International Conference on Business and Information (ICBI)

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Debt Capital and Financial Performance: A Study of South African Companies
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Magoro, K.M.R.; Abeywardhana, D.K.Y.
The purpose of this study is to examine how debt capitals of the listed companies operating in the wholesale and retail sector of South Africa affect their financial performance. The study used a panel data sample of 25 South African wholesale and retail sector companies to examine the impact of debt capital on the financial performance of companies over the 2011-2015 period. Fixed-effects (within) regression model was used on the accounting-based-measures of profitability and financial performance. The study confirms that debt capital, in terms of short-term debt and long-term debt, has a negative impact on the financial performance of wholesale and retail sector companies of South Africa. The findings of this research will help South African wholesalers and retailers to understand the impact of debt capital on company performances. This study will help them make decisions that will ensure profit maximization and reduction of costs associated with debt, and ultimately, maximization of shareholders’ wealth. This study gives special focus to the wholesale and retail sector as it seeks to pioneer the addressing of root causes and reasons of research contradictions in this study area.
The Impact of IFRS 9 on SME Credit Facilitation of Banking Sector in Sri Lanka
(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2019) Mahendrarajah, L.; Ariyarathna, J.M.D.; Abeywardhana, D.K.Y.
The purpose of study is to explore the impact from the latest impairment model developed under the new financial reporting standard and to develop a researchable model to study the impacts of same on the performance of the Sri Lankan Banking Sector (SLBS) under SME credit facilitation. The research focuses on secondary data collected from sources such as annual reports of Central Bank of Sri Lanka (CBSL), Banks’ annual reports, financial sector stability report of CBSL, etc. The research conducts in a deductive approach in which arguments and explanations are mainly associated by theoretical contents which are supported by empirical evidences. Asset quality of the banking sector especially in the domain of SME has deteriorated drastically in the recent past with increasing Non-performing Loans (NPLs) and provisioning. Also, researcher reveals that the performance of the banking sector in Sri Lanka deteriorated during this study period. Apart from the above the impairment provisioning methods and revenue recognition as per new reporting standard has further deteriorated the profitability of the banking sector of the country. This area is relatively new since the implementation of IFRS 9 was initiated only in January 2018. However, the issue is widely debated among the financial sector of Sri Lanka due to dramatic changes it made on the financial reporting standards of Sri Lankan banking and finance sector.
Investment Portfolio and Performance: Evidence from Listed Finance Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Dulanjalee, B.A.M.; Abeywardhana, D.K.Y.
Portfolio management has become a critical driver of investment performance for an equity fund. This study investigates the relationship between investment portfolio and performance of finance companies in Sri Lanka. This study, therefore, sought to fill this research gap by answering one research problem: Whether there is a relationship between investment portfolio and performance of listed finance companies in Sri Lanka. This study used panel data from 2015 to 2019. The independent variable is investment portfolio and measure using the investment in stock, investment in real estate, investment in bank deposit, and investment in government security as a percentage of total assets. The dependent variable is performance and measure using Return on Assets (ROA). The debt to equity ratio is used as a control variable. Regression analysis is used for investigating the relationship between investment portfolio and performance of listed finance companies in Sri Lanka. Results revealed that investment in stock and investment in real estate has a significant negative relationship with the return on assets while investment in bank deposits and investment in government security has a significant positive relationship with the performance of the listed finance companies in Sri Lanka. It recommends to the management of finance companies to properly manage their stock and real estate investment. The finding of this research will help Sri Lankan listed finance companies to understand the relationship between investment portfolio and performance of the company. Future research can study the relationship between investment portfolio and performance of companies in other sectors.