Volume: 2 Issue: 2 - 2022

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/29870

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    Effect of Internal Audit on Fraud Management in the Financial Service Sector in Sri Lanka
    (Department of Accountancy, University of Kelaniya, Sri Lanka., 2022) Sepala, P. H. N. H.; Herath, H. M. M. N.; Munasinghe, M. A. T. K.
    This study aims to study the relationship between internal audits and fraud management. Accordingly, this study, examines the internal audit organizational status, internal audit capabilities, and the contribution of internal audit activities to the fraud management of financial services companies in the Sri Lankan context. The target population for this study was defined as the 80 currently traded financial service sectors firms in Sri Lanka and data collected from systemically important banks namely, Bank of Ceylon, Commercial Bank of Ceylon, Hatton National Bank, People's Bank, Sampath Bank, Seylan Bank and they hold 78 percent of the banking assets and get total of 235 responses were collected from a questionnaire survey. In terms of findings, the results show that internal audit competence, is important predictors of fraud management. Also highlighted is that each financial service sector's concern about internal audit and forensic accounting is a value-added function of an organization and gives more attention to that area in the modern era. Researchers hope that their findings will add to the existing body of work and help close a knowledge gap in regards to emerging countries. The results are important for internal audit managers, internal audit policymakers to empower internal audit function in their organization.
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    CSR Disclosure and Financial Performance in Listed Manufacturing Companies in Sri Lanka
    (Department of Accountancy, University of Kelaniya, Sri Lanka., 2022) Dilrukshi, R. M. D. N.
    The study was conducted to identify the Corporate Social Responsibility disclosure and financial performance in manufacturing sector in Sri Lanka. CSR disclosure is indicated as independent variable and it was measured by using CSR index. Financial performance identified as dependent variable which measured by using the Return on Equity (ROE) and Return on Assets (ROA). Data was obtained from annual reports websites publications and secondary data was collected from the year 2014 to 2019. The data was analysed using E-views and Pearson correlation. The study applied linear regression model to assess the impact of CSR disclosure and financial performance. Target population comprised of 38 listed companies of which, 30 companies were selected as sample. This data was collected for 5 years each firm giving 150 observations. In this study show that CSR disclosure and financial performance has a positive correlation at 5% significant level. The study concluded further that significant relationship existed between CSR disclosure and ROE. The study recommended that manufacturing firms should have much attention to the importance of CSR and need to pay more attention to increase financial performance.
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    Financial Distress and Earnings Management: Evidence from Sri Lanka
    (Department of Accountancy, University of Kelaniya, Sri Lanka., 2022) Kannangara, H. A. R. D.; Buvanendra, S.
    This research's main intention is to scrutinise the impact of financial distress on earnings management in selected Sri Lankan listed firms. This study's sample covers two hundred and seven companies listed on the Colombo Stock Exchange (CSE), excluding the financial sector companies, which were chosen based on the availability of data from 2013 to 2017. Earnings management is approximated based on two strategies: accrual earnings management and real earnings management. The Modified Jones model developed by Dechow, Sloan, and Sweeney (1995) is used to calculate the measure of accruals earnings management. The Roychowdhury (2006) developed combined models of abnormal production costs and abnormal discretionary expenditures are used to assess the amount of real earnings management. The study outcomes indicated that financial distress is positively related to accrual earnings management while being negatively associated with the magnitude of real earnings management. This report's denouement offers greater comprehension for financial practitioners to make optimum financial choices.
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    Determinants of Banks’ Profitability: Empirical Evidence from Sri Lanka
    (Department of Accountancy, University of Kelaniya, Sri Lanka., 2024) Ruwanthika, W. M. T.; Wijekoon, W. M. H. N.; Gunathilaka, R. C.
    The objective of this paper is to examine the effect of bank specific, industry specific and macro-economic determinants namely, bank size, capital adequacy, credit risk, liquidity risk, operating cost efficiency, assets management, diversification, market concentration, inflation and interest rate on Sri Lankan commercial banks’ profitability over the period from 2010 to 2019. The study used quantitative research approach and analyzed secondary data using E views software of 11 Sri Lankan commercial banks over a period of 2010 to 2019. Multiple panel regression method was used to investigate the effects of bank specific, industry specific and macro-economic determinants on the profitability of commercial banks in Sri Lanka. The result of the study suggests that bank size, capital adequacy, asset management and interest rates bring positive effects on the banks’ profitability, while credit risks bring negative effects on commercial banks’ profitability. This study is one of the pioneering studies examining the determinants of the profitability of commercial banks in emerging economies. The implications of this study would be helpful for policy makers and regulatory bodies in revising their existing practices for developments in the banking sector in achieving the economic growth. Further, this study sheds light on Sri Lankan commercial banks to understand the significant determinants on their overall profitability and set strategies to accordingly.
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    Corporate Governance and Corporate Transparency: A Sri Lankan Case
    (Department of Accountancy, University of Kelaniya, Sri Lanka., 2022) Ratnayake, D. A. W. M. S. P.; Rajakulanajagam, N.
    The main purpose of the research is to explore the impact of corporate governance on the corporate transparency of public listed companies in Sri Lanka. The content analysis was applied to measure the dependent variable, corporate transparency while independent directors, board size, female directors, dual leadership, cross directorship, audit firm size, related party transaction review committee and remuneration committee were used as the variables of corporate governance. This research study covers 100 public listed companies which have been listed on Colombo Stock Exchange in Sri Lanka representing eight sectors and secondary data were gathered from annual reports published on Colombo Stock Exchange for the period from 2018 to 2020. The data analysis was performed through correlation and regression analysis using EViews software. As per the results of regression analysis, it was shown that there is a significant impact of audit firm size and female directorship on corporate transparency. Distinct from the previous empirical research, corporate transparency was measured using a newly updated transparency and disclosure index based on the most recent corporate governance codes in 2017. The outcome of the study gives an insight into corporate governance and corporate transparency to regulators, policymakers, practitioners, researchers and investors by adding value to the existing literature.