Research Publications Authored by SLIIT Staff

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This collection includes all SLIIT staff publications presented at external conferences and published in external journals. The materials are organized by faculty to facilitate easy retrieval.

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    Determinants of Firm Value in Frontier Markets: Evidence from a Panel Oprobit Analysis in Sri Lanka
    (Springer, 2025-09-01) Hettiarachchi, S; Kasthuriarachchi, U; Kokilakumar, S; Himaanthri, S; Jayathilaka, R; Peiris, S
    This study explores the firm-level determinants of firm value in the context of a frontier market, using a panel dataset of 222 companies listed on the Colombo Stock Exchange from 2013 to 2024. Employing panel probit and ordered probit models, the analysis examines how capital structure, investment decisions, profitability, firm size, and sector classification influence firm value, measured across three distinct valuation tiers. The results reveal that the debt-to-equity ratio positively impacts firm value, especially during transitions from low to medium categories, supporting the relevance of the Trade-Off Theory. Profitability and firm size are also found to significantly increase the probability of achieving higher firm valuations. However, the price-to-earnings ratio displays negligible predictive power in this context. Sectoral analysis indicates that non-financial firms demonstrate stronger valuation potential than financial firms, likely due to reduced regulatory constraints and greater strategic flexibility. These findings contribute to the limited empirical literature on frontier markets by highlighting key drivers of corporate value and providing comparative insights. The study offers practical implications for policymakers, investors, and corporate managers aiming to enhance firm value through financial structure optimisation, strategic growth initiatives, and regulatory improvements that promote market confidence and transparency.
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    PublicationOpen Access
    Determinants of Firm Value in Frontier Markets: Evidence from a Panel Oprobit Analysis in Sri Lanka
    (Springer Nature, 2025-09-01) Hettiarachchi, S; Kasthuriarachchi, U; Kokilakumar, S; Himaanthri, S; Jayathilaka, R; Peiris, S
    This study explores the firm-level determinants of firm value in the context of a frontier market, using a panel dataset of 222 companies listed on the Colombo Stock Exchange from 2013 to 2024. Employing panel probit and ordered probit models, the analysis examines how capital structure, investment decisions, profitability, firm size, and sector classification influence firm value, measured across three distinct valuation tiers. The results reveal that the debt-to-equity ratio positively impacts firm value, especially during transitions from low to medium categories, supporting the relevance of the Trade-Off Theory. Profitability and firm size are also found to significantly increase the probability of achieving higher firm valuations. However, the price-to-earnings ratio displays negligible predictive power in this context. Sectoral analysis indicates that non-financial firms demonstrate stronger valuation potential than financial firms, likely due to reduced regulatory constraints and greater strategic flexibility. These findings contribute to the limited empirical literature on frontier markets by highlighting key drivers of corporate value and providing comparative insights. The study offers practical implications for policymakers, investors, and corporate managers aiming to enhance firm value through financial structure optimisation, strategic growth initiatives, and regulatory improvements that promote market confidence and transparency.
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    Corporate Governance on Capital Structure Decisions: Evidence from Listed Non-financial Companies in Sri Lanka – Quantile Regression Approach
    (SLIIT Business School, 2019-12-10) Chathurya, P.A.D.; Perera, D.K.T.S.; Perera, G.K.S.S.; Fernando, W.C.
    The main objective of this study is to discuss about how corporate governance has an impact on the capital structure decisions. The focus of this empirical study emphasis on the top 100 market capitalization non-financial companies as at 31st December 2018 in CSE for 2012- 2018-year period. Quantile regression analysis is used to determine the relationship between corporate governance variables such as, CEO duality, Board size, Number of committees, Board balance, and gender diversity on capital structure decisions of the listed non-financial companies. Due to non-normal distribution of data which was identified using higher variance in kurtosis and skewness created a disadvantage of using OLS model which shows the results conditional to the mean. Therefore, quantile regression method was used in order to determine the above mentioned objective in an accurate manner. The results indicate that, gender diversity has significant negative relationship and board committees have statistically significant positive relationship to different levels of capital structure. Board size, board balance, CEO duality, doesn’t have significant impact on different levels of capital structure decisions. The interpretation of the results and the reasons for such variations were identified.