ICARE 2018

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The Association between Firm Specific Characteristics and Voluntary Disclosures of Non-Financial Sector 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) Herath, C.G.H.S.M.; Wijekoon, W.M.H.N.
The main purposes of this research are to assess the level of disclosure in the annual reports of non-financial (excluding banks finance and insurance sector) Sri Lankan firms which are listed in the Colombo stock exchange and to investigate the impact of firm specific characteristics on the extent of voluntary disclosure. A disclosure checklist consisting with 20 voluntary items was developed to assess the level of disclosure of 100 listed companies in Sri Lanka during the period 2017/2018. The association between the level of disclosure and firm specific characteristics were analyzed using E-views 8.0 statistical software package. Out of the total selected companies 58% companies have disclosed more than the mean level of disclosure index. It was found that firm size was significantly positively associated with the level of disclosure. This means that large size companies have more interest in disclosing additional information as compared to small size companies. Profit margin was also significantly positively associated, and debt was significantly negatively associated with the level of disclosure. The remaining variables, however, were found to be insignificant in explaining the variation of voluntary disclosure. The results of this study are very useful for the investment community to assist in evaluating the extent of voluntary disclosure by Sri Lankan listed firms and explaining the variation of disclosure. Further, the results provide useful insights to policy makers and regulators who want to improve voluntary disclosures in their countries
Awareness and Acceptance of Information Technology Driven Banking Services in Sri Lanka: Special Reference to Local Banks
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Subasena, E.S.I.; Thilakarathne, C.R.
According to traditional banking, in order to carry out banking transactions customers are supposed to undergo time wasting, tedious process by visiting branches. Therefore with the technological developments in the country the banks are introducing different kind of information and technology driven banking services such as ATM services, online banking, Mobile banking, telephone banking and internet payment gateway to their customers. This research investigates awareness and the factors associated with the customer acceptance of information technology driven banking services (ITDBS) in Sri Lanka. Customer awareness and acceptance are identified as the dependent variable and factors associated with the customer awareness and acceptance is identified independent variable variables. After an extensive survey of the existing literature and referring to TAM model, perceived usefulness, perceived ease of use, perceived trust and perceived security are mainly tested under independent variables. Data will collect through a sample of 300 local banks’ customers using primary data collections methods such as questionnaires. In order to test the hypothesis built using variables, regression analysis and Pearson correlation analysis of SPSS software package is used. The result reveals that ATM services and internet banking and SMS banking are most popular among banking customers while other services are not much popular among them. Further it reveals that perceived usefulness and perceived ease of use are mainly affected to adoption of information technology driven banking services while perceived trust and perceived security affect both negatively and positively for adaption and non-adaption of some services
Corporate Social Responsibility and Financial Performance of Listed Food and Beverage Tobacco 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) Thilakshi, T.N.H.; Gunasekare, U.L.T.P.
CSR has become a greater important area of research among researches in the financial area in recent years. Most of entities perform CSR activities for its stakeholders than shareholders. This has led to the emergence of new dimension in financial reporting known as social responsibility reporting. It is not mandatory in Sri Lanka as in many other countries. Hence CSR disclosures are provided in the voluntary disclosures (Abeysinghe & Basnayake, 2013). This study was carried out to identify the level of CSR disclosure and its relationship with financial performance in listed Food and beverages tobacco sector companies in Sri Lanka. Study consisted 15 food and beverages tobacco sector companies as the sample. The study was carried out using secondary data. Data were obtained by using annual reports of the selected companies over the last ten years starting from 2008 to 2017. The financial performance of the companies was measure by using ROE. CSR disclosure was measured by using Global Reporting Initiatives (GRI G4 guidelines). The results revealed that the level of CSR disclosure in food and beverages tobacco sector companies in Sri Lanka was at moderate level. The level of CSR disclosure for last ten years was positive and with incremental trend. CSR subcategories (Social, Environment) also had positive incremental trend except economic categories. Finally study showed that level of corporate social responsibility disclosure was, significantly related with corporate financial performance in food and beverages tobacco sector companies in Sri Lanka. Also level of disclosure of CSR subs categories (social, environmental & economic) and financial performance has a positive relationship with each other
Credit Risk Management and Financial Performance in Listed Financial Institutions 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) Kumudumali, H.H.E.; Wijesinghe, K.D.G.N.
