6th ICARE 2020

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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 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.
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.
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.
The Impact of Corporate Governance and Ownership Structure on Financial Performance of Materials Sector Companies in the Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Senanayake, S.W.P.S.W.H. A.; Kawshalya, M.D.P.
Corporate governance and ownership structure are becoming vital concepts of the organizations for last decades which contribute to the firm performance. This study investigates the impact of corporate governance and ownership structure on financial performance of materials sector companies in the Colombo Stock Exchange (CSE) in Sri Lanka. The findings of previous empirical researches are differ from one to another and this topic is not sufficiently investigated in Sri Lankan context. Therefore this research focuses on the impact of corporate governance and ownership structure on the financial performance of materials sector companies in CSE. The purpose of this study is to investigate the impact of corporate governance and ownership structure on financial performance which is measured by the Earning per Share (EPS) of materials sector companies. Number of board directors, number of non-executive directors, number of family directors and CEO duality are used as corporate governance variables and percentage of individual ownership, institutional ownership, resident ownership and non-resident ownership are used as ownership structure variables. The study uses secondary data of 20 materials sector companies in Colombo Stock Exchange (CSE) of Sri Lanka covering the period of 2011/2012 to 2018/2019. Data will be analyzed using a multiple regression model. The findings of this study will be important for managers and investors. Potential and existing investors may use the findings to propose better corporate governance and ownership practices as well as managers can use the findings to design corporate strategies and make investment decisions in the areas of profit goals.
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.
The Effect of Credit Risk Management on Shareholder Value: With Special Reference to Licensed Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Karunarathna, K.A.D.N.M.; Thilakarathne, P.M.C.
This study investigates the effect of credit risk management on the shareholder value of the licensed commercial banks in Sri Lanka. The banking industry is facing enormous challenges due to various risk categories exposed by banks such as credit risk, operational risk, market risk, control risk, liquidity risk, reputational risk, IT risk, legal risk and strategic risk. Among those credit risk has a significant effect on the shareholder value. In the world context researchers found that there is an effect of credit risk management on the shareholder’s value. But in the Sri Lankan context there are a few studies investigated in this important research problem. So, the findings of this study offers a better understanding on the status of the effect of credit risk management on the shareholder value of licensed commercial banks in Sri Lankan context. The sample comprises 20 licensed commercial banks encompassing ten years (from 2009/2010 to 2018/2019). The secondary data extracted from audited financial statements and annual reports of banking institutions and analysed using the multiple regression. The findings of this current study will be beneficial for decision making parties in the banking sector, on deciding how to sustain their performance efficiently and effectively by achieving the shareholder value. Further this will beneficial for the parties who are interested in conducting studies relates to credit risk management and shareholder value.
Effect of CEO Duality, Board Size, Board Composition on Corporate Governance Disclosure in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Perera, B.H.N.U.; Perera, Prabath
Corporate Governance (CG) plays an important role for better decision making to all the stakeholders of the organization. This study examines the effect of CEO duality, board size and board composition on corporate governance disclosure practices in Sri Lanka. Related prior studies have examined the level of corporate governance disclosure in various countries by using the same CG disclosure traits. However, no formal research has so far been conducted to measure the effect of duality, board size and board composition on corporate governance disclosure in Sri Lanka. So there is a need for researchers to focus on the development of more reliable and valid measurements of the corporate governance disclosure model. In accordance with that, it will fulfill the gap between effects of duality, board size, board composition in corporate governance within the Sri Lankan context. Accordingly, the main purpose of this study is to investigate the impact of corporate governance traits such as CEO duality, board size and board composition on the level of corporate governance disclosure practices in listed companies in Sri Lanka. This study employs the Corporate Governance Disclosure Score containing 29 items, which are very similar to the S&P disclosure score. To facilitate the analysis, a Corporate Governance Disclosure Index (CGDI) has been computed. For the reviewing purpose of score items, highest market capitalized 64 listed companies had been selected using market capitalization report as at 31.03.2019 of Colombo Stock Exchange. Annual reports of the fiscal year 2015 to 2019 were considered for data collection and used panel regression technique to estimate the model. The findings of this study will provide useful insights to all stakeholders of the company to investigate the accuracy of their decisions. Further, these practices help developing economies to get sustainable rates of growth and enhance the confidence of a national economy.
