Commerce and Management

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Subject: search.filters.subject.Board Independence

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    Corporate Governance Practices and Their Impacts on Corporate Risk: Evidence from Sri Lanka.
    (Faculty of Commerce and Management Studies, University of Kelaniya., 2020) Sameera T.K.G.
    The cost of failure of a single corporate has a fatal impact on the economy. In addition to the macro-economic conditions leading to corporate collapse, management is responsible for developing and implementing a sound system of risk management and internal control in order to avoid such collapses. As a result, discussions on governance and risk have reached an unprecedented level for academics and practitioners. Moreover, risk exposure and management are increasingly becoming the foremost functions of modern business enterprises. However research that integrates corporate governance and risk has been limited. This study examines therefore the impact of corporate governance practices on corporate risk of listed companies in the Colombo Stock Exchange in Sri Lanka. The Board structure, Board Independence and Board procedures were considered as independent variables, whereas, corporate risk as dependent variable. The corporate risk represented the financial, operational and market risks faced by the companies. Furthermore the study used data from a sample of 64 listed companies for 5 years from 2014 to 2018 and employ panel regression to uncover the relationship that exists between these variables. The independent sample t-tests was used to test whether there was a statistically significant difference exist between the corporate governance practices of distress and non-distress companies. The results show that the corporate governance practices of distress companies was significantly lower than that of non-distress companies. The findings of the regression results suggest that Board independence was significantly and negatively impact on corporate risk. However, Board structure and Board procedures have no significant impact on corporate risk. The study therefore, concludes that the increased representation of independent non-executive directors of the board contributed to the significant decrease of corporate risk.
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    Corporate Characteristics, Governance And Climate Change Disclosures In South Asian Context: A Signaling Theory Perspective
    (Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Sonali, V.D.V.; Vijerathna, M.P.G.; Kannangara, S.D.P.P.
    Climate change has become a favorable and ponderable topic due to its irrevocable impact on human beings. People worldwide are experiencing horrible circumstances due to global warming. At present, researchers are considering climate change and its methods of mitigation, but the plethora of research studies has put off financial sector firms without considering their direct and indirect impact. Indeed, the banking sector influences climate change subtly and unswervingly. This study aims to investigate the extent of climate change disclosure level and the influence of corporate characteristics and governance on climate change-related disclosure in the banking sector in the South Asian region based on the signaling theory. This research has adopted a quantitative research methodology. Data were collected from a sample of 63 banks for the period from 2013 to 2021 in South Asian countries such as India, Pakistan, Bangladesh, and Sri Lanka, and R programming (R 4.30) and Python were used for the panel data analysis to validate the hypothesis. Findings revealed that bank age, size of the bank, and, independence of the board provide favorable signals to influence climate change disclosures in South Asian countries. This study adds to the existing body of knowledge on corporate characteristics including corporate governance and climate change-related disclosure in the banking sector because climate change practices are an upcoming and inescapable problem that humans can come across. Therefore, reporting the impact of climate change is very vital within the organizational context. For future research studies, the period and sample can further be increased by future researchers to broaden the scope of the study.
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    Corporate Governance and Profitability Evidence from Sri Lankan Banking Industry
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Herath, H.M.S.L.
    The objective of this research is to examine the impact of corporate governance mechanisms on firm performance of 13 banks in Sri Lankan banking industry over the period of 2005-2014. This is an exploratory study which addresses the research problem of does corporate governance affect the bank performance in Sri Lanka. Return on Equity (ROE) is used as dependent variable and, Firm Size, Firm Leverage, Audit committee composition, Board Independence, Board Size and CEO Duality used as independent variables. This research has used only secondary data and main source of data includes the annual report of the selected companies. Empirical research was conducted based on the 130 observations and findings are based on regression analysis. Researcher employed panel data methodology as a method of estimation. Descriptive statistics, ANOVA and t-test applied on data by using SPSS. Correlation techniques method has been used to test the hypotheses, to solve the research problem, and to achieve goals and objectives of the study. Accordingly, there is a significant impact of corporate governance on Performance of the banking industry in Sri Lanka. Moreover, there is a positive relationship between bank performance and board independence and firm size.