Financial Institutions are exposed to different types of risks, which effect the performance and activity of these financial institutions. Credit risk is one of the most significant risks that financial institutions face, considering that granting credit is one of the main sources of income in financial institutions. The main purpose of this study is to investigate the impact of credit risk management on financial performance in finance institutions. The study considered ROA (Return on Asset) as profitability indicator while Non- Performing Loan Ratio (NPLR), Total Loans to the Asset ratio, Capital Adequacy Ratio (CAR) are considered as credit risk management indicators. The study used secondary data of 30 financial institutions covering the period of 2012 to 2017. Data were analyzed using panel data analysis through E-Views packages. The result reveals that overall credit risk has significant impact on profitability of listed financial institutions
Demand of Market Share Price: Evidence from Listed Banks in Colombo Stock Exchange
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Indunilmini, E.A.I.; Aruppala, W.D.N.
This research motivates to study the extent to which firm-specific determinants and macroeconomic determinants to stock prices of listed banks in Colombo Stock Exchange. The relationship of internal factors and external factors has become one of the most researched areas among accounting researchers. However the relationship between firm-specific determinants, macroeconomic determinants and stock price in different stock exchanges including both developed and developing market settings whilst there is very limited knowledge in this regard in Sri Lankan context. Hence this paper focuses to analyze the bank-specific factors and macroeconomic factors on investor’s decisions. The purpose of this paper is to find out the internal and external determinants on investor’s decisions and to examine the relationship between these two types of determinants and stock price. The population of the study comprises of listed seventeen banks in Colombo Stock Exchange for ten years during the period 2008-2017 and collected data from the website of central bank and annual reports of banks. This paper uses Market Share Price as dependent variable and Dividend Payout Ratio (DPR), Net Interest Margin (NIM), Interest Rate (INT), Inflation Rate (INF) and Gross Domestic Product (GDP) use as independent variables. Correlation analysis and multiple regression analysis are used to find out the relationship and impact of independent and dependent variables. The results shows that there is significant positive relationship between GDP and the market share price and significant negative relationship between interest rate, inflation and the market share price
Determinants of Financial Performance of Listed Banks 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) Chandrapala, C.N.C.; Thilakarathne, P.M.C.
The main purpose of this study examines the bank specific factors which are determined the financial performance of listed banks in Sri Lanka. Bank size (BS), Capital ratio (CAR), Liquidity (LIA), Deposits to assets (DEA), Operating expense to assets (OPA), and Loan to assets (LOA) as independent variables and financial performance as the dependent variable. This research return on assets (ROA) and return on equity (ROE) used measure the financial performance. The study conducted with panel data and utilized the sample frame interim financial reports of listed banks in Sri Lanka. Multiple regression model used analyze the data including 220 observations of 11 listed bank in Sri Lanka over the period 2013-2017.Regression model were analyzed by using E- Views software package. The result reveal that bank size, loan to assets and deposits to assets have significant positive relationship with both financial performance measures and liquidity has significant negative relationship with return on equity (ROE). In view of these findings, banks financial performance is determine by the bank specific factors therefore bank management have more significant influence on determine the financial performance of banks listed in Sri Lanka. The result of the study are value to both academic and policy makers
Determinants of Tax Compliance among Small and Medium Sized Enterprises in Colombo District
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Weerasinghe, W.M.N.L.B.; Rajapakshe, R.M.D.A.P.
