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    The Relationship between Working Capital Management and Corporate Profitability: Comparison between Manufacturing and Pharmaceutical Chemical companies in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Kavishan, D.; Abeywardhana, D.K.Y.
    The objective of this research is to provide empirical evidence on the Relationship between Working Capital Management (WCM) and Corporate Profitability of Manufacturing and Pharmaceutical and Chemical companies in Sri Lanka. The Regression analysis is used as analytical techniques and the sample data collected for the period of Six years from 2010-2016 for 10 manufacturing companies and for 10 pharmaceutical and chemical companies listed in Colombo Stock Exchange (CSE). This study measures corporate profitability using Return on Assets (ROA) and independent variables are Inventory Turnover period (ITP), Average Collection Period (ACP) and Average Payable Period (APP) and control variables are firm size, debt ratio and sales growth. For pharmaceutical and chemical sector ITP and total assets shows significantly positive relationship with profitability and ACP, and APP is significantly negative with profitability. In contrast, for the manufacturing sector, ACP shows significantly negative relationship with profitability. This study suggests that Pharmaceutical and Chemical sector should focus on reducing the ACP and APP to increase the profitability thereby maximize the wealth of shareholders of the company. The firms in manufacturing sector should reduce the ACP to increase their profitability.
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    Internet Adoption in SMEs in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Sudarshani, P.E.; Perera, H.A.P.L.
    The growth of information technology in the business world is spreading at a phenomenal rate. The uses of the internet for e-commerce purposes have seen a high increase due to growth in websites for commercial purposes. The success of a business organization stands at the usage of IT in their business. This paper aims to investigate empirically the decision of small and medium sized enterprises (SMEs) to adopt the internet in their business. This study investigates the major determining factors for e-commerce adoption in Srilankan SMEs. The data were collected using a standard questionnaire. SPSS software was used for analysis purpose. Analysis were carried out to investigate the adoption of Internet in Sri Lankan SMEs. The results show that knowledge of English language, Technical compatibility, perceive benefits and cost of web adoption have significant relationships with internet adoption, the results of the study of highly educated managers of SMEs also exposure a non-significant relationship between innovation adoption tendency and adoption of internet. This study provides more understanding of manager’s perceptions about internet adoption on their businesses. Those in promoting the web may find these results helpful in guiding their efforts.
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    Impact of Service Quality on Customer Satisfaction: A Study of State Banks & Private Banks in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Siriwardana, D.A.; Rathnasiri, U.A.H.A.
    Commercial banks play a major role in the economic development of the country. Customers prefer to get the maximum satisfaction; hence providing better service quality is the key to success and gives competitive advantage. This research is solely focused on service quality to determine the customer satisfaction. The aim of this study is to identify the impact of service quality on customer satisfaction using service quality dimensions by comparing government banks and private banks in Sri Lanka. Primary data were collected through a questionnaire and the stratified simple random sampling method used. Data were collected from respondents representing two state banks and two local private banks in Colombo district on SERVQUAL scale measure. Descriptive analysis, correlation analysis and regression analysis were used to evaluate the level of service quality. The results indicated significant positive relationship between service quality and customer satisfaction in the banking sector. The research findings showed the offering of high quality service will increase the customer satisfaction level, which leads to high level of customer loyalty for successful performance of banks.
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    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.
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    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.
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    Customer Acceptance of Internet Banking in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, N.T.M.; Thilakarathne, C.R.
    Technology affects the life of every individual at present age. Internet banking has also become one of the technologies which is getting recognition around the world. Internet banking plays a major role in banking sector. There are a lot of customers around the world who are adopting this technology very quickly but in developing countries like Sri Lanka the adoption ratio is very low. Another strategic challenge faced by the banks today is the growing and changing needs and anticipations of consumers with increased education levels and growing wealth. The current study examines the factors influencing the adoption of internet banking services in Sri Lanka. Primary data was collected from 202 respondents through a structured questionnaire. Regression analyses and descriptive statistic technique were used to study the relationship. The adoption/ non-adoption decision is highly influenced by factors namely Usefulness, Ease of use, Security and privacy, Trust. It was also revealed that age, gender and occupation are significantly related with internet banking adoption. Finally, this paper recommends that understanding the factors influencing the adoption of internet banking is very significant to the commercial banks and Bank managers can make use of this information to advance appropriate strategies to attract new customers to use Internet banking in future.
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    Impact of Capital Structure on Performance of Listed Manufacturing Companies in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, M.A.K.C.; Wijesinghe, K.D.G.N.
