Faculty of Management Studies and Commerce

Intellectual capital and firm performance: the moderating role of CSR in Sri Lanka’s materials sector

2025-01-01T00:00:00Z

Intellectual capital and firm performance: the moderating role of CSR in Sri Lanka’s materials sector Thujinthan, R.; Tharshiga, P. This study examines the moderating effect of Corporate Social Responsibility on the relationship between Intellectual Capital and firm performance, focusing on companies listed on the Colombo Stock Exchange in Sri Lanka from 2016 to 2022. Using a sample of 18 firms in the material sector, data were analysed through descriptive statistics, correlation analysis, variance inflation factor analysis, and panel data analysis in E-Views. The findings indicate that Human Capital Efficiency and CSR significantly impact Return on Assets(ROA). In contrast, structural capital efficiency and capital employed efficiency did not exhibit substantial effects on return on equity (ROE). The Hausman test results suggest that a random effects model is appropriate for ROA, while a fixed effects model is suitable for ROE. Based on these findings, businesses should prioritise investments in human capital through employee training, development, and innovation to enhance financial performance. Additionally, firms should align CSR initiatives with their strategic goals to maximise benefits. Policymakers can use these insights to establish industry-specific regulations encouraging sustainable business practices and resource efficiency. Furthermore, investors and stakeholders can leverage this knowledge to assess financial sustainability and CSR effectiveness, leading to informed investment decisions that align with long-term value creation. This study contributes to intellectual capital, CSR, and financial performance literature, offering practical implications for corporate leaders, policymakers, and investors.

Role of Digital and Sustainability Literacy in Shaping Sustainable Investment Behaviour among University Students

2026-01-01T00:00:00Z

Role of Digital and Sustainability Literacy in Shaping Sustainable Investment Behaviour among University Students Kunasingam, S.; Subramaniam, V.A.; Tharshiga, P. The growing emphasis on sustainable finance and digital transformation has increased the need to equip future finance professionals with sustainability and digital competencies. This study examines the associations among sustainability literacy, digital literacy, and sustainable investment behaviour among financial and accounting students. Using a deductive, quantitative research approach, data were collected via a structured questionnaire administered to 215 students from the Faculty of Management Studies and Commerce at the University of Jaffna, Sri Lanka. Stratified random sampling was employed to ensure proportional representation across academic programmes and years of study. Multiple regression analysis and independent samples t-tests were used for data analysis. The findings reveal that both sustainability literacy and digital literacy are significantly and positively associated with sustainable investment behaviour, with sustainability literacy showing a stronger association. The results further indicate that no significant gender differences were found in digital or sustainability literacy, though a significant gender difference was observed in sustainable investment behaviour. Significant differences were also observed between Accounting and Financial Management students, with the latter demonstrating higher levels of sustainable investment capability. The study highlights the importance of integrating sustainability and digital literacy within finance and accounting curricula to enhance students’ readiness for sustainable investment decision-making. By providing empirical evidence from an emerging economy context, this research contributes to the literature on financial education and offers insights for curriculum development.

Lending Intensity, Funding Composition, and Liquidity Risk Persistence in Sri Lankan Commercial Banks: A Dynamic ARDL Analysis

2026-01-01T00:00:00Z

Lending Intensity, Funding Composition, and Liquidity Risk Persistence in Sri Lankan Commercial Banks: A Dynamic ARDL Analysis Tharshiga, P. This study examines the dynamic effects of lending intensity and funding composition on liquidity risk persistence in Sri Lankan licensed commercial banks, using monthly balance sheet data spanning December 1995 to November 2024 and an autoregressive distributed lag framework. Employing an autoregressive distributed lag (ARDL (2,2,1,2) framework, the study captures short-run adjustment dynamics of lending intensity, borrowing dependence, and loan growth on liquidity risk. Unit root tests confirm all variables are integrated of order one I(1), validating the ARDL approach. The bounds cointegration F-test (F = 0.923) does not confirm a long-run equilibrium relationship over the full sample, a finding attributed to parameter instability identified by the CUSUM test (Figure 1, S = 5.560, p < 0.001), reflecting structural changes in Sri Lanka's banking and regulatory environment over the sample period. Short-run results reveal that liquidity risk is highly persistent, with AR coefficients summing to 0.989. Lending intensity exerts a significant negative contemporaneous effect, followed by a delayed positive reversal, indicating maturity transformation risk. HAC-robust standard errors confirm the significance of lending intensity and liquidity persistence under heteroskedasticity. Breusch-Godfrey tests confirm the absence of serial correlation at any lag. These findings underscore the importance of disciplined asset–liability management and stable funding structures for enhancing liquidity resilience in Sri Lanka's banking sector.

From Heuristic to Habits: Financial Management Practices in Northern Sri Lanka’s Sea Cucumber Entrepreneurs

2026-01-01T00:00:00Z

From Heuristic to Habits: Financial Management Practices in Northern Sri Lanka’s Sea Cucumber Entrepreneurs Mithila, G. Sea cucumber aquaculture expands across Sri Lanka's Northern province, particularly Jaffna, Kilinochchi and Manner. This qualitative study examines how financial capability, institutional conditions and ecological exposure shape the financial management practices of sandfish (Holothuria scabra) enterprises. Using an interpretivist approach, around twenty-five pen/pond farmers were interviewed, transcripts were coded in two cycles and thematically analyzed using Nvivo. Findings reveal thin financial capability, where handwritten ledgers substitute for managerial accounts and budgets or cash flow forecasts are not available; heuristic management in which procurement, stocking densities and prices follow rules of thumb rather than costed plans; and institutional frictions, as multi agency licensing, limited credit and the absence of aquaculture insurance increase transaction costs and perceived risk. Ecology and finance are tightly coupled where salinity shocks, weather changes and volatile access to wild collected juveniles convert directly into cash flow stress during a roughly ten to twelve month grow out, while over stocking slows growth and erodes margins. Value chain asymmetry further weakens smallholder returns as thin buyer networks, grade opacity and limited post-harvest capability concentrate value with integrators and intermediaries, especially when farm gate prices weaken. The study proposes cycle based micro bookkeeping, simple cash buffer rules, buyer readiness toolkits (grade logs, basic contracts), cooperative mini processing and harvest linked lending supported by a standardized underwriting pack such as stocking and mortality logs, buyer memoranda of understanding, site photos. Policy priorities include single window licensing, calibrated hatchery expansion, buyer price transparency and pilots of parametric cover for salinity shocks. Hence, the analyses translate heuristics into implementable financial routines for the sea cucumber industry.