Commerce and Financial Management
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/215
Browse
2 results
Search Results
Item Financial Statement Informativeness and Intellectual Capital Disclosures: With Special Reference to the Listed Companies in Sri Lanka(Journal of Business and Technology, 2022) Ariyawansa, H.D.G.R.; Nanayakkara, K.G.M.Growing demand for financial and non-financial information by the users of financial reports leads to an emphasis on the informativeness of financial statements. Thus, reporting reliable and relevant financial and non-financial information becomes vital, and investments in intellectual capital, being highly demanding information by the users, hold an important place in providing informative financial reports despite the lack of proper accounting recognition criteria in financial statements. Thus, our study aims to analyze the relationship between financial statement informativeness and intellectual capital disclosure in Sri Lanka. Financial Statement Informativeness was measured using the explanatory power of financial information in explaining market value. Content analysis of annual reports followed by a quantity and quality index of Intellectual Capital Disclosure was used to measure the Intellectual Capital Disclosures. A sample of 48 companies listed on the Colombo Stock Exchange that disclose Intellectual Capital was used, and empirical analysis was carried out using the Poisson regression method. A significant relationship between Financial Statement Informativeness and Intellectual Capital Disclosures has been found, suggesting that Financial Statement Informativeness plays a substantial role in providing disclosure on intellectual capital in financial reports. This study confirms to make managers aware of its significant and positive effect on financial statement informativeness in financial reports, given the importance of Intellectual Capital Reporting in mitigating the disparity of financial information. An important implication of the findings is that policymakers and regulators need to establish a uniform methodology for reporting Intellectual Capital to establish consistent disclosure practices.Item Predicting Corporate Financial Distress in Sri Lanka With Reference to Z-Score Model(University of Kelaniya, 2014) Nanayakkara, K.G.M.; Azeez, A.A.Financial Distress is a problem spread all over the world from the history. Even though there are ample research studies on this area, the empirical results on this area provide inconclusive results. The majority of the research works focused only on the bankruptcy and not on the financial distress. Hence, the main purpose of this study is to develop a better financial distress prediction model for Sri Lankan companies using the Z-score model. Multivariate Discriminate Analysis (MDA) was used as the analytical technique and simultaneous estimation method has used to enter the variables in the analysis. The study has examined four accounting ratios for 134 distressed and non-distressed companies from 2002 to 2011. The study has found that the derived model which consists of four accounting ratios is capable of predicting financial distress of quoted public companies in Sri Lanka with 76.9% accurate one year prior to distress. Further, the model has the financial distress predicting ability of 74.6% and 67.2% two years and three years prior to distress respectively. This model can be used to assist investors, creditors, managers, auditors and regulatory bodies in Sri Lanka to predict the financial distress