ICARE 2018
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/19607
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Item Relationship between Board Characteristics and Earnings Management Evidence from Sri Lankan Listed Companies(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Sarathchandra, P.K.K.; Munasinghe, M.A.T.K.Many studies carried out to investigate the link between board characteristics and firm performance in developed countries. The empirical evidence on this area is very thin in Sri Lanka being a developing country. Hence this study was undertaken with the intension of fulfilling the gap. Earnings management is the usage of accounting principles to make a company's financial statements look better. Many judgments are made by management regarding accounting rules and principles. Board of director’s play an integral role in conducting earnings management practices that emerged as a result of agency issue between managers and shareholders. The research main goal is to evaluate the impact of firm characteristics on earnings management of the listed companies in Sri Lanka. To examine the effect of board on earnings management for a sample of 120 listed firms in Sri Lanka from 2015-2017. For the study, a sample of 120 companies has been selected (excluding the financial sector companies, to avoid distortion in results due to different financial fundamentals). Modified Cross Sectional (Model, 1995) has been employed for calculating discretionary accruals as proxy for earnings management. Furthermore, key board characteristics examined in the study include board independence, board size, CEO duality, gender diversity, and institutional ownership, while using firm size, leverage and profitability as control variables. The results portrayed important negative effect of board independence on earnings management, where the CEO Duality and institutional ownership had a particular positive impact on earnings managementItem 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