Students’ Research Symposium - Department of Finance (SRS-DFIN)
http://repository.kln.ac.lk/handle/123456789/12119
2024-03-28T17:14:44ZImpact of Electronic Banking on Operational Performance of Commercial Banks in Sri Lanka
http://repository.kln.ac.lk/handle/123456789/26320
Impact of Electronic Banking on Operational Performance of Commercial Banks in Sri Lanka
Prabodhi, W. A. D.; Buddhika, H.J.R.
Introduction- Information and Communication Technology (ICT) is essential for financial markets for faced and sustain the competition. However, a limited number of studies have been conducted in Sri Lanka to determine the impact of e-banking on banks' profitability in Sri Lanka. This study critically investigated the effect of e-banking on operational performance in Sri Lanka.
Design/Methodology/Approach- The secondary data gathered during the year 2014 to 2019 concerning fee and commission income on internet banking, number of branches, number of ATMs, from the published annual reports of ten selected banks systematically. Regression analysis processed to determine the effects of electronic banking on profitability. The descriptive statistics, Pearson correlation were used for the data analysis through E-Views 11 statistical software.
Findings – Based on the results, the fixed-effect model found a significant positive relationship among IB (Internet Banking) on ROA, negative significant with ROA and BN (Branch Netwok), ATMs. Also, the insignificant relationship between ROE and IB. CIT (Cost to Income ration) and IB have negative significant, and other variables are a significant relationship with CIT.
Conclusion: Results proved that; e-banking has significantly contributed to the banks' operational performance in Sri Lanka.
2020-01-01T00:00:00ZPredictability of Stock Return using Financial Ratios: Evidence from CSE FMCG sector
http://repository.kln.ac.lk/handle/123456789/26319
Predictability of Stock Return using Financial Ratios: Evidence from CSE FMCG sector
Sanjula, N.H.D.; Herath, H.M.N.P.
Purpose – This study aims to check the suitability of using financial ratios to predict the stock returns of FMCG sector in the Colombo Stock Exchange, Sri Lanka.
Design/Methodology/Approach – The study uses four financial ratios from multiple areas naming profitability, liquidity, solvency, and market valuation with a sample of 30 listed FMCG companies for a period of six years from 2014 to 2019. The data were analyzed using multiple regression model to understand the predictability of the stock return.
Findings – The results indicate profitability, liquidity and market valuation ratios can predict the stock return in the short term and the long term. The return on assets, current ratio and price earnings ratio had significant predictability on stock returns, while debt to equity ratio did not show any significant results owing to the companies being in the mature stage of their product lifecycle.
Conclusion –Investors can adopt a financial ratio model including profitability, liquidity and market-based ratios as a primary model to predict their stock returns before moving on to sophisticated fundamental analysis models.
2020-01-01T00:00:00ZThe Impact of Working Capital Management Practices on the Profitability: A Comparative Study between Listed Capital Goods and Material Sector Companies in Sri Lanka
http://repository.kln.ac.lk/handle/123456789/26318
The Impact of Working Capital Management Practices on the Profitability: A Comparative Study between Listed Capital Goods and Material Sector Companies in Sri Lanka
Bandara, B.M.S.P. S.; Gunasekara, A.L.
Introduction – The documented evidence indicate that Working Capital Management Practices (WCMP) have a significant impact on the firm’s profitability. However, the WCMPs vary between industries. Accordingly, this study investigates whether the impact of WCMP on the profitability is different between CG sector and Material sector taking evidence from mid-cap and small cap the companies listed in the Colombo Stock Exchange.
Methodology – This study has selected 16 listed companies from CG Sector and Material Sector. The data are collected using annual reports from 2014 to 2019. The Regression includes ROA as the dependent variable and the Working Capital measures as independent variables. Further, the model controls for size, sales growth and debt. Moreover, sector wise ranking is used to identify the industry wise differences of WCMP.
Findings - The findings show that the WCMP has a statistically significant and a marginal impact on ROA. Further, the profitability of Material Sector is more negatively responsive to Debtors Conversion Period (DCP) and more positively responsive to Creditors Conversion Period (CCP). Furthermore, the Cash Conversion Cycle (CCC) is more negatively responsive to the profitability of CG Sector. According to sector wise ranking analysis, Material Sector manage the WCMP better overall due to the
Conclusion – Material Sector is more responsive to DCP and CCP. Therefore, the managers should provide more attention towards better management of debtors and creditors. The CG sector required to pay attention towards the overall working capital management. Therefore, the managers should ensure the better working capital management practices are in place.
2020-01-01T00:00:00ZImpact of Exchange Rate Volatility on Sri Lankan Bilateral Demand of Imports
http://repository.kln.ac.lk/handle/123456789/26317
Impact of Exchange Rate Volatility on Sri Lankan Bilateral Demand of Imports
Jayasinghe, J.A.K.S.; Weerasinghe, W. D. J. D.
Purpose - The value and importance of imports of the Sri Lankan economy has been increasing according to statistical patterns of Sri Lanka. The exchange rate volatility is one major factor that has an impact on the demand for imports in a country. This research has been carried out to identify the impact of exchange rate volatility (long-run influence) on Sri Lankan bilateral demand of imports.
Design/Methodology/Approach- Monthly data has been used for the study for the period of 2013 to 2019. GARCH and standard deviation techniques were used to measure the exchange rate volatility of USD/LKR exchange rate and exporter currency exchange rates. The autoregression distributions lag (ARDL) bound test approach was the model that has been used to estimate the long-run effect of the volatility clustering.
Findings - According to the findings of China, Indian, Japan, the UK, Singapore, Hong Kong, and the USA country models, the error terms are highly significant at 5% and 10% levels. Thus, it indicates that there is a long-run impact from exchange rate volatility on-demand on Sri Lankan bilateral imports.
Contribution - The study fulfils the existing research gap in exchange rate volatility and Bilateral demand of imports of Sri Lanka. The findings of this study will help the country to plan their bilateral demand of imports when exchange rate volatility exists and enables future researchers to conduct studies related to this area.
2020-01-01T00:00:00Z