Asian Journal of Economics, Business and Accounting

Online banking is the compulsory condition to develop e-business within the world. The key objective of the study is to examine drivers affecting online banking facility usage of the private commercial banks in Sri Lanka. The researcher has selected five factors namely perceived risk, customers’ concern for privacy, customers’ value for online personalization, e-trust, and e-loyalty after considering previous studies and expert idea in the field. Five hundred questionnaires were distributed among the customers who attached to the seven main private commercial banks and living selected three prominent provinces of three prominent cities namely Kandy, Colombo & Galle in Sri Lanka. Although only two hundred fifteen questionnaires received from the online customers. One hundred ninety-six complete questionnaires used to the final data analysis. Descriptive statistics, correlation analysis and Multiple regression analysis utilized to analysis the data.

Data analysis result of the study shows that perceived risk, customers’ concern for privacy and entrust show the significant positive effect on online bank usage in Sri Lanka. E-loyalty and customers’ value for privacy also positively influence on online bank usage, however these two factors didn’t show the significant influence on online bank usage. Sri Lankan commercial banks should promote online bank usage by considering risk, customers’ concern for privacy and entrust. Moreover, online program designers should concern innovations and significant factors when they develop online bank platforms. Further, the researchers should conduct further research base on different cultures to identify the issues and significant factors that may influence on online banking usage.

The study is on the effect of financial inclusion on output in Nigeria. It made use of time series data sourced from Central Bank of Nigeria statistical bulletin for the period of 1992 to 2018. The Co-integration, Causality, Unit Root and the Ordinary Least Square tests were used for the analyses. The Causality test result shows a unidirectional causality flowing from Microfinance Bank Deposit to the Output, whereas a unidirectional causality existed between Loan and Advances and Output, with causality flowing from Output to Loan and Advances. The unit root test result shows that all the variables are stationary at first differencing. Besides, Output recorded a significant positive relationship with Bank Deposit but an insignificant relationship with Loan and Advances. However, there exists a long-run equilibrium relationship among the variables. This means that what existed in the short-run persisted in the long-run in the case of Bank Demand Deposit and Output. It goes on to show that the effect of Loan and Advances on Output is best felt at the long-run when companies that acquired the loan must have produced goods and services in the economy. The study recommends that Central Bank Nigeria and Commercial Banks should encourage financial inclusion since it has proven to have a great influence on the output. Also, Banking Services when extended to the remote areas will not only reduce financial exclusion but will enhance the output in the economy.

This paper addresses connection of inflation and commercial banks operation by using quarterly time series data from 2008 to 2017. The study precisely shows relationship of inflation and customer savings in the commercial banks; and bank lending to customers using Vector Error Correction Model. The study reveals that there is existence of long run relationship among customer saving and inflation; and bank lending and inflation. The study reveals positive impact of customer saving and bank lending on inflation. The government of Tanzania should increase expenditure to necessary activities so as to expand banks operations because it is a crucial sector in the financial sector. However, the government should have continuous monitoring and control of the inflation to prevent financial sector shakiness. Additionally, Commercial banks should put much control on lending by increasing interest rates and choosing borrower with good character.

To the best of our knowledge, we presented an analysis of how the growth of Nigeria’s real sector has been affected by lending activities of deposit money banks. We examined how agricultural, industrial, and building & construction sectors of the real economy have grown owing to the fund they received from the deposit money banks moderated by the cost of fund/interest rate amidst information from 1986 to 2019. Model estimation adhered strictly to the Autoregressive Distributive Lag (ARDL) model/bound test for a long and short-run relationship. How agricultural, industrial, and building & construction sectors of the real economy have been affected by deposit money banks’ lending activities were evaluated following the approach of the granger causality test. From the result of the analysis, we concluded that deposit money banks’ lending activities have not significantly affected the growth of the real sector of the Nigerian economy. The equity investment scheme of small and medium enterprises requires that all deposit money banks operating in the country to keep 10 percent of their net income in an attempt to encourage the growth of small and medium enterprises. Although the Bankers’ Committee willingly came up with the initiative in 1999, we urge the Bankers’ Committee to review upward to let say 15 – 20 percent. This will in no small measure cause an upsurge in the output agricultural, industrial, and building & construction sectors of the real economy which are dominated by small and medium enterprises.

Aims: The main aim of the study is to identify whether working capital management has an impact on firm’s profitability of listed companies in Sri Lanka.

Place and Duration of Study: Pooled panel data of 95 listed companies from 18 sectors are listed on the Colombo Stock Exchange (CSE) which comprised of 475 observations is used during the period of 2012/2013 to 2016/2017.

Methodology: Descriptive statistics, Pearson’s Correlation analysis, ANOVA, and Pooled Regression analysis were employed as measures of analysis. Working capital management components and working capital policies are used as independent variables which comprised of number of days of account receivable (DAR), number of days of inventories (DI), number of days of account payables (DAP), cash conversion cycle (CCC), working capital investment policies (WCIP), and working capital financing policies (WCFP). Current ratio (CR), firm size (SIZE), sales growth (GROWTH), and Debt ratio (DR) were employed as controlled variables. Gross operating profit (GOP) and Return on assets (ROA) were used as dependent variable.

Results: In the descriptive statistics, average of DAR, DI, DAP, and CCC are 64, 63, 97, and 29 days respectively. The average WCIP and WCFP are indicated as 40% and 27% of total assets. For control variables, the average CR, SIZE, GROWTH, and DR are indicated as 2.27, 14.50, 33% and 40%. In the Pearson correlation analysis, CCC has negative relationship with GOP and ROA. With regard to WCIP and WCFP, there are negative significant relationships with GOP and ROA. Regression analysis states that working capital management significantly impacts on firm’s profitability of listed companies in Sri Lanka.

Conclusion: These findings would be useful to consider on maintaining optimal working capital management components and policies to avoid corporate collapse and to maximize firm’s profitability.