International Conference on Business and Information (ICBI)
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Item Bank-Specific Determinants of Risk Management Efficiency: Evidence from Listed Commercial Banks in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Piyananda, S.D.P.; Chandrasena, S.M.; Fernando, J.M.RThis study aims to identify the significant bank specific determinants of risk management efficiency of the listed commercial banks in Sri Lanka, by covering the financial statements of 11 banks during the period of 2008 to 2014. Panel regression analysis employed as the data analysis tool. Capital Adequacy Ratio (CAR) has been used as the dependent variable as the proxy for risk management efficiency and credit risk, liquidity risk, market risk, return on assets (ROA), banks’ size, and operational efficiency selected as the determinants of bank efficiency. Results revealed that the credit risk, liquidity risk, ROA, operational efficiency and banks’ size are the important factors of determining the degree of CAR of commercial banks in Sri Lanka. Further as shown by the results of the study, independent variables collectively have high effect on the dependent variable since the explanatory power of the model is approximately 67%.Item An Empirical Study on Corporate Ownership Structure and Firm Performance: Evidence from Listed Companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Chandrasena, S.M.; Kulathunga, K.M.K.N.S.Ownership structure, whether it is concentrated or dispersed, is one of the main determinants of organizational performance. Theories of corporate governance insist on dispersed ownership and segregation of ownership and management. In most of the emerging countries a concentrated form of ownership is evident in listed companies. Therefore the objectives of this study are twofold; to investigate whether ownership structure has an impact on firm performance and to examine whether concentrated ownership has an impact on firm performance, in companies listed in Sri Lanka. Researchers have considered a sample of seventy six (76) non-financial listed companies in CSE during the period of 2008 to 2014. A time fixed effect model is applied into the panel regression analysis and a Generalized Least Squares (GLS) regression model is chosen. Findings suggest that a significant relationship exists between ownership structure and firm performance. Empirical evidence further elucidates that institutional ownership has a significant positive relationship with firm performance, which can be justified based on the ‘active monitoring argument’. Significant negative relationship between individual ownership and firm performance can be argued based on ‘manager discouragement argument’. Concentrated ownership too has a significant positive relationship with firm performance, supporting the wellknown agency theory propositions.Item Macro-Economic and Internal Determinants of Share Prices in Sri Lanka A Case from Colombo Stock Exchange- Banking Sector(University of Kelaniya, 2014) Chandrasena, S.M.; Fernando, C.S.P.K.; Ranaweera, R.M.C.S.The focus of this study is to identify the relationship between internal and macro-economic determinants on share prices in Sri Lankan based banking companies in the Colombo Stock Exchange (CSE). The study uses panel data pertaining to the banking sector over the period of seven years from 2006 to 2012. The fundamental purpose of this research is to ascertain the syndicate effect of profitability, dividend payout ratio, return on asset, Gross Domestic Production (GDP) and inflation (Independent variables) with share prices (Dependent variable). A sample of 7 listed banks has been selected from the CSE for the study. The basic objectives are to identify the relationship between share prices and selected independent variables and to capture the impact of unobserved data on share prices. Pool regression model and fixed effect model are employed to meet the objectives of the study. The results of the pool regression model show that profitability of the firm and GDP have a positive significant impact on market stock prices. By capturing the impact of unobserved data the entity fixed effect model reveals that certain banks had firm specific effects on share price. The time fixed effect model shows that favorable time periods cause to make favorable changes in share prices.Item An Empirical Analysis of Liquidity in S&P SL 20 Index of Colombo Stock Exchange(University of Kelaniya, 2014) Fernando, C.S.P.K.; Chandrasena, S.M.; Perera, H.A.N.D.This study analyzed the liquidity formation in the recently introduced index to the CSE, the S&P SL 20. The main focus of the study was the depth of trading liquidity. Three possible influences on depth; timing, market condition and trading volume, were identified. Regression and correlation analyses were used to test developed assertions. First regression model tested the impact of time on share price. Second regression model tested the impact of time on share volume. Finally, the impact of share volumes on share price was tested with correlation analysis. A highly and continuously trading stock sample was drawn from the S&P SL 20 index as to test the variables at their ceiling liquidity. The results shows there were no material impact from any of the variables studied on trading liquidity of sample stocks.