International Journal of Accountancy
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Item Effects of Non-Performing Loans & COVID-19 Pandemic on the Performance of Commercial Banks in Sri Lanka(Department of Accountancy, University of Kelaniya, Sri Lanka., 2023) Silva, M. T. M.; Perera, W. T. N. M.; Madhushani, H. G. I.The COVID-19 pandemic has significantly impacted the global economy, and the non-performing loans (NPLs) have become a pressing issue for commercial banks in Sri Lanka. It is doubtful how the NPLs and COVID-19 Pandemic have affected the performance of commercial banks in Sri Lanka. Thus, the purpose of this study is to investigate effects of non-performing loans & COVID-19 pandemic on the performance of Sri Lankan commercial banks for the period of 2011 - 2021. The panel data regression analysis was used to investigate the effects of non-performing loans & COVID-19 pandemic on the financial performance of Commercial Banks. The results of the analysis revealed that non-performing loans and the pandemic period have a negative impact on the profitability of commercial banks in Sri Lanka. Thus, this study is useful for bank management officials to protect banks from crises and create ideas to enhance the performance of banks.Item Issues and challenges in IFRS adoption: Perceptions of the Professional Accountants in Sri Lanka(Department of Accountancy, University of Kelaniya, Sri Lanka., 2023) Vidanage, K. R.; Rajakaruna, I. R. H. M. T. P.; Kumari, J. S.This study mainly focused on identifying the IFRS adoption issues and challenges in the perception of Sri Lankan professional accountants. Professional Accountants face many obstacles when adopting the IFRS and identifying those issues and challenges and finding significant factors for them is mainly focused on his study. This study directly identifies what are the issues and challenges faced by Sri Lankan Professional Accountants and how the Accountants’ perception of issues and challenges are varied with the geometric characteristics. The quantitative research approach was used in the study and the questionnaire survey method was used to collect data from the Professional Accountants. The study used the convenience sampling technique to identify the sample for the study while ensuring representativeness. The sample size was 200 accountants. The Likert scale questionnaire was based on the literature and expert opinion on Sri Lankan IFRS adoption issues and challenges. To identify the major issues & challenges faced when adopting the IFRSs in the perceptions of professional accountants and identify the difference in perceptions on IFRS adoption issues and challenges of Accountants based on demographic characteristics Descriptive statistics and independent t – tests have been used. The study's findings particularly demonstrated that the accountants recognized every problem except one as having an impact on their work. A number of demographic factors were also examined, including gender, experience level, highest academic degree earned, professional certifications, and the sector. The study addresses the research gap in understanding the problems with IFRS adoption in Sri Lanka while offering useful insights for policymakers.Item Differential Patterns of Textual Characteristics in the Chairman’s Statement and Company Performance: Evidence from Sri Lanka(Department of Accountancy, University of Kelaniya, Sri Lanka., 2022) Rosa, S. J. S.; Kawshalya, M. D. P.Corporate annual reports are continuously getting important in external reporting. The chairman’s statement is one of leading section of annual report that provides information beyond what is required by the regulatory frameworks. It is well-known fact that, those who prepare financial statements have motivation to exercise the content of Chairman’s Statements. In Sri Lanka, since Chairman’s Statement being a prominent requirement of annual report, this research investigates the textual differences of chairman’s statement in companies with higher performance and poor performance in terms of market capitalization. The research question is investigated by examining a range of textual characteristics in the chairman’s statements of 25 companies with highest market capitalization and 25 companies with lowest market capitalization listed in the Colombo Stock Exchange (CSE). The results of the current study indicate that content of chairman’s statement significantly affected by firm’s underlying performance. Since, Chairman’s statement is one of the most widely read section of the annual reports, the findings of this study will provide guidelines and enhance the understandability of the stakeholders who make informed judgments and decisions regarding organizations by reading the chairman’s statement.Item The Behaviour of Stock Prices of Sri Lankan Hotel and Travel Sector Companies: A comparison of Civil War and Easter Attack 2019(Department of Accountancy, University of Kelaniya, Sri Lanka., 2021) Kodithuwakku, K. A. S. S.; Samarakoon, S. M. R. K.This paper investigates the impact of the Civil War and the Easter Attack 2019 on the Hotel and Travel Sector, employing the Event Study Methodology that is widely used and free from deliberate interferences. The Market Model is applied to calculate the Expected Returns (Rit) by taking daily data for closing share prices of overall forty-one (41) listed companies under the Hotel and Travel sector in Colombo Stock Exchange by the particular event dates while the daily All Share Price Indices (ASPI) are considered as the market return (Rmt). The event timeline is specified considering 41 days' event window and 80 days before the event window for the estimation window. The market model is mainly based on the Ordinary Least Square (OLS) Method for estimating parameters. For analysing data, graphical analysis and t-test analysis are necessarily applied. This study concludes that terrorism is the event capable of creating an unfavourable impact on the value of the Hotel and Travel Sector companies. Especially, the Hotel and Travel Sector has provided no evidence for the semi-strong form efficiency. Further, the Hotel and Travel Sector of Sri Lanka has been adversely affected by Easter Attack 2019, collapsing the favourable economic condition developed for 10 years after the brutal Civil war. Ultimately, this study recommends getting an idea of how to upgrade the mechanism of an efficient market, which provides a platform for investors who trade securities to keep the Hotel and Travel Sector investment flow healthy and stable.Item 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.