Impact of Firm Specific Characteristics on Enterprise Value: With Evidence of Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Ranasinghe, B.A.H.E.; Wijekoon, W.M.H.N.
To survive in the modern complex business world, companies must mobilize their strengths to achieve goals and objectives by increasing their corporate value or the enterprise value. This study investigates the impact of firm specific characteristics on enterprise value with the evidence of listed companies in Sri Lanka by spreading all most all the GICS industry groups. Firm specific characteristics such as firm size, growth, capital structure and profitability were used as independent variables. Findings of prior studies provide mixed results and comprehensive evidence is missing relating to phenomena under study. There is a lack of empirical evidence on the impact of firm specific characteristics on enterprise value from Sri Lankan context. This study employs two regression models and explains enterprise value using Tobin’s Q model and another optional regression model. These models explain Revenue Growth by Sales Growth rate, Firm size by total Assets, Capital structure by debt ratio and profitability by ROE & ROA. The sample comprises of 100 companies except those are in the financial Industry groups such as banks, diversified financial institutions and insurance companies. Data are collected for five years from companies’ annual reports, which nearly constitute 17 GICS Industry groups in Colombo Stock Exchange. The findings of the study will provide useful insights to the investors and managers to improve their enterprise value. This study addresses various theoretical stances developed by numerous scholars over last five decades and provides useful insights to the future researches also.
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.
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 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.
Voluntary Disclosure of Accounting Ratios: With special reference to Food Beverage and Tobacco sector in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Madushan., U.G.S.; Perera, Prabath
This study investigates the voluntary disclosure of accounting ratios in Sri Lankan listed companies, using the corporate annual reports of the Food Beverage and Tobacco sector. Most of companies voluntarily disclose accounting ratios by presenting their financial statements and it is especially useful to their investors and other stakeholders to take their decisions. Even though there are several numbers of research and studies that have been conducted in this area all around the world, no studies have been conducted under this topic within the Sri Lankan context. Therefore, it is particularly important to understand voluntary disclosure of accounting ratios of Sri Lankan listed companies and this study aimed to examine the accounting ratios in the corporate annual reports of the Food Beverage and Tobacco sector under the new classification of the Colombo Stock Exchange (CSE). The researcher selected 47 companies which are listed in the Food Beverage and Tobacco Industry of Colombo Stock Exchange (CSE) which were observed over the period from 2015 to 2019. This study used count data regression (Poisson) analysis with incident rate ratios to find the association between the firms’ voluntary disclosures of accounting ratios and other firm specific characteristics of Sri Lankan listed companies. The findings of this study will be beneficial to both agents and principals in assessing associated risks.
The Association between Corporate Social Responsibility and Financial Performance - with Special Reference to Public Quoted Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Dilrukshika, M.G.C.M.; Lakshan, A.M.I.
The concept of corporate social responsibility (CSR) has developed in the Western world since the twentieth century (1950). Many businesses neglect to engage in social work and some business organizations voluntarily engage in different types of CSR. Also, listed companies spend huge amounts of money in CSR activities for different purposes. The impact of those spending is not clear and especially how CSR spending influence on performance of companies is a bit confusing. as well as, mixed empirical evidence has been found in relevant previous studies on the relationship between CSR and Financial performance. Moreover, almost every previous study provides evidence of developed countries. This investigation is based to fill the knowledge gap of developing countries. Accordingly, the aim of this study is to examine the impact of CSR on financial performance of selected listed companies in Sri Lanka. Based on literature, independent variable is CSR and three dependent variables (ROA, ROE and EPS), and two control variables Firm Size and Leverage have been chosen in this study. The sample of this study consists of 75 listed companies on the Colombo stock exchange and they are selected based on their market capitalization. Data collected from annual reports covering periods from 2015 to 2019. Data were analyzed using regression analysis and E-Views packages. findings of this study will be useful for listed companies to gain an understanding about the direction of impact of CSR on their profitability and they can take decisions regarding their avenue and amount of CSR spending. Further, findings can be useful to offer pivotal implications about CSR and Financial performance for policy makers and regulators.
Effect of Trade Receivables Management on The Profitability of Retailing Firms Listed in The Colombo Stock Exchange
(Faculty of Science, University of Kelaniya, Sri Lanka, 2020) Akmeemana, N.D.; Perera, K.H.
