International Postgraduate Research Conference (IPRC)
Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/155
Browse
9 results
Search Results
Item Personality Trait Model to Assess Creditworthiness(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Mawela, M.R.T.D.; Peter, S.; Niwunhella, H.Despite the fact that financial institutions evaluate the creditworthiness of loan applicants a significant number of them fail or fall behind on their promised payments. While in some cases, this could be due to unforeseen external circumstances, inherent internal characteristics of the applicant also contributes towards this delinquency. A non-performing loan (NPL) is an amount of borrowed money upon which the borrower has failed to meet the scheduled payment, generally 90 or more days. The NPLs of financial institutions over the last few years have been rising, despite even stringent requirements enforced by the regulatory authorities. This rising proportion of non-performing loans, if left unchecked could lead to a systematic failure of the banking system and could have a catastrophic impact on the economy. Therefore, there is a need for a model that could filter applicants who could potentially default. Lending takes place when trust is developed between lender and the borrower. Studies carried out previously have put forward various quantitative and qualitative models upon broad microeconomic and demographic factors to assess lender borrower trust. However, the impact of personality characteristics of the borrower has not been sufficiently exploited in this regard. Trust is a complicated behaviour which has been defined from different perspectives in numerous disciplines. Literature depicts that trustworthiness of the trustee is a key antecedent of trust. The study proposes an integrated model to assess the trustworthiness of the borrower based on their personality characteristics. The study modifies the HEXACO personality model by including guilt proneness as the seventh dimension to the model. A systematic set of hypotheses are formulated on the basis of the conceptual model and a framework is developed to analyse the impact of personality traits on trustworthiness. The developed model has been initially validated through expert opinion and is validated through an empirical study using a survey questionnaire intended to capture personality traits using modified HEXACO model and trustworthiness using David Maister’s trust equation administered to a sample of loan eligible people. Furthermore, data obtained from financial institutes engaged in lending business will also be used in the validation process.Item A Model To Determine Factors Influencing the Decision-Making Process of Consumer Online Purchasing in Sri Lanka(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Wickramasinghe, D.M.; Peter, S.; Niwunhella, H.There are a wide range of products and services available online where the consumers can conveniently shop anytime from anywhere in the world. Despite the steady growth in e-commerce over the past few years, the rate of penetration of online shopping in Sri Lanka remains low. The available literature contains evidence that advocate that there is consumer reluctance, resistance and hesitation to engage in online shopping, due to diverse reasons. Inarguably, online and offline channels present different shopping experiences, even in instances where the same product is purchased. It is therefore, vital to investigate the consumer behaviour related to online shopping. According to well established literature, negative attitudes and motivation of the consumer, lack of trust and less propensity to take risks impedes the consumer-online vendor relationship. Consequently, a conceptual framework has been developed integrating perspectives from consumer behaviour, trust and risk propensity as a significant step towards a better understanding of the consumer. It has been developed primarily based on the theory of planned behaviour, Mayer’s trust model, and the risk propensity from Pablo and Sitkin Model. The conceptual model investigates the main antecedents which influences consumers to engage in online shopping through the identified predictors. A systematic set of hypotheses are formulated on the basis of the conceptual model and a methodology is developed for testing and analysing such behaviour. While the constructs from theory of planned behaviour and consumer trust have an impact on the purchasing behaviour, the risk propensity of the consumer has a moderating effecting on the antecedents. The conceptual model has been initially validated by expert opinion. The conceptual model will be tested subsequently, through an empirical study. The final model would be of use to the marketing practitioners, academic researchers and the industry.Item A Behavioural Model to Assess the Risk Perception and Behaviour of Individuals in Investment Decisions(International Postgraduate Research Conference 2019, Faculty of Graduate Studies, University of Kelaniya, Sri Lanka, 2019) Mendis, M.N.M.Y.; Peter, S.; Niwunhella, H.Risk behaviour is the controlled conduct of people in contexts with uncertainty, where there is a possibility of the outcome received deviating from the outcome expected. As any kind of investment bears a certain proportion