ICARE 2023

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/27631

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Impact of dividend policy on Stock Return; Evidence from listed Companies in Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Anupama, R.R.M.L.; Tilakasiri, K.K.
The major concern of this study was the impact of dividend policy on stock return of listed Companies in Colombo Stock Exchange. This research relies on secondary data which was collected from annual reports of listed companies in CSE. Data was collected from a sample of 30 companies under Listed Companies over five consecutive financial years from 2016 to 2020. Descriptive analysis and correlation analysis were used to perform the data analysis while regression model was expanded by adding two control variables named earnings per share, and size of the firm. While confirming the empirical results, the findings of this study showed a negative insignificant relationship between dividend payout ratios and stock return and a positive insignificant relation between dividend yield ratio and stock return. Moreover, there is a positive association between stock return and earnings per share, but a negative correlation between stock return and firm size and book value. Based on the finding of this study, dividend payout ratio and dividend yield have negative impact on stock return.
Public Debt and Economic Growth: Comparison among Sri Lanka, India and Bangladesh
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Udayangi, W.P.; Perera, W.T.N.M.
Public debt is one of the main macroeconomic indicators that show a country's position in the global market. This research endeavors to conduct a comparative analysis of the relationship between public debt and economic growth among three prominent South Asian nations: Sri Lanka, India, and Bangladesh. Each country possesses unique economic dynamics, making it imperative to scrutinize the impact of public debt on economic growth within this regional context. This study aims to examine whether an increase in public debt has a positive or negative effect on the economic growth rate in these nations. Three South Asian countries namely Sri Lanka, India, and Bangladesh were selected as the sample of this study. Data will be collected from mainly World Bank Indicators for the period from 1975 to 2021. In this study, descriptive and analytical research designs were primarily used to analyze the data. This research study is composed of five independent variables representing Domestic debt, long-term external debt and short-term external debt, and interest payment. The major findings of this research are the independent variables domestic debt and external debt have negative coefficients of -1.62379 and -0.28379 respectively. But, domestic debt appears to have no significant effect. Also, the research found that there is a positive relationship between long-term external debt, short-term external debt, and interest payment with countries' economic growth. The research emphasizes the necessity for tailored debt management strategies and fiscal policies suiting the specific economic conditions of Sri Lanka, India, and Bangladesh. Understanding the unique dynamics of debt and economic growth in each nation is crucial for formulating effective policies that foster sustainable development.
Impact of Inflation Targeting Monetary Policy on Economic Growth in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Leon, P.P.; Madurapperuma, M.W.
This paper investigates the impact of inflation-targeting monetary policy on economic growth in Sri Lanka. The objective of this paper is to assess the effects of monetary policy on key macroeconomic variables in the small open developing economy of Sri Lanka. To this end, this paper is organized as follows: Section I introduces the established evidence on the effects of monetary policy in the long and short run as well as a brief introduction to monetary policy in Sri Lanka. Section II reviews the existing literature about the methods of assessing the effects of monetary policy on macroeconomic variables. Section III explains the methodology and data used in the analysis. Section IV analyses the results obtained while Section V summarizes and concludes the discussion. To assess the impact of inflation-targeting monetary policy on key macroeconomic variables in Sri Lanka, such as inflation, Output, and unemployment, to identify the channels through which inflation-targeting monetary policy affects economic growth in Sri Lanka, to examine the impact of inflation on economic growth in Sri Lanka over the period 2000-2022, To measure the degree of responsiveness of economic growth (GDP) to changes in the general price levels (Inflation rate). The research design, conceptual framework, formulation of hypotheses, details of the research design, population, and sample selection justification are all covered in the methodology chapter. The study uses time series data from 2002 to 2022 to quantitatively analyze the effect of Sri Lanka's inflation-targeting monetary policy on economic growth. It supports the duration, sample, and data-gathering techniques selected, and emphasizes statistical analysis for validation with E-Views 12 SV software. The analysis concludes that there is no discernible difference between the treatment and control groups regarding the rate of inflation and the growth of the gross domestic product throughout the study. However, the result indicates that when the economy must deal with exogenous uncertainties, emerging economies can manage the rate of inflation increase.
