Commerce and Management

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Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from the Listed Companies in Sri Lanka
(Department of Finance, University of Kelaniya., 2023) Sarmila, K.; Niresh, J. A.
Purpose: The primary objective of this study is to investigate the nexus between corporate governance and corporate social responsibility disclosure in Sri Lankan listed firms. Design/Methodology/Approach: Corporate governance was evaluated using the following criteria: board size, board independence, role duality, women representation, audit committee size, and ownership concentration. The Global Reporting Initiative (GRI) methodology was utilized to assess Corporate Social Responsibility Disclosure (CSRD) using content analysis. This study collects balanced panel data from 44 Sri Lankan listed firms over a five-year period, from 2018 to 2022. Because of their highly regulated nature, the banking, finance, insurance, and investment trust industries were omitted from the sample. All of the information was gathered from yearly reports published on the Colombo Stock Exchange's website in Sri Lanka. Findings: Test results suggest that board size, independence, and women representation have no significant relationship with CSRD. Role Duality, Audit Committee Size and Ownership Concentration exhibit a significant association with CSRD. Moreover, the mean value of the CSRD is 44.56 percent for the selected listed companies in Sri Lanka. Originality: This study contributes to determining the extent to which companies have adhered to the GRI as a widely acknowledged disclosure framework. It provides value to the company's management in order for them to make better judgments on whether the firms should involve them in more corporate governance disclosures in order to raise the degree of CSR to enhance transparency and to promote stakeholders' well-being. The outcome also has ramifications for regulatory agencies in developing obligatory reporting requirements for all listed firms to comply with the GRI framework.
The Impact of Corporate Governance on Dividend Policy: An Empirical Evidence from Listed Companies in Sri Lanka
(Department of Finance, University of Kelaniya., 2021) Fernando, L. R. D.; Dissanayake, D. H. S. W.; Mendis, M. O. S.
Purpose: This study aims to measure the relationship between corporate governance and dividend policy of Sri Lankan listed companies with the highest market capitalization, using the Agency theory. Methodology: The sample is based on the listed companies with the highest market capitalization at the Colombo Stock Exchange for a four-year period. The independent variables of this research include the board size, board independence, board gender diversity, board meetings, independent directors in audit committee, audit committee meetings, independent directors in remuneration committee and remuneration committee meetings. The dependent variables are dividend per share and dividend payout ratio. Descriptive analysis and Panel regression analysis were conducted to analyze the data. Findings: Independent directors in audit committee and return on assets have a significant positive impact on the dividend policy. Remuneration committee meetings have a significant negative impact on the dividend policy. However, board size, board meetings, board independence, board gender diversity, audit committee meetings, independent directors in remuneration committee, firm size and leverage have no significant impact on the dividend policy. According to the findings, corporate governance has an influence on the dividend policy of the listed companies during the period. Originality: This study fills the research gap in the local context, and this can be recommended for further research, changes in the academic concepts, and modifications in the accepted theories.
The Impact of Financial Distress on Firm Performance: Evidence from Listed Companies in Sri Lanka
(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Madhushika, A. M. S. L.; Fernando, J. M. R.
Introduction: Financial distress indicates the firm's risk of bankruptcy or financial instability. This study aims to identify the effect of financial distress on firms' performances during the economic crisis (2019–2023) and before the crisis (2015–2023) and analyze consumer services, capital goods, and food, beverage & tobacco sectors, which have the highest market capitalization. Methodology: This study collected data from 113 firms listed on the Colombo Stock Exchange under three sectors for a sample period of nine years, from 2015 to 2023. Using a quantitative approach, this study collected secondary data from the annual reports of the selected companies. The Altman Z-score was used as the explanatory variable to reflect the financial distress of the companies selected. Return on assets was used to measure the firm performance of the selected companies. Further, firm size and inflation rate were used as the control variables, and corporate governance was used as a moderate variable. Panel regression models were used in this study to analyze the data in STATA and SPSS software to test some hypotheses. Findings: The results of the study revealed that there were significant differences in financial distress before and during the crisis, with the compounded effects of financial distress and crisis periods further declining the firm's performance. Also, there are significant differences in financial distress levels between the three sectors, and corporate governance acts as a critical moderating factor, and its effectiveness varies across sectors. Conclusion: The findings of the study have practical implications for the strategic leaders of the three sectors. The study underscores the importance of early distress detection and adaptive governance practices to enhance firm performance, especially improving firm performance during economic crises.

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