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Accountants’ Perception of Internal Control Problems Associated with the Use of Computerized Accounting Systems: Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Wijesuriya, D.R.D.; Perera, H.A.P.L.
Today most of companies depend upon the computerized accounting systems and these systems have more complex in meeting information needs. Due to the enhancement of business complexity in recent decades, companies are facing internal control problems associated with the use of computers and computer related systems. The main purpose of this study is to examine the accountants’ perception of internal control problems associated with the use of computerized accounting systems exist. For this study, the main instrument of data collection was the questionnaire. Data is collected from 84 accountants in selected companies covering different types of industries and Descriptive statistics such as frequency distributions, percentage distribution of responses, means, cross tabulation and ANOVA were used to analyze the data. The results indicate that there are internal control problems exist with the use of computerized accounting system in Sri Lankan companies. The major important problems are Unfamiliar user may enter incorrect data, Great potential for error by employees as a result of insufficient knowledge about the system ,Great speed of computers can be manipulated to the advantage of users, New sources and potential for errors are likely to arise in the: Hardware and software, Duties are concentrated within the computer (i.e. no separation of duties as in the manual system), Information can be changed without physical traces, concentrated information is easy to steal and Electronic information is easy to lose, Employees, customers and other users trust the computer output .However, they perceive that certain control procedures can be undertaken to overcome them such as authorized access to computers, Proper system design, Use physical controls and proper authorization, Use backup copies, only authorized people should have access to the records, Use physical control and cross-check and Use control totals to check computer results .It was found that the problems in the storage level are most frequently occurred internal control issues.
Accounting Based Performance Measures and Shareholder Value Creation: Evidence from Listed Companies in Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Iroshani, M.B.M.; Rajapakse, R.M.A.D.P.
Rapid growth of investments in the market has led the “Shareholder Value Creation” being one of the most important and popular concept all over the world. Since the companies were highly attracted for creating shareholder value, the concept has become a critical component. Traditional Accounting Based Performance Measures were critiqued for reporting a low level correlation with shareholder value creation. Thus this study examines the relationship between Accounting Based Performance Measures and Shareholder Value Creation for selected Beverage, Food and Tobacco companies listed in Colombo Stock Exchange. Nineteen companies from the sector were selected as the sample for the study. Audited annual reports for 6 years from 2010 to 2015 were analyzed to collect data needed for the study. Market Value Added (MVA) was used as the proxy to Shareholder Value Creation Measures and Return on Equity (ROE), Earnings per Share (EPS) and Return on Assets were used as the Accounting Based Performance Measures. Simple Regression and Multiple Regressions were used to test specified four research objectives. Other than those methods Descriptive Statistics and Correlation analysis have been done. The research findings suggested that there was no strong significant relationship between Accounting Based Performance Measures and Shareholder Value Creation. In conclusion it is recommended to consider contemporary economic measures when making an investment rather than only considering the Accounting Based Performance Measures.
Adoption of information technology to productivity changes in the Sri Lankan banking industry
(Department of Accountancy, University of Kelaniya, 2015) Fernando, P.
The rapidly increasing use of computers in producing and delivering goods and services has spurred a large literature on the effects of information technologies (IT) on productivity growth (Casolaro & Gobbi, 2004). Information and communication technology (ICT) can be considered the key factor driving economic growth in industrial societies. Investing in IT is widely regarded as having enormous potential for reducing costs, enhancing productivity, and improving living standards (Hajl, Sims, & Ibragimov, 2013). In recent years, greater competition in SL banking has been driven by technological change, internationalization and globalization of financial services, higher demand for banking services and deregulation and privatization of the industry (Figueira, Nellis, & Parker, 2009). The Internet has provided an environment in which information can travel across organizational and geographical boundaries (Dasgupta, Sarkis, & Talluri, 1999). Comparison of ICT investment to all other expenditures connected with the production process illustrates the growing significance of ICT in the modern economy as a factor of production (Hajl, Sims, & Ibragimov, 2013). The purpose this research is to observe whether Information technology is an indicator of a poductivity. The sample for this research will be obtained from the Sri Lankan listed commercial banks. The objective of this research is to findout to identify relationship between information technology and productivity changes.
Adoption of Information Technology to Productivity of Sri Lankan Banking Industry
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Fernando, W.K.B.A.P.; Thilakarathne, C.R.
