The Banking Industry in Sri Lanka Dissertation or Thesis
Presents an investigation of the capital investment practices of the banking industry in Sri Lanka including original research.
# 150444
| 17,115 words
| 17 sources
| APA
| 2012
| 
Published
on Feb 17, 2012
in
Business
(Finance, Investment and Banking)
, Asian Studies
(General)
, Research Designs
(General)
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Description:
This paper discusses finance and investments in Sri Lanka, the changing role of the banking sector, foreign direct investments (FDI), and factors that influence capital investment decision. Next, the author reports the methodology of the original research including sample and sub sample selection, the questionnaire development, the findings of this survey and technical banking issues. The paper concludes that the significance of the capital investment process was considered high in the most of the banks in Sri Lanka and the majority of the banks are familiar with discounted cash flow techniques; however, the author recommends that management must design a formal capital investment policy. Several tables and formulas are included in the paper.
Table of Contents:
Introduction
Literature Review
Finance and Investments in Sri Lanka
Financial Sector Policy Issues
Investments in the Informal Sector of Sri Lanka
The Changing Role of the Banking Sector
Foreign Direct Investments (FDI) in Sri Lanka
Identification of Potential Investments
Investments Appraisal Methods
IRR- Internal Rate of Return
NPV- Net Present Value
ARR- Average Rate of Return
Factors Which Influence Capital Investment Decision
Outlook of the Management
Competitor's Strategy
Scientific Advancements
Market Forecast
Fiscal Incentives
Cash Flow Budget
Estimation of Cash Flows
Objectives of a Cash Flow Statement
Methodology
Research Method
Sample Selection
The Questionnaire Method
The Questionnaire-based Survey
Span of the Questionnaire
Structure of the Questionnaire
Sub Sample Categorization
Some Concepts Related to the Research
Neo-Classical Economic Model of the Firm
Capital Investment as an Institutional Practice
The Decision Making Process of Capital Investments
Financial Objectives of the Firm
Time preference for Money
Time Table
Uncertainty
Preference for Consumption
Investment Opportunities
Technical Tools for Capital Investment Decisions
Net Present Value (NPV)
Internal Rate of Return (IRR)
Profitability Index (PI)
Non-Discounted Cash Flow Criteria
Payback Period (PBP)
Accounting Rate of Return (ARR)
Capital Investment Process
Findings of the survey
Perceived Significance of the Capital Investment Process
Managerial Perception on the Firms' Objectives of Capital Investment Decision-Making
Search for Capital Investment Opportunities
Technical Issues
Acquaintance with Inexpensive Practices of Cash Flow
Extent of Use of Quantitative Capital Investment Techniques in Analysing and Making Capital Investment Decisions
Selection Preference for Specific Capital Investment Analysis Techniques
Conclusion
Introduction
Overall Assessment of General Issues in Capital Investment
Overall Assessment of Technical Issues in Capital Investments
Recommendation for the Improvement of Capital Investment Practice
Further Research Potentials in Capital Investment Practice
Table of Contents:
Introduction
Literature Review
Finance and Investments in Sri Lanka
Financial Sector Policy Issues
Investments in the Informal Sector of Sri Lanka
The Changing Role of the Banking Sector
Foreign Direct Investments (FDI) in Sri Lanka
Identification of Potential Investments
Investments Appraisal Methods
IRR- Internal Rate of Return
NPV- Net Present Value
ARR- Average Rate of Return
Factors Which Influence Capital Investment Decision
Outlook of the Management
Competitor's Strategy
Scientific Advancements
Market Forecast
Fiscal Incentives
Cash Flow Budget
Estimation of Cash Flows
Objectives of a Cash Flow Statement
Methodology
Research Method
Sample Selection
The Questionnaire Method
The Questionnaire-based Survey
Span of the Questionnaire
Structure of the Questionnaire
Sub Sample Categorization
Some Concepts Related to the Research
