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Item The Impact of Capital Structure on Profitability of Banks in Sri Lanka: With Special Reference to Licensed Commercial Banks(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Tharangani, D.L.M.; Wijesinghe, K.G.D.N.The concept of capital structure implies the way a firm finances its assets by the use of a mix of debt and equity. Capital structure decision is an essential one, because the profitability of an enterprise is directly affected by such a decision. This study aimed at contributing to the debate on capital structure by examining the impact of capital structure on profitability of licensed commercial banks in Sri Lanka for the period 2006 to 2015. Data was collected from panel data extracted from annual reports of Sri Lankan Commercial Banks and analyzed using Descriptive analysis, Correlation and Regression analysis. This study found that debt to equity ratio has significant negative relationship with Return on Assets, while debt to total funds ratio has significant positive relationship Return on Assets ratio. And debt to equity ratio has significant positive relationship with Return on Equity ratio, while debt to total funds ratio has significant negative relationship Return on Equity ratio. The outcomes of the study may guide banks, lenders and policy planners to establish better policy decisions of capital structure. Further, the study reinforces and refines the body of knowledge concerning to capital structure and profitability in Sri Lankan Banks.Item Determinants of Financial Performance in Micro Finance Institutions of Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Sudharika, W.P.A.; Madurapperuma, M.W.Financial sector plays a key role in the economic development. It is generally agreed that a strong and healthy banking system is a prerequisite for sustainable economic growth. Financial sector includes mainly the banking system and the microfinance institutions in the country. Microfinance promises to reduce poverty. To achieve this amazing objective Microfinance institutions have to developed strong enough in financial performance because donor constancy is not a given. Thus the question is: In what extent the MFIspecific, industry-specific and macroeconomic factors determinants the Sri Lankan micro finance industry financial performance from the period 2010- 2015. The study was based on a six years secondary data obtained from annual reports. Regarding the explanatory variables, operational efficiency ratio, debt to equity ratio and capital assets ratio affect MFIs financial performance significantly. The outcome of the study shows that GDP growth rate and the debt equity ratio have positive relationship. But GDP growth rate statistically insignificant effect on their financial performance. The capital assets ratio, debt equity ratio and operational efficiency ratio have statically significant. The Sri Lankan MFIs policy makers and managers should give high concern to the expense management and also the government and policy makers should work combining both poverty decrease and financial self- sufficiency of MFIs. And also MFIs have to emulate profit-making banking performs by effecting a sound financial management and good managerial governance to assure their financial performance and in the long run sustainability.Item Impact of Competitive Ability on Financial Performance of Sri Lankan Banks(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Maduranga, B.I.C.; Aruppala, W.D.N.This research analyses the impact of competitive ability on financial performance of listed banks in Sri Lanka. Capital delivers a buffer against losses and thus it ensures safety and soundness of the financial institutions. It is initial requirement for any financial institution to maintain sufficient capital. Liquidity is a main concept that most of investors are not properly maintained and result of that financial plans could be fail to come through such critical time. Liquidity causes more financial issues than rest of factors. The study relied on secondary data and thus annual reports of the listed banks were used to acquiring data. Ratios were used to analyze the data and regression analysis was used to measure relationship of the variables. The main finding in the study is that capital adequacy and liquidity has contributes positively & negatively on financial performance of listed banks in Sri Lanka. The findings of this study is useful for make productive decisions on investing in Sri Lankan banks.Item Impact of Management Accounting Practices on Financial Performance of Listed Manufacturing Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Madhuka, H.B.N.; Bandara, R.M.S.Management accounting measures analyzes and reports financial and nonfinancial information that helps managers to make decisions, implement strategy to achieve the goals of an organization. The main purpose of this study was to examine the impact of Management Accounting Practices (MAP) on Financial Performance (FP) of listed manufacturing companies in Sri Lanka. Financial Performance was measured by Return on Assets. Costing system, Budgeting system, performance evaluation system, and equity issue and leverage were used as measures of management accounting practices. Total population of 32 manufacturing companies were drawn as the target sample to collect required data for the study. Structured questioner was used to gather primary data and annual reports of the selected companies were used as secondary data sources. Analysis was conducted by using Statistical Package for Social Sciences (SPSS). According to study, it was revealed that there was significant impact of costing system practices to FP and it was the highly practiced and influential MAP amongst the manufacturing companies in Sri Lanka. Further, budgeting system, performance evaluation system, equity issue and leverage respectively showed an impact to financial performance. Thus, it is advisable to manufacturing companies to pay attention for the costing system to improve their financial performance.Item Corporate Social Responsibility and the Financial Performance of the S &P Sl Top 20 Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Lelwala, U.L.; Perera, H.A.P.L.In present business context most of the business organizations are engaged in different kind of corporate social responsibility programmes voluntarily. There is no any law or government influence that the organizations must perform or engaged in corporate social responsibility activities. For those activities businesses incurred their financial resources and other non-financial resources. Most of the researchers researched on the relationship between corporate social responsibility and the financial performance because in general corporate social responsibility activities are cost to any company. There are many studies supporting for different types of relationships between the corporate social responsibility (positive, negative and neutral) and financial performance. For this analysis, it was selected 20 listed companies, in the S&P SL 20 in the Colombo stock exchange and for this analysis it was considered annual report data for the period from 2011 to 2015. This analysis mainly focussed on three regression models to test the relationship between the corporate social responsibility and the financial performance. These models represent the regression results of relationship between the corporate social responsibility and profit after tax, relationship between corporate social responsibility and return on assets and relationship between the corporate social