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This paper aims to investigate the relation between corporate governance and dividend policy in Sri Lankan firms.

The data set consists of market data using 1,608 firm-year observations from 201 firms listed on the Colombo Stock Exchange and survey-based data from 151 respondents from the same 201 firms. The authors use data triangulation to examine the two approaches.

The analysis of the market data reveals that a significantly positive relation between corporate governance on both the propensity to pay dividends and dividend payout. Survey analysis confirms these findings. Triangulated evidence supports the outcome model of dividends, free cash flow and agency cost theories.

The findings are useful not only for management in developing suitable corporate governance practices and dividend policies for their firms but also for shareholders in evaluating both existing and new investments. Future researchers should investigate the same phenomenon in other contexts using triangulation approaches to confirm their findings.

This study is the first to use governance indices both in terms of survey and market-based data to examine the relation between corporate governance and dividend policy.

Introduction: Why companies pay dividends and the determinants of dividend policy are considered an unresolved dividend puzzle. To reach a consensus over the puzzle, researchers must investigate the factors affecting dividend policy by incorporating all the determinants into a single research effort.

Purpose: We examine the dividend policy determinants of Sri Lankan firms, explicitly focusing on the banking, finance, and insurance (BFI) sectors.

Methodology: This study uses the quantitative approach applying the Generalized Method of Moments (GMM) system to examine the dividend policy determinants by obtaining secondary data from 51 listed BFI organisations in Sri Lanka.

Findings: The analysis disclosed that the variables of changes in revenues, firm size, liquidity, corporate tax, business risk, and profitability have a positive relationship with dividend yield, whereas investment opportunities, leverage, change in revenues, corporate tax, and firm size impact positively on the propensity to pay dividends in BFI organisations in Sri Lanka. Our findings opine that managers in the BFI industries should prioritise changing their dividend policies by paying close attention to factors, such as dividend yield, changes in revenue, firm size, liquidity, corporate tax ratio, business risk, and profitability because the dividend policy is critical to retaining current investors and luring new ones.

This chapter provides an overview of the explanations and factors affecting dividend policy. This study employs a systematic literature review approach to review a large sample of studies related to the dividend puzzle. Although the analysis reveals mixed evidence involving the theories and determinants of dividend policy, some determinants appear in numerous studies. However, no consensus exists on an optimal dividend to resolve the dividend puzzle, and the authors propose a model to deal with the same. When examining dividend policy, researchers should consider the firm, market, behavior, and other determinants. When making significant dividend or stock decisions, managers and shareholders should also contemplate the factors, interactions, inadequacies, and consequences. Future researchers should strive to take a more comprehensive view when resolving the dividend puzzle. This study provides a current and complete picture of dividend policy's available theories and empirical determinants. Its significant contribution is identifying some of the more consistently essential determinants of dividend policy while proposing a holistic model to address the prevailing dividend dilemma.

This study aims to determine the impact of health-related views on mobile payment adoption in Sri Lanka from a broader viewpoint. The scale used to quantify each construct was based on earlier research, with modest alterations to fit the pandemic situation. First, an online survey was administered to undergraduates using convenience sampling to acquire appropriate replies. Eliminating incomplete and unusable questionnaires, 266 responses were gathered with an 88.7% response rate. Finally, after removing incomplete and ineffective questionnaires, 243 responses were selected for the analysis. Health consciousness, perceived ease of use, and usefulness have a significant positive relationship between attitude and behavioural intention to mobile payments. Moreover, the attitude has a significant positive relationship with mobile payment usage. As the health consciousness increases the usefulness and intention to use mobile payments, bank managers can focus on this new customer segment. Accordingly, they can use their promotional campaigns to highlight the importance of shifting towards m-payments during the pandemic times. This is the first study that investigates the role of health-related perceptions on the mobile payment adoption in Sri Lanka to the best of the authors’ knowledge.

Purpose: This chapter investigates the moderating impact of personality and demographic factors on the association between work–life balance (WLB) and the well-being (WB) of Ayurveda doctors in Sri Lanka.

Need for the Study: WB is necessary for everyone’s life. Individuals must meet proper WLB between their private and career life scenarios. On the other hand, employee WB and WLB are considered under the sustainable development goals. Hence, it is required to investigate the effect of WLB on WB.

Methodology: This quantitative, cross-sectional study was conducted with minimal researcher interference. The primary data were collected using structured questionnaires from Ayurvedic Doctors in Sri Lanka. The correlation, regression, and hierarchical regression analyses with multivariate assumptions were conducted using SPSS.

Findings: The findings reveal a robust positive association between the WLB and WB, indicating the same association between the WLB and personality. Moreover, there is a strong positive association between personality and WB. The results of the moderator analysis presented that there is a marginal moderator impact from the personality towards the association between WLB and WB.

Practical Implications: Ayurveda Practitioners and policymakers can use the generated knowledge in decision-making. The results of this study can be used as a reference by all industrial practitioners to improve their business practices. They can do this by raising employee WLB to enhance WB, which will help them keep the best employees within the company.

