Thambawita Maddumage Nimali Tharanga, Yatiwelle Koralalage Weerakoon Banda, Narayanage Jayantha Dewasiri and Thelge Ushan Indika Peiris
Introduction: Why companies pay dividends and the determinants of dividend policy are considered an unresolved dividend puzzle. To reach a consensus over the puzzle, researchers…
Abstract
Introduction: Why companies pay dividends and the determinants of dividend policy are considered an unresolved dividend puzzle. To reach a consensus over the puzzle, researchers must investigate the factors affecting dividend policy by incorporating all the determinants into a single research effort.
Purpose: We examine the dividend policy determinants of Sri Lankan firms, explicitly focusing on the banking, finance, and insurance (BFI) sectors.
Methodology: This study uses the quantitative approach applying the Generalized Method of Moments (GMM) system to examine the dividend policy determinants by obtaining secondary data from 51 listed BFI organisations in Sri Lanka.
Findings: The analysis disclosed that the variables of changes in revenues, firm size, liquidity, corporate tax, business risk, and profitability have a positive relationship with dividend yield, whereas investment opportunities, leverage, change in revenues, corporate tax, and firm size impact positively on the propensity to pay dividends in BFI organisations in Sri Lanka. Our findings opine that managers in the BFI industries should prioritise changing their dividend policies by paying close attention to factors, such as dividend yield, changes in revenue, firm size, liquidity, corporate tax ratio, business risk, and profitability because the dividend policy is critical to retaining current investors and luring new ones.
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Narayanage Jayantha Dewasiri, H. Kent Baker, Y. K. Weerakoon Banda and M. Shanika Hansini Rathnasiri
This chapter provides an overview of the explanations and factors affecting dividend policy. This study employs a systematic literature review approach to review a large sample of…
Abstract
This chapter provides an overview of the explanations and factors affecting dividend policy. This study employs a systematic literature review approach to review a large sample of studies related to the dividend puzzle. Although the analysis reveals mixed evidence involving the theories and determinants of dividend policy, some determinants appear in numerous studies. However, no consensus exists on an optimal dividend to resolve the dividend puzzle, and the authors propose a model to deal with the same. When examining dividend policy, researchers should consider the firm, market, behavior, and other determinants. When making significant dividend or stock decisions, managers and shareholders should also contemplate the factors, interactions, inadequacies, and consequences. Future researchers should strive to take a more comprehensive view when resolving the dividend puzzle. This study provides a current and complete picture of dividend policy's available theories and empirical determinants. Its significant contribution is identifying some of the more consistently essential determinants of dividend policy while proposing a holistic model to address the prevailing dividend dilemma.
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Narayanage Jayantha Dewasiri, Mawarala Vitharanage Probodika Hanshani, Mananage Shanika Hansini Rathnasiri and Simon Grima
Purpose: This chapter examines the effect of green banking practices (GBPs) on environmental performance (EP), specifically focussing on the Sri Lankan banking industry…
Abstract
Purpose: This chapter examines the effect of green banking practices (GBPs) on environmental performance (EP), specifically focussing on the Sri Lankan banking industry. Additionally, the study explores the mediating impact of green finance in the association between GBPs and the EP of banks listed in the Colombo Stock Exchange in Sri Lanka.
Methodology: The survey included 233 banking employees from Sri Lanka, and data for this study were collected via questionnaires. The formulated hypotheses were tested employing a regression analysis.
Findings: GBPs such as employee, customer, operation, and policy-related practices significantly predicted the banks’ EP. Furthermore, the study highlights that green finance partially mediates the relationship between GBPs and banks’ EP in Sri Lanka.
Implications of the study: The study’s results indicate that banks should prioritise integrating GBPs in their organisations to enhance environmental and overall performance. Moreover, strategically utilising green financing techniques might be a substantial channel for banks to further strengthen their ecological dedication and influence.
Originality: This is the first study to investigate the impact of GBPs on banks’ EP with the mediating effect of green finance in the Sri Lankan context.
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Narayanage Jayantha Dewasiri, Karunarathnage Sajith Senaka Nuwansiri Karunarathna, M. Shanika Hansini Rathnasiri, Kiran Sood and Aarti Saini
This study aims to determine the impact of health-related views on mobile payment adoption in Sri Lanka from a broader viewpoint. The scale used to quantify each construct was…
Abstract
This study aims to determine the impact of health-related views on mobile payment adoption in Sri Lanka from a broader viewpoint. The scale used to quantify each construct was based on earlier research, with modest alterations to fit the pandemic situation. First, an online survey was administered to undergraduates using convenience sampling to acquire appropriate replies. Eliminating incomplete and unusable questionnaires, 266 responses were gathered with an 88.7% response rate. Finally, after removing incomplete and ineffective questionnaires, 243 responses were selected for the analysis. Health consciousness, perceived ease of use, and usefulness have a significant positive relationship between attitude and behavioural intention to mobile payments. Moreover, the attitude has a significant positive relationship with mobile payment usage. As the health consciousness increases the usefulness and intention to use mobile payments, bank managers can focus on this new customer segment. Accordingly, they can use their promotional campaigns to highlight the importance of shifting towards m-payments during the pandemic times. This is the first study that investigates the role of health-related perceptions on the mobile payment adoption in Sri Lanka to the best of the authors’ knowledge.
