6th ICARE 2020

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/21993

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The Effect of Macroeconomic Variables on Stock Market Returns in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Narayana, S.N.B.M.V.N.; Thilakerathne, P.M.C.
The stock market investment is one of many potential investment vehicles in which investors can invest their disposable income and reap the returns of its growth over a period of time. When investors value stocks, they mostly consider about the macroeconomic variables. This study investigates the effect of macroeconomic variables on the stock market returns in Sri Lanka. During the period from 2009 to 2019 macroeconomic factors were experienced unexpected changes due to national and international economic conditions. Even though, there are various researchers’ investigated the impact of macroeconomic variables on the stock prices or stock returns, there were only a few researchers’ investigated the relationship between macroeconomic factors and the stock market returns by considering above significant periodical changes. Therefore, this study investigates the effect of macroeconomic variables on stock returns. This study employs the multiple regression analysis by following (Balagobei, 2017); (Ilahi, Ali and Jamil, 2015). Selected macroeconomic variables are Inflation rate (INF), Interest rate (IN) and Exchange rate (EX). The stock market return was measured by using All Share Price Index based on monthly observations of listed companies selected for the study. This study will facilitate investor confidence, make optimal decisions when macroeconomic factors diverge in different time periods in the economy. Therefore, outcome of this research and subsequent policy recommendations may assist policy makers to prudently manage the macroeconomic forces to optimize the performance of Sri Lankan capital market in order to formulate of economic targets and policies.
The Impact of Integrated Reporting on Firm Performance: The Case of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayalath, C.Y.; Lakshan, A.M.I.
Integrated Reporting is a process found on Integrated Thinking which relates communications about organizations strategy, governance, performance and prospects. This results in value creation over the short, medium and long term. This study investigates the impact of integrated reporting (IR) on firm performance with relevant to the listed companies in Sri Lanka. IR was introduced to the reporting world around seven years back as an official reporting framework to the corporate world. Therefore, the concept IR is relatively new to the reporting world. Hence, the application of the concept, the impact of it is yet to discover. Specifically, how IR impact on firm performance is under research and in Sri Lankan context, it is at zero level. Therefore, the research problem of this study is to investigate the impact of IR adaption on the performance of organizations. This Study is identified as a quantitative study which draws on secondary data. This research is based on all the IR adopted companies which are listed in Colombo Stock Exchange. Therefore, 79 companies listed in the CSE are selected for the purpose of conducting this research. Among 79 companies, 38 companies were eliminated due to some limitations. The integrated reporting adopted period is designated as 2015 to 2019. Therefore 41 companies were selected as the sample which comprises 205 firm year observations. IR is measured by using an index which was used by Zhou et al. (2017) and firm performance were measured based on ROA and Tobin’s Q. This study employs Ordinary lease square multi variate regression analysis to investigate the impact of IR on firm performance. The findings of the study will provide useful insights to the accounting professionals and managers who are seeking for the adoption of IR in their companies and regulators seeking to accelerate the adoption of IR among listed companies.
The Relationship between Board Structure & Firm Performance
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Kumara, H.G.T.S.; Aruppala, W.D.N.
This study is examine the association between board structure and firm financial performance of companies in Sri Lanka and describes the attributes of these firms and their boards. Various aspects of the board such as board independence, board size, board meeting, board attendance and aspects of leadership with role duality are addressed in this study the connection between board structure and firm performance has attracted much attention, especially in emerging economies. Related prior studies have found mixed empirical evidence depending on research methodologies or research periods employed. Moreover, almost all prior studies provide evidence in relation to developed and emerging countries. Given the contextual differences of developed, emerging and developing countries, the findings of this study offers a better understanding on the status of the relationship between Board Structure and Firm Performance in Sri Lanka. Board structures of 44 companies sector in Food, Beverages & Tobacco listed on Colombo Stock Exchange (CSE) have been studied for their impact on performance of companies. Panel data regression methodology has been used on data for five financial years from 2015to 2019 for the selected companies. Performance measures considered are Return on Equity (ROE) and accounting-based measure (return on assets [ROA]). The findings of the study will provide useful insights to the interest parties for purpose of decision making and companies deployed cost for the maintained their board of directors. Companies expected the return from their boards than their cost. Therefore this study providing information for the interest parties to the how to affected board of director’s firm financial performance.
