Finance
http://repository.kln.ac.lk/handle/123456789/216
2024-03-28T15:24:06ZSystematic review of the market wide herding behavior in Asian region
http://repository.kln.ac.lk/handle/123456789/25067
Systematic review of the market wide herding behavior in Asian region
Chathurika, H.L.D.J.; Tennekoon, S.T.M.S.
Traditional Finance theory presumed that equity market participants take decisions based on rationality. However, recent market incidents witnessed investors decision-making process is fueled with irrational behaviors like herding. Herd behavior is a dominated behavioral bias which depict investors take decisions based on imitating other investors behavior. Numerous studies can be identified in Herding based literacy in developed, emerging and frontier markets around the world. Thus,this study attempts to provide a review of theory and empirical evidence on market wide herding behavior in Asian region. As per the findings of the study, it can be observed that in India majority of studies have confirmed the non-existence of herding behavior. Half of the studies conducted in Pakistan confirm the existence of herding behavior while remainder confirm non-existence of herding behavior. Similar results were observed in Sri Lanka as well. However, majority of studies in Taiwan and Indonesia and all the studies of Vietnam have provided results for the existence of herding behavior. Thereby this study identifies several open issues for future research. Future studies that deal with time-series price data could employ empirical methodologies that allow for time-variation in parameter values. It is also important to know whether it is the same investors that herd over time, and why: are the reasons behind herding the same over time? Further, qualitative research needs to be conducted to identify the reasons behind the investor herding behavior.
2022-01-01T00:00:00ZDo Investors in Green Bond Market Pay a Risk Premium? Global Evidence
http://repository.kln.ac.lk/handle/123456789/24281
Do Investors in Green Bond Market Pay a Risk Premium? Global Evidence
Nanayakkara, Madurika; Colombage, Sisira
• We examine the pricing difference of Green Bonds (GB) and conventional bonds (CBs) in capital markets worldwide. Credit spread is used to observe if investors would like to pay a premium over par for GBs or CBs. This study uses panel data regression with hybrid model to analyse daily observations over the period from 2016 to 2017. We employ Option-Adjusted spread (OAS) to measure the credit spreads of bonds while controlling for bond specific, macroeconomic and global factors which influence the spread. With the hybrid model used in the panel data analysis, we were able to capture the fixed effects of variables in a random effect model. We find that GBs are traded at a premium of 63 basis points as against a comparable corporate bond issue. We find that the green label provides issuer an incentive to raise funds through issuing GBs while providing investors an opportunity to diversify their investments returns. Our findings provide several implications to the major players driving green bonds market in order to scale up the market to finance the required level of worldwide green investment needs. We stress an urgent need to support the growth of green bond market to achieve sustainable development through mitigating climate change challenges.
2018-01-01T00:00:00ZCorporate governance and default prediction: a reality test
http://repository.kln.ac.lk/handle/123456789/20432
Corporate governance and default prediction: a reality test
Fernando, J.M.R.; Li, Leon; Hou, Yang (Greg)
Default prediction has commanded the attention of researchers for at least 50 years. This paper
addresses several testable hypotheses regarding the relations between corporate governance
and default prediction. We employ the conventional logistic regression to provide empirical
evidence from U.S. default data over the period of 2000 to 2015. Empirical results are consistent
with the following notions: First, default firms are associated with high ownership concentration,
low shareholder rights, low financial transparency and disclosures, and less board effectiveness.
Second, in-sample and out-of-sample tests support the incremental contribution of corporate
governance information on default prediction, when compared with the models involving just
financial information.
2019-01-01T00:00:00ZA case study on modern supply chain management practices
http://repository.kln.ac.lk/handle/123456789/13523
A case study on modern supply chain management practices
Morawakage, P.S.; Perera, A.S.
2016-01-01T00:00:00Z