Symposia & Conferences
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Item The Moderating Impact of Financial Performance and Stock Returns on the Relationship Between Corporate Governance and Corporate Value. Evidence from Top-Rated Companies in Sri Lanka’s S&P SL 20 Index(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Abeywickrama, H. W. A. D. S.; Kethmi, G. A. P.Introduction: This research demonstrates how financial performance and stock returns moderate the link between corporate governance and corporate value. The study has been conducted on firms in the S&P SL 20 Index. It addresses how sound governance mechanisms affect firm value, and how stock returns and financial performance either enhance or suppress these impacts. Methodology: The study uses a quantitative research methodology where data from 20 listed firms in the S&P SL 20 index is analyzed over the period 2014 to 2024. To conduct this analysis secondary data from annual and quarterly reports were utilized. The diagnostic test used the Panel data analysis to assess the model's validity. Further, to analyze the moderate effect of stock return and financial performance regression models were developed. Findings: This analysis shows a significant relationship between corporate governance and corporate value, a weakly positive relationship. Stock returns moderate the relationship between better corporate governance and corporate value. Financial performance, which is measured through ROA and ROE also enhances the link between good corporate governance and corporate value. Conclusion: The study supports the importance of proper governance structures in the development of corporate values. The findings are informative for policymakers and investors, calling for efforts to build governance mechanisms in firms while relying on financial indicators and market conditions to increase firm value.Item The Impact of Leverage on the Profitability of Commercial Banks in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kaushalya, A. P. H.; Liyanage, M. L. D. C. J.Introduction: This study investigates the impact of leverage on profitability in Sri Lanka's licensed commercial banks from 2020 to 2023 (using quarterly data), focusing on indicators such as Degree of Financial Leverage (DFL), Degree of Operating Leverage (DOL), Debt-to-Equity Ratio (DER), and Asset Growth. It aims to understand how excessive leverage, amidst fluctuating economic conditions, might affect both financial stability and profitability. Methodology: This quantitative study analyzes the impact of leverage on the profitability of 10 licensed commercial banks in Sri Lanka from 2020 to 2023 using secondary data from quarterly financial statements. Key leverage variables—Degree of Financial Leverage (DFL), Degree of Operating Leverage (DOL), Debt-to-Equity Ratio (DER), and Asset Growth—are assessed for their relationship with Return on Assets (ROA), which measures profitability. The study employs regression analysis to determine the influence of leverage on profitability, with correlation analysis examining the strength and direction of these relationships. Diagnostic testing ensures the reliability of the regression model by addressing potential issues like multicollinearity and heteroscedasticity. Findings: The overall regression model was found to be statistically insignificant with an R-squared value of 0.0349, indicating a poor fit. Among the independent variables, only DER showed a significant positive relationship with ROA, suggesting that higher debt relative to equity correlates with improved profitability. The other variables, DFL, DOL, and Assets Growth, were not significantly related to ROA. This implies that while DER can be a factor in enhancing profitability. Conclusion: The study concludes that traditional leverage measures, such as DFL and DOL, have no significant impact on bank profitability, while DER shows a marginally positive effect. Asset growth alone does not significantly enhance profitability. Therefore, banks should focus on optimizing their capital structure, improving operational efficiency, and managing assets strategically. Policymakers should promote sustainable leverage and better risk management. Researchers should explore other profitability determinants, and investors should prioritize banks with balanced leverage and effective asset management for sustainable growth.Item The Relationship between Board Structure and Firm Performance of Listed Plantation Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Weerakkodi, W.A.S.L.; Sujeewa, G.M.M.This study investigates the relationship between board structure and firm performance in listed plantation companies in Sri Lanka. The main objective of this study is to find out the relationship between board structure and firm performance. This research discusses the role and the importance of boards and how boards affect firm performance and internal corporate governance mechanisms such as board size, board gender diversity, CEO Duality and proportion of independent non-executive directors. Eighteen listed plantation firms were selected as the sample size in the Colombo Stock Exchange for the periods 2011, 2012, 2013, 2014 and 2015. Multiple regression analysis has been employed to analyze the relationship between board structure and firm performance. It indicates that the board size is positively associated with Return on Assets and Return on Equity. However, the results reveal that the separation of the two posts of CEO and chairman has a positive relationship with the firm performance. It means when separate CEO Duality is existed firm performance will increase. The obtained results report that the board gender diversity has no significant relationship with firm performance and proportion of independent non-executive directors show a positive relationship with firm performanceItem Impact of Corporate Governance Practices on Financial Performance: Evidence from Banking Sector in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Nimasha, N.A.D.A.; Thilakarathne, C.R.Corporate governance can be defined as the scheme by which corporations are directed and controlled. The objective of this exploration is to inspect the impact of corporate governance tools on firm performance using data of 12 banks in Sri Lankan banking industry over the period of 2006-2015 based on the 120 observations. This study has used only secondary data and main source of data contain of the annual report of the specific banks. Return on Equity (ROE) is used as reliant on variable to the model. Further Firm Leverage, Firm size, Number of Auditors, Board Independence and Board Size used as independent variables to the model. Researcher placed panel data approach as a way of appraisal. Descriptive statistics, ANOVA and t-test applied on data by using SPSS. Findings are based on Correlation techniques and Regression analysis to test the hypotheses to solve the research problem Based on the observed results, Researcher found that there is a considerable significant impact of corporate governance on Performance of the banking industry in Sri Lanka while recognizing the Negative correlation ship between bank performance with Firm leverage, Firm size and board size and also identifying the significant