Student’s Perception of the Auditing Profession in Sri Lanka: The Effect of Proximity and Knowledge on Auditor’s Stereotype
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Diwyanjali, T.D.U.; Kaushalya, M.D.P.
The purpose of this study was to identify the correlation between proximity, knowledge, and information sources related to the auditing profession and among students in Sri Lanka. Using quantitative methods, data were collected through a questionnaire survey administered to a group of 90 undergraduate students. Statistical analyses were performed using SPSS software to clarify the interrelationships between these factors. The results show that students acquire knowledge about the auditing profession mainly through their academic training. Furthermore, students view the auditing profession as inherently attractive, offering significant prospects for career advancement, carrying a variety of responsibilities, and making significant contributions to society. In addition, students view auditing as a meticulous activity that demands a high level of responsibility. Moreover, the findings emphasize that auditors are perceived as highly competent and ethical professionals. This empirical investigation contributes significantly to the academic discourse, providing insights into the impact of proximity, knowledge, and information sources on students' perceptions of auditing. The practical implication of this research suggests that a high level of understanding of a career positively affects students' perspectives on that particular career.
Impact of Liquidity Ratios on Profitability: With Special Reference to Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Rila, M.F.M.; Tilakasiri, K.K.
The ultimate goal of the companies is to enhance the wealth of the shareholders. For that purpose, liquidity and profitability play a vital role. Especially the liquidity and its management are caused to a great extent by the growth and profitability of a firm. Liquidity management becomes the most important one as inadequate liquidity may be injurious to the smooth operations of the firm as well and the excess liquidity can be disturbed to achieve greater profits. In this way, the present study is aimed to investigate the relationship between liquidity and profitability. The analysis is based on 7 manufacturing companies listed on the Colombo Stock Exchange over past five years from 2018 to 2022. Correlation and regression analysis as well as descriptive statistics were applied in the analysis and findings suggest that there is a significant relationship exists between liquidity and profitability while the Quick ratio has no significant relationship with the ROE among the listed manufacturing companies in Sri Lanka. However, there has a low degree of influence in liquidity on the profitability of manufacturing companies. The relationship between liquidity and profitability is crucial to a company's goal of maximizing shareholder wealth. The current study explores the complex link between these two financial factors in this environment, highlighting the critical role that liquidity management plays. Both too little and too much liquidity present different problems that affect a company's ability to maximize profits and run its operations effectively. This research aims to unravel the dynamics between liquidity and profitability within the Sri Lankan manufacturing sector. Analyzing data from 7 manufacturing companies listed on the Colombo Stock Exchange over five years (2018-2022), the study employs correlation and regression analysis, along with descriptive statistics. The findings reveal a significant but nuanced relationship between liquidity and profitability, highlighting that while liquidity generally influences profitability, this impact varies in magnitude. Notably, the Quick ratio demonstrates an insignificant relationship with Return on Equity (ROE), suggesting complex financial dynamics at play in these firms. Beyond financial management procedures, the study's consequences provide business executives with information on strategic planning and decision-making. It emphasizes the necessity of a well-rounded approach to liquidity management that is in line with both more general strategic goals and operational requirements. The study provides a valuable empirical perspective on financial management in emerging markets, offering opportunities for future research on sector-specific liquidity management and external economic variables' impact on profitability.
Impact of Institutional Ownership and the Value Relevance of Accounting Information of Non-Financial Companies Listed In CSE
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Jayani, G.V.; Karunarathna, W.V.A.D.
