ICARE 2023

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

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    Factors Affecting the Implementation of Accounting Information Systems: Evidence from SMEs in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Thathsarani, P.M.; Perera, P.R.M.R.
    The study looked into the variables that affect the uptake of accounting information systems, including the potential obstacles that SMEs may have in utilizing the AIS system and the anticipated advantages of doing so. The research issues arising from the review of the literature were addressed through the application of a qualitative research approach. The study uses statistical analysis to examine the information collected from the survey. A research framework was created to direct the investigation, drawing from the technology-organization-environment framework and the technological adoption model. Using stratified selection and random sampling, 50 SMEs were selected as a sample size from a population of 100 SMEs. Data was gathered via questionnaires. The study's findings showed that the main obstacles to SMEs' adoption of AIS are security risk, low technological availability, lack of vendor support, computation difficulties, lack of government support, financial constraints, a shortage of skilled labor for AIS implementation, high implementation costs, and a lack of managerial and technical skills regarding the use of technological innovation. On the other hand, owner/manager resistance to change and satisfaction with manual systems are weak predictors of SMEs' non-adoption of AISs. The study suggested that the government support SMEs with funding, subsidies, and AIS training through micro and small business development agencies to facilitate adoption.
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    The Impact of Accounting Information System on Firm Performance of Small and Medium Size Enterprises in Sri Lanka: Evidence from Western Province
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Sampath, L.L.K.R.; Perera, P.R.M.R.
    This study was set to investigate the relationship between accounting information systems and the firm performance of SMEs in the Western Province of Sri Lanka. Specifically, the study examined the relationship between system quality and firm performance, assessed the relationship between information quality and firm performance, and analyzed the relationship between system threats and firm performance of SMEs in Western Province. A survey design was adopted, and a sample of 144 SMEs was selected from all 240 SMEs established in the Western Province. The findings of the study were based on correlation analysis and regression analysis. The findings of the study revealed the following key insights: First, accounting information systems had a statistically significant impact on firm performance. Further, the study established that system quality had a statistically positive and significant impact on firm performance. The study also revealed that information quality had a statistically significant impact and a positive relationship with firm performance. Finally, the study revealed that system threats have a statistically negative relationship with firm performance, and there is no significant impact on system threats and firm performance. The study concluded that accounting information systems are critical to producing quality accounting information on a timely basis and ensuring that all levels of management get sufficient, adequate, relevant, and true information for planning to increase control and enhance the performance of a firm. The study recommends that SMEs need a well-designed and operating accounting information system to enable them to manage their most valuable resource, which is information. Further research should include intervening and moderating variables and studying this effect, and further research may conduct longitudinal studies that may study the relationship over a long period of time.
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    The Impact of Forensic Accounting Skills and Knowledge on Fraud Detection in the Sri Lankan Context: Perception of Internal Auditors
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Samarasingha, M.M.S.; Perera, P.R.M.R.
    This study aims to find out if forensic accounting knowledge and skill matters to internal auditors’ perception of enhancing fraud detection in Sri Lankan contexts. Cases of increased financial crimes in the recent past have underscored the importance of good fraud detection systems, hence the reason this is included in risk management strategy. This is an exploratory study that employs quantitative research techniques through questionnaire audit firms among select internal auditors across the big firms within Sri Lanka. This study intends to find out the opinions and perceptions of internal auditors regarding the significance and efficacy of forensic accountability tactics utilized to deter fraud within organizations through some data collection procedures. The researcher has this particular study adopted a deductive approach, with the primary data gathered. Research has been done on 122 internal auditors in Sri Lanka. Fraud detection has been considered the dependent variable; forensic accounting skills, legal background, knowledge of procedure, and forensic accounting knowledge are independent variables. To be used as a basis for further analysis, descriptive statistics will have to be presented in the report. Some of these methods include exploratory factor analysis and inferential statistics such as multiple linear regression. The findings of the study showed that there is a considerable influence as it goes on. Skills in accounting, familiarity with processes, and expertise in forensic accounting. This study would hopefully broaden the knowledge of information about forensic accounting in Sri Lanka thereby providing the roadmap in the formulation of internal audit’s professional skills enhancement project, internal audit’s curriculum, and organizational protocol. Firstly, it tries to address the discrepancy that exists between academic theory and on-ground experience in corporate settings. In doing so, the study offers practical advice to companies and corporations about what they can do to enhance their inner auditors’ ability to detect any suspicious cases of fraud. The Sri Lankan corporate sector will gradually be enabled to handle financial crimes by building the ability of internal auditors to recognize and prevent fraud.
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    Impact of Strategic Management Accounting Practices on Financial Performance in Listed Manufacturing Companies in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Madushika, S.M.T.; Perera, P.R.M.R.
    Accounting focused on management or related to management functions is known as strategic management accounting. The function of a management accountant in a company and management accounting procedures are both being profoundly altered by the recent rapid changes in the business environment. Enhancing an organization's performance and profitability through pertinent data for planning, controlling, and decision-making has traditionally been the main goal of management accounting. 92 listed manufacturing companies in Sri Lanka made up the research population. The purpose of this study was to investigate the relationship between listed manufacturing companies in Sri Lanka's improved financial performance and their use of strategic management accounting practices as strategic initiatives. The use of multiple regression analysis is employed to examine the relationship between the application of strategic management accounting methodologies and the improvement in ROA, a measure of the initiatives' related financial performance. According to analysis, at least one of the strategic initiatives is used by 84% of the listed manufacturing companies in Sri Lanka that are being examined. Furthermore, compelling data suggests that implementing strategic initiatives improves the financial performance of the listed manufacturing companies in Sri Lanka that are being studied.