relationship between Firm size, Number of auditors, board independence and Board size.Item 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 performancItem Corporate Governance and Firm Performance: Empirical Evidence from Selected Listed Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dehipegedara, B.A.C.; Sujeewa, G.M.M.Corporate governance practices are very important to the corporates and its impact to the company’s performance is much debated areas. Good corporate governance practices enable to reduce the risk of the investors, to attach more investments and to improve the performance of companies. This study analyzed the current context of corporate governance and firm performance in listed companies in Sri Lanka. Data and other reliable information are taken from the audited financial statements and the governance section of annual reports from each selected companies. The sample was obtained from the “business today top 25 companies 2014- 2015” journal article, for the period from 2010 to 2014. Descriptive statistics, Pearson’s correlation, regression analysis and analysis of variance were applied to analyze the relationship between corporate governance and firm performance. The results shows that there is a positive relationship between corporate governance practices and ROE and ROA, in the Sri Lankan context. And also it was found that the relationship between number of meetings that hold by the companies and board composition with ROE and ROA is negative, and the relationship between Board committees and Board leadership structure with ROA or ROE is Positive. It is concluded that there is a positive relationship between corporate governance and firm performance in listed companies in Sri Lanka. On the other hand, some corporate governance practices were significantly related with firm performance and some other corporate governance practices were insignificantly related with firm performance.Item Impact of Corporate Governance Practice on Firm Financial Performance in Listed Manufacturing Firms in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dharmarathna, G.V.D.S.The research will focus on the Impact of Corporate Governance practice on Firm financial performance in listed manufacturing firms in Sri Lanka. The study is base on the research question “Do corporate governance practice contribute to firm’s performance significantly in listed manufacturing firms in Sri Lanka”. The main objective of the study is to investigate the impact of corporate governance practices on firm’s performance. Thirty one listed manufacturing firms in Colombo Stock Exchange were selected as sample size for the periods of 2008-2012. Correlation and coefficient is measured the strength and direction of the relationship between two variables. Finding revealed that there is no any relationship between the firm performance among board size and CEO Duality practices. Further findings disclosed that there is a positive relationship between executive compensation disclosure transparency and firm’s performance. Based on analyzed data the study found that there is no any relationship between corporate governance and firm’s performance. This study is recommended that the corporate governance practices should be reviewed in reliable way in Sri Lankan context.Item Critical Leadership Qualities for Good Corporate Governance(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Gunasekare, U.L.T.P.Corporate governance is a process that aims to allocate corporate resources in a manner that maximizes value for all stakeholders – shareholders, investors, employees, customers, suppliers, environment and the community at large and holds those at the helms to account by evaluating their decisions on transparency, inclusivity, equity and responsibility. Corporate Leadership need to be attentive in effecting good corporate governance and for this purpose they should possess specific leadership characteristics. The goal of this paper is to analyze the concept of good governance and the concept of leadership to propose specific leadership characteristics to strengthen good corporate governance. This study is significant in recruiting corporate leaders, training and motivating them for the betterment of the good corporate governance in the business world today. Scientific literature analysis was the main methodology employed in this regard and it is indicated that competence, accountability, integrity, relationships, values and steadiness are essential leadership qualities in effecting good corporate governance.Item Corporate Governance and Earnings per Shares: A Study of Sri Lankan Manufacturing Companies(Department of Commerce and Financial Management, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Ayesha, P.V.; Chathurika, P.K.A.G.; Kumarihami, H.M.D.A.; Sagarika, D.B.T.; Senanayaka, C.; Sewwandi, R.M.S.Good corporate governance practices are important in reducing risk for investors, attracting investment capital and improving the performance of companies. This study is initiated on “corporate governance and firm performance” with the samples of 26 listed manufacturing companies in CSE. Data was analyzed using the data representing the periods from 2009 to 2014. Board size, board meeting, executive directors, non-executive directors were used as the determinants of corporate governance whereas earnings per share (EPS) is used as a measure of firm performance. Hypotheses were tested using SPSS statistical software. According to the finding of the research corporate governance make a significant influence on companies EPS. Thus, study concludes that the determinants of corporate governance used in the study are correlated to the performance measures of the organization.Item The empirical relationship between board size and firm performance of listed companies in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Weerakkodi, W.A.S.L.A many studies investigate to the link between board size and firm performance in listed companies in Sri Lanka. The evidence on this area is very thin in Sri Lanka being a developing countries. The structure and size of the board and its impact on the performance of the firm is one of the most discussed issues of corporate governance. Board size, gender, duality, education, board age and Independent were the board structure variables, and ROA and ROE were the measurement device of firm Performance. Good corporate governance practices are regarded as important in reducing risk for investors, attracting investment capital and improving the performance of companies. Sri Lanka does not have large number of studies on corporate governance issues. Therefore, these kinds of studies on corporate governance issues will help to improve the corporate governance practice in Sri Lanka. Therefore, this study will provide a new perspective in studying the relationship between board size and firm performance. The purpose of this study is to examine the relationship between board size and firm performance in Sri Lanka for the extent of compliance of the CBP recommendations by the companies. Further, to investigate the relationship between the CEO duality and firm performance, to investigate the relationship between proportion of non-executive directors and firm performance.