responsibility and return on equity. Research findings shows that there is a positive relationship between the corporate social responsibility and profit after tax and negative relationship with return on assets and return on equity. Therefore it is concluded that, there is a relationship between the corporate social responsibility and financial performance of the companies.Item Impact of Capital Structure on Firm Financial Performance of Manufacturing Sector Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Fernando, W.R.S.; Jayamaha, A.The discussion about the optimum capital structure has been a core topic in corporate finance from several years in Sri Lanka. Capital structure defines as a combination of debt capital and equity capital in an organization. Organizations have different financing sources. It can be categorize into two sources, the internal financing and external financing. It is challenging for firms to identify the right mixture of debt and equity to achieve firms goals. This study was investigated the relationship between capital structure and firms financial performance of manufacturing listed companies in Sri Lanka. The sample of the study consisted of 14 manufacturing listed companies in Sri Lanka. This analysis is done by analyzing the financial statements of these companies from 2010 to 2015. The findings revealed that capital structure as measured by debt to equity ratio (DE) had statistically insignificant positive relationship with financial performance (ROA). Whereas long term debt to total assets (LDTA) had statistically significant negative relationship with financial performance (ROA) and similarly, short term debt to total assets (SDTA) had a negative and statistically significant relationship with financial performance (ROA).Item The Impact of Corporate Governance on Financial Performance: Evidence from Sri Lankan Banking Industry(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, W.T.N.M.; Aruppala, W.D.N.Baking industry undertakes the critical and vital roles in the financial system; the well-being of the economy and the mechanism of the banking system interconnected. The concept of Corporate Governance has become conspicuous in conjunction with banking industry. Attention to Corporate Governance has quite a long history since the seminal paper on the subject of the “Principal – Agent Problem” by Meckling which argued that the Principal – Agent problem as a consequence of the separation of ownership and control. Over the last two decades; Sri Lankan economy has encountered substantial fluctuations from countless amalgamation with the global economy ((CBSL), 2013). In 1990 Sri Lanka has utilized the capital market reforms and adopted the Anglo American Structure of Corporate Governance (Edirisinghe, 2015). The regulatory requirements which affianced with the Corporate Governance in Sri Lanka; governed by the Banking Act No. 13 of 1988, Companies Act No. 07 of 2007, Codes of Best Practices and Regulations issued by the Institute of Chartered Accountants of Sri Lanka (ICASL) and Securities and Exchange Commission (SEC) of Sri Lanka. This research empirically examines the quality of Corporate Governance practices in Sri Lankan banking industry and their impact on banks’ financial performance in the context of an emerging market such as Sri Lanka. The study concludes that there is no equivalence in the disclosure of corporate governance practices made by banks in Sri Lanka. Nevertheless they all disclose their corporate governance practices, but what is disclosed does not conform to any particular standard. Furthermore this study conclude that a positive relationship exist between financial performance, number of board meetings and education level. Besides that the study conclude that a negative relationship exist between financial performance, board size, gender, outside directors and CEO duality.Item 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.Item Impact of Dividend Policy on Financial Performance: With Special Reference to the Listed Hotels and Travelling Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Padmashantha, K.G.D.; Karunarathne, W.V.A.D.The primary purpose of the study is to examine the impact of dividend policy on financial performance of companies in Sri Lanka. This study has selected twenty listed hotel and travelling companies in the Colombo Stock Exchange (CSE) to the sample from the listed hotel and travelling companies in the CSE on random basis. Secondary data were used to the study and the dividend and performance related data were gathered through annual reports of hotels and travel companies for the period of 2010 to 2015. Net Operating Cash Flow (NOCF), Book Value of Equity (BVE), Price Earnings Ratio (PER) and Dividend Payout Ratio (DPR) were selected as independent variables. Dependent variable of the study is Financial Performance, which measures by using Return on Assets (ROA). Descriptive statistics, Correlation analysis and Regression analysis were applied for analyzing data. The results reviewed that dividend payout is significantly correlate with the ROA. However, NOCF, BVOE and PER is correlated with ROA. The regression results show that all the independent variables have a significant impact on ROA. Study found that regular dividend policy and irregular dividend policy affect to the financial performance. Finally, the study represented, that dividend policy affects to the financial performance of hotel and travelling companies listed on CSE in Sri Lanka.Item Effect of Creative Accounting Practices on the Financial Performance of selected Sri Lankan Companies(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Nisansala, B.C.; Aruppala, W.D.N.This research is an empirical survey of creative accounting practices in Sri Lanka. Practitioners do the creative accounting for the purpose of making the company appear to be financially stronger or weaker depending on the management’s anticipation. Thus, creative accounting practices do not provide a “true and fair” view of the financial statements. The general objective of the study was to assess the effect of creative accounting practices on the financial performance in Sri Lankan companies. This research considered tax avoidance, accelerated depreciation, and income smoothing as part of the major creative accounting practices that affect financial performance of Sri Lankan companies. The research used descriptive statistics to observe the major practices of creative accounting that affect to financial performance of Sri Lankan companies. The target population was professional in accounting and finance sector. A sample of 60 professionals was used for the study. Primary data was acquired through administering questionnaires and distribute to chartered accountant, accountant, CEOs, CA/ACCA student, auditors, company secretary and lecturers in accounting and finance sector. Statistical Package for Social Sciences Software (SPSS) 20.0 was used in carrying out the descriptive analysis. The study found that tax avoidance has a major influence on financial performance of the firm. Under tax avoidance aspect, tax incentives has a significant influence on firm‘s profitability showing that tax avoidance impacts financial performance. The findings also established that income smoothing has a hand in influencing financial performance and its practice resulted in decrease in financial performance. The research revealed that accelerated depreciation significantly influence financial performance of firms the respondents feel, firms do take advantage of accelerated depreciation to improve their financial performance.