Junior Research Symposia
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Item The Effect of Macroeconomic Variables on Stock Market Returns in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Narayana, S.N.B.M.V.N.; Thilakerathne, P.M.C.The stock market investment is one of many potential investment vehicles in which investors can invest their disposable income and reap the returns of its growth over a period of time. When investors value stocks, they mostly consider about the macroeconomic variables. This study investigates the effect of macroeconomic variables on the stock market returns in Sri Lanka. During the period from 2009 to 2019 macroeconomic factors were experienced unexpected changes due to national and international economic conditions. Even though, there are various researchers’ investigated the impact of macroeconomic variables on the stock prices or stock returns, there were only a few researchers’ investigated the relationship between macroeconomic factors and the stock market returns by considering above significant periodical changes. Therefore, this study investigates the effect of macroeconomic variables on stock returns. This study employs the multiple regression analysis by following (Balagobei, 2017); (Ilahi, Ali and Jamil, 2015). Selected macroeconomic variables are Inflation rate (INF), Interest rate (IN) and Exchange rate (EX). The stock market return was measured by using All Share Price Index based on monthly observations of listed companies selected for the study. This study will facilitate investor confidence, make optimal decisions when macroeconomic factors diverge in different time periods in the economy. Therefore, outcome of this research and subsequent policy recommendations may assist policy makers to prudently manage the macroeconomic forces to optimize the performance of Sri Lankan capital market in order to formulate of economic targets and policies.Item Determinants of Profitability in Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Chandrasiri, C.L.S.S.; Thilakerathne, P.M.C.The main purpose of this research study was to explore factors which follow Influence to determine profitability of commercial banks in Sri Lanka. During this period of 2011 – 2015 the Sri Lankan central bank presented new rules for amalgamation for financial institutions. In the perspective banking amalgamation valuing particular bank is having contemporary importance in that period. The focus of this study is mainly to get idea about determinants of commercial bank profitability in Sri Lanka. There are several factors which are impact to commercial bank profitability, only considered about internal quantitative factors which are influence to commercial bank profitability. But there are several factors which impact on commercial banks as internal and external. To identify internal quantitative factors which are impact to commercial bank profitability, got Return on asset (ROA) as profitability proxies that one is dependent variable of that research and also Banks capital and total Banks deposits. Those two considered as independent variables. To run linear regression and other programs used secondary data of 08 listed commercial banks and 02 semi government banks over 10 years’ quarterly data. Outs come of this study are, according to model there is a significant and positive relationship in between banks capital and banks total deposits with return on assets.Item The Impact of Capital Structure Choice on Firm Performance: Empirical Evidence from Diversified Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Abeyrathne, A.H.M.U.S.; Thilakerathne, P.M.C.The Capital structure decision is fundamental for any business organization, because of the need to maximize return to the various stakeholders and such decision has great impact on the firms’ ability to deal with competitive environment (Awunyo-Vitor, 2012). Therefore managers need to take decision very carefully regarding to the capital structure of company. Hence the researcher investigated the impact of capital structure choice on firm performance. The objective of this research is to evaluate the impact of capital structure choice on performance of diversified companies in Sri Lanka. The study used secondary data for a sample of 14 listed diversified companies in Colombo stock exchange during 2008-2016.Short Term Debt to Asset Ratio and Long Term Debt to Assets Ratio used as measurements of capital structure. Further firm size used as control variable and also Net Profit Margin, Return on Equity and Return on Assets used as measurements of performance of the diversified companies. The results indicated that firm performance, which is measured by Return on Asset, Return on Equity and have negative relationship with Short Term Debt to Asset Ratio and there is no significant relation with Short Term Debt to Asset Ratio. Further Short Term Debt to Asset Ratio has a negative significant impact on Net Profit Margin. Moreover, Long Term Debt to Asset Ratio has a negative significant impact on Return on Asset and Return on Equity. Therefore, there is negative relationship between capital structure choice and performance of diversified companies in Sri Lanka.