Trade receivables will lead to increased core revenue and operational profits. However, if trade debtors due is not collected within the agreed time period, it will lead to bad and overdue receivables, leading to a decrease in operational profits and ultimately total profit. Therefore, this study was conducted to explore the relationship between Trade Receivable Management (TRM) and profitability of retailing companies listed under the Colombo Stock Exchange for a period of nine years. There are thirteen companies listed under the retailing industry and the total population was selected for the study to ascertain a better and reliable conclusion. Profitability was measured using Return on Asset (ROA); and the Debtor Collection Period (DCP), bad debt to receivables ratio and accounts receivables turnover were used to measure the trade receivables management of companies. Secondary data was obtained from the published annual reports of the sample and analyzed using SPSS. Correlation and regression analysis was used to measure the results. Findings of this research will help the management in making decisions that will assist in the overall working capital management in formulating their strategies and when negotiating with clients, credit control managers in the organization, etc. Also this study will assist researchers to build into the existing body of knowledge to assist in additional researches.
Impact of Board Structure on Financial Performance with Special Reference to Sri Lankan Public Quoted Companies
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Perera, K.T.J.J.; Jayamaha, A.
Corporate governance received a considerable attention during last 20 years. Good corporate governance practices are regarded as important in order to reduce the risk for investors, attracting investment capital and improving the performance of companies. However, the way in which corporate governance is organized vary from country to country, depending on their economic, political and social context. The security and exchange commission of Sri Lanka is committed to improving and practicing the use of international best practices which is essential for the development capital market improvement of professionalism among market participate and raising the profile of Sri Lankan capital market in keeping with its objectives. The existing studies showed that large board size has a positive effect, CEO duality has a negative impact, appraisal of board performance has positive effect and director’s stockholding has a positive impact on firm’s performance, but there is conflicting point between them the significance of current research is aimed to clarify this conflicting point among these studies. The main object of this study is to find out the significant impact between board structures on firm performance. To get the efficiency Performance through the best corporate governance 40 public quoted companies were selected as the sample of five years starting from 2014 to 2018 financial years based on higher capitalization. Mainly three corporate governance components were used in this study, Board stockholdings, CEO Duality (CED) and Board Size (BZ). Furthermore, the firm performance is measured by accounting base measurements (ROA and ROE and ROCE). All the data were collected from annual reports of each companies and data were analyzed by using descriptive statistics, Pearson correlation and regression analysis utilized to find out the significance of board structures impacts on financial performance.
Impact of Bank Income Diversification on Bank Performance and Stability: Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Wijethnuga, D.M.B.P.; Aruppala, W.D.N.
Banks are using revenue diversification as a strategy to improve bank performance and reduce volatility. If diversified activities are less risky and improve the return banks will always try to improve the revenue diversification as much as possible. This study investigates the impact of bank income diversification on bank performance and stability of Sri Lankan commercial banks. Banks are facing huge competition in their industry. Most banks are earning equivalent interest income from lending activities. Thus, banks try to identify new ways to generate income. Otherwise, they must keep a very slight margin from the loans to sustain in the highly competitive market. The main objective of the study is to investigate the impact of income diversification on bank performance and stability of Sri Lankan listed commercial banks. Further strategies to face high competition within commercial banks in Sri Lanka will also be examined. Data used in the analysis consists of 11 local licensed commercial banks that were operating in the sample period 2010-2019. The secondary data are collected from annual audited financial statements and annual reports of each company accessed through the CSE web site. The researcher integrated some control variables into model such as asset size, equity to assets ratio, and the asset growth ratio etc… In this study it is attempted to ascertain that there is no excluded independent variable, which could affect the relationship between income diversification and bank performance and stability. The expected findings of the research would be there will be a negative relationship between bank income diversification and bank performance and stability because the degree of diversification is not at the peak within the Sri Lankan context. The findings of the study will provide useful insights into regulatory bodies, investors, researchers, and bankers.
Users’ Perspective on the Adoption of E-Learning in Sri Lanka: Evidence from Accountancy Undergraduates of University of Kelaniya
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Kumarasiri, U.G.T.T.; Aruppala, W.D.N.