The relationship between accounting information and institutional ownership for non-financial companies listed on the Colombo Stock Exchange (CSE) is investigated in this study. The impetus for this study stems from the growing role of institutional investors in the financial system and the importance of accounting data in the decision-making process regarding investments. Through a thorough empirical analysis, the main objectives are to address the following: Analyze how institutional ownership affects non-financial companies listed on the Colombo Stock Exchange's value relevance of accounting data. Analyze the impact of institutional ownership on market efficiency, focusing on the way that accounting information is accounted for in stock prices. Analyze the relationship between institutional ownership and corporate governance practices, especially as it relates to financial reporting and disclosure. Examine potential impacts on investor relations and financial reporting regulations at the Colombo Stock Exchange. This study uses a large sample of nonfinancial companies and applies state-of-the-art econometric techniques to analyze financial data and ownership structures. The aim of the empirical findings is to provide investors, regulators, corporate decision-makers, and accounting and finance specialists with important new insights. The study is significant because it may help us better understand the intricate connections between institutional ownership and the value-relatedness of accounting data in the specific context of the Colombo Stock Exchange. By clarifying these correlations, the study contributes to a broader scholarly discourse and offers practical guidance to interested parties navigating the dynamic financial market landscape of Sri Lanka.
Enhancing Audit Efficiency and Accuracy through Artificial Intelligence
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Thakshila, M.A.T.; Gunasekara, U.L.T.P.
This research investigates the current state of adaptation of artificial intelligence (AI) adoption within the auditing sector, shedding light on the perspectives and practices of auditors across various roles and experience levels. The study employs a mixed-methods approach, combining quantitative data gathered through a structured questionnaire with qualitative insights derived from thematic analysis. The participant profile unveils a diverse representation of the auditing profession, encompassing roles from audit firm partners to supervisors and spanning experience levels from less than 5 years to more than 15 years. The distribution among small, medium, and large audit firms ensures a comprehensive exploration of AI adoption trends. Most participants find themselves in the initial stages of AI adoption, with a notable inclination toward tools like Chat GPT and Chat GPT Excel, signifying a sector in transition. Efficiency improvement emerges as the driving force behind AI adoption, aligning with the practical needs of audit firms seeking to enhance productivity. However, challenges such as integration issues, data privacy concerns, and skill gaps highlight the complexities associated with incorporating AI seamlessly into audit workflows. Qualitative findings further enrich the analysis, uncovering themes related to perceived efficiency gains and the varied impact of AI technologies on accuracy. Participants consistently emphasize the transformative effect of AI adoption on the efficiency of audit processes, indicating a positive shift in the pace and effectiveness of procedures. The exploration of accuracy reveals a spectrum of opinions, emphasizing the importance of a nuanced understanding of the contextual conditions influencing the relationship between AI adoption and audit outcomes. The implications of these findings extend to both practice and policy, offering valuable insights for auditors, audit firms, and policymakers involved in shaping responsible AI use in auditing. Recommendations guide auditors in strategic AI adoption and skill development, while educators are encouraged to incorporate AI-related skills into curricula. Acknowledging limitations, the research suggests avenues for future studies, including longitudinal analyses and cross-industry comparative studies, contributing to the ongoing discourse on AI's role in reshaping auditing practices.
The Impact of E-Banking Practices on Customer Satisfaction in Public Sector Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Jayarathna, H.A.S.U.; Gunasekara, U.L.T.P.
An extensive literature review was conducted to understand the existing knowledge, theories and practices regarding e-banking practices, customer satisfaction and public sector banking industry in Sri Lanka. This was the basis for developing the research framework and helped identify gaps in the existing literature. The research methodology is quantitative methods. Structured surveys were used to gather primary data from a subset of customers of Sri Lanka's public sector banks. Primary data were collected through structured surveys distributed to a specific sample of customers from public sector banks in Sri Lanka. The purpose of this survey is to measure customer satisfaction levels, assess usage of e-banking services, identify challenges faced by customers and understand their perception of e-banking practices. Quantitative data analysis techniques such as regression analysis, correlation analysis, and descriptive statistics were used to analyze the survey responses and draw meaningful conclusions regarding the impact of e-banking practices on customer satisfaction. Research findings revealed that while there is significant inclination towards e-banking services among customers, challenges such as limited awareness, security concerns and usability issues have hindered the full uptake and satisfaction of these services. The study on e-banking practices such as online banking, ATM and CDM services, Mobile banking and digital wallets and payment applications showed significant interest among customers in public sector banks in Sri Lanka. By improving awareness, simplifying interfaces and security measures, e-banking practices can be improved, fostering greater customer satisfaction.
