Symposia & Conferences
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Item The Impact of Financial Performance on The Share Price: Evidence from Listed Finance Service Sector Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Amarakoon, A. A. N. N.; Buddhika, H. J. R.Introduction: Financial performance is an important factor in attracting investors to buy shares and make investment decisions. This study examines the impact of financial performance on the share prices of the financial service sector in Sri Lanka. Therefore, the main purpose of the study is to explore “Is the relationship between financial performance and share price,” with special reference to the listed financial service sector in Sri Lanka. Methodology: Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin, Earnings Per Share (EPS), and Debt to Equity Ratio (D/E) were used as the dimensions of financial performance, while closing market price was used as the proxy for the share price. Secondary data was used and obtained from published annual reports in respective companies and the CSE website. A quantitative research design was employed, analyzing panel data from 21 listed companies including finance, banking, and insurance companies over the period of 2015–2023, yielding 189 observations. Findings: According to the study's findings, two independent variables, such as return on assets and earnings per share, had a statistically significant relationship with the dependent variable of share price, and other independent variables had not statistically significant relationship with the dependent variable. The result highlights that the overall models are statistically significant. The study found out that there is a strong impact of earnings per share (EPS) and return on assets (ROA) on share prices of the financial service sector in Sri Lanka. Conclusion: The findings of the study have practical implications for investors and stakeholders to make their decisions respectively. Also, this study concludes that the proxy of financial performance can be used for investors to make decisions in respect to investing in shares in the financial service sector in Sri Lanka.Item The Determinacies of the Cost of Financial Distress in Sri Lankan Insurance Industry(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wijesekara, G. D. T. H.; Buddhika, H. J. R.Introduction: Financial distress is one of the most detrimental factors facing businesses in terms of profit, firm value, and sustainability. It arises when the company is unable to meet its debt obligations, leading to bankruptcy, liquidation, or asset seizure. Global economic uncertainty heightens these risks and necessitates that firms develop models to monitor, identify, and measure any potential threats to business performance. The cost of financial distress is one of the most effective tools used to find symptoms of deterioration, such as tenders for sales growth and stock returns, that could avert severe losses or even bankruptcy. FD is going to touch the minds of a wide variety of stakeholders such as shareholders, employees, customers, suppliers, financial institutions, and society at large. The effects are not only at the level of the firm, but they go beyond and have macroeconomic effects. It might increase the cost of doing business for such firms, compared to companies that are stable. Since these costs have both direct and indirect components, costs are direct to each company if they include legal fees associated with bankruptcy proceedings, such as attorney and administrator fees. Indirect costs are hidden and accrue from interruptions to operations, damage to reputation, and temporary liquidity problems. Such research indicates that costs can reduce firm values by attaching a magnitude of said cost, between 1 percent and 5.3 percent. Early identification and mitigation of financial distress remain essential for ensuring business continuity and minimizing losses. Methodology: This study collected data from 7 financial distress insurance companies for a sample period of Seven years, from 2016 to 2021. Selected Distress Insurance companies are MBSL life insurance, MBSL Genera, LIC insurance company, Amana Life, LOLC life, Sanasa General and Firfirst insurance company. Using quantitative approach, this study collected secondary data from the annual reports and insurance industry handbooks of the selected financial distress companies. Financial Distress Likelihood, Tangible Fixed Assets, Lóng term leverage and short-term leverage were used as the explanatory variables to reflect the cost of financial distress of the selected distress companies. A series of fixed-effects panel regression models was used in this study to analyze the data. Findings: The study results showed no significant impact between dependent and independent variables. Therefore, all the hypotheses were rejected. Conclusion: The findings of the study have practical implications for the strategic leaders of the insurance industry, as they shall consider the cost of financial distress and how impact on insurance industry when making decisions.Item How does Altmann’s revised z-score model impact the insurance companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2025) Shehara, J. M.; Buddhika, H. J. R.Introduction: The insurance industry is a major part of the country's economy. The revised Altman's z-score model measures financial distress among companies. Today, financial distress can be a huge problem that leads to company bankruptcy. Hence, this research tests the factors that may influence such financial distress among insurance companies incorporated in Sri Lanka using the revised Altman's z-score model. Methodology: This study collected data on insurance companies incorporated in Sri Lanka from 2016 to 2021. Distressed insurance companies are the sample measured using the Revised Altman's z-score model. Using quantitative approaches, this study collected data from annual reports