Teaching and learning has evolved overtime and e-learning is a one of wonderful phase to teach and learn in the blended learning environment. In Sri Lanka, most of universities and higher educational institutions effectively use e-learning for their teaching and learning. Acceptance of e-learning mainly depend on users’ perspectives and undergraduates has different perspectives. COVID 19 pandemic increased the e-learning usage among teachers and students all over the country. Department of Accountancy of University of Kelaniya used to apply blended learning and teaching method during last decade and shifted online teaching and learning with the effect of COVID 19 pandemic. This study aims identify the users’ perspectives of adoption of e-learning in Sri Lanka providing a special attention to accountancy undergraduates of university of Kelaniya. The conduct of this study involves quantitative approach and a survey is conduct among 280 undergraduate students who use Moodle based learning management system and zoom platform extensively at teaching and learning activities. The study analyzes perspectives relevant to acceptance of the elearning namely, attitude towards e-learning, self-efficiency, performance expectancy, internet experience, personal innovativeness, availability of ICT infrastructure and social influence. The findings of the study will provide useful information to the decision makers related with the e-learning. As well as it is important to administration of the university, government, undergraduates and also higher education institutions who have already developed and seeking to adopt learning management systems in their institutions as well.
The Impact of Credit Risk Management Practices on profitability of the commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Samarasinghe, R.I.M.; Madurapperuma, M.W.
Banks are the largest financial institution in Sri Lanka. There are 25 commercial banks in Sri Lanka. Risk management is very essential for the banks to survive in the market. Commercial banks face different types of risks today. Such as: Credit risk, Interest rate risk, Operational risk and Liquidity risk. Credit risk is one of the most significant risks that banks face. Commercial banks face different types of risks today. Such as: Credit risk, Interest rate risk, Operational risk and Liquidity risk. Throughout these risks, credit risk is the major risk face by the commercial bank, because the major incomes of the banks align with creation of credits. Bank break down as a result of poor credit risk management practices of the banks. We have some past experience regarding these situations in our country. The main purpose of this research is to “Identify the impact of credit risk management practices on the profitability of commercial banks in Sri Lanka”. In this study it is expected to find the relationship between the variables that are described below and it is going to analyse regression, correlation and testing hypothesis to understanding the relationships between dependent variable & independent variable. Dependent variable measured through Return on Asset (ROA) and independent measured through variable Capital adequacy ratio (CAR), Loan to Deposit Ratio (LDR), Loans to Assets Ratio (LAR), Leverage ratio (LR), and Loan to Deposit Ratio (LDR). Secondary data collected from secondary sources, employed the period of 2015 to 2019. The data will be analysed using panel data regression model. The results will be of interest to bank costumers, accounting practitioners, accounting preparers, banking investors who are dealing with and seeking to deal with commercial banks in Sri Lanka.
Impact of Sustainability Reporting on Organizational Financial Performance
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Thathsarani, S.H.T.; Lakshan, A.M.I.
Sustainability is meeting our own needs without compromising the ability of future generation to meet their own needs. Sustainability reports present organization values, governance model and demonstrate the organization strategy via the information published about economic, environmental and social impact. This research investigates the impact of SR on organizational financial performance. Moreover, SR expects to influence overall performance and profitability of the organizations. It might impact on organizational financial performance positively as well as negatively. In Sri Lanka context, this area is under researched and in–depth investigations need to be carried out to recognize the factual impact of sustainability reporting. Therefore, the research problem is to investigate how SR impact on the companies’ financial performance. Accordingly, the aim of this study is to empirically examine sustainability reporting in publicly listed companies (financial sector) in Sri Lanka, its extent, nature and possible drivers, specifically considering the use of the Key Performance Indicators and its impact on firm performance. The study is based on secondary data from 13 banks, 41 diversified financials and 08 insurance companies listed on Colombo Stock Exchange. The independent variable is SR (general, economic, environmental, and social) and dependent variables are Return on Assets (ROA) and Return on Equity (ROE). Apart from these, the analysis uses control variables of total assets (TA) and total equity (TE). The study covers data for 5 years from 2015 to 2019. Panel data regression was used to analyze data using E-views. The findings of the study important to the stakeholders of the relevant companies mainly, primarily investors who are interested in the accuracy of their investment decisions and the customers who cares about the companies’ stability and regulatory bodies of SR initiatives. The findings are also important to the employees as they focus on remuneration increments bonuses and job security.