of risk, investors qualify as a competent sample in analyzing risk behaviour. Investor behaviour depends on external factors such as macro stability, expected earnings, broker recommendations, dividends paid and stock marketability, as well as internal factors such as herd behaviour, optimism and risk appetite of the investor. In developing countries like Sri Lanka, the investment markets are less informationally efficient and investor risk appetite is a less prominent factor. Therefore, the need of upgrading the investment culture of a developing country through a customized model which accurately determines the investor risk appetite has become a timely need. Although numerous studies have been carried out, use of a psychological approach to explain the investor behaviour remains relatively unexplored. The overarching goal of this study is to assess the determinants of risk behaviour and how these factors can be used in developing a comprehensive model that facilitates categorization of people according to their risk profiles. This study focuses on interpreting the individual investor behaviour through a combination of the cognitive psychological approach of perceived self-efficacy and the reconceptualized model of risk behaviour in a developing country context. Perceived self-efficacy is the concept where people’s beliefs and perceptions on their own personal abilities affect their actions taken to reach designated goals. The reconceptualized model suggests that an individual’s risk behaviour is dominated by two major characteristics, namely risk propensity and risk perception. It was further specified that risk propensity positively affects the risk-seeking behaviour while risk perception has a negative effect on it. The reconceptualized model incorporates the cognitive psychological approach of perceived self-efficacy to the risk behaviour model. The risk behaviour model has been adjusted by removing the organizational-related factors from it. The developed model is validated through expert opinion and data obtained from investors who engage in high risk investments.Item Are you a thrill seeker or a safe zone seeker? Impact of demographic factors on risk behavior of undergraduates in Sri Lanka.(In: Proceedings of the International Postgraduate Research Conference 2017 (IPRC – 2017), Faculty of Graduate Studies, University of Kelaniya, Sri Lanka., 2017) Himasara, T. M. H.; Peter, S.There is considerable interest in factors that influence individuals' decision-making behavior, in risky contexts. These differences in behaviour have important implications for economic outcomes including occupational choice, investment and consumption choices and insurance coverage. A number of studies have documented the effect of demographic variables such as gender, age, height, education level, income level, marital status and family background on risk behaviour. However, many of these studies have been conducted on human risk behavior, based on the European or Western context while the studies in the Asian context is limited. Therefore, this study attempts to evaluate the risk behaviour of young adults in Sri Lanka and to establish the relationship if any, between individual characteristics, external stimuli and risk behaviour. The research question addressed is, ―What factors determine risk behaviour of young adults in Sri Lanka?‖. A modified version of the Sitkin and Pablo model (1992) was used as a conceptual model to assess risk behavior which was adapted to focus on individual risk characteristics. A cross sectional study was carried out among young adults in five state universities in Sri Lanka using snow-ball sampling method to assess their risk behavior. This sample represents approximately 52.63% amount of the total number of students enrolling Sri Lankan state universities annually. Risk behavior was assessed by their likelihood of engaging in risk related activities associated with their daily life through a scenario based questionnaire. The findings suggest that among the demographic factors, only gender, education stream and the number of dependents were found to be significant. Furthermore, according to the normality test, the distribution of the risk behaviour tends to be right– skewed, suggesting that the overall risk behaviour of an average young adult in Sri Lanka is comparably low. Results also revealed a significant difference in risk behaviour between males and females. Males tended to exhibit high-risk behaviour compared to females. This result was robust even when the education background of the sample was evaluated, with the male dominated stream of engineering, showing the highest risk-taking behavior when compared to the arts, management and sciences. As expected, we found evidence to indicate an inverse relationship between number of dependents and risk behavior. The results could be used in functional areas such as marketing, finance and human resource management in the corporate sector, across multi industries to design and develop new products, understand customer behaviour and financial investment patterns.Item Model to assess factors influencing performance of customer orientated supply chains: The manufacturing firms‟ perspective(Faculty of Graduate Studies, University of Kelaniya, 2015) Peter, S.; Thilakarathna, R.H.The