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P. G. S. A. Jayarathne, Narayanage Jayantha Dewasiri and K. S. S. N. Karunarathne
Owing to the significance of a healthy lifestyle, we investigate the antecedents of the healthy lifestyle of young consumers in Sri Lanka. 658 structured questionnaires were…
Abstract
Owing to the significance of a healthy lifestyle, we investigate the antecedents of the healthy lifestyle of young consumers in Sri Lanka. 658 structured questionnaires were collected from young consumers in Sri Lanka as part of the survey procedure. The judgmental sampling method is used to choose the respondents. The analysis makes use of both descriptive and inferential statistics. The findings disclose a high degree of healthy lifestyle among young consumers in Sri Lanka. Further findings revealed that health consciousness, collective esteem, and neighborhood environment are the antecedents for a healthy lifestyle. As young consumers are more concerned about a healthy lifestyle, managers in certain industries such as food and beverages, hotels, and restaurants should adopt their products and services in line with a healthy lifestyle.
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Narayanage Jayantha Dewasiri, Game Kankanange Krishani Kaushalya, Mananage Shanika Hansini Rathnasiri, Simbiya Hevage Madu Lakmini Walakumbura, Kiran Sood and Jathun Dahanayaka Kaushalyani Ruwandika
Purpose: Focusing on Sri Lanka’s banking industry, our study examines the effect of corporate social responsibility (CSR) on organisational competitive performance (OCP) with the…
Abstract
Purpose: Focusing on Sri Lanka’s banking industry, our study examines the effect of corporate social responsibility (CSR) on organisational competitive performance (OCP) with the moderating role of organisational culture.
Methodology: We conducted a quantitative research study utilising a survey as the research strategy. A standardised, self-administered questionnaire on a 5-point Likert scale was given to 281 banking industry experts who participated in the study.
Findings: The study found a substantial moderating impact of organisational culture on the relationship between corporate social responsibility and organisational competitive performance. Notably, the study found that responsibility to employees, responsibility to suppliers or business partners, and responsibility to government and regulatory authorities have a positive influence on organizational competitive performance. Nevertheless, our research suggests that in the Sri Lankan context, there is no substantial influence of responsibilities towards customers, shareholders, community, and the environment on the competitive performance of organisations.
Implications of the study: This study’s ramifications cover immediate and long-term scenarios. The findings will be helpful for managers in the banking industry, shareholders, and other stakeholders, providing insights into the advantages of implementing CSR principles.
Originality: This study backs the literature by investigating the moderating role of culture on the association between CSR and performance, as the first study to investigate the same in Sri Lanka, to the best of the knowledge.
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Mohamed Ismail Mohamed Riyath, Narayanage Jayantha Dewasiri, Mohamed Abdul Majeed Mohamed Siraju, Simon Grima and Abdul Majeed Mohamed Mustafa
Purpose: This chapter examines the effect of COVID-19 on the stock market volatility (SMV) in the Colombo Stock Exchange (CSE), Sri Lanka.Need for the Study: The study is…
Abstract
Purpose: This chapter examines the effect of COVID-19 on the stock market volatility (SMV) in the Colombo Stock Exchange (CSE), Sri Lanka.
Need for the Study: The study is necessary to understand investor behaviour, market efficiency, and risk management strategies during a global crisis.
Methodology: Utilising daily All Share Price Index (ASPI) data from 2 January 2018 to 31 August 2021, the data are divided into subsamples corresponding to the pre-pandemic period, the pandemic period, and distinct waves of the pandemic. The impact of the pandemic is investigated using the Mann–Whitney U test, the Kruskal–Wallis test, and the Exponential Generalised Autoregressive Conditional Heteroscedasticity (EGARCH) model.
Findings: The pandemic considerably affected CSE – the Mann–Whitney U test produced different market returns during the pre-COVID and COVID eras. The Kruskal–Wallis test improved performance during COVID-19 but did not continue to do so across COVID-19 waves. The EGARCH model detected increased volatility and risk during the first wave, but the second and third waves outperformed the first. COVID-19 had a minimal overall effect on CSE market results. GARCH and Autoregressive Conditional Heteroskedasticity (ARCH) models identified long-term variance memory and volatility clustering. The News Impact Curve (NIC) showed that negative news had a more significant impact on market return volatility than positive news, even if the asymmetric term was not statistically significant.
Practical Implications: This study offers significant insight into how Sri Lanka’s SMV is affected by COVID-19. The findings help create efficient mitigation strategies to mitigate the negative consequences of future events.