In this study the researcher sought to explore the different factors that determine tax payers’ compliance in Colombo District. Using a linear regression probity model the researcher found some similarities and differences in factors that are correlated to tax compliance in the locality under study. An increase in the tax payers understanding of the tax laws and the tax system as well as an increase in government accountability with regards to provision of public good and services results into higher compliance levels, thus more of funds through revenue collection. The results of this research will help the government in making policies as they will gain insight on the extent of tax payer’s knowledge and the ways it’s affecting tax compliance. It will also help the revenue authorities on administration especially with designing tax payers’ education programs, simplicity of the taxation system and developing a better understanding of the tax compliance behavior. It will also contribute to the current literature on the factors that define tax payers’ compliance and discuss the strategies of increasing compliance
The Effect of Bank Specific Determinants on Profitability of the Commercial Banks 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) Niroshini, V.D.; Rathwatta, G.M.H.P.K.
Sri Lanka, commercial banks play the important role of the operation on the economy and it provides financial infrastructure for economic development. Therefore, studying the determinants of bank profitability is vital to the economy. The study conducted to find out the effect of bank specific determinants on profitability in Commercial Banks in Sri Lanka. To test this objective, the bank Profitability was used as main dependent variable; it included Return on Equity. Moreover, Bank Specific determinants was utilized as Independent variable, it consists with Operation efficiency, Capital adequacy, Credit risk, Liquidity risk, Bank size, Bank Age and Deposit ratio. The study used the secondary data and that obtained from randomly selected ten (10) domestic commercial Banks’ annual reports for the period 2008- 2017. The descriptive analysis, Correlation analysis and Multiple Regression Analysis are used as data analysis methods. The findings revealed that Credit Risk and Liquidity Risk have significant impact on bank profitability whereas bank profitability measures in terms of Return on Equity. Furthermore, the study recommended that the banks should spend much time to maintain Credit Risk and Liquidity Risk as smoothly
Effect of Credit Management on Profitability of Listed 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) Samarkoon, R.M.; Perera, H.A.P.L.
Credit management is a very important activity of any organization and it will be the reason to increase firm’s revenue and ultimately firm’s profitability. The purpose of this study is to identify the impact of credit management on profitability of listed companies in Sri Lanka. The sample of the current study was only the manufacturing sector companies listed in Colombo Stock Exchange in Sri Lanka for the period of 2011 to 2017. Due to the unavailability of data, only 30 listed manufacturing companies were selected for the data analysis. The researcher used Debtor’s turnover ratio, Account receivable ratio and Liquidity management as independent variables to measure the credit management and Return on Assets (ROA) is used as dependent variable to measure the company’s profitability. Panel data regression was used to analyze data using E-views software. According to the results, Debtor’s turnover ratio, Account receivable ratio and Liquidity management are affected for the profitability of listed manufacturing companies in Sri Lanka. This study establishes that there is a positive relationship between credit management policies and company’s Return on Assets in listed companies of Sri Lanka
The Effect of Dividend Payment and Retained Earnings on Market Price of Equity Shares: A Study of 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) Girihagama, T.D.K.; Abeywardhana, D.K.Y.
Price of publicly trading share is determined by supply and demand in the share market. If there is a high demand for a share due to favorable factors, the price would increase. It is important to identify that factors which have significant effect on share price. According to previous researchers; such factors that have effect on share price could be either firm specific internal factors such as; retained earnings, dividend, size of the firm etc. or external factors such as; interest rate, government regulations, foreign exchange rate etc. This study is an attempt to identify the effect of two internal factors: dividend payment and retained earnings on share price. The study has been carried out for period of 10 years (2008-2018) with a focus on 35 manufacturing companies listed in Colombo Stock Exchange. The relationship between share price and two main variables were examined by multiple regression model. The primary regression model was expanded by adding control variables: firm size, earning per share (EPS) and dividend yield. The findings of this study shows that dividend payment and retained earnings have a significant impact on share price. It also revealed that DPS and EPS are having a significant positive relationship with share price while dividend yield and retained earnings are having significant negative relationship with share price. Size of the firm shows insignificant effect on share price
The Effect of Internal Control System on Financial Performance of Licensed Commercial Banks 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) Bogahadeniya, B.D.S.A.; Munasinghe, M.A.T.K.
