Papers by Prabath S Morawakage
Efficient working capital management is an integral part of the overall corporate strategy to cre... more Efficient working capital management is an integral part of the overall corporate strategy to create shareholder value. Researchers investigated the relation between the companies‟ working capital, cost structure and their profitability. This relationship is examined using correlation and regression analysis. In this research, researchers have selected a sample of 65 Sri Lankan companies listed on Colombo Stock Exchange for a period of 5 years from 20032007, researchers have studied the effect of different variables of working capital management and cost structure on the profitability of Sri Lankan Companies including the Debtors turn over in days, Inventory turnover in days, Creditors payable in days, and working capital cycle representing the working capital and Administrative, Selling and Finance expenses representing the cost structure . The results suggest that managers can increase corporate profitability by reducing the number of inventory turn over days and increasing the cr...
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Bulletin of Indonesian Economic Studies, 2019
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This study examined the factors influencing foreign direct investment (FDI) and their effects on ... more This study examined the factors influencing foreign direct investment (FDI) and their effects on the economy of Nigeria. Ex-post facto methodological design was used. The annual time series data for thirty years (1988–2018) from Central Bank Statistical Bulletin, Mundi Index and World Bank Development indicators were used. Augmented Dickey-Fuller (ADF) unit root test of stationarity and cointegration test were employed to verify the fitness of the series and exist of long run relationship. Multiple regressions analytical technique was applied. The results reveals that, market size, energy consumption, capital infrastructure, trade policy, foreign debt, political regime (risk) and exchange rate all have significant impact on FDI inflow in Nigeria. Therefore, we recommend that government need to enhance infrastructural facilities such as good road networks, healthcares, energy to accelerate more investments. Also In light of rapid advancement of technology which has necessitated digit...
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Operations management is paramount important in business operations since it forms theheart of th... more Operations management is paramount important in business operations since it forms theheart of the organization by controlling the system of operation. Operations management dealswith the design, operation, and improvement of the systems that create and deliver a firm'sprimary products and services.Generally the importance of operations management on businesses is embedded in every aspect of the organisations value activities and therefore has critical role to play in ensuring that organizations achieve their objectives and goals. To better understand the activities through which a firm develops competitive advantages and creates shareholder value, it is useful to separate business system in to a series of value generating activities referred to as Supply Chain. Supply Chain management is a dominant topic under Operational Management since it addresses many underlying operational management concepts throughout the supply chain. This paper provides more insights to Inventory management and lean manufacturing, product designing, process designing, distribution and customer care and quality control under the supply chain of X Company. First, readers can understand the theories of the above concepts and then researchers attempt to give a better idea how those theories are applied in a real world organization as a case study. Then our observations and recommendation for improvements are given at the end.X Company has implemented a strong operational management practices which enhance their efficiency and effectiveness. Further it was observed that the operational management techniques act as a critical success factor to achieve their strategies and sustaining a commanding market position of 80% in its industry.
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Second International Conference on Advances In Economics, Social Science and Human Behaviour Study - ESSHBS 2015, Aug 29, 2015
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Sri Lanka Journal of Social Sciences, 2019
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Kelaniya Journal of Management, 2017
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This paper will explore issues relating to the impact of current consumption on social and enviro... more This paper will explore issues relating to the impact of current consumption on social and environmental sustainability in Sri Lanka critically reflect on them and propose some possible avenues of addressing them as managers and the business community as a whole. During the course of the study it was found that consumerism and business patterns have adversely resulted in a change in the people's priorities towards society and the environment. Sri Lankan consumers have shown in the recent past that they have embraced consumerism but have not moved away of their traditional values, the Sri Lankan consumer is in transition. The development of information and communication technology, retail mechanisms such as credit cards, installment schemes have also contributed immensely to drive consumerism and business in return. Findings of the study conclude that though the trends in consumerism have had a positive impact on improving the quality of life in a material sense the adverse impac...
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International Advances in Economic Research, 2005
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Kelaniya Journal of Management, 2016
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Commercial banks play a significant role in the economic development of the country representing ... more Commercial banks play a significant role in the economic development of the country representing major part of the service sector. Hence, providing better service quality is vital as banks have to compete for customers. The aim of this study is to investigate the level of service quality of private and state commercial banks in Sri Lanka from the perspective of bank customers and assessing the satisfactions towards the services provided by the commercial banks. In this study 200 retail banking customers have been used from four local private banks and two state commercial banks in the western province. The measurements used were based on widely accepted SERVQUAL model (Parasuraman et. al. 1985, 1988, 1991). A descriptive statistics analysis and regression analysis used to evaluate the level of service quality of Sri Lankan commercial banks from the customers' perspective. The results of the study indicated that there is significant positive relationship between service quality a...