dynamic external macro environmental changes that are happening have a major impact on businesses around the world. Businesses which were cocooned and protected from outside forces due to protectionist policies were accustomed to dealing with and managing competition at the industry level and firm level. However, opening up of markets to worldwide competition has made even these internal rivalries more intense. It‘s a well-known fact that today it‘s not just a competition at firm level, but it has expanded to a level where it has become a competition between supply chains. In this sort of a context being customer oriented and embedding customer values in the supply chain environment becomes highly important to make the supply chain more appealing to customers amidst these varying conditions which they do not control. The relationship between customer oriented practices and supply chain performance is an intriguing relationship which is now becoming a focus of research. This paper outlines a framework that could be used to identify the impact of factors influencing the relationship between customer orientated supply chains and supply chain performance. Past literature on this relationship was analyzed and several existing models by various authors were identified. These models were later used as the basis and other factors influencing this relationship which were studied separately, were collated into the base model to make the model comprehensive. These included organizational learning, supply chain practices, interactive infrastructure, innovation in supply chains, and supply chain capabilities. Expert opinion was used in the process of refining the proposed model. The framework conceptualized through the study could be used to assess supply chain performance and key variables impacting on the relationship between customer orientated supply chains and supply chain performance.Item Microfinance and poverty alleviation: Case of the Northern Province in Sri Lanka(Faculty of Graduate Studies, University of Kelaniya, 2015) Sivatheepan, B.; Peter, S.The paper evaluates the impact of microfinance on poverty alleviation in the Northern Province of Sri Lanka. After being the central area of conflict over the last three decades, the cessation of hostilities has provided the residents of the province the opportunity to rebuild their lives and recommence their economic livelihood. Since many residents have limited access to funds, the microfinance product has become a key component in the revival of the economy in the region. Data was collected and analyzed in 2013, through a structured questionnaire, from all five districts in the Northern Province where microfinance is offered by banks and a large number of private financial institutions all competing to offer the product as the returns and risk on the product are deemed very attractive. The conceptual model associates beneficiaries‘ income and living standards with the key dimensions of the microfinance product which include interest cost, credit availability and the credit appraisal process. An econometric methodology using the ANOVA model was used to assess the data. The results of empirical analysis indicate a positive relationship between microfinance and poverty alleviation in the period under study. Awareness levels of the population on the micro finance product were extremely high. However, a lack of an integrated credit appraisal system and competition among vendors to attract customers has provided an enabling environment for possible misuse of the product. Access to low cost funding and high interest rates has made the product very attractive even for the more established financial institutions, though the objective of using the product to alleviate poverty has got blurred. The results are similar to what was found in Bangladesh, where it was found that microfinance not only contributes to alleviating poverty, but also contributes to overall human development in the country. However, the results are contrary to what was observed in Indonesia, where it was found that the impact of micro finance on various household outcomes is generally insignificant.Item Impact of Customer Orientation Practices in Supply Chain, on Supply Chain Performance(Faculty of Graduate Studies, University of Kelaniya, 2015) Peter, S.; Heiyantuduwa, M.The study presents a conceptual model that links customer orientation practices and supply chain performance. Rising competitiveness has motivated businesses to seek innovative and effective methods to build competitiveness across all value enhancing activities of its operations. Recent research have highlighted that ―Companies do not compete; supply chains do‖, leading the companies to seek means of achieving sustainable business success through collaborative supply chains. Further, identifying and satisfying, or rather going beyond satisfying customers‘ expectations is essential for sustaining business performance. Linking these two important notions; supply chain focus and customer orientation, this study presents a model that enables assessing how the use of customer orientation practices, affects supply chain performance. Several models on customer orientation and on supply chain performance measurement were analyzed and subsequently