Internal control systems play an important role in every organization as it help to accomplish their financial performance objectives. The main objective of this study is to determine the effect of internal control system on financial performance of licensed commercial banks in Sri Lanka. Internal controls are looked at from the perspective of Control Environment, Risk Assessment, control Activities, Information and communication and monitoring whereas financial performance focused on Return on Assets. The target population was 25 licensed commercial banks, supervised by the central bank under the banking Act No. 30 of 1988. The random sampling method was used to select the sample and sample size of the study was 16 licensed commercial banks in Sri Lanka that represent 62% of total population. The study relied on both primary and secondary data. Primary data obtained through the standard questionnaire in five likert scale format while the secondary data is gathered from financial statements. Multiple regression models were used to test whether internal controls have any influence on financial performance. The study adopted descriptive research design using both quantitative and qualitative approach. The data is analyzed by the aid of Statistical Package for Social Science (SPSS). Based on the research findings it can be concluded that internal control system is a positive significant predictor of financial performance. In addition, control environment, Risk Assessment, internal control activities, information and communication have positive relationship with financial performance licensed commercial banks
An Empirical Analysis of Exchange Rate Volatility on Foreign Direct Investments 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) Ariyasinghe, A.T.T.; Madurapperuma, M.W.
Foreign direct investment is considered as one of key factor in determining factors for its economic growth. However, the macroeconomic environment in the host country must be favorable to attract foreign investment. Exchange rates of its currency against other foreign currencies are one of the main factors that affect the foreign direct investment of a country. The main objective of this study is to investigate the relationship between exchange rate volatility on foreign direct investments in Sri Lanka during the period of 2000 to 2017. Real exchange rate, Real exchange rate volatility, Openness of the economy, GDP per capita, stock of foreign direct investment and political situation were selected as independent variables while foreign direct investment was selected as a dependent variable. Data were collected through annual reports of Central Bank of Sri Lanka and World Bank. Data was analyzed using Vector Error Correction model. The results indicate a negative longrun relationship between exchange rate volatility and foreign direct investment for Sri Lanka. The existence of a short-run association was not Significant in Sri Lanka
Environmental Accounting Practices and Firm Financial Performance: An Empirical Analysis of Selected Listed Manufacturing and Construction Companies in Colombo Stock Exchange of 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) Lakmal, A.A.H .; Rajapakse, R.M.D.A.P.
This research focused on the Environmental Accounting practices (disclosures) and the firm financial performance of the selected listed Construction and Manufacturing companies in Sri Lanka. The main objective of this research is to investigate the present state of environmental reporting practice of Sri Lankan listed companies and to show the relationship between EA disclosure level and financial performance of the selected companies. Environmental Accounting disclosures and financial performance are being the main variable. GRI Guidelines were used as independent variable and also financial performance as dependent variable. Material, Energy, Water, Biodiversity and Emissions are used as environmental accounting disclosure aspects. All the companies listed in Colombo Stock Exchange under Manufacturing and Construction sectors were considered in this research. As well as the methodology follows the content analysis. The target population was 04 listed construction companies and 45 listed manufacturing companies. Both qualitative and quantitative data were collected using annual reports. The findings of this research indicate that the environmental disclosure practice of listed Manufacturing and Construction companies in Sri Lanka is not at a satisfactory level. But there is a significant relationship between EA disclosure level and firm financial performance
Factors Affecting to Formal Accounting System in SME’s 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) Bandara, R.M.S.S.S.; Karunarathna, W.V.A.D.