In the current context, the information technology has become one of the crucial elements in economic development and a backbone of knowledgebased economies in terms of operations, quality delivery of services and productivity of services. Information technology can improve bank performance in two ways: IT can reduce operational cost, and facilitate transactions among customers within the same network. Therefore, for a developing country like Sri Lanka, taking advantage of information technologies has become an increasing challenge. Since banks are spending increasing amounts of capital on information technology, it is very important to understand the relationship between information technology investment and bank productivity. Hence, regression model and the correlation technique are used to analyze the relationship between information technology and productivity. This paper presents the adoption of information technology to productivity in the banking industries in Sri Lanka and gives an insight into how productivity of banking has been enhanced via IT. The results are tested on a panel of 10 Sri Lankan banks over 6 years, during the period of 2009- 2014. From the analysis it was reviewed that the bank profits increment due to adoption of IT investment, reflecting positive network effects in this industry.
Affect of internal audit on firms performance
(Department of Accountancy, University of Kelaniya, 2015) Dissanayake, W.G.P.K.
This study attempt to evaluate the relationships between the internal audits characteristics such as professional qualifications of the chief audit executive of the Internal Audit, size, experience, and qualification; and firm performance. The internal audit is deemed as the core of business accounting as it is the section that keeps track of all businesses associated with the sector. The Objective of this research to identify relationship between Internal Audit and Performance of Sri Lankan Organizations. The internal audit efficiency assists in developing the company’s work because the financial reports present the internal audit department’s quality. In addition, an internal audit is a crucial part of corporate governance structure in an organization and corporate governance covers the activities of oversight conducted by the board of directors and audit committees to ensure credible financial reporting process. This study provides comprehensive oversights on the relationship between internal audit and firm performance.
An Analysis of Capital Structure and Its Impact on Performance: with Reference to Financial Institutions in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Balendra, V.; Madurapperuma, M.W.
The capital structure of a firm is basically a combination of debt capital and equity capital. Which is deemed as appropriate to enhance its operations. A lot of investigations are being done on the implications of capital structure’s selection on organization’s value and its performance since the seminal work of Modigliani and Miller (1958). A wee little is empirically known about such implications in emerging economies such Sri Lanka. The purpose of this research is to explore empirically the impact of capital structure decisions on the financial sector organizations’ financial performance in Sri Lanka as one of emerging economies. Regression analysis is used in this research to identify the relationship between the leverage level and the performance of the financial institutions. Broad data covering the six year periods from 2009- 2015 of financial institutions in Sri Lanka are gathered and analyzed with the regression analysis. The data all are quantitative in nature and already available on Colombo stock exchange database (secondary evidence). There are sixty Financial Institutions in Sri Lanka and most of them are levered firms. Based on Return on Equity financial performance measurement and financial institutions’ leverage level the results revealed that leverage level has a weak level of negative impact and whilst controlling variable total assets has strong negative impact on organization’s financial performance.
Analysis of Human Resource Outsourcing Services in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Rezana, N.F.; Rathnasiri, U.A.H.A.
Human Resource Outsourcing is a process in which the human resource activities of an organization are outsourced so as to concentrate on the organization`s core competencies. Also HR functions are complex and time consuming that it will create difficulty in managing other important areas. By HR outsourcing, this problem can be reduced which will improve effectiveness by focusing on what the organization is best at. It will also improve the flexibility of the organization to the fast changing business needs. The purpose of this study is to examine current and prospective HR outsourcing trends in Sri Lanka considering the factors underlined by an organization, in taking the decision of using HR outsourcing services from a third-party company. Data were collected from HR staff through a questionnaire-based survey using convenient sampling with random selection. Descriptive statistics were used to analyze the data. Findings revealed that there is an increasing demand in outsourcing Payroll function in present context. Further, there is a prospective trend in outsourcing Human Resource Information Systems (HRIS) and foreign workers management and expatriate management. Confidentiality and customer service are the most influential factors on HR outsourcing decision. Firm size and sector had negligible on the degree of HRO. More than half of the firms surveyed intended to do more outsourcing in the near future.
Application of Sri Lanka accounting standards in small & medium sized enterprises
(Department of Accountancy, University of Kelaniya, 2015) Nishanthi, W.P.L.
