6th ICARE 2020
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/21993
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Item The Effect of Corporate Governance on Tax Avoidance in Listed Companies of Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Wimalaweera, H.C.C.; Perera, PrabathTax avoidance is a transaction scheme to reduce tax amounts by making use of the loophole of tax regulations in a country. Corporate Governance is a mechanism or system that provides regulations and controls a company to create value added for all stockholders. The purpose of this study is to find the effect of corporate governance on tax avoidance in listed companies in Sri Lanka. This area is not widely researched in Sri Lanka, but a few studies have been selected in this area to study the global context and up until now, researchers have failed to generate knowledge that can fit into the local context. So, the focus of this study is to fill this knowledge gap and to determine the exact relationship between corporate governance and tax avoidance in Sri Lanka. The dependent variable in this research is tax avoidance and the independent variables in this research are institutional ownership, managerial ownership, independent commissioner board, audit committee and audit quality. The samples of this study were 50 companies in the food, beverage and tobacco sector and the capital goods sector listed in the Colombo Stock Exchange for the period of 2014 – 2020. The data were analyzed using the E-views Statistical Package. The findings of the study can have important implications for the Government, business owners, researchers and academicians, board of directors and employees, bank and financial institutions and potential investors.Item 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, PrabathSustainability 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.Item 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, PrabathSustainability 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.Item 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, PrabathCorporate 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.Item 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, PrabathThis 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.Item Reporting Intellectual Capital in Annual Reports: Evidence from Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Herath, H.M.M.N.; Perera, PrabathThis study is aimed at investigating the relationship between a firm’s characteristics and intellectual capital disclosure. Intellectual capital reporting is mostly unregulated in Sri Lanka, due to the fact that it is voluntary disclosure. In the recent past, there has been a growing dissatisfaction with traditional financial reporting. Further, Intellectual Capital (IC) performs an increasingly more important position in sustaining competitive advantages and creating corporate value for a corporation. Therefore, there is a strong need to study whether firm characters influence the extent and variety of disclosures presently made by the firms in Sri Lanka. The dependent variable in this research is intellectual capital disclosure and it is measured by the content analysis method. Content analysis is supported by a disclosure index that measured a variety of intellectual capital disclosure. The independent variables in this research are a firm’s characteristics, industry type, firm size, leverage, and auditor type. Data was collected from the annual reports of 100 non-financial firms listed in the Colombo Stock Exchange (CSE) for three years from 2016/2017 to 2018/2019 and data was analyzed by using EViews statistical package. This study used descriptive statistics, correlation, and regression analysis to find out the association between independent and dependent variables. The findings of the study have important implications for regulatory organizations (policymakers), stakeholders, and nongovernmental, organizations.Item The Impact of Corporate Governance on Capital Structure and Firm Performance: Evidence from Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Ganegodage, C.M.; Perera, PrabathCorporate governance is a growing area of management research, especially among listed companies, and has received much attention in recent years. Changes in the economic environment and competition have made company's survival and success more important than ever, hence companies need adequate financial resources and better earnings to promote their goals. Therefore, factors affecting the capital structure and profitability of companies should be carefully considered. This study examines the impact of corporate governance on the capital structure and firm performance in the listed companies of Sri Lanka. Several prior studies have examined this relationship in developed and emerging economies. However, there is a dearth of literature available in the Sri Lankan context and they provide mixed results. Moreover, Sri Lanka is a developing country and the extant literature provides results and findings that significantly deviates from those of developed countries. This study adopts a quantitative research approach where the secondary data of the listed companies obtained from the audited annual reports of the companies for a period of five years from 2014 to 2018 is analyzed. The sample consists of 47 listed companies from two sectors namely customer service sector and customer durable and apparel sector. This study utilizes correlation and panel regression model to analyze the collected data. The result of this study will give a clear idea of the current state of Sri Lanka and the impact of corporate governance of the selected companies on financial performance and capital structure. Further, this study will provide useful insight of financial manager to make policies and decisions and it will be useful to see the overall performance of these sectors. In addition, these results can be of great importance for investors, creditors, financial analysts and scholars.Item 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, PrabathThis 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.Item Relationship Between Dividend Policy and Volatility of the Share Price: Evidence from Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Aslam, M.T.M.; Perera, PrabathColombo Stock Market (CSE), Dividend Payout, Dividend Policy, Dividend Yield, Volatility of the Share Price (VSP) In corporate finance literature, dividend policy is always a controversial factor and Firm’s value and shareholders’ wealth are directly impacted by it. It is revealed from various researches that the relationship between dividend policy to Share Price reflect in conflicting results. However, there are no any specific indicators among researchers to depict the relationship between dividend policy and share price. So, the aim of this study was to examine the relationship between dividend policy and Volatility of the Share Price (VSP) in the Colombo Stock Market (CSE). This study was carried-out to cover the time gap of empirical evidence and lack of literature reviews in the Sri Lankan context. This research also discussed certain theories and determinants of dividend policy, as well as theories of risk and dividends. The VSP is regressed against the six independent variables namely dividend yield, dividend payout, earnings volatility, firm size, long term dept and growth in assets. The data applied for the study consist of 244 Companies listed in CSE which were selected during a period of five years between 2014/15 and 2018/19, which makes up 1220 company-year observations. In order to explore the association between VSP and independent variables, six hypotheses have been developed. The results of this study will suggest to the Firms in Sri Lanka how to maintain a dividend policy that will fit existing and prospecting investors. Also, this study will help to fill the empirical gap prevailing.