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    Impact of Environmental Management Practices on the Financial Performance; Evidence from Listed Manufacturing Companies in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Madushani, W.W.C.; Perera, P.R.M.R.
    This research aims to investigate the relationship between environmental management practices and financial performance in the context of Sri Lanka's manufacturing industry. Focusing on manufacturing companies listed on the Colombo Stock Exchange, the study investigates environmental management practices within these organizations and explores their correlation with financial indicators, particularly return on assets (ROA). Independent variables examined include green manufacturing practices, green process practices, and green supply chain management. The research objectives are twofold: first, to explain the existing environmental management practices among selected listed manufacturing companies, and second, to identify the relationship between these practices and financial performance as measured through ROA. The hypothesis shows that green production practices, green process practices, and green supply chain management positively affect the financial performance of manufacturing companies in Sri Lanka. Primary and secondary data are used for extensive analysis with a structured questionnaire serving as the primary data collection tool. The questionnaire covers various aspects of environmental management practices and captures the extent to which companies integrate green principles into their product design, production processes, and supply chain activities. Preliminary findings from the pilot research reveal that a significant percentage of the manufacturing firms in the sample have adopted environmental management practices to varying degrees. The pilot study also shows a positive trend towards green process practices and green supply chain management. Data analysis includes descriptive statistics, reliability analysis, validity tests, and Pearson correlation coefficients to reveal the complexities of the relationship between environmental practices and financial performance. The multivariate diagnostic test is applied to assess the potential correlation between the independent variables. The research explores the environmental management practices of manufacturing firms in Sri Lanka and their impact on financial performance. It provides practical insights for businesses, policymakers, and stakeholders, guiding on integrating sustainable practices for environmental and financial prosperity. The study contributes to corporate sustainability discourse in emerging economies, highlighting the complex relationship between environmental responsibility and financial success.
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    The Impact of Accounting Software on Business Performance: The Perspective of SME’s Accounting Professionals in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Kularathna, J.A.R.M.; Perera, P.R.M.R.
    Most small and medium Enterprises use accounting software for their day-to-day operational work with the growth of technology. This study examines the significant effects that accounting software has on business performance and how businesses operate, emphasizing the revolutionary potential of digital financial tools in the current business environment. Primary data were collected through a questionnaire by those who work in SME organizations familiar with accounting packages. The quantitative data required for the study was gathered through a sample size of 153 participants (accountants or employees involved in using accounting software in their work). SPSS software package used to analyze obtained data. The overall research findings of the study indicated that there is a positive significant relationship between characteristics of accounting software and business performance.
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    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.
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    The Impact of Cash Conversion Cycle on Firm’s Profitability of Listed Companies in Sri Lanka: Comparative Study of Pre and Post COVID-19
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Dharmawardhana, H.M.I.S.; Perera, P.R.M.R.
    The Cash Conversion Cycle (CCC) is a critical metric that measures the efficiency of a firm's working capital management, reflecting the time it takes for a company to convert its investments in inventory and other resources into cash flow. This study explores the dynamic relationship between the CCC and the profitability of listed companies in Sri Lanka, with a focus on the comparative analysis before and after the onset of the COVID-19 pandemic. The research employs a comprehensive methodology, combining financial analysis and statistical techniques to examine the financial statements of selected listed companies in Sri Lanka. By comparing the pre-COVID-19 and post-COVID-19 periods. The analysis considers various industry sectors and their unique characteristics, acknowledging that different sectors may experience distinct effects on the CCC due to the pandemic's unprecedented disruptions. The findings of this study contribute valuable insights for both academics and practitioners by enhancing our understanding of the relationship between the CCC and firm profitability in the context of a global crisis. Ultimately, the research aims to provide strategic recommendations for firms to optimize their CCC in the post-pandemic era, fostering financial sustainability and resilience in the face of future uncertainties. The implications of this study extend beyond the borders of Sri Lanka, offering lessons and strategies that can be applied to enhance financial management practices globally.
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    Impact of Sustainability Reporting on Firm Financial Performance: Evidence from the Banking Sector in Sri Lanka Pre and Post Covid-19 Period
    (Dasanayaka, K.A.N.A.; Perera, P.R.M.R. (2023), Impact of Sustainability Reporting on Firm Financial Performance: Evidence from the Banking Sector in Sri Lanka Pre and Post Covid-19 Period, 9th International Conference Accounting Researchers & Educators (ICARE 2023), Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka. 15, 2023) Dasanayaka, K.A.N.A.; Perera, P.R.M.R.
    This research examines the impact of sustainability reporting on financial performance in the Sri Lankan banking industry before, and after the COVID-19 pandemic. The study aims to achieve two main objectives by analyzing secondary data obtained from the annual and sustainability reports of 15 commercial banks. First, it aims to determine whether sustainability reporting has a significant impact on banks' financial performance as measured by return on assets (ROA) in the pre-and post-COVID-19 periods. Second, to investigate the relationship between the financial performance of the banking sector and sustainability reporting practices in these different periods. The second goal of the study is to clarify the relationship between financial performance and sustainability reporting in the banking industry during these different periods. The results show a significant positive correlation between ROA and economic disclosures in sustainability reports, suggesting that banks that highlight economic factors in their sustainability reporting see better financial results. Environmental disclosures show a nonsignificant positive relationship with return on assets (ROA). Social disclosures show a significant negative relationship with return on assets (ROA), and in the context of the banking sector, these findings highlight the complex relationship between financial performance and sustainability reporting. They provide insights for stakeholders, legislators, and financial institutions trying to navigate the changing environment shaped by the transformative effects of the COVID-19 pandemic, in addition to sustainability needs.
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    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.