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Journal Article, 2020
This study aims to identify the key determinants of FDI in developing nations with a sample of 25... more This study aims to identify the key determinants of FDI in developing nations with a sample of 25 developing countries from three different regions of the world for the period of 2000 to 2017. By employingdynamic panel data multiple regression models for each region with the GMM estimations, we find that market potential and market size significantly determine the FDI. Therefore, ween courage developing nations to stimulate the market seeking determinants of FDI to achieve their sustainable economic growth. Moreover, DBI is not a significant determinant of FDI. Thus, policymakers should rethink considering the DBI as a means to attract FDI. We also argue that different regions have different stimuli to attract FDI into their regions as Africa has trade openness, Latin America has capital intensive platforms and Asia has market size.
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Logistic Conference Trincomalee: Journal, Naval and Maritime Academy, Naval Base, Trincomalee, Sri Lanka, 2016
Operations management is paramount important in business operations since it forms theheart of th... more Operations management is paramount important in business operations since it forms theheart of the organization by controlling the system of operation. Operations management dealswith the design, operation, and improvement of the systems that create and deliver a firm'sprimary products and services.Generally the importance of operations management on businesses is embedded in every aspect of the organisations value activities and therefore has critical role to play in ensuring that organizations achieve their objectives and goals. To better understand the activities through which a firm develops competitive advantages and creates shareholder value, it is useful to separate business system in to a series of value generating activities referred to as Supply Chain. Supply Chain management is a dominant topic under Operational Management since it addresses many underlying operational management concepts throughout the supply chain. This paper provides more insights to Inventory management and lean manufacturing, product designing, process designing, distribution and customer care and quality control under the supply chain of X Company. First, readers can understand the theories of the above concepts and then researchers attempt to give a better idea how those theories are applied in a real world organization as a case study. Then our observations and recommendation for improvements are given at the end.X Company has implemented a strong operational management practices which enhance their efficiency and effectiveness. Further it was observed that the operational management techniques act as a critical success factor to achieve their strategies and sustaining a commanding market position of 80% in its industry.
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Journal article , 2016
The main aim of this study is to investigate the effect of credit risk management on the sharehol... more The main aim of this study is to investigate the effect of credit risk management on the shareholder value in listed commercial banks in Sri Lanka. The research has used only the secondary data for the purpose of analysis and the sources of data include the annual reports of selected quoted public banks. This study employed return on shares to measure the shareholder value while non-performing ratio, Capital adequacy ratio and Loans to deposits ratio have been used as the indicators of the credit risk management of the banks. Regression models were employed to do the empirical analysis and focuses on the descriptions of the output obtained from the SPSS. The findings reveal that credit risk management has a significant effect on shareholder value in all eight banks. Among the three credit risk management indicators, NPLR has the most significant effect on the return on shares. Through the results of the study it can be concluded that null hypothesis can be rejected since there is a significant relationship between credit risk management and shareholder value.
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Journal Article , 2018
This paper investigates the equity risk premium puzzle in the stock markets of Indonesia and Sri ... more This paper investigates the equity risk premium puzzle in the stock markets of Indonesia and Sri Lanka with the purpose of identifying the relationship between the volatility of excess returns and equity risk premium. Asymmetric impact of negative shocks on the equity risk premium is also examined using Threshold and Exponential GARCH-M models. We analyse the excess returns data of Indonesian and Sri Lankan stock markets from 2004 to 2013 in this study and we find that the impact of the conditional volatility of excess returns on risk premium is not significant in both countries. Instead, we find an impact from negative return shocks on the equity risk premium only in Sri Lanka. Therefore, we conclude that investors are not rewarded for the conditional volatility of excess returns in these two markets while Sri Lankan investors are compensated for the risk due to negative shocks.
Keywords: emerging markets, equity risk premium, GARCH-M, negative shocks
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Journal Article , 2019
This study investigates the impact of liquidity risk
on the performance of commercial banks in Sr... more This study investigates the impact of liquidity risk
on the performance of commercial banks in Sri Lanka by
analysing secondary panel data of six systemically important
banks in the Sri Lankan financial system from 2006 to 2016.