Determinants of Non-Performing Loans in Listed Commercial Banks in Sri Lanka: A Comparison between Pre- and Post-Covid-19 Period
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Kaushalya, R.D.A.; Karunarathne, W.V.A.D.
The Listed Commercial Banks in Sri Lanka play a critical role in the economy. They handle financial intermediation processes. The study attempts to investigate the factors affecting non-performing loans (NPLs) of Listed Commercial Banks in Sri Lanka and how COVID-19 impacts non-performing loans (NPLs) of Listed Commercial Banks by using twenty Listed Commercial Banks. This study employed a quantitative deductive approach by using secondary data such as annual reports of selected Listed Commercial Banks from 2013 to 2022 based on annual reports and other statistical reports of the Central Bank of Sri Lanka. The study decided to collect data from all listed commercial banks in Sri Lanka but since the data unavailability were considered the twenty listed commercial banks in Sri Lanka. The dependent variable is non-performing loans and the independent variables include macro-economic and institutional-specific factors. Based on the literature, this study has used the size of the company, return on assets (ROA), capital adequacy ratio (CAR), and efficiency are considered as institutional-specific factors, and gross domestic products, inflation rate, interest rate, and unemployment rate are considered as macro-economic factors. The impact of macroeconomic and institutional-specific factors on non-performing loans was observed through multiple regression models. According to the findings, bank size, CAR, GDP, and inflation have a significant relationship with non-performing loans. However, it found that ROA, Interest rate, efficiency, and unemployment rate have no significant relationship with non-performing loans. When comparing pre- and post-COVID-19 periods, COVID-19 has a significant impact on NPLs. The results of this study will be beneficial for the management of the entire banking sector including public and private banks as well as current customers, potential customers, future researchers, and also policy makers.
Relationship between Sustainability Reporting and Corporate Financial Performance with the Moderating Effect of Corporate Governance: Evidence from the Banking Sector of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Thilakarathna, P.M.R.M.; Wijerathne, A.G.S.H.K.
The increasing prevalence of sustainability reporting, especially about environmental, social, and governance aspects, has caused a paradigm shift in corporate assessment methods as it recognizes the necessity of ethical business operations. This study examines how environmental, social, and governance aspects, financial performance and corporate governance interact in Sri Lanka's banking industry. The sample of the study consists of 11 licensed commercial and specialized banks in Sri Lanka with the data collection period spanning from 2013 to 2022. The results indicate that there is no significant relationship between financial performance and environmental, social, and governance disclosures. However, as the results show, corporate governance moderates the insignificant relationship between environmental, social, and governance disclosures and financial performance. The study adds an intriguing new component by incorporating corporate governance as a moderating variable. The way that corporate governance and environmental, social, and governance interact has a significant moderating impact on financial performance, which highlights how important governance frameworks are in determining the impact of sustainability policies on profitability. This unique contribution of this study sheds light on the complex relationships that exist between sustainability reporting, financial performance, corporate governance, and, especially in the context of Sri Lanka's banking sector. By highlighting the moderating impact of corporate governance and illuminating the intricacy of these interactions, the research offers a novel viewpoint. The ramifications are worldwide in scope and provide valuable perspectives for banks that aim to improve their financial performance in tandem with sustainability objectives. When creating regulations and policies that support sustainable banking practices, legislators and regulators may discover helpful advice. The study's final goal vi is to support the development of a more ethically and sustainably conscious business climate in Sri Lanka by highlighting the relationships between sustainability, corporate governance, and financial performance.
