The 15 Finance and Leasing Companies, usingThe 15 Finance and Leasing Companies, using

The objective of the research is
to analyze probable factors and identify which factors are critical in
influencing the MPS of any company listed on  CSE, mainly to ascertain a relationship
between the selected  dependent
variable;  MPS and  independent variables such as Net Assets
Value Per Share (NAVPS), Total Risk Weighted Capital Adequacy Ratio (TRWCAR),  Interest Yielding Assets to Total Assets (IYATS)
and Composition of Public Holding (CPH)

Primary requirement of an
analyst in the capital markets is to predict the future price of a share based
on the present data. Appreciating market is a fortune for the investor and
identifying losing stocks beforehand will minimize the deterioration of
investor’s wealth.

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Research Methodology was designed
as follows. The research was carried out on the NBFI sector in Sri Lanka by
analyzing the aforementioned independent and dependent variables for selected 15
Finance and Leasing Companies, using secondary information obtained from CSE
(quarterly published financial information) as the primary source. The data for
three independent variables (NAVPS, IYATS and CPH) were recorded from the
financial statements published in the CSE for eleven consecutive quarters from
31 March 2015 to 30 September 2017. The data for one independent variable which
is TRWCAR was collected for six consecutive years starting from 31 March 2012
to 31 March 2017. MPS was the dependent variable for all the independent
variables for which data was recorded using the ATrad system, a real-time, online stock trading system).

The research has been able to
prove empirically that there is a significant strong positive relationship
between NAVPS and MPS.  Furthermore, research
has been able to establish that there is no significant relationship between CPH,
IYATS & TRWCAR of the selected stocks and its MPS. It is strongly
recommended to further analyze other factors which were identified as potential
factors yet not empirically proven to cause the variance between MPS and NAVPS.
These factors, if researched in more depth, might result in a relationship
between those factors and MPS.