The Impact of Sustainability Reporting on Company Performance of Public Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Sanurika, M.R.; Perera, Prabath
Sustainability Reporting is a voluntary requirement that consists of three aspects which are economic performance, environmental performance and social performance. The purpose of this study is to investigate the impact of sustainability reporting as a whole, and each of the aspects of sustainability reporting on company performance of Sri Lankan public listed companies. The sample of this study consists of all the non-financial companies listed in the Colombo Stock Exchange that disclose sustainability reports using GRI G4 guidelines/GRI Standards during the period of 2014/2015 to 2018/2019. For this study, secondary data were collected from the Colombo Stock Exchange and official websites of companies. Sustainability reporting, disclosure of economic performance, disclosure of environmental performance and disclosure of social performance were considered as the independent variables. Global Reporting Initiative (GRI) guidelines were assisted for calculating the disclosure index as a basis to measure all independent variables. Return on Asset (ROA) was used to measure the company performance. Descriptive statistics and panel data regression were used to test hypotheses using E-views statistical package. The findings of this study encourage public listed companies to adopt sustainability reporting disclosures according to GRI guidelines mainly to attract investors, to take operational decisions, to generate revenue and to achieve shareholder objectives.
Impact of Dividend Policy on Firm Performance: Empirical Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Athukorala, K.A.D.H.L.K.; Aruppala, W.D.N.
This study aims to investigate the relationship between the dividend policy and firm performance of manufacturing companies listed in CSE. Data is collected from all manufacturing companies listed in CSE that has issued dividend during last five (05) years. The data from annual reports of sample companies are the evidences for the research. While Return on Equity, Return on Assets are used to measure firm performance Dividend Payout Ratio and Earning per Share will measure the dividend policy. These data are proceed with statistical tests; regression model, correlation model and descriptive statistics using e-views and turned into the final output. Correlation and Regression model is used to analyse data and the finding of this study is important in making decisions with an insight of the relationship between dividend policy and firm performance. This study is subject to the limitations of sample base and it uses data only from manufacturing companies listed in CSE. The findings may be vary if the sample is large.This study contributes to extant literature in Sri Lanka and managers can use the findings in making decisions to satisfying shareholders expectations and balance firm’s profitability at the same time.
Impact of Risk Governance Practices on Financial Performance of Listed Banks, Finance Companies and Insurance Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Ramasinghe, D.S.E.; Kawshalya, M.D.P.
This study investigates the impact of risk governance practices on financial performance of listed banks, finance and insurance companies in Sri Lanka. Basically, when considering the performances of banks, finance and insurance companies, they will have to make changes to their risk governance to guide all employees and teams to achieve specific targets and increase their profitability. Even though these companies have to pay more attention on the risk governance practices for an effective progress, there were some cases in Sri Lanka that had unfortunate track records as some of those institutes have been collapsed which led the society suffer the whole economy. This study aims to provide an original insight into risk governance variables that affect the financial performance of listed banks, finance and insurance companies of Sri Lanka by analysing the risk governance practices and to which extent those risk governance practices have made an impact to financial performance. Sample of the study is selected as the 71 companies from the sectors, banks (10), finance companies (49) and insurance companies (12). Since the independent variable of this study is “risk governance”, to measure the variable researcher has used an already developed comprehensive Risk Governance Index (RGI) by Mostafa Kamal Hassan (2009). This study will carry significant importance for risk managers, bank executives, regulatory authorities, policy makers and future researchers. Specially when analysing developing tools for banks, finance companies and insurance companies this study will be more of use to help management discern difficultto-see risks and to improve response speed of their financial performance.
Impact of Challenges in Fair Value Measurement in Biological Assets on Financial Information from auditors’ perception
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayawardana, W.M.S.S.; Munasinghe, M.A.T.K.
Agriculture is the key contributor to the Gross Domestic Production in Sri Lanka. This study investigates the impact of challenges in fair value measurement in biological assets on financial information from auditors’ perceptions in Sri Lanka. Related prior studies have found mixed empirical evidence about the challenges in fair value measurement of biological assets. The findings of this study provide a better understanding of the challenges of measuring the fair value of biological assets and their impact on a company's financial information. Accordingly, the purpose of this study is to identify the effect of challenges in fair value measurement of biological assets on financial information. This study uses auditors’ perceptions to identify the challenges of fair value measurement of biological assets and those effects on financial information. A sample of 70 responses uses to achieve the research purpose. Descriptive and inferential statistics will be applied in data analysis. The findings of the study will provide useful insights for accounting regulators in assessing whether financial information will be affected by the challenges that arise when measuring fair value. Furthermore, the results will be of interest to accounting professionals, accounting developers, and investors.