Investigating Factors that Influence Customer Usage of Online Banking: With Special Reference to Undergraduates of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Amarathunga, S.A.H.S.; Perera, M.R.H.
In the present world, the technological revolution has given rise to new concepts and advanced methods across various fields. Online banking is one such concept that has emerged in the banking sector. While not entirely novel to Sri Lanka, the evolution of online banking in the country began in the late 1980s. Reflecting on this period, there appears to be a gradual surge in the adoption of online banking among customers. The COVID-19 pandemic has further fueled this trend, as the increased use of online platforms has contributed to a growth in online banking. Moreover, various factors influence the usage of online banking beyond the impact of the pandemic. This specific study has been conducted to examine the factors influencing the usage of online banking in Sri Lanka. Following the existing literature, four factors were identified for investigation: Perceived Usefulness, Security and Privacy, Ease of Use, and Trust in E-Bank Websites. The sample comprised 100 undergraduates in the Western province. The convenience sampling approach was used to select the sample. The study covered four government universities and three private universities in Sri Lanka. The research objectives were evaluated using quantitative methods. An online questionnaire was designed and distributed to gather the data. Frequency analysis, Descriptive statistics, and Correlation and regression analyses were conducted to gain insights and comprehend the data. The findings revealed a predominance of females, a diverse age range, and a high representation of individuals linked with government universities. The outcomes offered a comprehensive insight into the characteristics of variables, highlighting a notable level of engagement in online banking. According to the study, significant factors impacting online banking usage include perceived usefulness, security and privacy, and ease of use.
The Role of Whistleblowers in Detecting and Preventing Employee Fraud in Licensed Commercial Banks in Sri Lanka: A Qualitative Study
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Fahra, M.F.F.; Gunasekara, U.L.T.P.
Whistleblowers are an important party in uncovering frauds. This study was conducted to identify the role of whistleblowers in preventing and detecting employee fraud within the licensed commercial banks in SL. Further the research evolved around the main areas of perceived effectiveness of whistleblowing, motivational factors and the challenges faced by the whistleblowers in blowing the whistle. The research used a deductive thematic analysis to cod ethe data collected through the in-depth interviews. With an in-depth interview of 21 executives from 7 licensed commercial bank, three executives from each bank, it was evident that although the perceived effectiveness of whistleblowing is high, there are rooms for improvement in whistleblowing policies, reporting mechanisms, reward, support, and recognition given to the whistleblowers. Further the interviews uncovered that employee awareness on whistleblowing needs to be improved. In conclusion, this research acts as a mirror, reflecting the current state of whistleblowing in Sri Lankan banks. It also serves as a compass, pointing towards ways to strengthen and fortify the system for the future. The key lessons learned stress the shared responsibility of organizations, regulators, and society at large to create an environment where whistleblowers are not just recognized but celebrated for their role in the ongoing fight against fraud. In simpler terms, it's a call to make whistleblowing not just an act of bravery but a celebrated and supported part of ensuring the integrity of our banking systems.
Impact of Green Finance Practices on Financial Performance: Evidence from the Banking Sector in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Perera, H.K.D.; Rajapakse, M.D.A.P.
The consequences of climate change are being felt all over the world which endangers life on our planet. Banks as a backbone of every economy can fight back against the new set of challenges brought by climate change. The concept of green finance has evolved as a modern and proactive way of steering the economy in a sustainable direction rather than just inflating numbers. The purpose of this study is to explore the impact of green finance practices on the financial performance of commercial banks in Sri Lanka. Licensed commercial banks were surveyed for primary data from 10 licensed commercial banks that were analyzed using linear regression analysis. The results indicate that green finance has a significant positive impact on the financial performance of commercial banks in Sri Lanka. To measure green finance practices, 11 green finance products have been used. Return on assets, return on equity, and non-performing loans are considered indicators of the financial performance of banks. As people still do suffer and the world’s economy starts to rebreathe from the recent environmental challenges, it’s an interesting win-win solution for the entire society as banks can improve their financial performance and the whole world can rebuild the green world by going green. The study represents the first analysis of the concept of green finance and the financial performance of the banking sector in Sri Lanka. Thus, the study and the findings can be used as a starting point for the decision-making of financial institutions, investors, regulatory agents, practitioners, and future researchers.