The objective of this study is to identify the significant liquidity
risk factors and the impact of them on both top line and bottom
line performance indicators of commercial banks. Researchers
find that liquidity gap and non-performing loan ratio are the
significant proxies for liquidity risk. Multiple regression
analysis reveals that liquidity risk negatively and significantly
affects bottom lines Return on Average Assets (ROAA) and
Return on Average Equity (ROAE), whilst positively affects
the top line Net Interest Margin (NIM) of the commercial
banks. The findings of this study suggest that expenses of the
banks should be controlled with better liquidity management to
enhance bottom line performances.
Keywords: Liquidity gap, non-performing loan, bank
performances, panel regression.
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Colombo Stock Exchange (CSE) in Sri Lanka is at its first level of emerging markets. Volatility o... more Colombo Stock Exchange (CSE) in Sri Lanka is at its first level of emerging markets. Volatility of emerging markets are considered to be high and characterized by complex features. Therefore, this study focusses on examining the volatility behavior of Colombo Stock Exchange with advanced econometric models. Here GARCH, EGARCH and TGARCH models are used to capture the complex volatility features. It is observed that volatility clustering and leverage effect exist in Colombo Stock Exchange. Further, negative shock creates more volatility compared to a positive shock generated in the market. EGARCH model assuming student-t probability distribution function is more suitable to explain the volatility in Colombo Stock Exchange among the models described above according to the Akaike and Schwarz information criteria.
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Efficient working capital management is an integral part of the overall corporate strategy to cre... more Efficient working capital management is an integral part of the overall corporate strategy to create shareholder value. Researchers investigated the relation between the companies " working capital, cost structure and their profitability. This relationship is examined using correlation and regression analysis. In this research, researchers have selected a sample of 65 Sri Lankan companies listed on Colombo Stock Exchange for a period of 5 years from 2003-2007, researchers have studied the effect of different variables of working capital management and cost structure on the profitability of Sri Lankan Companies including the Debtors turn over in days, Inventory turnover in days, Creditors payable in days, and working capital cycle representing the working capital and Administrative, Selling and Finance expenses representing the cost structure. The results suggest that managers can increase corporate profitability by reducing the number of inventory turn over days and increasing the creditors payable days in order to minimize the length of the working capital cycle. Increase in creditors payable days would give opportunities to the company for further investments. Also it suggests that the spending on selling and distribution would not increase the profitability and more finance cost would hinder the profits of the companies.
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This study examines different volatility models to capture the stock market volatility in two eme... more This study examines different volatility models to capture the stock market volatility in two emerging markets Indonesia and Sri Lanka. Further the relationship between volatility and risk premium in both markets are analyzed to test the risk return trade off in those markets. GARCH, EGARCH and TGARCH models are used to capture the volatility and GARCH-M model is used to analyze the risk return relationship. In both markets it is observed that volatility clustering, leverage effect and nonlinear effect are significant by considering daily ASPI return observations from 2004 to 2013. Relationship between volatility and risk premium is not significant according to the GARCH-M model.
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Papers by Prabath S Morawakage
Keywords: emerging markets, equity risk premium, GARCH-M, negative shocks
on the performance of commercial banks in Sri Lanka by
analysing secondary panel data of six systemically important
banks in the Sri Lankan financial system from 2006 to 2016.
The objective of this study is to identify the significant liquidity
risk factors and the impact of them on both top line and bottom
line performance indicators of commercial banks. Researchers
find that liquidity gap and non-performing loan ratio are the
significant proxies for liquidity risk. Multiple regression
analysis reveals that liquidity risk negatively and significantly
affects bottom lines Return on Average Assets (ROAA) and
Return on Average Equity (ROAE), whilst positively affects
the top line Net Interest Margin (NIM) of the commercial
banks. The findings of this study suggest that expenses of the
banks should be controlled with better liquidity management to
enhance bottom line performances.
Keywords: Liquidity gap, non-performing loan, bank
performances, panel regression.
Keywords: emerging markets, equity risk premium, GARCH-M, negative shocks
on the performance of commercial banks in Sri Lanka by
analysing secondary panel data of six systemically important
banks in the Sri Lankan financial system from 2006 to 2016.
The objective of this study is to identify the significant liquidity
risk factors and the impact of them on both top line and bottom
line performance indicators of commercial banks. Researchers
find that liquidity gap and non-performing loan ratio are the
significant proxies for liquidity risk. Multiple regression
analysis reveals that liquidity risk negatively and significantly
affects bottom lines Return on Average Assets (ROAA) and
Return on Average Equity (ROAE), whilst positively affects
the top line Net Interest Margin (NIM) of the commercial
banks. The findings of this study suggest that expenses of the
banks should be controlled with better liquidity management to
enhance bottom line performances.
Keywords: Liquidity gap, non-performing loan, bank
performances, panel regression.