International Conference on Business and Information (ICBI)

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Author: search.filters.author.Morawakage, P.S.

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    Residential Housing risk and returns and their importance to responsible investors and social housing providers: Evidence from Australia
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Morawakage, P.S.
    The Australian housing market is severely unaffordable. Australia forecasts demand for one million social and affordable dwellings by 2036. The social housing sector in Australia struggles to finance private investments to meet the rising demand for affordable houses. Increasing Socially Responsible Impact (SRI) investors are an excellent source of finance for the affordable housing sector. However, housing associations and relevant government institutions have not paid sufficient attention to the SRI investors as a source of housing finance. SRI investors consider the environmental, social, and governance (ESG) performances in their investment process. Therefore, this study evaluates the Australian social housing sector’s ability to attract SRI investors. This study aims to connect socially responsible impact investors and social housing associations as a solution to the lack of private investments for the provision of much-needed affordable housing. First, the downside risk measures are collected from the residential housing market transactional data in Brisbane, Australia and ESG-related investments. Then four focus-group discussions are conducted with industry experts to support the impact evidence required by SRI investors. We also apply a multifactor asset pricing model to estimate the risk parameters of affordable housing submarkets and expensive submarkets. Finally, a three-dimensional portfolio optimization technique is employed to evaluate the profitability of responsible investors’ investment portfolios after incorporating affordable housing assets. It was found that affordable housing submarkets have more downside protection and risk-adjusted returns than other real estate and ESG-related investments. The multifactor asset pricing model shows that the affordable housing submarkets have the lowest risk exposures. Focus-group discussions provide strong impact evidence on the ESG performance of the affordable housing industry. The results of this study demonstrate that affordable housing is a safe and sound investment that provides the social impact and profitability required by socially responsible impact investors.
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    Credit Risk Management and Shareholder Value Creation: With Special Reference to Listed Commercial Banks in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, L.A.S.; Morawakage, P.S.
    The main aim of this study is to investigate the effect of credit risk management on the shareholder value in listed commercial banks in Sri Lanka. The research has used only the secondary data for the purpose of the analysis and the sources of data include the annual reports of selected quoted public banks in Sri Lanka. This study employed return on shares to measure the shareholder value while non-performing ratio, capital adequacy ratio and loans to deposits ratio have been used as the indicators of the credit risk management of the banks. Regression models were employed to do the empirical analysis. Further the output obtained from the SPSS package was used to interpret the findings. The findings reveal that credit risk management has a significant effect on shareholder value in all eight banks. Among the three credit risk management indicators, Non-Performing Loan Ratio (NPLR) has the most significant effect on the return on shares. Through the results of the study, it can be concluded that null hypothesis can be rejected since there is a significant relationship between credit risk management and shareholder value.
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    Equity Market Volatility Behavior in Sri Lankan Context
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Morawakage, P.S.; Weerasinghe, W.D.J.D.
    Colombo Stock Exchange (CSE) in Sri Lanka is at its first level of emerging markets. Volatility of emerging markets are considered to be high and characterized by complex features. Therefore, this study focusses on examining the volatility behavior of Colombo Stock Exchange with advanced econometric models. Here GARCH, EGARCH and TGARCH models are used to capture the complex volatility features. It is observed that volatility clustering and leverage effect exist in Colombo Stock Exchange. Further, negative shock creates more volatility compared to a positive shock generated in the market. TGARCH model assuming student-t probability distribution function is more suitable to explain the volatility in Colombo Stock Exchange among the models described above according to the Akaike and Schwarz information criteria.
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    DETERMINANTS OF PROFITABILITY UNDERLINING THE WORKING CAPITAL MANAGEMENT AND COST STRUCTURE OF SRI LANKAN COMPANIES
    (2010) Morawakage, P.S.; Lakshan, A.M.I.
    Efficient working capital management is an integral part of the overall corporate strategy to create shareholder value. Researchers investigated the relation between the companies? working capital, cost structure and their profitability. This relationship is examined using correlation and regression analysis. In this research, researchers have selected a sample of 65 Sri Lankan companies listed on Colombo Stock Exchange for a period of 5 years from 2003-2007, researchers have studied the effect of different variables of working capital management and cost structure on the profitability of Sri Lankan Companies including the Debtors turn over in days, Inventory turnover in days, Creditors payable in days, and working capital cycle representing the working capital and Administrative, Selling and Finance expenses representing the cost structure . The results suggest that managers can increase corporate profitability by reducing the number of inventory turn over days and increasing the creditors payable days in order to minimize the length of the working capital cycle. Increase in creditors payable days would give opportunities to the company for further investments. Also it suggests that the spending on selling and distribution would not increase the profitability and more finance cost would hinder the profits of the companies.