The Effect of Corporate Governance Characteristics on Corporate Social Responsibility Disclosure: Empirical Evidence from Public Listed Companies of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Karunarathna, N.P.; Lakshan, A.M.I.
In the current business environment, organizations believe that they have an obligation to act for the benefit of the community at large. CSR disclosure has become an essential requirement of stakeholders and thus, it become a mainstream component of corporate strategies. This study investigates the level of Corporate Social Responsibility (CSR) disclosure provided in the annual reports of companies listed on Colombo Stock Exchange (CSE) of Sri Lanka and to assess the impact of corporate governance characteristics on the extent of CSR disclosures. As a developing country, the underlined research area is not much discussed in previous researches in Sri Lankan context. CEO duality, board independence, audit committee, foreign ownership, board meetings and board size were considered as independent variables. Corporate social responsibility disclosures were used as dependent variables. Firm size, profitability and leverage were used as control variables. Data was collected for the last five financial years (2014/15 to 2018/19) from annual reports of 90 listed companies on Colombo Stock Exchange (CSE) of Sri Lanka representing all business sectors other than banks, diversified finance and insurance. A literature review was carried out to identify factors of corporate governance and corporate social responsibility disclosure. The research hypothesis was formulated and descriptive statistics are used to examine the importance of identifying corporate governance factors, and correlation and regression analyses are performed to identify relationships/impacts between independent variables and dependent variable. The findings of the study will provide useful insights to stakeholders, decision makers, investors and statutory bodies to take into consideration in identifying the corporate governance characteristics and CSR disclosures related measures.
Impact of Cash Conversion Cycle on Firm’s Profitability with special reference to Listed Beverage Food and Tobacco Industry and Consumer Services Industry in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Palayangoda, I.S.; Wijekoon, W.M.H.N.
Cash Conversion Cycle is one of the most widely used measurement to evaluate the risks and returns associated to liquidity management. Every corporate organization is extremely concerned about how to sustain and improve profitability hence they have to keep an eye on the factors affecting the profitability. Therefore the purpose of the study is to identify the impact of Cash Conversion Cycle on profitability of selected Beverage Food and Tobacco companies and Consumer service companies in Sri Lanka. Most of studies are focused to the listed companies in developed countries. Further, there is a less attention to the Beverage Food and Tobacco sector and Consumer Services companies and no previous studies have done a comparison between two sectors. Therefore this study focuses to do a comparison between Beverage Food and Tobacco sector and Consumer Services sector in Sri Lanka to fulfill that gap. The profitability which is the dependent variable of this study measured in terms of Return on Equity and Return on Assets. The Cash Conversion Cycle is determined by Inventory Conversion Period, Debtor Conversion Period, and Payable Conversion Period. The sample includes twenty Beverage Food and Tobacco companies and twenty Consumer services companies and data were collected for the period from 2015 to 2019. In this study, regression and correlation statistical techniques are used to estimate the impact and the relationship between CCC and profitability. Findings of the study will be of interest to stakeholders of the company including managers in making their decisions.
The Effect of Corporate Governance on Equity Finance of Sri Lankan Listed Companies
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Premathilaka, D.M.R.; Lakshan, A.M.I.
The concept of corporate governance (CG) is a common concept that must be used by every listed company in the world. Further, better CG results in increasing investors trust towards the corporation and on the other hand, it helps corporations to access more equity finance in their capital market. This study aims to investigate the type of relationship that exists between CG and equity finance in Sri Lankan listed companies. In the context of Sri Lanka, to the researcher’s best knowledge, there is no any published study available in terms of firm-level CG and equity financing patterns. This study attempts bridge this gap and to enhance the existing literatures. This study aims to examine the relationship between firm-level Corporate Governance (CG) and firm equity finance as the primary objective. Subsequently, the study aims to investigate the relationships between individual organizational factors (Frim size, Profitability, Leverage, Age and Growth rate) and equity finance while identifying the variable that has a highest impact on firm’s equity finance. To measure the firm-level CG Index (CGI), this study uses 59 dichotomous CG practices under five sub-indices (Ownership concentration, Board structure and procedures, Shareholder rights, Internal controls and Disclosures and Corporate social responsibilities). Further, this study uses secondary data from published annual reports. Sample size is 76 list companies and data collected for 4 years from 2016 to 2019. Ordinary Least Squared (OLS) multiple regression model is used in SPSS to identify the relationships. The findings of this study are highlighted the need for Sri Lankan companies to formulate an optimal CG structure, which in turn would lead to the eradication of possible malpractices such as corruption, fraud and misappropriation of resources to ensure higher financial performance and long-term sustainability. Hence, policy makers and regulators such as SEC, CA Sri Lanka, and the Central Bank of Sri Lanka can draw insights from the findings of this study in making CG reforms in relation to minority protection and other related areas in developing an appropriate CG structure for public listed companies.