Small and Medium Enterprises (SMEs) play an important role in both developed countries and developing countries. It contributes to the growth of the economy through employment generation, new venture development and by opening up new avenues for the growth in the economy. The Central Bank of Sri Lanka (1998) had stated that inadequate capital, inadequate institutional credit facilities, use of outdated technology, improper accounting techniques, inadequate sales promotion competencies and inattentiveness of small businesses are the main problems faced by the small businesses in Sri Lanka. Huck and McEwen (1991) argue that 12 competency areas such as starting a business, planning and budgeting, management, marketing/selling, advertising and sales promotion, merchandising and finance and accounting is needed for small business success. This study is done in relation to the factors leading to non-compliance with Standard accounting practices by the small and medium scale enterprises (SMEs) in Sri Lanka. The main objectives of the study focused on identifying the nature of the accounting practices and the factors leading to non-compliance with standard accounting practices by the SMEs. Efforts are made to examine the possible causes for noncompliance with the Standard accounting practices by the SMEs in Sri Lanka and the researcher expects that this study would fill the knowledge gap. The researcher uses structured interviews to collect data and selects 30 SMEs and 10 auditors for the study. Two interview guides will be prepared by the researcher for the SME owners, and for the Auditors. In the conceptual model the non-compliance is considered as the dependent variable and the independent variables are the cost of adherence to accounting standards, knowledge and competence of the owners, lack of qualified employees, relevance of standard guidelines and parties interested in the financial reports. The key finding is that, higher cost of adherence to accounting standards, lack of knowledge and competence of the owners, lack of qualified employees, and unavailability of parties interested in the financial reports other than owner is leading to non-compliance and the relevance of standard guidelines does not have a relationship with non-compliance. The non-compliance with Standard accounting practices is not only due to SMEs ‘can’t comply’ with them, but also due to not complying with them even when they are able to comply. The researcher finally makes recommendations to the policy makers, government and professional accounting bodies to design the policies and frameworks to ensure SMEs’ compliance with standard accounting practices.
The Association between Corporate Social Responsibility and Financial Performance - with Special Reference to Public Quoted Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Dilrukshika, M.G.C.M.; Lakshan, A.M.I.
The concept of corporate social responsibility (CSR) has developed in the Western world since the twentieth century (1950). Many businesses neglect to engage in social work and some business organizations voluntarily engage in different types of CSR. Also, listed companies spend huge amounts of money in CSR activities for different purposes. The impact of those spending is not clear and especially how CSR spending influence on performance of companies is a bit confusing. as well as, mixed empirical evidence has been found in relevant previous studies on the relationship between CSR and Financial performance. Moreover, almost every previous study provides evidence of developed countries. This investigation is based to fill the knowledge gap of developing countries. Accordingly, the aim of this study is to examine the impact of CSR on financial performance of selected listed companies in Sri Lanka. Based on literature, independent variable is CSR and three dependent variables (ROA, ROE and EPS), and two control variables Firm Size and Leverage have been chosen in this study. The sample of this study consists of 75 listed companies on the Colombo stock exchange and they are selected based on their market capitalization. Data collected from annual reports covering periods from 2015 to 2019. Data were analyzed using regression analysis and E-Views packages. findings of this study will be useful for listed companies to gain an understanding about the direction of impact of CSR on their profitability and they can take decisions regarding their avenue and amount of CSR spending. Further, findings can be useful to offer pivotal implications about CSR and Financial performance for policy makers and regulators.
Association of financial practices and performance of the small sized enterprises in Sri Lanka
(Department of Accountancy, University of Kelaniya, 2015) Manike, H.M.S.W.P.
Small and medium size enterprises (SMEs) involve with economy through contributing to growth of gross domestic product (GDP), in contributing to decrease unemployment, creating innovative and so on. But to development of SMEs, it is needed to effective record keeping, efficient use of accounting information to support financial decision-making and the high quality and reliability of financial data, effective financial management practices and use of SLFRS for SMEs. The objective is to find out wheher the finacial practices of SMEs have any significant relationship with performance of companies.For this analysis, categorize SMEs accordinga to World bank classification that is based on number of employees.Up to 50 employee from 10 identify as small business and up o 300 from 50 identify as medium size companies.The data which required for the analysis are collected through questionnaire and reffering relevant financial statement of the selected companies. Firstly, questionnaire are used to identify how the SMEs uses financial practices.In here consider about preparation of financial statement , auditing financial statement , control inventory , inventory management , utilize the computer system to repoting transaction. Secondely, financial statement are obtained for 5 years period to analyse the relation between finacial pracices and performance through financail ratios. This study expect to find out firstly. the differntion of financial practice between small and medium size enterprises. Secondely, there is a significant relation between fianacial practice and performance of enterprices.Finally through this analysis expect to indicate the significance of financial practices to SMEs to improve SMEs financial performance.
