Commerce and Management
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Item Dividend Determinates of Manufacturing Companies of Sri Lanka: Empirical Evidence from Colombo Stock Exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Ishara, M.N.F.Dividend distribution decision is one of the key areas of decision making, it follows up with the questions as of “Are we going to declare dividends”, if so “how much to declare”. These questions should be addressed by the finance manager so that it would not affect any interested stakeholder party adversely. This research is conducted to identify what are the key determinants of dividend payments of manufacturing companies in Sri Lanka. Various researches have being conducted in the similar scope including researches in south Asian region, yet within the Sri Lankan stock market the above said scope has not being addressed. I have made an attempt to cover this gap through this research. The research is conducted on fifteen selected manufacturing companies that often pays dividends which are listed in Colombo stock exchange. I have selected five independent variables supported by previously done researches. Namely - profitability, firm size, liquidity, leverage and growth. These variables are observed to its performance with dividend pay-out ratio, which is my dependent variable. I was able to conclude that there is a significant effect of the profitability determinant when paying dividends in manufacturing companies in Sri Lanka.Item 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.