    This research investigates the impact of capital structure on performance of manufacturing companies’ listed Colombo stock exchange (CSE). Capital structure is the combination of debt and owners’ equity. Objective of this study is to find out relationship between capital structure and firm performance while searching factors which are significantly affect performance of listed manufacturing companies. This study uses panel data of 16 manufacturing sector companies listed in CSE for the period of 8 years (2009 to 2016). The researcher is use descriptive statistics, correlation and multiple regressions for analysis purpose. The researcher develops five models by considering five different performance measurements as dependent variable. Namely; Net profit ratio (NPR), Gross profit ratio (GPR), Return on asset (ROA), Return on equity (ROE) and Return on capital employed (ROCE). Further researcher is uses Debt to equity ratio (DTE), Debt to asset ratio (DTA), Long term debt ratio (LTDR) and Short term debt ratio (STDR) as explanatory variables for the study. Results reveals except long term debt ratio, other explanatory variables have negative relationship with firm performance and all five regression models accept long term debt ratio as significantly effects to firm performance.
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    Impact of Working Capital Management on Firm Performance: Comparative Analysis between Listed Manufacturing & Plantation Companies in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Shanka, G.K.C.N.; Abeywardhana, D.K.Y.
    This study examines the relationship between the Working Capital Management (WCM) and the firms’ performance. This research uses data from 2010 to 2016 and examine two sectors (manufacturing and plantations) listed in Colombo Stock Exchange (CSE). Ordinary least squares regression and fixed effect model have been used to estimate the relationship between variables. The results showed that different sector may give different results in determining the relationship between the working capital and the firms’ performance. The study finds a negative relationship between profitability and number of day’s receivable in both manufacturing and plantation sectors. And negative relationship between number of day’s inventory holding of manufacturing firms, but positive relationship between profitability and no of day’s inventory holding in plantation sector firms, but a positive relationship between profitability and number of days accounts payable settlement in manufacturing companies. However Plantation Company’s result shows negative relationship between No of days payables settlements with profitability. The present study reveals that shortening of the cash conversion cycle negatively affects the profitability of Sir Lankan manufacturing companies but negatively affect the profitability of Sri Lankan plantation companies. Current ratio used as a variable shows positive relationship with profitability of plantation companies and negative relationship with the profitability of the manufacturing companies in Sri Lanka. Results can be strengthened if the firms manage their working capital in more efficient way it will ultimately increase profitability of these companies.
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    The Impact of Capital Structure on Bank Performance: Evidence from Listed Commercial Banks in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Senavirathna, Y.G.D.N.K.; Madurapperuma, M.W.
    Capital structure has attracted intense debate and scholarly attention across industries in the corporate finance literature over the past decades. Nonetheless, in the context of the banking industry, this subject has received a restricted research attention. Capital structure decision is the vital one since the performance of an enterprise is directly affected by such decision. Therefore, proper care and attention required to be given while determining capital structure decision. The study investigated the impact of capital structure on performance of ten listed Sri Lankan banks over the past 11 year period from 2005 to 2015. In order to meet the objectives of this study a quantitative panel data methodology was employed. The panel data least square model was applied for the data analysis through E-Views. Findings of this study, there are a few key points that can be used to conclude this study. The findings revealed that capital structure as measured by total debt to asset had statistically no significant impact, whereas debt to equity had statistically significant positive impact on performance of core business operations of commercial banks in Sri Lanka. Furthermore Growth, spread and asset size also had statistically significant and positive relationship with performance. Moreover, banks also advised to raise equity financing so that to keep costs of financing at minimum level and hence optimize performance and the value of banks. Finally, future researchers also recommended assessing the overall performance of banks and other business sectors in the area of this research. The outcomes of the study may guide banks, loan-creditors/debtors and policy makers to formulate better policy decisions as far as the capital structure is concerned. Moreover, the study reinforces and refines the body of knowledge relating to capital structure and performance of Banks in Sri Lanka.
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    Impact of Audit Committee Characteristics on Financial Performance of Listed Finance Companies in Sri Lanka
    (Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dissanayake, W.G.P.K.; Bandara, R.M.S.
    An audit committee is an operating committee of a company's board of directors and it is a compulsory requirement for Sri Lankan listed companies according to the ‘Code of best practices on corporate governance’ published by the Institute of Chartered Accountants of Sri Lanka and Security and Exchange Commission of Sri Lanka. This study was attempt to find out the relationship between the audit committee characteristics such as Size of the Audit Committee, Independence of the Audit Committee, Audit Committee Meeting Frequency, Financial Literacy of Audit Committee Members and financial performance measured by the Return on Assets and Return on Equity of Sri Lankan finance companies. Twenty listed finance companies were selected as sample for the period of 2012 to 2016. Descriptive statistics, correlation analysis and multiple regression analysis were used to analyze the data. According to the analysis, audit committee independence and audit committee financial literacy showed a significant positive relationship with firms’ financial performance. Audit committee meeting frequency significantly related only with financial performance indicator of ROE. However audit committee size did not have significant relationship with firm performance. The results is beneficial to shareholders and companies’ board to make appropriate decisions about audit committee characteristics to enhance firm financial performanc