Exploring the Impact of a Skilled Workforce Gap on Cloud Computing Challenges in Accounting Databases
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Gangapriya, M.L.Y.; Perera, M.R.H.
The organizations face many challenges related to cloud computing management. The title of this research is Exploring the Impact of a Skilled Workforce Gap on Cloud Computing Challenges in Accounting Databases. For those challenges affected by many of reasons and this research is defined that the skilled work force gap in an organization affects to the cloud computing challenges and organization must overcome those challenges by filling the gap of the skilled work force in an organization. The research problem of this research is defined as How skilled workforce gap impacts on cloud computing challenges in accounting database and by the analyzing through the questionnaire related to the skilled workforce. The independent variable is the challenges of the cloud computing while the depended variable is the skilled work force gap. The sample of the research is 100 responses and have been decided as the work force in financial institutes related to the working on cloud computing management. The key results of the research are the justification of the impact of the skilled workforce gap on cloud computing challenges in an organization related to the accounting database. When the skilled force gap is high it is directly affected by the challenges of cloud computing management. Hence, the organization must determine that filling the gaps in the skilled workforce can reduce the challenges related to cloud computing. In conclusion, it is justified that the skilled workforce gap impacts the cloud computing challenges in the accounting database.
Perception of Stakeholders’ on Establishing Guiding Principles for Ethical Cryptocurrency in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Amarathunga, G.D.N.; Perera, P.R.M.R.
Cryptocurrencies, also known as virtual currencies, are a form of digital exchange. This research article investigates the perceptions of stakeholders regarding ethical cryptocurrency practices in Sri Lanka, focusing on the lack of legal safeguards and guidelines in the rapidly evolving regulatory landscape. The research problem for this study is what is the Perception of Stakeholders’ on Establishing Guiding Principles for Ethical Cryptocurrency in Sri Lanka. This study aims to bridge this gap by investigating stakeholder perceptions on the subject. The study uses a qualitative research methodology to explore the importance of cryptocurrency trading, evaluate associated risks and challenges, and propose effective risk mitigation measures based on international research. This provides valuable insights into the decentralized nature of cryptocurrencies and their potential benefits, such as enhanced financial inclusivity and reduced transaction costs. However, it also highlights the challenges that arise, including the volatility of cryptocurrency prices and uncertainties regarding regulatory frameworks. Through interviews and qualitative data collection, the study gains an in-depth understanding of the importance of cryptocurrency adoption, the risks and challenges involved, and the necessary guiding principles to establish a robust framework for ethical cryptocurrency practices. The thematic analysis of the data collected through stakeholder interviews forms the foundation for the study's results and discussions. These findings address several key themes, including cryptocurrency adoption, global perspectives on regulation, associated risks and challenges, effective risk mitigation strategies, and key guiding principles for ethical cryptocurrency practices such as transparency, privacy, security, regulation, education, innovation, and social justice. This research provides valuable insights for stakeholders and contributes to the development of a more responsible and sustainable cryptocurrency ecosystem in Sri Lanka. Cryptocurrency stakeholders can use the recommended guiding principles as a basis for formulating their ethical policies and practices within the cryptocurrency industry. This enhances theoretical knowledge by exploring the perceptions of stakeholders about ethical cryptocurrency practices. Moreover, the study provides practical guidance for the cryptocurrency industry in the country, promoting ethical considerations and proposing tailored guiding principles. Researchers can build upon the findings to expand their knowledge and understanding of the dynamics of cryptocurrency trading within the Sri Lankan context.
Factors Influencing Accounting Students’ Career Paths in Sri Lanka: Evidence from University of Kelaniya, Colombo and Sri Jayewardenepura
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Gunathilaka, L.D.L.R.; Perera, W.T.N.M.
