ICARE 2016

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/16375

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Accounting System on Polish Local Government in the Context of New Public Management
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Kowalczyk, M.
Accounting of the local government units in Poland has evolved within the last several years mainly and undoubtedly due to introduction of the New Public Management assumptions. The new concept of management implemented in the sector of public finances has significantly influenced on the accounting of local government. The purpose of the herein study is to demonstrate changes to the accounting of local government in Poland, which were caused by introduction of the New Public Management assumptions. On the basis of the research author will try to determine whether the changes introduced to the accounting of local government are beneficial and how they influence on the efficiency of operations. The object of the herein study is the accounting of public finances sector at the local level and the local government constitutes its subject. The article shall be elaborated with the use of literature research to demonstrate the evolution of accounting of local government in Poland within the last several years. The article will constitute of three parts. The first one presents the principles of operations of the local government in Poland. The second part concentrates on the core of New Public Management and its main assumptions. The further part constitutes critical analysis of assumptions of the new management concept on the basis of the literature in subject. The third part describes another changes to the accounting of local government in Poland which are being introduced.
Assessing the Factors Influencing Profitability of Listed Hotels in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Begam, A.M.R.
The purpose of this paper was to investigate the factors influencing profitability of listed hotels in Sri Lanka. This study is significant for the developing country like Sri Lanka as a prominent tourist attraction in south Asian region. Sri Lankan government has identified the Tourism sector as a key growth area in the post-conflict development era, with a target of attracting 2.5 million visitors by 2016. Tourism arrival has increased by 160 % since 2009, as the number of arrival was recorded in 2013 was 1.3 mn compared to 0.5 mn in 2009. However, JLL (2016) report reveals that the Average profit per room (Rev per AR) of the hotel industry was showing a decreasing trend. Hence, the objective of the research is to identify the factors influencing the profitability of listed hotels in Sri Lanka. Findings of this research would be useful for the hoteliers to identify the factors influencing the profitability of the firm. Hoteliers can follow the recommended practices to increase the profitability in the hotels. This research was based on secondary data. Secondary data collection focuses on extracts of financial statements of randomly selected 26 listed hotels for last 3 years, i.e. from 2012 to 2015. Financial ratios and financial variables were used to test applicability of independent variables and hypotheses on dependent variables. This study was tested the degree of influence of the independent variables of operational efficiency, investment in training and development of associates, hotel size, investment in research and development and amount of interest bearing loans on the dependent variable of Profitability of listed hotels. Operational efficiency and amount of interest bearing loans were identified as significant variables of influencing the profitability of the listed hotels.
Challenges Faced by Sri Lankan Banks in Financing for Sustainable Growth in SME Sector
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Weerasekera, W.K.N.M.
This research paper focused to address the supply side finance gap in banks’ perspective. The main objective of this study is to determine and explain the impact of the challenges relating to bank’s risk appetite, collateralized lending, cost implications of financing and expertise of bank officers in financing for a sustainable growth in SME sector. Hypotheses were developed based on empirical studies across the world and tested in Sri Lankan context. Likert scale was used to analyze the primary data collected from the survey to determine each hypothesis. The research revealed that all variables are related in bank financing for SMEs but only collateralized lending and expertise of bank officers are the significant challenges faced by banks in this business. The findings provide new insights to improve and encourage the performance of bank financing, recommending the intervention of regulators and policy makers to contribute to soften the negative impacts in SME lending.
Contemporary Political Issues Responsible for Poor Local Governance in Nigeria
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Baba, I.
This research examined contemporary political issues responsible for poor local governance in Nigeria. It assessed how these issues alternative solution to these issues can be achieved. The quantitative research methodology was adopted in conducting the research. Lack of autonomy which local government councils in Nigeria are suffering from is discovered as one of the contemporary political issues responsible for poor local governance in the country. Independent local government system as this research recommended is one of the possible alternatives to addressing the problem of poor local governance in Nigeria.
Corporate Strategies, Strategic Options and Integration: Empirical Study on Emirates Airline
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Shanjeevan, B.; Divassini, P.
The airline industry is considered rather unattractive, particularly due to the fact that the large threat of buyers and the rigorous competition within the industry. The purpose of the study is to pinpoint the possible corporate strategies, strategic options and integration of Airline industry. This study was conducted by examining ten Emirates Airlines carrying the most passengers on international flights plus Qatar Airways, Etihad Airways and Singapore Airlines. As the outcome of the study, it was found that Emirates locked itself into a growth strategy and struggled to expand the potential market share in order to survive in industry. Hence, Emirates was established itself over sustainable competitive advantage with the use of its Dubai mega-hub by limiting the growth potential, since it suffered from congestion and improbable attractive markets in the airline industry.
