industry in Sri Lanka.Item A Study on Relationship between Working Capital Management and Firms’ Performance: Comparison between Manufacturing Sector and Food & Beverage Sector in Colombo Stock Exchange(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Karunarathne, R.M.H.L.; Karunarathne, W.V.A.D.This study examines the relationship between working capital management (WCM) on firms’ performance and also compare the correlation results in between manufacturing sector and the food and beverage sector firms in Sri Lanka. The goal of WCM is to ensure that the firm is able to continue its operations and that it has adequate cash flows to satisfy both maturing shortterm debt and upcoming operational expenses at minimal costs, and consequently, increasing corporate profitability (Angahar & Alematu, 2014). Though empirical evidence exists on the topic, yet there is an uncertainty in determining the optimum level of WCM, especially in Sri Lankan context. Since WCM may be different from industry to industry, firms have to adopt an appropriate WCM approach which is favorable to particular industrial sector. Hence this study compare the relationship between WCM and the firm’s performance of eighteen manufacturing firms and eighteen food & beverage firms listed in the CSE. Data were gathered from annual reports of the sampled firms for the period 2011-2015. The WCM measured in terms of Inventory Turn-over Days (ITD), Average Receivable Days (ARD), Average Payable Days (APD), Cash Conversion Cycle (CCC) and Sales Growth Rate (SGR) whereas performance was measured by the return on assets (ROA). According to the data analysis, there was a negative correlation between ROA and CCC, ITD, ARD. In addition to that, there was a positive correlation between APD and SGR with ROA. There was a significant relationship between WCM and firms’ performance in manufacturing and food & beverage sector. Keeping an optimal level of liquidity of the manufacturing and food & beverage sector and the value of the managers of companies in the manufacturing and food & beverage sector will have to increase the value of the firm thereby controlling the level of optimal working capital position.Item Determinants of Firm Performance; With Special Reference to Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Senanayaka, S.M.D.J.; Karunarathne, W.V.A.D.Study was to discover the determinants, which affect to the profitability of Commercial banks in Sri Lanka. In the economy that the financial system is, important criteria and commercial banks are playing a key role under the financial system in the economy. The purpose of this study is to identify the determinants of the firms’ performance of commercial banks in Sri Lanka. There are many factors, which affects to the performance of commercial banks. In this study, it pays attention on the internal factors, which affects to commercial banks’ performance. The study has used Return on asset (ROA) and Return on Equity (ROE) alternatively to identify the banks’ performance. Capital Adequacy, Financial Leverage, Number of Branch and Liquidity ratio were considered as independent variables of the study. Secondary data of eight (08) listed commercial banks over 10 years were selected to the sample of the study. Correlation and Regression analysis were performed to analyzed data of the study. Constructed two models were used as alternative models. According to first model, that Capital Adequacy ratio, Debt to Equity ratio, Number of branches and the Liquidity assets ratio significantly affected the Return on Assets (ROA). According to the second model, that Capital Adequacy ratio and the Liquidity Assets ratio were significantly affected on Return on Equity (ROE) and the Debt to Equity ratio and the Number of branches were not affected on ROE significantly.