International Conference on Business and Information (ICBI)

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Author: search.filters.author.Panditharathna, K.M.Has files: Yes

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    Corporate Governance and Agency Costs in Non-Financial Listed Companies in Sri Lanka
    (Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Weerapperuma, A.D.A.P.; Panditharathna, K.M.
    The purpose of this research study is to analyze the corporate governance mechanisms on agency costs in Sri Lankan listed firms. To analyze this effect; board size, board independence, remuneration, and managerial ownership are considered as effective governance mechanisms in this study. The study was adopted a quantitative research approach and panel data analysis was used to estimate the association between corporate governance and agency costs using the annual reports’ data of 50 non-financial listed firms in Colombo Stock Exchange during 2016- 2019. The empirical results indicated that board size, independent directors on the board, managerial ownership have negative impact on the assets utilization ratio also firm size is negatively related to the assets utilization ratio. But remuneration and leverage has a positive impact on agency cost. Evidence of this study revealed that there is a significant relationship between corporate governance mechanisms and agency costs in Sri Lanka. This study supports shareholders, managers, and other stakeholders on how internal corporate governance practices are affected to minimize conflict of interest between principal and agent.
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    Corporate Governance and Firm Performance
    (Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Panditharathna, K.M.
    This study examines the relationships between corporate governance attributes on firm performance of listed financial sector companies in Sri Lanka. Empirical analysis focused on 56 companies registered in the Colombo Stock Exchange (CSE) covering the industries of banking, finance and insurance for the years 2012, 2013, 2014 and 2015. The study used Ordinary Least Squares (OLS) method to analyze the data. The study finds that relationship between corporate governance and firm performance are not strong. Board size, proportion of independent directors and the proportion of female directors have not significant relationship with performance measures. But board effectiveness has a significant positive relationship with ROE. This study enables to companies to evaluate and restructuring of their board to enhance the performance of the company while contributing to the economic development of the country. Findings of prior study are more focused to the developed countries. This study fills that research gap and contribute to the present literature on corporate governance in the industries of banking finance and insurance.