Corporate sustainability: A Literature Review
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Swarnapali, R.M.N.C.
This review article intends to bring a better understanding to the field of corporate sustainability as studied by previous scholars. Since the end of the 1990s, corporate sustainability has become a growing interest theme in business and academia. However, literature is still limited in quantity. This review paper provides a review of 50 articles dating from 2002 to 2016 from journals related to accounting, business, and management. The paper summarizes the corporate sustainability evolution, different definitions, measures and applied theories throughout the literature. The findings highlight that corporate sustainability field is still evolving and then different approaches have been used to define, measure and theorize corporate sustainability. Overall, review evidences that a commonly agreed definition of sustainability is lacking. Thus, concepts of corporate sustainability and corporate social responsibility have been used simultaneously in many contemporary studies since they are precisely indistinguishable.
Critical Leadership Qualities for Good Corporate Governance
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Gunasekare, U.L.T.P.
Corporate governance is a process that aims to allocate corporate resources in a manner that maximizes value for all stakeholders – shareholders, investors, employees, customers, suppliers, environment and the community at large and holds those at the helms to account by evaluating their decisions on transparency, inclusivity, equity and responsibility. Corporate Leadership need to be attentive in effecting good corporate governance and for this purpose they should possess specific leadership characteristics. The goal of this paper is to analyze the concept of good governance and the concept of leadership to propose specific leadership characteristics to strengthen good corporate governance. This study is significant in recruiting corporate leaders, training and motivating them for the betterment of the good corporate governance in the business world today. Scientific literature analysis was the main methodology employed in this regard and it is indicated that competence, accountability, integrity, relationships, values and steadiness are essential leadership qualities in effecting good corporate governance.
Data Deluge and Its Analysis Issues
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Wijayatunga, P.
Current availability of enormous amount of data is mainly due to technological advances. They are useful drawing inferences for creating new businesses, formulation of new policies or revising existing ones, etc. However, much of analyses are performed either by subject domain experts implementing mathematical and computational models incorrectly or by mathematical and computational professionals, purely on data driven basis without paying required attention to the subject domain knowledge. Both of these exercises often result in incorrect inferences and therefore they may harm the society, especially when their inferences are used in practice. We argue that, in order to get valid inferences these two parties should work together. Here we briefly discuss some of the issues that the large-scale data analyses should take into account, especially in open data and big data. We also briefly discuss our solutions that are rather simple to implement.
Effect of Government Debt on Gross Domestic Production: Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Silva, N.L.C.; Silva, N.K.L.; Perera, P.R.M.R.
This paper investigates the relationship between government debt and gross domestic production in Sri Lanka. Objective of this study is to find the relationship between these two variables and the impact of government debt on economic growth. Data was collected through Central Bank of Sri Lanka and the data set proven to be normally distributed. Correlation and Linear Regression Model is used to ascertain relationships. Data sample represent annual time series data for the period of 15 years starting from 2000 to 2014. Results of the study is consistent with the Keynes View which proves that there is a positive impact of government debt on economic activities.
Financial Performance of SBI Mutual Funds: An Analysis
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Baral, S.K.
When we talk about mutual funds, putting all our eggs in a single basket is never a wise decision. This is due to the market volatility and the risks involved in it. But one can minimize risk by distributing his investments among various financial instruments, industries and many more options. Here the intent is to maximize returns by investing in diversified areas, where each would react differently to the same event. This not only buffers the impact of a market downturn, but also allows for more potential rewards by offering a broader exposure to various stocks and sectors. A mutual fund is a pool of money from various investors who wish to save or make money. Investing in a mutual fund can be easier than buying and selling individual stocks and bonds on our own. Investors can sell their shares when they want. The main objective of this paper is to analyze the financial performance of State Bank of India (SBI) mutual funds.
Identify the Market Efficiency of Assets Write down Announcement - A Study on Loss Earned Listed Manufacturing Companies in CSE
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Sooriyakumaran, L.
This research paper examines the market efficiency of loss earned listed manufacturing companies to assets write down announcement and test whether there was semi-strong form of market efficiency available in Colombo Stock Exchange (CSE) under the circumstances. This study attempts to answer the research question of are the loss making companies’ impairment of non- current assets announcements impact to share market? This issue is examined using an overall sample of 62 events relating to 22 listed manufacturing companies covering the period from January 2007 to December 2014. From the events, 12 events were considered to analyse the loss earned 10 listed manufacturing companies market efficiency. The standard Event Study Methodology (ESM) is adopted in order to carry out the study. This study finds that assets write down announcement impact on share prices of loss earned listed manufacturing companies at the level of 01% on the event date. It reveals that CSE has supported to the semi strong form market efficiency which is run on publicly available information on CSE.