combined and adjusted to suit the specific requirement. Expert opinion was used in the process of refining the proposed model. The presented model categorizes customer orientation practices in supply chain in to three main categories as information sharing practices, operational practices and customer service practices. Under each of these there are several sub categories of practices defined. This multi-tier categorization allows specifically identifying which type of practices impacts the most or least on supply chain performance in the context of a particular supply chain, or a particular industry. Hence the use of the model is twofold, as it enables ascertaining if there is a significant impact of using customer orientation practices, on supply chain performance in a certain firm or industry, as well as identifying best practices of customer orientation in that context. Therefore it is capable of providing guidance in implementing customer orientation practices in supply chains, and thus effectively enhancing supply chain performance.Item Ex-Dividend Day Stock Price Behaviour - Evidence from Colombo Stock Exchange(Faculty of Graduate Studies, University of Kelaniya, 2015) Karunaratne, P.; Peter, S.Efficient market is one in which prices fully reflect available information. Implication of an efficient market is that no excess returns can be made since current prices already reflect all available information. Recent research supports the hypothesis that CSE is not a semi-strong market and as a result there is a possibility for investors to make abnormal gains. The objectives of this paper was to identify ex-dividend price behaviour of stocks at the CSE and to identify suitable trading strategies around ex-dividend day to exploit this anomaly. A sample of 85 listed companies‘ with 470 ex-dividend events were selected covering the period January 2003 to December 2012. Relative Liquidity Ratio (RLR) was used to divide the sample into two groups to control for liquidity. Initially the stock price behaviour on exdividend day was examined using Raw Price Ratio (RPR), Raw Price Drop Ratio (RPDR) and Market Adjusted Price Drop Ratio (MAPDR). Thereafter, the event study methodology was used to examine the abnormal returns and abnormal volumes on and around ex-dividend day using the market model, mean adjusted returns model and market adjusted returns model. The findings from RPR, RPDR and MAPDR implied that the stock prices drop by less than dividend on the ex-dividend day. The results from the event study implied significant positive abnormal returns and volumes on and around ex-dividend day. This finding is consistent with the short term trading hypothesis, but could not be explained by the taxation hypothesis. Further, the results indicated that for the liquid stocks there are significant negative abnormal returns on cum-dividend day followed by significant positive abnormal returns on exdividend day. For the least liquid stocks there are significant positive abnormal returns on exdividend day followed by significant negative abnormal returns on the following day. These results also confirm that the CSE is not information efficient and investors have the opportunity to make unusual gains by trading around ex-dividend day.Item Board Independence and Corporate Performance(Faculty of Graduate Studies, University of Kelaniya, 2015) Peter, S.The large number of dramatic corporate collapses around the world over the last decade, focused attention on the importance of corporate governance to the long term success of a firm. The separation of ownership from management raises a key issue of how to effectively monitor managers to ensure that they act in the best interest of the shareholders and other stakeholders as well. The role of independent directors in improving the effectiveness of control has been the subject of debate in academic literature, especially in the context of a culture of poor corporate governance. The study explores this issue, paying particular attention on the relationship between corporate board independence and firms‘ financial performance in Sri Lanka. Using data obtained from Colombo Stock Exchange for the period 2004 through 2009, a sample consisting of fifty non-financial firms were used to assess board independence and their possible effects on firm performance. Data was gathered through published reports and a primary survey. Independence of the board was deconstructed to board composition as measured by proportion of independent directors and proportion of non-executive directors, and board leadership structure as measured by CEO non duality. The firm performance was measured using both financial and market performance indicators. After controlling for industry, firm size and changes in leadership structure, the results indicate support for stewardship perspective, with no convincing evidence to indicate that inclusion of independent directors is associated with improved financial performance. The weak governance structure which could be exemplified by ownership entrenchment, cross sitting of board members and lack of cumulative voting may explain the lack of evidence found. However, the results indicate that inclusion of independent directors is valued by investors and reflected in enhanced firm value.