ICARE 2022

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/25708

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    The impact of acquisition on financial performance of subsidiary companies of Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Weerasinghe, M.I.S.; Sujeewa, G.M.M.
    Acquisition is a famous business expansion concept of the developed countries over the past decades. Nowadays it has been a good trend in developing countries too. There were many mergers and acquisition carried out in Sri Lanka between 2000-2020. Therefore, it is essential to find out the impact of merger and acquisitions on firms’ financial performances. This study have investigated the impact of acquisition on financial performance of target firms listed in Sri Lanka. For this study sample was thirty listed subsidiary companies from few different sectors such as manufacturing, plantation, hotels etc. which involved in acquisitions between 2000- 2015. Financial ratio analysis has used to determine the effect of acquisition on financial performance of target company and significance of changes in financial performance have tested by a paired T-test. The result of this study shows that there is no any significant changes in post-acquisition period compared to the pre-acquisition period.
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    Detecting financial statement fraud through new fraud diamond model with special reference to the selected listed companies in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Udayanganee, L.P.A.P.I.; Sujeewa, G.M.M.
    Financial statement fraud can have serious consequences for both shareholders and society. The purpose of this paper is to evaluate the effect of the new fraud diamond model in explaining financial statement fraud. The variables used to analyze are motivation, opportunity, personal integrity, and capability. The population for this study was 25 companies from Food, beverages, and tobacco sector listed on the Colombo Stock Exchange from 2016 to 2021. According to the findings, the nature of the industry, and the history of sales significantly affect financial statement fraud. The findings of the study back up the new fraud diamond model theory in explaining the phenomenon of financial statement fraud. This study tries to examine the factors that enable financial statement fraud to occur using only secondary data available and freely accessible to the public. The sample for the study was limited to companies in the food, beverage, and tobacco industries. It is important that future research expand the scope of the analysis of corporate fraud by including an analysis of another type of corporate fraud. Researchers can change from collecting secondary data to collecting primary data, allowing for more complete and accurate research. More research into this theory is needed to strengthen the new fraud diamond model theory and determine whether it can be utilized as a reference for detecting financial statement fraud cases.
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    The impact of basic forensic accounting skills on financial reporting credibility: the perception of professional accountants in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Thathsarani, K.W.D.G.; Sujeewa, G.M.M.
    Financial reporting credibility is essential to show the scorecard to its owners and other stakeholders in an organization. Over the last few years, and currently investigations on financial crimes and corruptions were given a massive attention in Sri Lanka. Further, the changing economic and business environment has emphasized the weaknesses of credibility of the financial reporting. The study mainly investigates perceived opinions of professional accountants that the impact of basic forensic accounting skills: communication skills, technical & analytical skills, accounting & auditing skills, and psycho-social skills on financial reporting credibility and further it analyzes what skills need to be developed by a forensic accountant and what is the most important factor/s that helps to develop forensic accounting practice in Sri Lanka. The study analyzes the sample of 50 professional accountants that includes 26 professional accountants in public practice and 24 professional accountants in business. The research design based on the survey approach by which primary data was collected from the sample respondents described above and descriptive statistics were used to analyze the findings. According to the findings study exposed that there should be multidisciplinary skills to perform as a forensic accountant. Further, study results suggest that “implementation of good governance practices in firms” will be crucial to the growth of a forensic accounting profession in Sri Lanka. Also, it was found that, there is a significant impact of all selected forensic accounting skills to the financial reporting credibility. The study suggests some key areas for future researchers that are, forensic accounting education, the role of forensic accountant in the field of auditing and regulatory bodies of forensic accounting in Sri Lanka.
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    A qualitative study of data security & data privacy challenges faced by listed companies in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Nivetha, S.; Gunasekara, U.L.T.P.
