Financial Managementhttp://repo.lib.jfn.ac.lk/ujrr/handle/123456789/1222026-10-25T08:48:25Z2026-10-25T08:48:25ZThe Impact of Digital Finance on SMEs’ Growth and Sustainable PracticesMithila, G.Lingesiya, K.Sherin, V.http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/131702026-10-12T08:11:31Z2025-01-01T00:00:00ZThe Impact of Digital Finance on SMEs’ Growth and Sustainable Practices
Mithila, G.; Lingesiya, K.; Sherin, V.
Digital finance is increasingly used by small and medium enterprises to manage payments,
banking transactions, business records, and routine financial activities. This study
examines how mobile application services, internet banking services, service efficiency,
and digital adoption rate are associated with SME growth and sustainable practices in the
Colombo District of Sri Lanka. A quantitative cross-sectional survey was conducted among
200 registered SMEs, while 163 complete responses were used for regression analysis after
data screening. The findings show that mobile application services are the strongest
predictor of both SME growth and sustainable practices, followed by internet banking
services and service efficiency. However, digital adoption rate is not statistically significant
once these functional and efficiency-related dimensions are included. The results suggest
that SME outcomes are associated more strongly with the quality, usefulness, and routine
integration of digital finance than with adoption frequency alone. The study contributes to
SME digital finance literature by showing that digital finance can be understood as an
operational capability that supports growth and sustainability through transaction speed,
record discipline, financial control, and traceability.
2025-01-01T00:00:00ZPredicting Financial Distress among Listed Hotels in Post-War Sri LankaMithila, G.Kengatharan, L.http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/131142026-09-28T03:25:07Z2025-01-01T00:00:00ZPredicting Financial Distress among Listed Hotels in Post-War Sri Lanka
Mithila, G.; Kengatharan, L.
This study examines the financial indicators associated with financial distress among listed hotel companies in Sri Lanka and develops a model for predicting distress in a post-war tourism context. The analysis uses 21 hotel companies over the period 2013–2022. Financial distress is measured as a binary variable that takes the value of one when a company reports negative operating earnings, negative operating cash flow, or both, and zero otherwise. Profitability, liquidity, activity, leverage, market-based and firm-specific indicators are examined using logistic regression with company-clustered standard errors. The revised model is statistically significant and demonstrates satisfactory predictive performance, with an overall classification accuracy of 83.50 per cent and an area under the receiver operating characteristic curve of 0.913. The findings show that return on assets has a significant negative association with the probability of financial distress, indicating that hotels generating stronger earnings from their asset base are less likely to experience financial difficulty. In contrast, working capital to total assets has a significant positive association with distress probability, suggesting that a higher level of net current assets does not necessarily indicate financial strength when those resources are inefficiently employed or concentrated in less liquid operating assets. The remaining profitability, liquidity, activity, leverage, market and firm-specific variables are not statistically significant. The findings highlight the importance of asset profitability and effective working capital management in assessing financial vulnerability within the hotel sector. The model assists managers, investors, lenders and policymakers in identifying financially vulnerable hotel companies and taking timely corrective action.
2025-01-01T00:00:00ZImpact of corporate social responsibility disclosure on firm performance: Evidence from Sri Lanka’s food, beverage and tobacco sectorMithila, G.Kengatharan, L.Sharmika, A.http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/131132026-09-25T08:54:32Z2026-01-01T00:00:00ZImpact of corporate social responsibility disclosure on firm performance: Evidence from Sri Lanka’s food, beverage and tobacco sector
Mithila, G.; Kengatharan, L.; Sharmika, A.
This study examines the impact of corporate social responsibility (CSR) disclosure on firm performance within Food, Beverage and Tobacco sector of the Colombo Stock Exchange from 2019 to 2023. Prior research pays limited attention to disclosure as the focal construct, offers little industry specific evidence. The objective is to test whether CSR disclosure by using an index covering economic, environmental and philanthropic dimensions is associated with firm performance, using panel regression on both accounting-based ROA and ROE and market-based Tobin's Q performance measures, controlling for capital intensity. The results reveal that all three CSR disclosure dimensions are positively and significantly associated with ROA and ROE, while environmental and philanthropic disclosures also enhance Tobin's Q with a weaker effect. These findings indicate that CSR disclosure acts as a strategic intangible asset that improves operational efficiency and stakeholder trust. However, the relatively modest valuation impact suggests a time lag in how markets incorporate CSR information in frontier markets. The study offers theoretical, practical guidance for managers, investors and policy implications, highlighting CSR's role in sustainable corporate strategy and capital market development in emerging economies.
2026-01-01T00:00:00ZModerating Effect of Bank Size on the Factors Affecting the Financial Performance of Domestic Commercial Banks in Sri LankaMithila, G.Kabishka, T.http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/130582026-09-15T05:45:26Z2025-01-01T00:00:00ZModerating Effect of Bank Size on the Factors Affecting the Financial Performance of Domestic Commercial Banks in Sri Lanka
Mithila, G.; Kabishka, T.
This study examines the impact of internal bank-specific factors on the financial performance of domestic commercial banks in Sri Lanka, with a particular focus on the moderating role of bank size. Employing panel data from thirteen licensed commercial banks listed on the Colombo Stock Exchange over the period 2014 to 2023, the analysis examines the effects of capital adequacy, cost-to-income ratio, liquidity, and non-performing loans on two key performance indicators, which are net interest margin and return on assets. Fixed and random effects panel regression models were estimated, incorporating interaction terms to capture the moderating impact of bank size, and the Hausman test was used to determine model appropriateness. The findings reveal that internal determinants significantly affect bank performance. Higher cost inefficiency and greater credit risk are negatively associated with return on assets, while liquidity demonstrates a positive association. Capital adequacy exhibits a marginally positive relationship with net interest margin, but a significant negative effect on return on assets, indicating a trade-off between financial stability and profitability. Bank size exerts both a direct negative influence on return on assets and a significant moderating effect. Specifically, large banks exhibit reduced sensitivity to the adverse impacts of cost-to-income ratio and non-performing loans and derive diminishing performance benefits from liquidity and capital adequacy. These results suggest that the effectiveness of managerial strategies and regulatory frameworks may vary by institutional scale. The study contributes to the literature by highlighting the conditional nature of internal performance linkages and the importance of scale-sensitive policies in enhancing bank profitability. Future research should explore these dynamics in broader samples and macroeconomic contexts.
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