Purpose: This chapter examines the effect of COVID-19 on the stock market volatility (SMV) in the Colombo Stock Exchange (CSE), Sri Lanka.

Need for the Study: The study is necessary to understand investor behaviour, market efficiency, and risk management strategies during a global crisis.

Methodology: Utilising daily All Share Price Index (ASPI) data from 2 January 2018 to 31 August 2021, the data are divided into subsamples corresponding to the pre-pandemic period, the pandemic period, and distinct waves of the pandemic. The impact of the pandemic is investigated using the Mann–Whitney U test, the Kruskal–Wallis test, and the Exponential Generalised Autoregressive Conditional Heteroscedasticity (EGARCH) model.

Findings: The pandemic considerably affected CSE – the Mann–Whitney U test produced different market returns during the pre-COVID and COVID eras. The Kruskal–Wallis test improved performance during COVID-19 but did not continue to do so across COVID-19 waves. The EGARCH model detected increased volatility and risk during the first wave, but the second and third waves outperformed the first. COVID-19 had a minimal overall effect on CSE market results. GARCH and Autoregressive Conditional Heteroskedasticity (ARCH) models identified long-term variance memory and volatility clustering. The News Impact Curve (NIC) showed that negative news had a more significant impact on market return volatility than positive news, even if the asymmetric term was not statistically significant.

Practical Implications: This study offers significant insight into how Sri Lanka’s SMV is affected by COVID-19. The findings help create efficient mitigation strategies to mitigate the negative consequences of future events.

The goal of this study is to look into the connection between Sri Lanka’s fiscal deficit and inflation. Sri Lanka is currently experiencing one of its worst inflation crises in its history, necessitating an investigation into how fiscal deficit affects inflation, as it has been experiencing an ever-increasing fiscal deficit for the last four decades. The quantitative methodology is employed in this study using annual data from 1977 to 2019 following the ARDL technique in the analysis. The findings showed that both in the long run and the near term, Sri Lanka’s fiscal deficit had a positive and significant link with inflation. The policymakers should increase the revenue through the taxes in order to bridge the fiscal deficit. As a developing country, it cannot afford to continue with the ever-increasing fiscal deficit which has become a burden to country. Also, it is the responsibility of each government to think carefully to reduce its massive expenditure which has become a common feature in the country for the last four decades. Cutting down government expenditure can improve the economic growth and well-being of the citizens too. The government should therefore concentrate on short-term investment programmes that will benefit the country while doing the same in the long run.

This study aims to investigate the impact of the COVID-19 pandemic on businesses, their operations, and the financial conditions in Sri Lanka. A sample of 19 executive-level employees from 19 companies registered at the Colombo Stock Exchange in Sri Lanka was interviewed. The thematic analysis method was used to analyse the data. It demonstrates the insecurity of the current business situation, as with the pandemic, most large-scale operating companies have been permanently or temporarily closed. The financial condition was categorised into main sub-themes such as business profitability, liquidity problems, the balance of payments, working capital, and cash flows and was highly impacted during the COVID-19 outbreak. The findings of the study help to improve the favourable image of Sri Lankan companies by facilitating solutions to overcome the challenges and difficulties and are beneficial for the relevant government parties to amend policies and for investors to make prudent investment decisions. As a maiden study, this one focused on investigating the pandemic’s impact on business operations and developed a nine-step plan for organisations, employees, and the government to minimise the impact of COVID-19 on their businesses.

Owing to the significance of a healthy lifestyle, we investigate the antecedents of the healthy lifestyle of young consumers in Sri Lanka. 658 structured questionnaires were collected from young consumers in Sri Lanka as part of the survey procedure. The judgmental sampling method is used to choose the respondents. The analysis makes use of both descriptive and inferential statistics. The findings disclose a high degree of healthy lifestyle among young consumers in Sri Lanka. Further findings revealed that health consciousness, collective esteem, and neighborhood environment are the antecedents for a healthy lifestyle. As young consumers are more concerned about a healthy lifestyle, managers in certain industries such as food and beverages, hotels, and restaurants should adopt their products and services in line with a healthy lifestyle.

This study examines the impact of financial services employees’ engagement on the attitude toward artificial intelligence (AI) in Sri Lanka. The model developed in this study comprises three constructs to demonstrate employee engagement (EE), namely, psychological state engagement (PSE), trait engagement (TE), and cognitive engagement (CE). Further, the model tests the moderating effect of age and gender on the relationship between EE and attitude toward AI. The authors conducted this research through a survey of 200 employees at Sri Lankan financial service firms. The findings indicate that EE substantially impacts attitudes regarding AI. Additionally, PSE, CE, and attribute engagement substantially affect how people feel about AI. Further, age has a moderating effect on the association between EE and attitude toward AI among financial services personnel. Based on the findings and discussion, the researcher recommends AI’s most significant importance in promoting a high level of engagement. The results would be helpful for both academic researchers and practitioners, especially HR managers, to understand the status of AI in Sri Lanka and formulate strategies to expedite EE.