    This is a data-driven world and surprisingly data has become the new commodity of the age. Similar to oil in the 18th century, data is a tremendously untapped valuable resource in the modern digital age. Digital protection is becoming just as crucial as physical protection. Since security, privacy and data are all interrelated, it needs more security and privacy to ensure the safety of its stakeholders both online and offline. Protecting the data, from internal and external corruption and unauthorized access is challenging. Accordingly, this qualitative study targets to address this need for data protection and data confidentiality by identifying the data security & data privacy threats faced by listed companies in Sri Lanka. This study intended to specifically address three questions 1. What are the data security and privacy concerns which are likely to be faced in practice? 2. What are the possible effects of cyber threats? 3. How do Information and Cyber Security infrastructures fight against these invisible enemies on the digital battlefield? Data for this study has been collected through in-depth interviews with 11 IT professionals using a semi-structured interview guide. Thematic analysis has drawn 3 themes that are directed to identify 20 data security and privacy concerns. Sri Lankan companies are encountering an increasing number of data breaches, Ransomware attacks, phishing scams, viruses, and other threats as a growing remote workforce has posed additional challenges to the safety of confidential information where Data Privacy is also being affected simultaneously.
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    Factors influence on survival of micro, small and medium enterprises in Sri Lanka: in context of Covid 19
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Senadheera, S.A.G.M.; Sujeewa, G.M.M.
    This research is related to identifying the factors that impact on Survival of Micro, Small and Medium Enterprises in Sri Lanka in the context of Covid 19. There are many research papers available related to factors impact on growth of Micro, Small and Medium Enterprises. The purpose of this study is to explore the factors that impact on survival of MSMEs in Sri Lanka: In the context of Covid 19. Qualitative methodology was used in the study and findings are based on survey analysis. The survey was done through a questionnaire created by the researcher from the literature and distributed among MSMEs owners in Sri Lanka. This study basically used correlation and regression analysis to analyze the data. Further data analysis was conducted through the Statistical Package for Social Sciences which is called SPSS software. The major finding of this study was entrepreneurial skills, technology, Usage of accounting practices, marketing platforms and government support have a positive impact on the survival of the MSME sector. The findings of this study will support to survival MSMEs sector under the sudden shock in the economy as well as other organizations to survive.
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    The impact of bank internal factors on the profitability of commercial banks in Sri Lanka: with special reference to the selected listed commercial banks in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sanjeewani, K.L.M.; Gunasekara, U.L.T.P.
    The banking sector is considered as one of the most vital sectors for the national economy, as it is considered a lifeline for the state's economic activity through the mediating role it plays in collecting deposits from individuals and companies that own money and providing loans to the government, companies, and individuals that need these funds. Maximizing profits in commercial banks is restricted by many considerations. Maintaining sufficient liquidity and striving for the safe use of funds, ensuring the rights of depositors, and avoiding many risks limit the commercial bank's ability to maximize profits. The aim of this study is to examine what extent bank internal factors impact on the profitability of commercial banks in Sri Lanka. Capital adequacy, Operating cost efficiency, Non-performing loans, Bank size, Liquidity, Assets Quality and Managerial efficiency are considered as bank internal factors while Return on assets is considered as a profitability measure of this study. Panel data has been collected from published financial statements of ten commercial banks listed on the Colombo Stock Exchange (CSE) for the period of ten years from 2015 to 2019. Fixed effect and random effect models are performed to investigate the best model to evaluate the impact of bank internal factors on profitability. The results of the study reveal that the random effect model is the best model using the Hausman specification test. As per the random effect model, capital adequacy has a positive and significant impact on profitability while non-performing loans and operating cost efficiency have a negative and significant influence on profitability. The rest of the selected variables such as bank size, liquidity, assets quality and managerial efficiency don't have any significant impact on the profitability of commercial banks in Sri Lanka. The finding of this study provides information to present and future investors for making the best decision on which internal factors should be well analyzed when they make investments on the banking sector in Sri Lanka.
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    Financial fraud control in a digital environment: forensic accounting
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sandeepa, P.D.W.; Sujeewa, G.M.M.
    The technology, which takes on specific systems and capabilities with every passing day, has left organizations to engage greater with digital surroundings. While processing the enterprise records in digital surroundings consequences in advantageous outcomes, which include saving time and charges for organizations, it has additionally triggered a brand-new fraud method to return into question, which is a bad effect. This method is known as financial fraud. It has led to a brand-new career to return to prominence in monetary fraud management accomplished in digital surroundings, where the 3M theory and competence detail play a significant function with inside the awareness of monetary fraud. Developments in technology have triggered state-of-the art instances inside agencies to grow and strategic choices to come to be greater enormous, and as a treatment for those causes, allowed forensic audit reviews and forensic accounting to come to be prominent. This study has attempted to analyze whether core skills and traits are powerful in monetary fraud audits in digital surroundings. For this purpose, a survey has been implemented for internal auditors, executive management persons, and forensic accountants of licensed bank companies in Sri Lanka. which have engaged with forensic accounting practices, and due to the survey, it changed into concluded that the core skills and traits of the auditors evaluated as forensic accountants have been near forensic accountants overseas, however, there has been no specific forensic accounting software program in opposition to monetary frauds accomplished digitally and the transactions have been made on audit software program at some point of monetary fraud audits. On the alternative hand, it changed into observed, with inside the studies records, that the accounting career changed into improvement in Sri Lanka, there has been no longer sufficient infrastructure provided, and forensic accounting was also effective in internal audit and quality financial reporting.