The Impact of Analysts’ Stock Recommendations on the Hong Kong Stock Market
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Choudhry, T.; Nandi, M.; Jayasekera, R.; Dassanayaka, G.; Vigne, S.
Analysts’ recommendations play an important role in providing significant information to market participants in the stock market. This paper examines the short-term price impact of analysts’ recommendations (upgrades, downgrades and initiations) on major stocks in the Hong Kong stock market from 2009 to 2014. Our findings show that on average, recommendation upgrades convey substantial and permanent information to the market and result in significantly positive abnormal returns. On the other hand, recommendation downgrades generate even larger price impacts surrounding the announcement day. This implies that recommendation downgrades deliver more significant information to the stock market than upgrades. Our results provide evidence in favour of the markets’ significant reaction to predictions from stock analysts during and after the announcement day taking into account market conditions.
The Impact of Corporate Governance on Firms’ Dividend Policy: Evidence from the Listed S&P SL20 Companies in the Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Ekanayake, H.L.; Paranthaman, T.
The concept of corporate governance is one of the issues that have attracted the attention of researchers and organization around the world. Corporate governance is measured by board size, ownership structure, board independence and CEO duality. The purpose of this study is to identify the impact of corporate governance on firms’ dividend policy for the listed S&P SL20 companies in the Colombo Stock Exchange. Twenty listed S&P SL20 companies were analyzed for a period of six years from 2010 to 2015. Data is collected from the annual reports of the companies. Statistical Package for Social Science (SPSS 19.0) is used to analyze and evaluate the collected data. Univariate, Multiple regression and correlation analyses are used to explore the association between board size, ownership structure, board independence and CEO duality and firm dividend policy. A positive impact is found between CEO duality and firm dividend policy and negative impact is found between ownership structure and firm dividend policy. The impact of board size and board independence deemed to be insignificant. In addition, it is shown that firm size and profitability explain firm dividend policy. The paper supports the fact that corporate governance is relevant in determining the dividend policy for listed S&P SL20 companies in the Colombo Stock Exchange.
Impact of Corporate Governance Practice on Firm Financial Performance in Listed Manufacturing Firms in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dharmarathna, G.V.D.S.
The research will focus on the Impact of Corporate Governance practice on Firm financial performance in listed manufacturing firms in Sri Lanka. The study is base on the research question “Do corporate governance practice contribute to firm’s performance significantly in listed manufacturing firms in Sri Lanka”. The main objective of the study is to investigate the impact of corporate governance practices on firm’s performance. Thirty one listed manufacturing firms in Colombo Stock Exchange were selected as sample size for the periods of 2008-2012. Correlation and coefficient is measured the strength and direction of the relationship between two variables. Finding revealed that there is no any relationship between the firm performance among board size and CEO Duality practices. Further findings disclosed that there is a positive relationship between executive compensation disclosure transparency and firm’s performance. Based on analyzed data the study found that there is no any relationship between corporate governance and firm’s performance. This study is recommended that the corporate governance practices should be reviewed in reliable way in Sri Lankan context.
Impact of Dividend Policy on Market Share Price, Evidence from Financial Industries in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Uthayakumar, R.; Mujahith, M.U.M.
This study examines the impact of dividend policy indicators, dividend payout ratio and dividend yield, on the market price of a share of the companies operating in the banking, financing, insurance, and leasing industries in Sri Lanka. The study was carried out using 5 year data from 2010 to 2014 obtained from the annual reports of sample of 20 listed companies in the financial sector. From the data analysis, it is found that the dividend payouts ratios have weakly and positively correlated with share price indices, and dividend yields have weakly and negatively associated. The dividend payout ratio and dividend yield have an insignificant impact on the market price of shares of the companies in the industries. Hence, it is concluded that the dividend policy has no significant influence on determining the market value of shares of companies in the banking, financing, insurance, and leasing industries in Sri Lanka.
The Impact of Dividend Policy on Stock Price: An Empirical Evidence from Hotels and Travels Companies Listed in Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Hettiarachchi, U.S.J.; Rajeshwaran, N.
Dividend Policy is one of the important factors that affect the stock price. Dividend policy is measured by dividend per share, dividend yield and dividend payout ratio. The purpose of this paper is to identify the impact of dividend policy on stock price in the hotels and travels sector companies listed in the Colombo Stock Exchange. Thirty-four companies listed in the hotels and travels sector were analyzed for a period of five years from the year 2012 to 2016. Data were collected from the annual reports of the companies. Statistical Package (SPSS 19.0) was applied to analyze and evaluate the collected data. Correlation analyses and multiple regression are used to explore the association between study variables. A positive impact is found between dividend per share, dividend presence in a firm with stock price changes, while a negative impact between dividend yield and stock price changes is also identified. The impact of dividend pay-out ratio deemed to be insignificant. In addition, it is shown that assets growth rate and firm size explain stock price changes. The study supports the fact that dividend policy is relevant in determining the stock price for the hotels and travels sector companies listed in the Colombo Stock Exchange.