Impact of Corporate Social Responsibility on Financial Performance of Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Madushika, R.A.D.; Munasinghe, M.A.T.K.
Corporate Social Responsibility has become an important area of attention for many organizations. 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 and CSR information is disclosed voluntarily. This study was carried out to identify the impact of CSR activities disclosure on financial performance in banks in Sri Lanka. Study concerned about eleven commercial banks and three specialized banks as the sample. The study was carried out using secondary data. Data were obtained by using annual reports, websites and news articles and journals of the selected banks over the last eight years from 2011. The financial performance of the banks was measure by using ROA & ROE. CSR disclosure was measured by using Global Reporting Initiatives Guidelines. Findings of this study can be important for Sri Lankan banks and to policymakers in understanding the current status of CSR disclosure and factors that affect their disclosure activities. Future studies might consider comparing banking sector CSR reporting of several countries, which might give insight into best practices in different economy.
Impact of Sustainability Reporting Practices on Financial Performance in Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Peiris, K.A.A.S.R.; Sujeewa, G.M.M.
The changing global environment is challenging businesses to look beyond financial performance to drive business. Sustainability has potential to influence company performance and its reporting contribute organizations to measure, understand and communicate their economic, environmental, social and governance performance, and then set goals, and manage change more effectively. This study is investigated the impact of Sustainability Reporting Practices on Financial Performance of listed companies in Sri Lanka by using the Global Reporting Initiative (GRI) framework. Data is collected from annual reports of the listed companies in CSE for the years 2015-2019 by representing five sectors: Beverage & Tobacco, Construction & Engineering, Manufacturing, Plantation and Power & Energy. The study measures and analyzes economic, environmental and social performance parameters, as suggested in the GRI guidelines. Statistical analysis would discuss on Sustainability Reporting practices and the Financial Performance of listed companies in CSE. The findings of the study would be suggested that managers, practitioners, regulators and policy makers in emerging economies should adopt the GRI guidelines to report sustainability performance disclosures and focus on specific factors to improve the quality of sustainability disclosures. The main contribution of this study is that it aims to increase the visibility of organizations and there continue ethical business practices.
The Relationship between Bank Specific Factors and Bank Profitability: Evidence from Licensed Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayasooriya, H.M.U.S.; Gunasekare, U.L.T.P.
Banking sector in Sri Lanka plays a key role in the economic development. It is normally agreed that a solid and healthy banking system is a prerequisite for sustainable economic growth. The profitability of the Sri Lankan commercial banks measured by the Return on Assets (ROA). It has been performed a stronger percentage in recent compared to the other SAARC counties. In Sri Lanka, the profitability of commercial banks has not been investigated; there is no clear understanding on what internal (firm-specific) factors influence their corporate financing decision. The objective of this research is to identify the relationship between bank specific factors and bank profitability. Data is collected from Sri Lankan commercial banks in Sri Lanka for 9 years from 2011 to 2019. A panel of 12 commercial banks were incorporated for the study to improve the accuracy and reliability of the research. This paper uses the pooled Ordinary Least Square (POLS) method to analyze the data. The empirical results have found that bank size, assets management under bank specific factors have a significant influence on the commercial banks profitability in Sri Lanka.
Impact of Corporate Governance on Capital Structure Decisions of the Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Weerasinghe, W.P.U.D.; Wijekoon, W.M.H.N.
