Volume: 1 Issue: 1 - 2021

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29867

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Digitalization of Environmental Tax: the right Tax Policy Reform for Nigeria
(Department of Accountancy, University of Kelaniya, Sri Lanka., 2021) Garba, I.; Bappayaya, B.; Gambo, I.; Oluwakayode, A. M.; Ayodele, A. J.
The paper examined different tax policy options that are currently under consideration in the Nigerian economy in supporting tax policy and its administration reforms. Online tax systems are rapidly replacing cumbersome manual-based tax reporting systems which help the ease of doing business in Nigeria by reducing human intervention in the payment and collection of tax and by extension, checks the possibility of connivance of tax officials with fraudulent taxpayers to evade tax. A quantitative method was used in generating data for the studies of which tax consultants and policymakers were randomly selected in the north-east part of the country, and free rider theory was adopted for the research work. It has been recommended that digitalizing environmental taxes is the most efficient tax policy of pursuing many environmental policy goals. There is also the need for consistency and transparency in the policies. Due to the imposition of any environmental tax requires countries to be fair, transparent and keep environmental objectives as priorities.
Responses of Share Returns to Macroeconomic Information: An Empirical Examination of Bank, Finance and Insurance industry in Sri Lanka
(Department of Accountancy, University of Kelaniya, Sri Lanka., 2021) Waidyarathna, C. M.; Rajeshwaran, N.
The purpose of this study is to examine the impact of macroeconomic variables on Share Returns of Banking, Financing, and Insurance (BFI) companies listed at the Colombo Stock Exchange (CSE). The Theory of Efficiency Market Hypothesis (EMH) is applied to investigate the research. The study used secondary data of companies listed under Banking, Finance and Insurance sector in CSE from 2010 to 2017. Macroeconomic variables include Exchange rate, Interest rate, Inflation rate and Broad Money Supply (M2). The macroeconomic data were collected from the Central Bank of Sri Lanka. Descriptive Statistics, Augmented Dickey-Fuller, unit root test, Johansen co-integration and vector error correction model were also used in analyzing the study. The co-integration test results depict the positive relation between the Total Return Indices in BFI sector with the interest rate and money supply. In contrast, the Exchange rate and inflation rate negatively affects the correlate with Total Return Index in the BFI sector. This study also emphasizes that there is no significant short-run causality from macroeconomic factors to Total Return Index (TRI). It is concluded that there is a minimum level of positive impact with interest rate and money supply in the long-run causality, while a negative effect with the exchange rate and inflation rate. The study supports the EMH, which states that it is immediately reflected in share return when new information comes into the market.
Exploring the Rationale for Assuring Integrated Reports and its Impacts on Assurance Practices: A Proposed Conceptual Model
(Department of Accountancy, University of Kelaniya, Sri Lanka., 2021) Herath, R.; Senaratne, S.; Gunarathne, N.
here is a growing demand for external assurance on integrated reporting despite the challenges involved in the assurance process. However, the rationale for obtaining external assurance on integrated reports is mostly unknown, and how it leads to organisational changes is not sufficiently explored. Thus, this study offers a conceptual model to explore the rationale behind obtaining external assurance on integrated reporting, its impacts on internal assurance practices, justifications for modifications made to the internal assurance practices, and its implications on external assurance practices. This conceptual model, grounded on the framing and institutional theories, postulates that companies tend to assure their integrated reports externally as a response to various isomorphic pressures. The external assurance of an integrated report may warrant modifications to companies' current internal assurance practices. Companies make these modifications based on different rationales, which can also have implications on external assurance practices. This paper also discusses how researchers and practitioners can use this model.
Sustainability Reporting and Company Financial Performance: Evidence from an Emerging Market
(Department of Accountancy, University of Kelaniya, Sri Lanka., 2021) Eranga, W. A.; Wijesinghe, M. R. P.
The main objective of this study is to examine the level of compliance to the sustainability practices and investigate the impact of sustainability reporting on the financial performance of Public Listed Companies in Sri Lanka. Sustainability disclosures were measured using social, economic, and environmental sustainability initiatives, and the company performance was measured through Return on Equity (ROE), Return on Assets (ROA), and Return on Sales (ROS). The study becomes original by applying an appropriate index to measure the sustainability reporting compared to the existing indexes used in Sri Lanka and applying the latest GRI 20 guidelines. In addition, the panel data regression model was employed to analyse the data from 2012 to 2019. The results suggest that social sustainability reporting has a significant positive impact on company performance measured through ROE. Henceforth, company managers, directors, and investors should focus more on fulfilling and considering the Social Sustainability Guidelines.
Stock Market Development and Economic Growth: Empirical Evidence from Sri Lanka
(Department of Accountancy, University of Kelaniya, Sri Lanka., 2021) Kengatharan, L.; Vanajah, S.
The financial markets have played a crucial role in the country's economic life for a long time. The objective of this study was to examine the empirical relationship between stock market development and economic growth in Sri Lanka. This study used annual time series data for the period from 1990 to 2018 which were collected from the annual reports of the Colombo Stock Exchange (CSE) and the Central Bank of Sri Lanka. The data were analyzed employing co-integration test, and vector error correction model (VECM). The results of VECM revealed that stock market capitalization, foreign direct investment, and inflation have a significant impact on economic growth, while turnover has not significantly influenced economic growth. The findings of the study have an important implication for the economic policymakers and government of Sri Lanka to enhance economic growth. Further, research can be extended by choosing more periods of data and choosing other indicators of stock market development indicated in previous studies.