Neo-Classical Economic Model of the Firm
Capital Investment as an Institutional Practice
The Decision Making Process of Capital Investments
Financial Objectives of the Firm
Time preference for Money
Time Table
Uncertainty
Preference for Consumption
Investment Opportunities
Technical Tools for Capital Investment Decisions
Net Present Value (NPV)
Internal Rate of Return (IRR)
Profitability Index (PI)
Non-Discounted Cash Flow Criteria
Payback Period (PBP)
Accounting Rate of Return (ARR)
Capital Investment Process
Findings of the survey
Perceived Significance of the Capital Investment Process
Managerial Perception on the Firms' Objectives of Capital Investment Decision-Making
Search for Capital Investment Opportunities
Technical Issues
Acquaintance with Inexpensive Practices of Cash Flow
Extent of Use of Quantitative Capital Investment Techniques in Analysing and Making Capital Investment Decisions
Selection Preference for Specific Capital Investment Analysis Techniques
Conclusion
Introduction
Overall Assessment of General Issues in Capital Investment
Overall Assessment of Technical Issues in Capital Investments
Recommendation for the Improvement of Capital Investment Practice
Further Research Potentials in Capital Investment Practice
From the Paper:
"According to Table 6, 68 percent of the responding banks revealed that most of the ideas for capital investment came from the top management or the top organizational level. Some of the banks selected for the study are very large. Naturally, they have a lot of strategic issues to deal with. The capital investment decision or process is not a priority for these large companies. Therefore, in only about half of the large responding banks do capital investment ideas come from top management. In large size banks, 33% of the ideas come from middle management and 17 percent ideas come from outside consultant firms. Since they are very large in size, they have financial capabilities and resources to deploy outside consultancy firms."62.5 percent of the middle size banks show that most of the ideas come from the top management level. 7 out of 8 banks (87.5 percent) in the small size category mentioned that most of the ideas come from top management. In small banks, sometimes they don't have the same financial capabilities as in large banks and every decision on capital investment may be a strategic decision for them. This may be one reason why the top management involvement of small banks is relatively higher when compared with large and medium size banks."
Sample of Sources Used:
- ADB. 2005. Strategy and Program Assessment. [online]. [Accessed 8 March 2011]. Available from World Wide Web: < HYPERLINK "http://www.adb.org/documents/assessments/financial/SRI-financial-sector-assessment-2005.pdf" http://www.adb.org/documents/assessments/financial/SRI-financial-sector-assessment-2005.pdf >
- Balamurall, N and C Bogahawatte. 2004. Foreign Direct Investment and Economic Growth in Sri Lanka. Sri Lanka Journal of Agricultural Economics. 6(1).
- Boyagonda, Mangala. 2008. The Chnaging Role of Banks and Srilanka's Resructuring Efforts. [online]. [Accessed 8 March 2011]. Available from World Wide Web: < HYPERLINK "http://www.apbsrilanka.org/articales/20_ann/20_pdf_articles/15_Mangala_Boyagoda.pdf" http://www.apbsrilanka.org/articales/20_ann/20_pdf_articles/15_Mangala_Boyagoda.pdf >
- Capital Budgeting. n.d. [online]. [Accessed 8 March 2011]. Available from World Wide Web: < HYPERLINK "http://www.studyfinance.com/lessons/capbudget/index.mv" http://www.studyfinance.com/lessons/capbudget/index.mv >
- CBS. 2011. Latest News. [online]. [Accessed 8 March 2011]. Available from World Wide Web: < HYPERLINK "http://www.cbsl.gov.lk" http://www.cbsl.gov.lk >
Cite this Dissertation or Thesis:
APA Format
The Banking Industry in Sri Lanka (2012, February 17)
Retrieved June 05, 2023, from https://www.academon.com/dissertation-or-thesis/the-banking-industry-in-sri-lanka-150444/
MLA Format
"The Banking Industry in Sri Lanka" 17 February 2012.
Web. 05 June. 2023. <https://www.academon.com/dissertation-or-thesis/the-banking-industry-in-sri-lanka-150444/>