Board Structure Best Practices and Its Impact on Firm Performance: Empirical Evidence from Public Listed Companies of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Priyantha, V.P.T.; Lakshan, A.M.I.
Board Structure is an important Corporate Governance mechanism, which would result in improved performance. Boards play an important role in advising top management. Purpose is this study was to examine the relationship between Board Structure and financial performance in Diversified Listed companies in Sri Lanka. In the existing literature, authors have studied the impact of board size and board composition on financial performance. However, studies of the above relationship in particularly unstable and there is paucity of research in Sri Lanka context. In order to fulfill this gap, the present study is initiated to find out that to what extent board size and board composition influence on financial performance. As per the identified board structure characteristics, the impact of board size, board balance, disclosure of board, board independence, board remuneration and CEO duality on the performance measures (ROA, ROE, and EPS) are investigated. The quantitative research approach is employed to investigate out the findings of the research study. This study tests the research hypotheses, the inferential tests used include the correlation analysis and regression analysis. The sample of the study comprises 40 listed companies in Sri Lanka and data obtained from published annual reports, company websites over the period of five years from 2014 to 2019. The findings of the study will be useful to decide board structure best practices in a way to ensure higher performance. Further, investors will have the opportunity to draw conclusions from the board structure of those institutions when making their investment decisions.
Capital Structure and Firm Performance: Evidence from Listed Food and Beverage Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Rajapaksha, R.M.P.W.M.; Wijesinghe, K.D.G.N.
Capital structure refers to the percentage of money at work in a company. There are two forms of capital: equity capital and debt capital. The firm’s capability of accomplish the needs of its stakeholders is closely related to the firm’s Capital Structure decisions. Capital Structure decision is to find out the best mix of debts and equity that a company uses to finance its business. This analysis performs to identify the relationship between Capital Structure and performance of the food and beverage companies in Sri Lanka, The examination performs using 15 companies listed on the Colombo Stock Exchange covering the years 2010-2015. The review utilizes Return on assets as dependent variable as well as the three capital structure measure Short Term Debt to Total Assets, Long Term Debt to Total Assets & Total Debt To Equity as autonomous variable. Descriptive, Regression and correlation analysis use as a techniques for measure the variables. The outcome reveals a positive relationship between the Short-Term Debt to Total Assets and Return on Assets. However there is a negative relationship between the Long-Term Debt to Total Assets and Return on Assets. The relationship between Total Debt and Return on Assets show a positive association as these findings analysis discovered that there is significant relationship between capital structure and performance of the listed food and beverage industry in Sri Lanka. Furthermore increasing short term debt within an organization will lead to enhance the performance of the food and beverage industry in Sri Lanka nevertheless keeping more long term debt will lead to decrease the performance of the listed food and beverage industry in Sri Lanka.
Capital structure and performance of Sri Lankan listed companies
(Department of Accountancy, University of Kelaniya, 2015) Rajapaksha, R.M.P.W.M.
Capital structure refers to the percentage of capital (money) at work in a business. There are two forms of capital: equity capital and debt capital. Each has its own benefits and drawbacks. Equity Capital refers to money owned by the shareholders (owners). Typically, equity capital consists of two types contributed capital, which is the money that was originally invested in the business in exchange for shares of stock and retained earnings, which represents profits from past years that have been kept by the company. The debt capital in a company's capital structure refers to borrowed money that is at work in the business. Debt capital mainly we can categorise as Short term debt and long term debt. The firm’s ability of fulfil the needs of its stakeholders is tightly related to the firm’s financing decisions. Capital or Financial Structure decision is to find out the best mix of debts and equity that a company uses to finance its business. (Damodaran 2001) This research seeks to assess the Capital Structure and performance of the listed business companies in Sri Lanka to identify impact between the Capital Structure and Companies Performance. The analysis done using the annual financial statements of 20 business companies listed on the Colombo Stock Exchange which covers a period of five (5) years from 2009-2014. Correlation and regression analysis applied on performance indicators such as Return on Asset (ROA) and Profit Margin (PM) as well as Short-term debt to Total assets (STDTA), Long term debt to Total assets (LTDTA) and Total debt to Equity (TDE) as capital structure variables. The expected result of this study is find out the wether there is any significant impact between capital structure and performance of the firm’s and to recommend that companies should use more of equity or debt in financing their business activities to enhance the performance of the Sri Lankan Listed Companies.