Small and Medium enterprise can’t be ignored throughout the economic and social world because of the Small and Medium (SME) sector provides more contribution to Gross Domestic Product (GDP) and significant percentage has taken by SME sector in the Sri Lankan economy and also it is very much important for solving unemployment problem of the country. It is important to study how affect formal Accounting systems effect on the survival and growth of SMEs. Therefore, this study aims to identify what are the factors affect to the formal Accounting System in SME’s in Sri Lanka. So, Financial Accounting Practices, Skills of Financial Accountant, Business Life Cycle, External Pressure and Capacity Argument are considered by the study as independent variables of the study that affect to the adoption formal accounting system for the SME’s. The study used Primary data of 60 Small and Medium Enterprises located in Kurunegala District. A well-structured questionnaire was used to collect data from the respondents of the study. Descriptive statistics and Correlation analysis were applied using SPSS software. The Results of the study revealed that there is a positive relationship between formal Accounting System and SME’s Financial Accounting Practices, Skills of Financial Accountants and External Pressure
Factors Leading to Business Process Outsourcing Decisions in Sri Lankan Hotel Industry
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Geethika, B.K.S.; Gunasekara, U.L.T.P.
This research tried to find the factors affecting to BPO (Business Process Outsourcing) decision in Sri Lankan Hotel Industry. Further the study expected to identify the activities which were highly possible for outsourcing decisions. By employing the resourced based view (RBV) as a theoretical basis, this study identified two important factors that lead to outsourcing decision in companies in hotel sector. It does so by describing some basic assumptions of the resource-based view. Two factors are proposed as determinant for outsourcing decision. They are company core competence and capability. Literature claimed that both of these two factors play an important part in the decision-making process in selecting an external provider for organizational activities. Sample consisted of six hotels which are ranked as 3-5 stars. Semi-structured interviews were used to gather primary data and the secondary data was obtained from relevant published reports written on evaluating the factors and areas of activities for outsourcing in the hotel industry. The executive categories of staff members who are responsible in making outsourcing decisions were interviewed. Finally, it was concluded that the factors: core competence and capability have a significant impact on the BPO decision and the hotels have been concentrating on their non-core functions such as hotel housekeeping and food and beverage, laundry and IT as possible outsourcing areas of activities. The study suggested managerial implications and future research directions
Financial leverage and Firm Performance: Evidence from Sri Lankan Beverage, Food and Tobacco Companies
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Imalka, H.A.; Aruppala, W.D.N.
This study investigates the effect of firm leverage and product diversity towards the financial performance of Sri Lankan Beverage, food and tobacco companies. Beverage, food and tobacco companies listed in Colombo Stock Exchange (CSE) for the period of 2011 to 2017. Financial leverage was considered as the independent variable and a financial performance was considered as the dependent variable. Accordingly debt to equity ratio & debt to asset ratio was used to measure the financial leverage and ROA; ROE & EPS were used as measures of financial performance. Product diversity was used as the moderating variable of this study. The secondary data obtained from corporate annual reports of sample companies were used in this study and descriptive statistics, correlation and regression analysis were used to analyses data of this study. Results of the study show a positive relationship between financial leverage and financial performance. Thus, alternative hypothesis which proposed as there is a relationship between financial leverage and firm performance was accepted and rejected the null hypothesis which proposed as there is no relationship between financial leverage and firm performance. Findings conclude that Beverage, food & tobacco sector companies of Sri Lanka can enhance their financial performance and profitability margins by having proportion of leverage in their capital structures
Impact between Dividend Policy & Share Price Volatility; Evidence from Manufacturing Firms Listed 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) Jayamanna, K.D.A.P.; Wijesinghe, K.D.G.N.
Dividend policy is one of the main indicators of any organization and especially all investors are concerning about the dividend policy. This study aims to identify how dividend policy affects to the share price. Research is focused on manufacturing sectors as it a fast growing industry sector. Data collected on 20 listed manufacturing companies for the period of 8 years from 2011-2018. Dividend policy measured through Dividend yield, Earnings volatility, Dividend Payout ratio. Growth in asset, Firm size were used as control variables. In order to measure relationship between dividend policy and stock prices, data were analyzed using regression analysis. The result reveals that Dividend payout has significant positive impact on share price volatility and dividend yield has negative impact on share price volatility and Firm size, earning volatility, asset growth explain the stock price volatility.
