Frist interdisciplinary Conference on Management Research http://repo.lib.sab.ac.lk:8080/xmlui/handle/123456789/1204 2026-04-11T11:46:13Z 2026-04-11T11:46:13Z Kaushala, H Rajapakse, C http://repo.lib.sab.ac.lk:8080/xmlui/handle/123456789/1543 2021-01-18T05:05:17Z 2016-10-10T00:00:00Z

Test of Uncovered Interest Rate Parity for Sri Lanka: Evidence from LKR/GBP Rate Kaushala, H; Rajapakse, C Interest rates and exchange rates are considered to be one of the most discussed areas under International Finance. When considering the main theories that explore on these two variables, Uncovered Interest Rate Parity (UIP) states that the interest rate differential is an unbiased predictor of the spot exchange rate changes. The impact on investors’ attitude is that they would be indifferent towards the returns on domestic and foreign assets denominated in same currency thereby eliminating any short term arbitrage profits. Studies based on the relationship between these two variables are rare for developing countries like Sri Lanka. Therefore in order to bridge that gap identified through search for literature, this study is focused on testing UIP for Sri Lanka. Monthly data on LKR/GBP exchange rate for the period from 2001-2014 and three month interest rate for the two countries , were used for this purpose. Autoregressive Distributed Lags method was employed to test the UIP. The findings reveal that there is no evidence to prove the existence of the UIP for the selected currency compared against the Sri Lankan Rupee.

2016-10-10T00:00:00Z Wijethunga, A. W. G. C. N Dayaratne, D. A. I http://repo.lib.sab.ac.lk:8080/xmlui/handle/123456789/1540 2021-01-18T09:03:27Z 2016-10-10T00:00:00Z

Analysis of Dynamic Linkage of Stock Returns and Exchange Rates: Comparative Evidence from Sri Lanka and India Wijethunga, A. W. G. C. N; Dayaratne, D. A. I This study attempts to analyze the dynamic linkage between stock market returns and the exchange rate in two South Asian emerging economies: Sri Lanka and India. We employed monthly data of All Share Price Index (ASPI) from Colombo Stock Exchange and CNFNIFTY index from the National Stock Exchange of India and monthly exchange rate of the US dollar in LKR (USD/LKR) and the US dollar in Indian Rupee (USD/INR) for the period 2000 to 2014. First, the study performed Augmented Dickey Fuller (ADF) to test the integrating order of the variables. Then, we employed Johansen’s Cointegration test to examine the long run relationship among variables and Granger causality test to determine causal relationship between variables and Ordinary Least Square (OLS) analysis to determine the relationship between the stock returns and the exchange rate. The results establish that there is a long run equilibrium between variables in Sri Lanka and India. Furthermore, there is one-way causality from stock returns to exchange rate in both countries. Finally, the results suggest the existence of a negative impact of stock returns on exchange rate only in Indian context.

2016-10-10T00:00:00Z Edirisinghe, U. C Amarasinghe, R http://repo.lib.sab.ac.lk:8080/xmlui/handle/123456789/1538 2021-01-18T04:24:04Z 2016-10-10T00:00:00Z

Relationship between Financial Literacy and Financial Behavior of Management Undergraduates of Sri Lanka Edirisinghe, U. C; Amarasinghe, R Rapid and dynamic developments and innovations injected to the financial markets and products, locally and globally has changed the typical dimensions thus increased the complexity of day to day financial decisions, where a ordinary financial decision has transformed to be more rational, logical and strategic in nature in the modern context. Management undergraduates proven to be having an academic appetite to these changes and conservatively expect to follow these trends to make sensible financial decisions in their day to day lives. The real question is, Is this a myth? or a conservative expectation of the society? As an attempt to answer these questions, this study is an evaluation to underpin 'the relationship between the financial literacy level and the nature of the financial behavior of undergraduates of Sri Lanka. The sample selected is 223 management undergraduates. The sampling techniques used is convenient sample from three main government universities in Sri Lanka. Knowledge on money management, savings, investment, credit and insurance has been considered to measure the financial literacy level and undergraduates current and past manners related to same dimensions is used to measure financial behaviour using questionnaire. The results suggest that the financial literacy level of the undergraduates of the three universities was at a moderate level. Multiple Regression Analysis showed that apart from money management financial literacy level on all other dimensions has significant positive effect not only on overall financial behavior but also on individual dimensions. This concludes that financial literacy on Savings, Investments, Insurance, Borrowing and Credit are valid determinants of financial behavior of management undergraduates.

2016-10-10T00:00:00Z Peiris, T. U. I http://repo.lib.sab.ac.lk:8080/xmlui/handle/123456789/1536 2021-01-18T04:18:44Z 2016-10-10T00:00:00Z

Effect of Institutional Excellence on Stock Market Development Peiris, T. U. I Institutional environments with good governance would lead to higher stock market returns by reducing both transaction and agency costs. Meanwhile, superior institutional environments ensure lower levels of uncertainty, resulting in lower returns on equity. Therefore, this study investigates the effect of institutional quality on the performance of global stock markets. Due to the persistence behavior of stock market development (SMD), a dynamic econometric model is developed in this regard. SMD is proxied by market capitalization to GDP ratio. A Proxy for institutional quality is obtained by the common component of governance indices that measure the effectiveness of government, regulatory quality, extent of corruption control, political stability, voice and accountability, and agents’ confidence on the rules of the society. Several other empirically chosen variables are also included to the model to control the other potential effects. A panel data set of 43 countries over the period 2005 to 2013 is measured using Generalized Method of Moment (GMM) estimation techniques. Results depict a negatively significant relationship between SMD and the institutional quality. The relationship continued to remain negative when the model is robusted for developing and developed countries. Interestingly, the risk-return spectrum is supported when the model is further robusted for countries with strong and weak Institutional environments.

2016-10-10T00:00:00Z