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 Association of accounting information on stock prices of licensed commercial banks in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Perera, R.M.S.M.; Gunaratne, Y.M.C.The value relevance of accounting information has become one of the most researched area among accounting researchers. However the value relevance literature provides contradictory conclusions on the association between accounting information and stock prices in different stock exchanges including both developed and developing market settings whilst there is a very limited knowledge in this regard in Sri Lankan Context. Hence this paper focused on examining the association between accounting information and stock prices of licensed commercial banks in Sri Lanka to bridge the knowledge gap in Sri Lankan context. The study conducted based on the hypothesis that there is significant association between accounting information and stock prices in licensed commercial banks in Sri Lanka. Core Capital Adequacy Ratio, Total Capital Adequacy Ratio, Net Non Performing Advances Ratio, Interest Margin, Return on Assets, Return on equity and Statutory liquid Assets Ratio were used as proxy for accounting information. The sample period of the study spans for 5 years from 2007 to 2011. The relevant data was collected from the CSE data library and the published annual reports of all the licensed Commercial Banks whose data is available for the sample period. Both descriptive statistics and inferential statistics were used to analyze data. The statistical analysis revealed that 36% of variations of share prices of Licensed Commercial Banks in Sri Lanka could be explained through the independent variables under study. Further this study revealed that there is a significant relationship between share price and Interest Margin, Return on Equity and Return on Asset. Accordingly this study concluded that there is an association between the accounting information and the share prices of the licensed commercial banks in Sri Lanka hence the accounting information is value relevance in determining share prices of such companies.