Capital structure effect on firm financial performance
(Department of Accountancy, University of Kelaniya, 2015) Pathiraja, P.M.K.K.
Capital structure is defined as combination of equity, debt or hybrid securities through which a company finances its assets. Firm’s leverage refers to the percentage of total debt in total financing. . Decision of Capital structure involve what type of source should be used either equity, or short or long term debt, or mix of sources of funding which better the firm’s financial performance. Initiating a business require purchasing assets in order to fulfill the purpose of organization. (Allen, 2011). An emerging consensus that comes out of the corporate governance literature (Smith, 2005) is that the interactions between capital structure and ownership structure impact on firm values. (Morck, 1988) Objective of this research is investigates the relationship between capital structure and firm financial performance as well as examine if more efficient firms choose more or less debt in their capital structure. This research methodology has gone some way in reconciling some of the empirical Irregularities reported in prior studies. Only report the results obtained from estimating dynamic models for both the efficiency and leverage equations. All data will collect by the secondary evidence by use the financial statement data. Result of this research is the effect of dispersed ownership is different across different capital structures. positive but insignificant for low leveraged firms and (significantly) negative for high leveraged firms. The latter finding is consistent with the view that the fear of bankruptcy induces managers of highly levered firms to lower debt.
Capital Structure Effectiveness on Financial Performance of Manufacturing Firms in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Pathiraja, P.M.K.K.; Jayamaha, A.
Capital structure shows a significant role in financial decision making process in any business organization. Capital structure decision is more important because organizations need to maximize return and growth the value of the firm. Manager’s responsibility is a decide mix of debt capital and equity capital then it increase the value of the firm. Objective of this research is examine the impact of Capital Structure on financial Performance of manufacturing firms in Sri Lanka.by using 25 firms listed in Colombo stock exchange In this study data collect from secondary evidence through Annual Reports published by company which listed in Colombo stock exchange. There are four variables use for this study. Return on Asset (ROA) is a dependent variable and other explanatory variables are Debt to equity Ratio (DER), Long term Debt Ratio (LTDR) and Debt to Asset Ratio (DAR). Considering the relationship between the capital structure and financial performance. In debt to equity ratio has a negative relationship between Return on Asset and long term debt ratio has an insignificant negative relationship with ROA .and In Debt to Asset Ratio has a positive relationship between ROA. Relationship established between the capital structure and the financing structure is a part whole type relationship can be seen. It is recommended that firms should use more of equity than debt in financing their business activities. To get the better investment decision of mix of capital structure recommend to establish performance standards and those are properly communicate to the investors.
Challenges of IFRS Convergences of Insurance Industries in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Premarathna, H.S.M.; Bandara, R.M.S.
The Institute of Chartered Accountants of Sri Lanka (CASL) committed to convergence International Financial Reporting Standards (IFRS) with effect from 1st January 2012. The convergence have been generated significant challenges and problems on financial reporting in the terms of recognition, measurement, disclosures on accounting policies, consolidation and reporting to the insurance companies operated in Sri Lanka. This research highlights the challenges in convergence of IFRS in Sri Lankan insurance sector and the possible ways to overcome those challenges. The qualitative method was used for the study based on both primary and secondary data gathered from interviewing of selected insurance companies and annual reports. The measures taken by CASL and the other regulatory bodies to facilitate the smooth convergence to IFRS were admirable. The remedial actions such as consulting reputed audit and advisory firms relating to IFRS issues, giving foreign learning opportunity to the accounting staff to obtained the IFRS knowledge, the knowledge of IFRS on newly recruited accounting staff have been taken to overcome the problems and challenges.
Comparison between Economic Value Added (EVA) and Accounting Measurements in Predicting Stock Return in Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Nishadi, W.W.D.M.; Abeywardhana, D.K.Y.
The objective of this research is identifying the best measurement and provides suggestions to predict the stock return in Sri Lanka considering the listed manufacturing companies of Colombo stock exchange. Economic value added (EVA), Net Profit (NP), and Net Operational Profit after Tax (NOPAT) is independent variables, and stock return is dependent variable in this study. Data collected from using annual reports of 20 manufacturing companies for the period of 2010 to 2016. The findings show that there is a positive relationship between the stock return and all the independent variables. NOPAT is the most important measure in predicting the stock return. Further this study suggested that random effect model should be accepted and then it explain that differences among entities have some influence on the dependent variable. Accounting measures are better in predicting stock return than EVA.
