This study investigates the relation between equity flows and returns in Sri Lanka using daily trade data categorized by investor classes. The results show that purchases and sales of domestic and foreign investors, both institutional and individual, are positively related with past returns,...

This study investigates underpricing of IPOs in Sri Lanka. On average, IPOs are underpriced by 34%. Small issues are more underpriced than large issues, and privatization issues are more underpriced than conventional issues. Investor sentiment is positively related with underpricing and affects...

This study investigates the ability of market beta, book-to-market equity, leverage, and earnings-price ratio to explain the cross-sectional variation in expected returns in the stock market of Sri Lanka. The sample of the study consists of a total of 88 companies which are listed on the Colombo...

Research on the predictability of short-horizon returns in developed markets has shown that daily, weekly and monthly returns are predictable from past returns, and that the predictable variation is a small part of variance of returns. In order to provide evidence from an emerging stock market,...

This paper investigates the relationship between stock returns and inflation in Sri Lanka using monthly and quarterly data for the period January 1985 to August 1996 with a view to provide empirical evidence on the generalized Fisher Hypothesis which states that nominal stock returns are...

This study investigates the ability of market beta, book-to-market equity, leverage, and earnings-price ratio to explain the cross-sectional variation in expected returns in the small stock market of Sri Lanka. The results show that, inconsistent with the central prediction of the Capital Asset...

This paper examines the ability of dividend yields to predict expected stock returns in the Colombo Stock Exchange in the 1989-1997 period. The results show that dividend yields predict expected returns reliably in return horizons up to three years, except in monthly returns. The predictable...