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Narayanage Jayantha Dewasiri, Salwathura Acharige Menu Jayamini Salwathura, Mananage Shanika Hansini Rathnasiri, Simbiya Hevage Madu Lakmini Walakumbura, Jathun Dahanayaka Kaushalyani Ruwandika, Yasangi Anuradha Iddagoda and Kiran Sood
Purpose: This chapter investigates the moderating impact of personality and demographic factors on the association between work–life balance (WLB) and the well-being (WB) of…
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Purpose: This chapter investigates the moderating impact of personality and demographic factors on the association between work–life balance (WLB) and the well-being (WB) of Ayurveda doctors in Sri Lanka.
Need for the Study: WB is necessary for everyone’s life. Individuals must meet proper WLB between their private and career life scenarios. On the other hand, employee WB and WLB are considered under the sustainable development goals. Hence, it is required to investigate the effect of WLB on WB.
Methodology: This quantitative, cross-sectional study was conducted with minimal researcher interference. The primary data were collected using structured questionnaires from Ayurvedic Doctors in Sri Lanka. The correlation, regression, and hierarchical regression analyses with multivariate assumptions were conducted using SPSS.
Findings: The findings reveal a robust positive association between the WLB and WB, indicating the same association between the WLB and personality. Moreover, there is a strong positive association between personality and WB. The results of the moderator analysis presented that there is a marginal moderator impact from the personality towards the association between WLB and WB.
Practical Implications: Ayurveda Practitioners and policymakers can use the generated knowledge in decision-making. The results of this study can be used as a reference by all industrial practitioners to improve their business practices. They can do this by raising employee WLB to enhance WB, which will help them keep the best employees within the company.
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Anuradha Iddagoda, Rohitha Abeysinghe, Hiranya Dissanayake, Narayanage Jayantha Dewasiri and W. P. Richard Wickramaratne
Purpose: This chapter examines the concept of “green orientation” within corporate environments by systematically reviewing literature indexed in Scopus from 2000 to 2023. The…
Abstract
Purpose: This chapter examines the concept of “green orientation” within corporate environments by systematically reviewing literature indexed in Scopus from 2000 to 2023. The focus is on addressing knowledge gaps related to understanding green orientation, emphasising sustainability and stability as indispensable components for organisational success.
Methodology: Utilising a bibliometric analysis, a statistical panorama of the literature landscape is presented. The study identifies and delineates five discernible research gaps, constructing a conceptual framework or nomological network.
Findings: Noteworthy discoveries emanate from this study, notably identifying research lacunae and developing a conceptual framework delineating the interrelatedness among the discerned constructs. The framework accentuates the significance of High-Performance Work Practices, authentic leadership, green orientation, employee engagement, and job performance in cultivating corporate sustainability.
Implications: In practical terms, this research provides valuable insights for organisations aspiring to augment their sustainability endeavours. The comprehension of interrelationships among the identified constructs serves as a strategic guide for decision-making, empowering businesses to align with the principles of green orientation and advocate for environmentally friendly practices.
Originality: The significance of this research lies in its systematic response to the imperative for comprehensive investigations into green orientation. The formulated conceptual framework introduces a distinctive perspective, establishing a groundwork for subsequent research endeavours. Moreover, it constitutes an original synthesis of quantitative and qualitative knowledge in the field, thereby advancing scholarly understanding.
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Tyrone De Alwis, Wasantha Athukorala and Narayanage Jayantha Dewasiri
Purpose: This chapter uses the annual time series data to investigate how currency depreciation impacts inflation in Sri Lanka.Design/methodology/approach: We utilized the…
Abstract
Purpose: This chapter uses the annual time series data to investigate how currency depreciation impacts inflation in Sri Lanka.
Design/methodology/approach: We utilized the autoregressive distributed lag (ARDL) test to evaluate the long-term correlation between the variables. Additionally, the Granger causality test was used to examine the short-term relationships.
Findings: The ARDL test findings indicate an elevated relationship between currency depreciation and long-term inflation in Sri Lanka. The coefficient value of the error correction term indicates that 1.19% of the discrepancy error is rectified each year, directing the inflation response variable toward the long-term equilibrium.
Policy Implication: The Central Bank of Sri Lanka (CBSL) should adopt a policy to tighten and lessen currency pressure and fend off inflationary pressure. To design appropriate policies, they must quantify the country’s exchange rate (ER) pass-through to inflation. The pass-through to inflation is most prominent when monetary policy action triggers or amplifies currency movements. However, this pass-through to inflation can be kept smaller provided central banks follow a credible inflation-targeting framework, operate in a flexible ER period, and are accessible from influences from fiscal authorities in the country.
Originality/value: This study uses the recently established ARDL limits cointegration approaches to investigate the enduring association between currency devaluation and price stability in Sri Lanka.