Symposia & Conferences
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Item Impact of Macroeconomic Variables on Profitability of Manufacturing Companies in Colombo Stock Exchange(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dhanapala, S.G.L.M.; Wijesinghe, K.D.G.N.Objective of this study is how macroeconomic variables have been affected for the profitability of the listed manufacturing company and also, it is considered how the interest rate, US$ exchange rate, GDP growth rate, and inflation rate have been affected for the ROA and ROE of listed manufacturing companies. There are 15 CSE listed manufacturing companies are used as the target sample. Secondary data from 15 companies have been collected from 2010 to 2015, as quarterly. Macroeconomic data is collected from the central bank of Sri Lanka and Colombo consumer price index for period of 2010 to 2015. Data is analyzed using multiple regression model. From the findings are there significant negative relationship between inflation rate, US$ exchange rate with ROA and ROE. Interest rate has positive relationship between profitability but not significance as well as GDP growth rate has negative relationship between profitability but it is also not significant. Listed manufacturing company must pay more attention for the inflation rate and exchange rate because negative relationship of inflation rate and exchange rate is affected for the ROA and ROE of the company. If inflation rate and US $ exchange rate increase the profitability of manufacturing companies decrease other hand decrease in inflation rate exchange rate increase the profitability of listed manufacturing companies.Item The relationship between interest rates and inflation in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Dhanapala, S.G.L.M.There is direct relationship between interest rate and inflation we can identify the above relationship according to this research. There can investigate the long-run and the short-run relationship between above interest rate and inflation in Sri Lanka. This paper will examine the long-run bivariate relationship between the short-term interest rates and the inflation rate in Sri Lanka. There have been numerous studies, which has looked into the Fisher effect in USA and Canada. Recently there has been research carried out on European Union countries and even some Latin American countries. The objective of this paper is to consider the relationship between short-term interest rates and inflation in the relatively small Indian sub-continent economy of Sri Lanka. There have been very little or no research carried out on Fisherman effect in Sri Lanka. The first section the paper will look at similar research done (on the Fisher’s effect) in other countries. Different methodologies adopted by the researchers will also be looked into. The second section will look at the methodology used; the relevant tests and the next section will concentrate on analyzing the Sri Lankan data. An appropriate model will be built based on the test results. The 3-month Government TB rate will be used as the short-term interest rate and the year-on-year movement in the consumer’s price index (CPI) will be used to calculate the inflation rate. There seems to be relatively little or no research done on the Fisher relationship in Sri Lanka. One of the key finding that I intend to make is to discover whether the Sri Lankan data point towards co-integration between Interest rates and Inflation. Since there is considerable amount of political influence over the governance of interest rates and since successive government policies have a larger impact on inflation, this would be an interesting finding.