and industry handbooks. Profitability (ROA), leverage, capital adequacy, and inflation rate are used as independent variables to reflect the impact of the revised Altman's z-score model on the Sri Lankan insurance industry. A random effect model was used in this study to analyze the data. Findings: The result of this study revealed that there is no significant impact of any of the independent variables on the dependent variable. Therefore, all the hypotheses are rejected. Conclusion: In line with the findings of this study, the impact of profitability, leverage, capital adequacy, and inflation rate is not significant. However, it is very important to conduct further research to find the determinants that may lead the insurance companies to financial distress, as there has been no research done on this issue, despite the existence of financial distress within the insurance companies incorporated in Sri Lanka.Item Impact of Job Burnout on Psychological Ownership: Moderating Effect of Perceived Organizational Support(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Senawirathna, W. M. S. G.; Buddhika, H. J. R.Scholars and practitioners have emphasized the importance of ‘feelings of ownership’ for the organization. This study explores the impact of Job burnout on Psychological Ownership within employees in the ABC Department machine section and simultaneously examines the moderating effect of Perceived Organizational Support. This research sample consisted of 176 employees. The chosen sample was given printed copies of a self-administered (Sinhala-translated) survey. The validity and reliability of the questionnaire were tested, consisting of 02 parts and 72 questions. Only data from the 121 employees (03 Outliers) who gave completed responses have been used for this research. The researcher applies Social Identity Theory to develop a new research framework with the sample of employees in the ABC Department machine section. This study found the positive effect of Job Burnout on Psychological Ownership. In addition, this study found there is no effect of Perceived Organizational Support on the relationship between Psychological Ownership and Job Burnout. These analytic results fill the research gap within the literature about the impact of Job Burnout on Psychological Ownership and the moderating effect of Perceived Organizational Support.Item Impact of Organizational Cynicism on Organizational Commitment and Mediating Role of Job Embeddedness: Evidence from ABC Military Organization(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) De Silva, A. M. D. A.; Buddhika, H. J. R.The concept of organizational cynicism in the workplace is characterized by frustration and disillusionment as well as negative feelings toward and distrust of a person, group, social convention, or institution. The effects of organizational cynicism were reported as a lack of organizational commitment and citizenship. Also, previous research has shown that cynicism reduces organizational commitment. The basic objective of this study is to assess the mediating impact of job embeddedness on the relationship between organizational cynicism and organizational commitment of officers in ABC Military organization and the specific objectives were derived to support the basic objective. The underpinning theory of social exchange theory was able to validate the relationship between organizational cynicism, organizational commitment, and job embeddedness. The study is cross-sectional, and the sample selection is based on stratified random sampling. Data collection is based on a selfadministered structured questionnaire. The study findings revealed that there is a negative impact of organizational cynicism on organizational commitment, the negative impact of organizational cynicism on job embeddedness, and the positive impact of job embeddedness on organizational commitment. As the implication of the study, focused on the ABC Military organization observing how organizational cynicism changes the negative behavior of their officers towards commitment.Item The Determinants of Performance of the Listed Insurance Companies in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Maduwantha, M. C. S.; Buddhika, H. J. R.Introduction - Insurance services is an integrated with the financial industry and services. The insurance sector plays a vital role in the service-based economy of Sri Lanka. This paper aims to examine the determinants of the performance of the listed insurance companies in Sri Lanka. Design/methodology/approach - Financial performance measured through Return on Assets and six independent variables such as Capital Adequacy, Size, Leverage, Liquidity, Economic Growth and Inflation used for this study. Ten listed insurance companies in Colombo Stock Exchange (CSE) from 2010 to 2019 selected for the study and analysed using Eviews. Annual reports of each company provided secondary data for the study. Findings – Internal factors of size, liquidity and leverage have a statistically significant impact on insurance company performance. Among them, size and leverage are negatively affect for ROA, while liquidity has a positive effect on ROA. Capital adequacy is negative and insignificant concerning performance under ROA. Further, the macroeconomic variable of inflation is significantly and positively impact performance ROA. The coefficient of the economic growth rate is positive but insignificant, with ROA as a proxy for the performance of insurance companies. Conclusion – The firm-specific variables and macroeconomics variables provides a better understanding of the implication and mechanisms that determine the performance of insurance companies in Sri Lanka.Item Impact of Internal Factors Toward the Performance of Motor Insurance Business in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Madushanka, A. D. D. D.; Buddhika, H. J. R.Introduction - Insurance services is vital and considered as integrated modules in