Compliance with Section 23 of SLFRS for the SMEs 2011; Empirical Review on Small and Medium Sized Entity Enterprise (SMEs) Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Bandara, G.M.S.; Rathnasiri, U.A.H.A.
The sector of Small and Medium Enterprises (SMEs) is said to be the backbone of all developed and developing nations. In spite of the level of development, SMEs play a pivotal role to generate economic wellbeing of a country. The Institute of Chartered Accountants of Sri Lanka (ICASL) adapted to this IFRS for SMEs to give the benefit of adopting with International accounting standards for SMEs in Sri Lanka. This Study examines the compliance with section 23 of SLFRSs for SMEs 2011 in Sri Lanka. The sample comprised of 15 SMEs which are operating in Gampaha and Colombo districts in the western province. A self-constructed compliance checklist and the compliance index were derived to denote the level of compliance among SMEs for the period of year2013 to 2015. The results revealed that slight increase of the compliance requirements under section 23 denoting 59%, 60% and 64% in 2013, 2014 and 2015 respectively. A significant noncompliance level was found with the general disclosures about revenue (Paragraph 23.30). Further, results of the study found that selected sample of entities have not engaged in transactions such as customer loyalty award relating transactions, exchange of goods during the past three years. The study examined there are misunderstanding relating to certain criteria of the section by preparers of financial statements. He study recommends policy makers to establish a proper monitoring mechanism to monitor the accounting practices and keep high level of compliance with the applicable accounting standards. Further it recommends standard setters to increase post investigations on compliance with accounting standards for SMEs.
Computerized Accounting System Usage of Small & Medium Scale Enterprises in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Weerasinghe, H.D.S.S.; Perera, H.A.P.L.
Most of the researches were found that, Small and Medium Enterprises (SMEs) play a significant role in almost all economies. For developing countries it is more critical than developed countries. As a developing country SMEs are identified as one of the most important elements in the economy by Sri Lankan government. Accounting system is a main component of an organization which determine the existence if the organization though evaluating the performance. In present most of the businesses are using Computerized Accounting System ot enhance the effectiveness and efficiency of accounting process. This research analyzed the Computerized Accounting System Usage by Small & Medium Scale Enterprises in Sri Lanka with reference to Colombo district. 100 SMEs were selected to obtain data and data collected through a questionnaire from SMEs in Colombo District. Out of the 100 samples selected 75 responses were received. The received data were analyzed using frequency analysis and cross tab analysis in descriptive statistics. It is found that majority of the SMEs are using computerized accounting systems but not the best software available in the market. Also there is a relationship in computerized accounting systems and the level of education of business owner and the accountant, number of accounting staff and the organizational structure. It is recommended to guide and carrying out trainings for SMEs by the government to adopt Computerized the SMEs with the technology and the boost the performance of the SMEs in Sri Lanka.
Corporate governance and company performance
(Department of Accountancy, University of Kelaniya, 2015) Dehipegedara, B.
Corporate governance and its impact to the company performance are much debated areas. In the past incidental research has shown significant relationship between various corporate governance features and corporate performance. Good corporate governance is effect to the lower risk of the investors, attaching more investments and improving the performance of companies. And also agency theory suggested that a better governed firm should have better performance and higher valuation due to lower agency cost. For example, better governed U.S. firms have higher Return On Equity and higher Return On Assets.(Gompers, Ishii, and Metrick (2003)).However impact of corporate governance is vary between developing countries and developed countries. This study examines the relationship between corporate governance features and company performance in Sri Lanka. Some of corporate governance variables are Board size, Proportion of non-executive directors, leadership style and Board committees and ROE and ROA can be used as Performance measures. The selected sample is 20 listed firms from top 25 listed companies in the business today top 25 2012- 2013. Data collection methodology is secondary sources. Data will be obtained by Annual reports. Data will be analyzed by using SPSS model to obtain quantitative measures of descriptive statistics, regression analysis and correlation. The importance of this analysis is, it provides the evidence to find the positive relationship between Board sizes, Board committee, Non-executive directors’ impact, leadership structure firm performance which results in higher return.