Impact of Bank Specific and Macroeconomic Determinants on Commercial Banks Profitability: Evidence from 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) De Silva, N.H.A.H.; Abeywardena, D.K.Y.
The financial intermediary is one of the most important financial functions of an economy. Among all financial intermediaries commercial banks are the most important intermediaries. Because they provide various services to lenders and vendors. The main focus of this study is to investigate the impact of bank specific and macroeconomic factors on the profitability of commercial banks in Sri Lanka. Eleven domestic commercial banks were selected as sample of this study and annually data were collected during the period of 2008 to 2017. Bank specific factors include bank size (SZE), operating cost (OC), capital adequacy (CA), liquidity ratio (LR) and asset quality (AQ) while GDP growth rate (GDP) and Inflation rate (IFR) selected as macro specific factors. The profitability measured by Return on Assets (ROA) selected as dependent variables. The multiple panel repression model were used to find out the explanatory power of independent variables on dependent variables and data were collected from annual reports of selected commercials banks and central bank reports. The finding of this study reveal that bank size and capital adequacy ratio positively impact on bank profitability while operating cost, liquidity ratio and asset quality negatively impact on bank profitability. And also Macro specific determinants, GDP growth rate and inflation rate found a significant positive impact on the bank profitability which measured by ROA. Substantive findings of this study will may guide in policy makers, investors, shareholders, employee to have better decisions when their decision making
The Impact of Bank Specific Factors and Macro-Economic Factors on Non-Performing Loans of Commercial Banks 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) Dilshani, W.N.; Abeywardane, D.K.Y.
Non – Performing Loans (NPL) can be identified as a factor that is negatively affecting to banks’ performances hence it should be mitigated. Banks can’t totally avoid NPL so it becomes a risk for all banks. This study investigates the determinants factors of Non-Performing Loans in Sri Lankan Commercial Banks and aims to identify how both bank specific and macro-economic factors influences on NPL of commercial banks in Sri Lanka. Total Loans to Asset Ratio (LA), Liquidity Asset Ratio (LAR), and Return on Assets (ROA) are the indicators of bank specific factors while Gross Domestic Production (GDP), Inflation Rate (INF) are the indicators of macro-economic factors. The study used secondary data of 25 commercial banks covering the period of 2008 to 2017. Data were analyzed using regression analysis and EViews package. The result reveals that NPL can be affected by both bank specific factors and macro-economic factors. Further LA has positive correlation with NPL. With regards to macro-economic factors NPLs vary negatively with the growth rate of GDP. In conclusion the management of banks should adopt accurate risk mitigation tools by focusing on both bank specific and macro-economic factors that affect the level NPL in banks
The Impact of Board Characteristics on Sustainability Reporting: Empirical Evidence from Sri Lankan Firms
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Dimuthumali, H.G.K.S.; Rajapakshe, R.M.D.A.P.
At the present scenario, Sustainability Reporting plays vital role in financial reporting as it is crucially impact on the growth and continuous development of a firm in certain and equity market. There are several factors influenced on sustainability reporting. Among them board characteristics impact more as disclosure decisions are one of the primary control functions of the board. The purpose of the research is to explore the role played by the board of directors in corporate sustainability reporting among the listed companies in Sri Lanka. Research problem is based on the board characteristics and it is impact on the detailed sustainability reporting. Data collected from the sample of 60 Sri Lankan listed companies over a period of four years (2014-2017), representing practically four business sectors which represent the highest number of companies under sector classification of CSE in 2017. Board size (BS), Board independency (BIND), Dual leadership (DL), Board with female directors (BFD), Board ethnicity (BE) and Impact of ownership structure (OS) were used as the board characteristics. Binary logistic regression is the method which used to analyze the research data. The results reveals that firms which follow a detailed sustainability reporting have larger boards, more female directors and higher portion of independent directors. This study also found that dual leadership, board ethnicity and board ownership have no influenced on detailed sustainability reporting. This study contributes to provide value addition into the existing literature on this subject by providing sufficient evidences to fill up the gap in the existing literature