the financial industry. The insurance sector plays an essential role in the service-based economy of Sri Lanka. This paper aims to examine the impact of internal factors on the performance of the Motor Insurance Business in Sri Lanka. Design/methodology/approach - Financial performance measured through Return on Assets and three independent variables such as Company Size, Solvency Ratio, Company Investment Income. Four Non - life insurance companies from 2011 to 2018 selected and analysed using Eviews. The data gathered from secondary data sources; annual reports of each company. Findings - Internal factors of Company Size and Company Solvency Ratio have a statistically significant impact on Motor Insurance performance. Company size has not considerable effect on motor insurance performance. Conclusion - This study investigated the influence of the impact of the determinants of an internal factor on motor insurance business performance in Sri Lanka. These findings will help for future studies relating to Motor Insurance performance in Non - life insurance company.Item Factors Influence in Low Income Level Farmers’ perception Towards Micro- Insurance in Sri Lanka; Study Based on North-Western Province(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Wijesiri, M. G. S. S.; Buddhika, H. J. R.Introduction – The study contributed towards the factors influence on low-income level farmers on micro-insurance in Sri Lanka. Micro Insurance is the provision of insurance to poor and low-income people. Micro Insurance covers numerous risks such as illness, accidental injuries, credits, death, natural disasters (earthquake, drought) and property loss (theft, fire). Design/Methodology - The study based on a survey model approach; data gathered on primary mode. The information collected through printed questionnaires distribution. The total numbers of farmers in the paddy sector in Galgamuwa area considered as the population, where 250 farmers selected for the sample study with the convenience sampling technique. Findings - The three variables (accessibility, knowledge and Behaviour of agent) have a positive relationship with farmers' perception toward micro insurance concept in Sri Lanka where agent’s ability does not have a positive relationship. Further, there is a positive relationship between the ability to pay and the farmers perception, but there is no significant relationship between them. Conclusion – The micro insurance concept is an essential significant contribution element in developing countries. That is most successful in several countries, but that is not a positive symptom condition in Sri Lanka. The findings can conclude as the reason for that is the poor knowledge and wrong opinions in the society. According to the presented data sample, the majority is low educated people.Item Impact of Electronic Banking on Operational Performance of Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Prabodhi, W. A. D.; Buddhika, H. J. R.Introduction- Information and Communication Technology (ICT) is essential for financial markets for faced and sustain the competition. However, a limited number of studies have been conducted in Sri Lanka to determine the impact of e-banking on banks' profitability in Sri Lanka. This study critically investigated the effect of e- banking on operational performance in Sri Lanka. Design/Methodology/Approach- The secondary data gathered during the year 2014 to 2019 concerning fee and commission income on internet banking, number of branches, number of ATMs, from the published annual reports of ten selected banks systematically. Regression analysis processed to determine the effects of electronic banking on profitability. The descriptive statistics, Pearson correlation were used for the data analysis through E-Views 11 statistical software. Findings – Based on the results, the fixed-effect model found a significant positive relationship among IB (Internet Banking) on ROA, negative significant with ROA and BN (Branch Netwok), ATMs. Also, the insignificant relationship between ROE and IB. CIT (Cost to Income ration) and IB have negative significant, and other variables are a significant relationship with CIT. Conclusion: Results proved that; e-banking has significantly contributed to the banks' operational performance in Sri Lanka.Item Effect of Capital Structure Towards Profitability on Listed Manufacturing Firms in Colombo Stock Exchange(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Kumara, T. M.; Buddhika, H. J. R.A firm's capital structure emphasizes how firm finances its assets through debt, equity, or a combination of these two ways. The capital structure instruments include the company's long-term debt, common equity & preferred shares. Published annual reports of listed manufacturing companies used to collect data in the Colombo Stock Exchange (CSE). The study selected 37 manufacturing companies listed in CSE as of 31st December 2019 out of 289 listed companies. The study analysed data through descriptive statistics, regression analysis, the Hausman test and correlation to evaluate the relationship. The study found a negative and significant relationship between DTE, LTDTE, SIZE and profitability; the DTA has a positive relationship with profitability. It is not substantial with both ROE and ROA, which revenues the capital structure significantly impacted the profitability of manufacturing firms due to three variables significant with ROE and ROA out of four variables. The study found that long-term debt is not significantly impacting because companies maintain their capital structure with short-term debt and less long-term debt. The study concluded that a significant relationship between capital structure and profitability, and long-term debt is not a significant factor in the manufacturing sector. Further, it justified that optimum capital structure is a mixer of debt and equity because vital variables represent both equity and debt in the model.