The Impact of Interest Rate in Determining Exchange Rate: Revisiting Interest Rate Parity Theory
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, P.R.M.R.; Silva, N.L.C.; Silva, N.K.L.
The objective of this study is to examine the relationship between Interest rate and the Exchange rate and to find the effect of changes in Interest rate on Exchange rate volatilities. Exchange rate is sensitive to number of factors, where Interest rate is identified as a major factor (Ozun & Cifter , 2010). Central Bank of Sri Lanka provides quantitative evidence for the study, where Sri Lanka Inter-Bank Offer Rate (SLIBOR) constitutes the independent variable and US Dollar to Sri Lankan Rupee exchange rate represents dependent variable. Sample spreads through 4 years and contains daily data. Data set is proven to be normally distributed. Correlation and Linear Regression Model is used to ascertain relationships. Results of the study are consistent with Interest Rate Parity theory that discloses a strong positive relationship between Interest rate and Exchange rate. This study extends the literature on international financing and provides valuable information to decision makers in small open economies and to the academia.
The Impact of Ownership Structure and Ownership Concentration on Financial Performance of Companies Listed on Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Rathnayake, A.R.M.B.I.; Weerathunga, P.R.
This study investigates the impact of Ownership Structure and Ownership Concentration on financial performance of Public Companies listed on Colombo Stock Exchange. For this purpose, a sample of 46 top capitalized companies as on 30th August 2016 were selected. Accounting based performance measures of Return on Assets and Return on Equity are used as proxies for financial performance. Ordinary Least Square (OLS) linear Regression model is employed to identify the association between dependent and independent variables. The results of the study reveals that Institutional Ownership, Individual Ownership and Foreign Ownership have not significant impact on financial performance. However, the Ownership Concentration ratios have significant impact on financial performance. All the Ownership Concentration ratios used in this study showed significant impact on the Return on Assets and Return on Equity except the percentage of shares held by first two largest shareholders. This study implies that the majority of the share ownership is held by first five largest shareholders. Therefore, the most of the Sri Lankan companies’ ownership are highly concentrated and it influences to the financial performance.
The Impact of Techno Incubators in Growth of Techno-based Small and Medium Enterprises (SMEs) in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Jayakody, J.A.N.S.; Dasanayaka, S.W.S.B.
The main objective of this research is to study the impact of the technoincubators to promote techno-based Small and Medium Scale Enterprises (SMEs) in Sri Lanka. Literature survey shows that proper incubator process and techno-SME startup eco-system can reduce the mortality of the techno- SME startups. The main methodology of this research is primary data collection through sample survey of seventy one techno-SME entrepreneurs supplemented by interviews with key stake holders. The results show that lack of strong techno-SME promoting national eco-system, inconsistencies in selection process for the techno-incubator facilities, the services offered and the business support given by the techno-incubators are not in-line with incubatee’ s current requirements. In general, incubator authorities need more focus on business support services and appropriate skills development for techno businesses.
Impact of Technological Innovation on Growth of the Small Enterprises: A Study of Coir Industry in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Fernando, W.M.S.N.; Dasanayaka, S.W.S.B.
The prime aim of this research study is to identify the impact of Technological Innovation (Technopreneurship) on the Small Enterprises (SEs) Growth. The study primarily contemplates on four types of Technological Innovation based on Machine Technology, Computerized Operations, Mobile Technologies and Other Communication Media Technologies of Coir SEs in Puttalam district of Sri Lanka. Primary data is collected from a sample of 100 which is drawn from the total population of 133 Coir SEs through the application of Simple Random sampling. An Ordered Logistic regression analysis is used as per the Inferential (Multivariate) Statistical analysis. Results depict, the growth of these four types of technologies based Innovation (Technopreneurship) lead for Enterprise Growth. Moreover explains that higher (up to date) the extents of these technologies, higher the positive contribution for Technological Innovation performance. Inadequate finance, lack of the knowledge are identified as the main reasons for the lower orientation of Coir SEs on Technology based Innovation performance. To promote technology based more value addition Coir SEs in Sri Lanka, emphasis on ‘Technopreneurship’ is essential where there is a requirement of Coir Industry and SEs category aspects specific Business Incubator (BI) model in Sri Lanka.