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    The skills, practical knowledge, academic, and professional qualification for forensic accountants in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sandamini, S.D.N.; Sujeewa, G.M.M.
    Employers in the modern world have a high demand for forensic accountants. However, job holders are unable to meet these standards since they lack the necessary credentials in the field of forensic accounting. This study mainly focused on skills, practical experience, academic qualifications, and professional qualifications to be a forensic accountant in Sri Lanka. This research gathered primary data from 40 Professional accountants in public practice and business practice in Sri Lanka. The majority of professional accountants have accounting, finance, and forensic accounting-related degrees, and completed forensic accounting-related courses and diplomas given by reputable institutions like CA, ACCA, and CIMA. Multidisciplinary skills and more than five years of practical knowledge and experience must be a forensic accountant according to the analysis. According to the findings of this study, job candidates should have accounting, finance, or forensic accounting-related degrees and professional qualification related to the forensic accounting field, multidisciplinary skills, and more than five years of experience in the general accounting field.
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    Impact of board characteristics on bank performance: evidence from commercial banks listed in CSE
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Saliya, S.G.D.T.; Gunasekara, U.L.T.P.
    This study aims to determine the Impact of Board Structure on the Performance of Commercial Banks listed on the Colombo Stock Exchange. To get efficient Performance through the best corporate governance the full list of licensed commercial banks listed in CSE was selected as the sample. The data is collected from 2012 to 2021 from the annual reports, audited financial statements, websites & CSE websites. They are all secondary data sources. This study uses the company's performance based on the following financial performance measures: return on assets (ROA) and return on equity (ROE) and board structure consisting of board size, board independence, executive directors, board meetings, gender diversity and advanced education of the board. Bank asset size and bank age were used as the control variables in this study. Many of the studies discovered how board characteristics impact firm performance, but very few studies were done for the banking sector in Sri Lanka. The regression modelling was done for identifying the relationships between board characteristics and bank financial performance. The study's findings suggest that the frequency of board meetings, gender, advanced education and board independence have a positive substantial influence on ROE & ROA. And board size has a negative substantial influence on ROE & ROA. But there is no significant relationship between the size of the board and bank performance. Additionally, the asset size of the bank and the age of the bank have a positive and significant impact on ROA & ROE. This study contributes to the literature on corporate governance and bank performance by providing the framework that affects the relationship between board structure and bank performance in the context of listed commercial banks. The findings of the study are important for policymakers, investors, regulators, and other bankers of the country. Commercial banks would put more attention on the structure and quality of the board to improve their performance
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    Limitations of external audit in detecting frauds in company’s operations
    (Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Rizma, M.H.F.; Sujeewa, G.M.M.
    Auditors’ analysis of financial statements and pointing to potential irregularities can be a good manner for the early detection and prevention of fraud in a company’s operations. There are Limitations of external audit while detecting frauds. This study will help to examine the Capabilities and Limitations of external audit while detecting and preventing Fraud in companies’ operations. The outcome of the study indicated that internal control dependencies, Audit universe limitation, sampling error, Audit volatility limitations, Tight Project deadlines, Budget Constraints, and inexperienced auditors in the field are the most common Limitations of External audit in fraud detection. In total, 100 External auditors were surveyed to find out the outcome of the study. Based on the research results, it can be concluded that the Expansion of external auditors’ powers and reduction of the external audit limitations would help to detect fraud more easily and it may also help to expand the domain of action. So, this study may help Auditors and other parties uncover financial frauds, often acting as expert witnesses during trials. Overly this study may help users to build a new knowledge among external Audits & Fraud detection.