The objective of the study is to investigate whether corporate governance attributes such as board size, outside directors, CEO duality, Board experience, and director remuneration impact on capital structure decisions of listed companies in Sri Lanka. Most of the prior studies examined the relationship between corporate governance and performance of listed companies. However, limited research has been done on corporate governance and capital structure decisions in developing countries particularly in Asian and Sri Lankan context. This gap in the literature provides the rationale for the study. The sample of the research includes 50 companies from material and Food, Beverage & Tobacco sector. Data were collected from annual reports of companies for five year period. The findings indicate that the size of the board, external directors and the experience of the board are positively related to the overall debt ratio and the long-term debt ratio, while the remuneration of directors is negatively related. The duality of CEO is negatively linked to the long-term debt ratio. CEO duality in all regressions is considered strongly negligible. Total debt ratio and the long-term debt ratio are negatively related to control variables such as profitability and liquidity, while firm size is positively related. The tangibility of assets is linked positively to the long-term debt ratio and negatively to the total debt ratio. While Sri Lankan firms, relative to firms in developed countries, have poor internal and external corporate governance structures, the empirical findings indicate that corporate governance characteristics partially explain the financing actions of Sri Lankan firms. The empirical findings of this study provide useful insights to corporate managers in building an appropriate capital structure and regulatory authorities in enacting legislation and improving institutional support to make the country's corporate governance structures function more efficiently. This study contributes to the literature by providing empirical evidences from a developing country, Sri Lanka.
Impact of Institutional Ownership on Value Relevance of Accounting Information in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Maheshika, G.A.R.; Kawshalya, M.D.P.
The value relevance of accounting information has received significant attention in both developed and developing countries for lase few decades. This study investigates the impact of institutional ownership on value relevance of accounting information in Sri Lankan context. There are only few prior studies have conducted to assess the value relevance of accounting information and influence of institutional ownership level in Sri Lankan context. Further, those studies haven’t considered how it might be affected by firm level characteristics such as institutional ownership, growth, firm size, firm industry, leverage and governance. Therefore, this study tries to fill this research gap by assessing the impact of institutional ownership and other firm specific characteristics on value relevance of accounting information. This study employs Ohlson (1995) price regression model to investigate the value relevance of accounting information. It explains Market Price per Share (MPPS) using earnings per share (EPS), book value of per share (BVPS), institutional ownership level, growth in assets, changes in financial leverage and firm size. The sample comprises 35 firms and 175 firm-year observations constitute to list manufacturing in CSE. This study will use a panel regression model to estimate model. The finding of this study will promotes the understanding of the influence of institutional investors on firm’s market value. Further this study can serve as a guide for accounting researchers studying other emerging markets. Capital market regulators can provide guidelines in the form of information characteristics and elements of financial statements that need improvement and enhance the quality of accounting information by identifying the strengths and weakness in their financial reports.
Effect of Corporate Governance on Firm Capital Structure; Evidence from Sri Lankan Context
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Manawadu, J.C.; Tilakasiri, K.K.
This study explores the effect of corporate governance on firm capital structure in Sri Lanka. Though the governance on financial decisions has much researched in developed country context, scarcely any local studies have been found. Moreover, prior empirical studies have presented mixed results and have failed to identify most significant governing attributes affecting capital structure. This study fills this gap by taking into consideration significant attributes. Therein study aims to explore the effect of governance mechanisms such as board independence, CEO duality, board committees and board independence on capital structure decisions in Sri Lanka. Multiple regression analysis is employed to identify the association between corporate governance attributes and capital structures of Sri Lankan firms. This study employs a representative sample of all non-financial sector companies for a 5 years of latest period from 2014 to 2019. The sample comprises of 50 non-financial firms and 250 firm-year observations. Thereby, the paper will be of much value for leading Sri Lankan corporates to successfully compete by understanding importance of corporate governance on firm decisions. Educators are expected to gain knowledge and potential researchers will also be beneficiaries.
Impact of IFRS Adoption on Financial Ratios Evidence from Materials and Capital Goods Sectors in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Madhushankha, J.; Kawshalya, M.D.P.
In preparing their financial statements, the companies listed on the Colombo Stock Exchange (CSE) were mandated to adopt International Financial Reporting Standards (IFRS/SLFRS) with effect from 01 January 2012. Sri Lankan companies were reporting under the Sri Lanka Accounting Standards (SLAS) prior to the introduction of IFRS. The objective of this study is to investigate the impact of the adoption of IFRS on the key financial ratios of the materials & capital goods sectors of Sri Lanka. The sample consist of 30 companies listed in the CSE during the six years from 2009 to 2014 under material and capital goods sectors. To gather data for the analysis, audited financial statements were used. This analysis compares pre-adoption ratios under SLAS with post-adoption ratios in SLFRS to evaluate this impact on financial statements. The findings of the study will provide useful insights to the accounting regulatory bodies in evaluating whether its stated objective of IFRS adoption toward financial statements is being accomplished.