This research paper aims to identify the factors influencing accounting students' career paths in Sri Lanka. Using a quantitative approach, the study employs a structured questionnaire administered to accounting undergraduates from the University of Kelaniya, the University of Colombo, and the University of Sri Jayewardenepura. The sample size of 327 is determined using the Morgan Table, considering a population of 2,000, a 95% confidence level, and a 5% margin of error. The key findings reveal positive relationships between intrinsic motivation, the influence of third parties, and career exposure with accounting students' career paths. However, extrinsic motivation does not exhibit significant relationships. The study's conclusions emphasize the importance of intrinsic motivation, external influences, and exposure in shaping accounting students' career paths. Limitations include the study's focus on three state universities in Sri Lanka, cautioning against broad generalizations. These findings suggest that universities should focus on fostering intrinsic motivation, providing career counseling, and offering internship opportunities to enhance accounting students' career development.
Evaluation and Analysis of SDG Reporting: Evidence from Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Gamage, M.G.S.K.; Munasinghe, M.A.T.K.
The Sustainable Development Goals of the United Nations are now a key framework for resolving important issues in society, the economy, and the environment as humanity moves towards a more sustainable future. Sustainable development goals are already included into corporate processes and are changing the types of movement for entities. Due to the opportunity for obtaining an advantage over their competitors, Sri Lankan companies in the manufacturing sector are becoming more and more concerned with sustainable development goals. Although, the annual reports provide information on the Sustainable development goals. But, it is not possible to evaluate them after reviewing the annual reports. Therefore, the purpose of this study is to motivate them to move forward through turning the Sustainable development goals disclosures into a score. This study is conducted by analyzing the content of annual reports, websites, and magazines issued by listed manufacturing companies in Sri Lanka. The sample includes 46 food, beverage and tobacco, listed manufacturing companies for five years from 2018 to 2022. Qualitative content analyses are used to determine the nature of company responses to SDG and encourage them to move forward in a competitive marketplace. The findings indicate that food, beverage and tobacco listed manufacturing companies initially only declared a small number of SDGs, but today they typically publish over 12 of the 17 goals in their annual reports, and their strategies emphasize their commitment to these goals and today many companies of manufacturing sector have advanced in terms of SDGs. During the early reporting periods, companies released more information detailing the specific SDGs, but now less information regarding the sustainability impacts of the SDGs. Companies have followed GRI guidelines when reporting relevant information, including more photos and graphs in addition to narratives. There aren’t many publications in Sri Lanka about how companies are working towards the SDGs. By focusing on how companies provide SDG- related information, relate it to SDG- focused programs, and motivate them to move forward in the competitive world of business, this study offers some answers to that issue. Furthermore, this study proposes that further research be done on the use of sustainable strategies.
Behavioral Intention to Use Forensic Accounting Services for the Detection and Prevention of Frauds in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Nisansala, H.A.; Sujeewa, G.M.M.
This study investigates the factors that influence the behavioral intention to use forensic accounting services in the detection and prevention of fraud in Sri Lanka. The research was motivated by the underutilization of forensic accounting services, an essential and effective fraud detection and prevention method. The low usage of this service by companies in Sri Lanka and worldwide has been pointed out as a contributing factor in the escalation of fraud. The organizational intention to use professional services including forensic accounting services has not been researched previously. The study uses a quantitative approach to its research methodology. The Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB), Health Belief Model (HBM), and Hierarchy of Effects Model (HOE) were found to be significant to the study of behavioral intention during the second part of the literature review. Quantitative data is gathered from Chief Financial Officers (CFOs), Business Owners/CEOs, Internal Auditors, Finance Managers, Compliance Officers, Risk Managers, and Audit Committees of Sri Lankan companies during the third phase. The multiple regression approach using ordinary least squares was used to examine quantitative data. The findings support the significant positive impact of awareness, stakeholder pressure, and threat perception factors on the behavioral intention to use forensic accounting services, as well as the negative impact of financial costs and legal factors. This research contributes theoretical as well as practical. The integrative conceptual model, which has effectively integrated factors from the TRA, TPB, HBM, and HOE in examining the behavioral intention of using forensic accounting services, is the theoretical contribution. There has never been an investigation into the company's intention to use professional services, such as forensic accounting services. Additionally, this study is the first to use HOE's awareness and HBM's risk perceptions in an ethical decision-making model. The study's practical implications allow the government of Sri Lanka, professional associations, board of directors, stakeholders in the organization, and accounting firms to gain a better understanding of the reasons behind organizations' resistance to using forensic accounting services for fraud detection and prevention. It will also enable them to create workable techniques and marketing plans to raise forensic accounting services' profile, obtain acceptance, and eventually be used in the battle against fraud.
