ICBI 2015

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/10527

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Subject: search.filters.subject.Financial Performance

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    Relationship between Corporate Social Responsibility Disclosure and Financial Performance in Sri Lankan Domestic Banking Industry
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Abeysinghe, A.M.I.P.; Basnayake, W.B.M.D.
    The purpose of this study is to examine the relationship between corporate social responsibility (CSR) disclosure and financial performance in domestic commercial banks in Sri Lanka. The researcher selected six high performance domestic commercial banks as a sample for a period of five years starting from 2009 to 2013.CSR disclosures and firm size have been identified as independent variables and financial performance identified as the dependent variable in this study. The researcher used secondary data for the purpose of analysis. This study employed return on equity to identify the financial performance (FP), GRI index G3 guidelines to identify the CSR disclosure level of the banks and firm size measured by logarithm of total assets of the banks. Through the result of the research it has been concluded that the null hypothesis can be rejected since there is a negative relationship between CSR disclosures and financial performance of selected domestic commercial banks. Researcher identified FP will not be totally depended on CSR disclosure. Bank performance varies with the different time periods, economic condition and other macro factors. The researcher further identified that CSR disclosure level in private banks is higher than the state banks even though the firm size of private banks are smaller than the state banks.
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    Capital Structure and Firm’s Financial Performance: A Study of Sri Lankan Manufacturing Sector
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Hamidon, T.D.; Ranjani, R.P.C.
    This research paper attempts to investigate the impact of capital structure on firm’s financial performance based on the manufacturing companies listed in Colombo Stock Exchange (CSE). Annual data were collected from published financial statements relating to 20 sample companies selected using systematic sampling technique operating in manufacturing industry. Descriptive statistics, Correlation and Regression analyses were used as statistical tests to reveal the relationship and the association between the variables. Debt to Equity (DE) and Debt to Total Assets (DT) ratios were used as proxies for capital structure while Gross Profit Margin (GPM), Net Profit Margin (NPM), Return on Assets (ROA) and Return on Capital Employed (ROCE) were used as proxies for financial performance. The results confirm that only ROCE is positively and significantly related with both DE and DT while there is a negative correlation between GPM, NPM and ROA with DE and DT. In conclusion, capital structure is not a major determinant factor affecting the firm’s financial performance where it’s evident that there is no significant association between capital structure components and firm’s financial performance. The results are in support of some literature and are contradictory with some as well.
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    Intellectual Capital and Financial Performance in Sri Lankan Banks
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Aruppalal, D.; Wickramasinghe, V.; Mahakalanda, I.
    The purpose of this paper is to examine the impact of Intellectual Capital (IC) on financial performance of Sri Lankan banks. This analysis is about the level of intellectual capital, level of financial performance and the impact of IC on financial performance of Sri Lankan banks. The Value Added Intellectual Capital coefficient (VAIC) approach developed by Pulic (2000) is used to determine the IC performance. Accordingly human capital, structural capital and capital employed efficiency are used as intellectual capital constituents of this research. Return on Equity (RoE) and Market to Book Value Ratio (M/B) are used to measure the financial performance and value creating competency of selected banks. The data obtained from corporate annual reports are regressed to measure the impact of intellectual capital constituents on financial performance. Findings of this research indicates that, Sri Lankan banks, in general, have relatively lower human capital and structural capital efficiency compared to capital employed efficiency. So the results depict a greater impact of capital employed efficiency on financial performance compared to other intellectual capital constituents. Further these findings would be both conceptually and practically appealing for bankers to apply knowledge management practice in their institutions. Also this study would provide some information to the stakeholders and potential investors to assess the value creating capabilities of selected banks. Findings of this study help decision makers be aware of the importance of intellectual capital as a key factor that can enhance a firm’s ability to maintain their competitive position.