The Impact of CSR Activities on Bank Performance in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Sisara, G.A.S.; Munasinghe, M.A.T.K.
Corporate Social Responsibility (CSR) is used as a strategy to improve organizational performance. Most of the banks conduct different CSR activities focusing on diverse stakeholder groups. This study investigates to reveal the impact of those CSR activities on bank performance. The problem of this study, existing studies provide evidence of the relationship between CSR activities and the financial performance of the banks. However, it is not known how particular category of CSR activities influence the organizational performance. Thus, this study tries to identify the relationship in terms of separate CSR activity categories and performance of the banks in Sri Lanka. The purpose of this study to identify the impact of each specific category of CSR activities on bank performance. Such knowledge will be helpful for banks in rethinking of their CSR strategy. The methodology that is used for analysis of the study, CSR activities are measured by using CSR score for separate categories of education oriented CSR activities, environment oriented CSR activities, employee oriented CSR activities, customer oriented CSR activities, health oriented CSR activities, and society oriented CSR activities. Control variables are firm size, number of employees, risk and Growth. The period is designed from 2012 to 2019 in eight years. The sample includes thirteen (13) licensed local commercial banks in Sri Lanka. The data collected by using annual reports and sustainability reports. The study will use the panel data regression model for the analysis. The finding of the research will be supported by the decision makers of banks in related with investment of CSR activities. Managers need to balance shareholders as well as society. Stakeholder’s trust is more important to create value for the entity. Based on the findings managers can decide investment of the CSR activities that have positive impact areas and reduce or avoid negative areas. So, the limited resources can be allocated efficiently and effectively. Correct decisions must important because CSR investment is high.
A Study of Online Banking Adoption among University Graduates: An Empirical Study Using the Extended TAM Model
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Bandara, P.B.C.M.; Perera, Prabath
This research reports the findings of a study concerning the acceptance of university graduates’ adoption within the context of Sri Lankan online banking services whereby the research framework is based on Technology Acceptance Model (TAM) 2 and the research model included factors that would influence the acceptance of online banking in Sri Lanka. Accordingly, the main objective of this study was to identify the factors affecting University graduates’ adoption of online banking in Sri Lanka using the extended TAM model. The chosen sample of 250 graduates, were selected as a sample based on the convenience sampling method and they consist of online banking customers who were graduated from universities in the Western Province of Sri Lanka. Researchers used primary data for the data collection. The collected quantitative data were analyzed through SPSS using descriptive analysis techniques. According to the TAM 2 model, there were eight factors such as perceived ease of use, perceived usefulness, security and trust, subjective norm, image, output quality, experience and job relevance were considered as independent variables with the university graduates’ adoption of online banking. The results of this study can be used by various parties such as banks, online banking service providers and future researchers. Also action can be taken to improve customer adoption of online banking.
Impact of IFRS Adoption on Audit Cost
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Fernando, K.D.M.; Kawshalya, M.D.P.
Regulators and standard setters claim that International Financial Reporting Standards (IFRS) enhance the comparability and quality of financial reporting. However, the true returns to IFRS adoption should be evaluated by trading off the costs of transition and any recurring costs of reporting against the recurring benefits of comparability and increased reporting quality. This study investigates the impact of adopting IFRS on audit fees of manufacturing companies in Sri Lanka. There are many researches conducted on IFRS, but few researches which are directly concerned with the costs of IFRS adoption focusing on audit fees whereas no research was found in Sri Lankan context. Moreover, this study provides a better insight on the relationship between disclosure and regulatory environments and audit fees within a single country setting, which brings a better understanding on the audit fee formation. Accordingly, the purpose of this study is to investigate the impact of IFRS adoption on audit fees in listed manufacturing companies Sri Lanka, by comparing audit fees in pre- and post-IFRS adoption periods. This study employs a model introduced by Emmanuel T. De George, Colin B. Ferguson, Nasser A. Spear (2013) to investigate the relationship. The pre-IFRS period is designated as 2009 through to 2012, and the post-IFRS period is designated as 2013 through to 2019. The sample comprises all 30 firms listed in Colombo Stock Exchange under manufacturing sector. The secondary data extracted will be analyzed using the multiple regression technique in order to test the formulated hypotheses. The findings of the study will provide useful insights to the accounting regulatory bodies in evaluating cost of IFRS adoption. And also, this will be helpful to standard setters, companies, auditors and future researchers as well.