The Effect of Internal Controls on Financial Performance; Special Reference to Western Province in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Dharmasena, R.I.M.D.N.; Sujeewa, G.M.M.
The secret to SMEs' success is the effective management of their financial performance, which is a complex undertaking. The creation and maintenance of a strong internal control framework become crucial tools in this endeavor. The purpose of the study was to establish the effect of internal controls on financial performance; special reference to Western Province, Sri Lanka. The study was guided by the following research questions; To what extent does the control environment influence the financial performance of SMEs in Sri Lanka? How does risk assessment affect the financial performance of SMEs in Sri Lanka? What is the impact of control activities on the financial performance of SMEs? How does information and communication impact the financial performance of SMEs in Sri Lanka? What is the relationship between monitoring and the financial performance of SMEs in Sri Lanka? The study specifically investigates the influence of internal control components, including the control environment, risk assessment, control activities, information and communication, and monitoring, on the financial performance of SMEs. Financial performance is measured using Return on Assets (ROA). The study employs a cross-sectional research design, which limits the ability to establish causal relationships. While it can identify associations between internal controls and financial performance, it may not conclusively demonstrate causation. Assistants, Executives, and Managers at SME make up the target population for this study, which is only focused on the Western Province, Sri Lanka. A sample length of 100 respondents has been chosen for this examination. For the purpose of gathering survey data, this study uses a quantitative strategy over a cross-sectional time period. Data was systematically gathered using a structured questionnaire with Likert scale questions. Primary data was collected using a structured questionnaire. The Study used SPSS 26 to analysis the data. Quantitative data was analyzed, and the output presented using descriptive statistics namely: mean, standard deviation, percentages. A multiple linear regression model was used to assess whether internal controls have an effect on the performance of SMEs. the data presentation and analysis of the study which covered the exploratory data analysis, illustrations of demographic factors and descriptive statistics of the sample. Validity and reliability of data has been tested. Further this chapter elaborated the correlation coefficient between Internal control systems and financial performance in Sri Lankan SMEs and evaluated the regression of the model using statistical means to arrive at the outcome to test the hypotheses.
The Impact of Accounting Information System on Financial Performance: Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Fonseka, H.F.N.S.; Perera, P.R.M.R.
This research aims to assess the Impact of the Accounting Information System on the financial performance of Sri Lankan listed companies by analyzing the quality and return on assets of the accounting information. The study variables are made up of dependent and independent variables. The study represents dependent variable as financial performance, and the independent variables are System Flexibility, System Sophistication, Effectiveness of the System, and System Control. A sample size of 127 out of the 290 listed companies in Sri Lanka is obtained using a method called stratified random sampling method. A frequency analysis, descriptive analysis, correlation analysis, and simple regression analysis and multiple regression analysis have all been conducted for obtain the expected outcome of this study. Descriptive analysis indicates that Sri Lankan listed companies have high levels of both financial performance and AIS quality. The results of the regression analysis show that the impact of the accounting information system has a significant impact on the financial performance of Sri Lankan listed companies, and the correlation analysis indicates a strong relationship between the variables. Based on the results and findings, the study concludes that the accounting information system in an organization has a significant impact on financial performance and corporate success.