Browsing by Author "Muthunayake, H."
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Item Corporate Governance and Financial Statement Frauds: Evidence from Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Rajapaksha, R.A.S.; Wijerathna, A.G.H.S.K.; Muthunayake, H.; Weerawickrama, V.L.With the increased number of frauds taking place in the corporate world regulators and policymakers around the world have been making attempts avoid or reduce the frauds. Implementation of corporate governance code can be identified as one of the major mechanisms implemented against frauds. However, regardless of the implementation of such mechanisms still the frauds continued to be taking place. Accordingly, an attempt should be made to identify the extent of influence of Corporate Governance Code in the prevention and detection of frauds in the companies. The study was conducted based on 40 listed companies in Colombo Stock Exchange. The occurrence of the financial statement frauds was measured by incorporating Beneish M Score model. Corporate governance has been measured in terms of audit committee, CEO duality and Board Composition. As per the results of this study the corporate governance, board composition and CEO duality does not have a significant impact on the financial statement frauds. However, the results suggest that existence of audit committee has significant impact on the financial statements frauds. The existence of audit committee ensures the effective operation of internal controls which can prevent and detect frauds to a large extent.Item Value Relevance of Accounting Information and Financial Statement Effect upon IFRS Adoption: Evidence from Listed Manufacturing Companies in Sri Lanka(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Muthunayake, H.; Kawshalya, M.D.P.Accounting Information would be beneficial only if it is relevant to the decision being made. According to International Accounting Standard Board, the usefulness of accounting information depends on the fundamental qualitative characteristics of Relevance and Faithful Representation. As a result of harmonization and standardization, International Financial Reporting Standards (IFRS) were adopted in Sri Lanka from 1st January 2012 as a developing country. Given the differences exists between develop and developing countries in the contest of accounting profession and other contextual differences, the impact of IFRS adoption in developing countries is still remaining as an empirical gap in the accounting literature. Therefore the main purpose of current study is to examining the impact of International Financial Reporting Standard on the accounting information quality, in terms of value relevance and the effect on key financial measures of financial statement in Sri Lanka. Data for the current study is collected from audited annual financial statements and Colombo Stock Exchange reports for all the listed manufacturing companies in Sri Lanka, for the period of 9 years from 2008/2009 to 2016/2017 financial year. Based on the regression estimate obtained the study concludes that there is an incremental effect on the value relevance of earnings for share, book values of equity, and cash flow from operations. Further findings reveal that there is favorable impact financial statement measures upon IFRS adoption of listed manufacturing sector in Sri Lanka.