ICARE 2018
http://repository.kln.ac.lk/handle/123456789/19607
2024-03-29T13:41:01ZThe Value Relevance of Accounting Information: A Comparison between Published Interim and Annual Financial Statements
http://repository.kln.ac.lk/handle/123456789/19671
The Value Relevance of Accounting Information: A Comparison between Published Interim and Annual Financial Statements
Weerasinghe, P.S.M.; Karunarathna, W.V.A.D.
Main objective of the accounting information is providing useful information to
stakeholders of the entity. Current and prospective investors are the most important
users of such information. Public Listed Companies in the stock market use financial
statement as one of the main medium of communication with their stakeholders.
Value relevance can be defined as the ability of information disclosed by financial
statement to capture and summarize firm value. Investors predict future performance
through existing accounting information. When the economy changes time to time
investors need to be referred timely information for the investment decision making.
If the investors depend on outdated information, investment decision will become
inappropriate and ineffective. On the other hand, investors can obtain the short-term
financial progress from the interim quarterly financial statements and also they can
use audited annual financial reports after completing the accounting year.
Therefore, the purpose of this study is to distinguish the value relevance between
interim financial statements and the audited annual financial statements in Sri Lanka
context. The study is based on 35 listed manufacturing companies in the Colombo
Stock Exchange (CSE) for the period of 2012 to 2017. The relevant data were
gathered from the published interim financial report, audited annual financial
statement and publish research articles. Earnings per share, book value per share,
dividend per share and return on equity are use as key independent variables. Data
were analyzed using correlation and regression analysis through E-views software.
The results show that the interim financial statement appear to have higher value
relevance than annual financial statement and value relevance of accounting 4th International Conference for Accounting Researchers and Educators
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information has the significant impact on share price and value relevance of
accounting information is significantly correlated with the share price
2018-01-01T00:00:00ZThe Impact of Dividend Policy on Shareholders’ Wealth and Business Performance of Listed Manufacturing Companies in Sri Lanka
http://repository.kln.ac.lk/handle/123456789/19670
The Impact of Dividend Policy on Shareholders’ Wealth and Business Performance of Listed Manufacturing Companies in Sri Lanka
Dilshani, L.D.C.; Abeywardhana, D.K.Y.
The Dividend policy play a major role in current business as most important financial
policy not only from the viewpoint of the company, but also from that of the
shareholders, the consumers, employees, regulatory bodies and the government.
The study aims to identify how the dividend policy influences the shareholders
‘wealth and the business performance of listed manufacturing companies in Sri
Lanka. Dividend per share (DPS) and Dividend yield (DY) use as Dividend policy
indicators while Return on Equity (ROE) use as business performance indicator and
earning per share (EPS) and Market share price (MSP) use as shareholders’ wealth
indicator. The study use secondary data of 30 manufacturing companies covering the
period of 2012 to 2017. Data analyze using regression analysis.
The result reveals that dividend policy has significant positive impact on
shareholders’ wealth and the business performance of listed manufacturing
companies in Sri Lanka. The previous empirical studies provide evidences that
dividend policy has significant positive impact on shareholders’ wealth and the
business performance
2018-01-01T00:00:00ZThe Impact of Intellectual Capital on Firm’s Market Value and Financial Performance
http://repository.kln.ac.lk/handle/123456789/19669
The Impact of Intellectual Capital on Firm’s Market Value and Financial Performance
Ganegoda, G.P.S.K.; Karunarathna, W.V.A.D.
Intellectual capital has a huge impact on the firms’ value creation process and it will
also generate competitive advantage to the organization with the development of
knowledge based economy. The study aims to identify the impact of intellectual
capital on firm’s market value and financial performance of the bank, finance and
insurance sector and manufacturing sector in Sri Lanka. Return on asset and market
to book value are separately used as dependent variables. The Value Added
Intellectual Coefficient (VAIC) method introduced by Pulic (2000) is used to measure
the intellectual capital of the firm. The study used secondary data of 15 bank, finance
and insurance sector companies and 15 manufacturing sector companies covering the
period of 2012 to 2017. Data were analyzed using linear regression model and used
E-Views software to perform statistical tests. The results revealed that intellectual
capital significantly impact to the firm’s financial performance in bank, finance and
insurance sector. However, according to the results there was no significant impact
of intellectual capital on firm’s financial performance in manufacturing sector.
Furthermore, intellectual capital has no significant impact on firm’s market value in
both sectors
2018-01-01T00:00:00ZThe Impact of IFRS Adoption on Financial Statements and Value Relevance: Evidence from Sri Lanka
http://repository.kln.ac.lk/handle/123456789/19668
The Impact of IFRS Adoption on Financial Statements and Value Relevance: Evidence from Sri Lanka
Dissanayaka, H.M.K.G.L.B.; Karunathna, W.V.A.D.
The aim of this study is to explore the effect of International Financial Reporting
Standards (IFRS) adoption on commonly employed financial ratios and investigate
the value relevance of IFRS adoption by comparing the association between
accounting measures and market values under GAAP and under IFRS of listed
manufacturing companies in Colombo Stock Exchange.
This study employs 20 listed manufacturing companies with both pre-IFRS (2009-
2011) and post-IFRS (2013-2015) information. Data were analyzed by using panel
data regression model and correlation analysis. And also T test and Wilcoxon signed
rank test are used to explore the effect of IFRS adoption on financial ratios.
Results of the study showed that IFRS adoption does not significantly change the
central values that depict the financial position and performance of Sri Lankan
companies in financial statements. Therefore value relevance of accounting
information has not significantly improved in the post-IFRS period than the pre-IFRS
period. However several financial statement measures and ratio are affected
significantly in transition to IFRS. Further studies are encouraged to conduct on
investigating the impact of IFRS adoption on financial statement and value relevance
by expanding the sample size with incorporating more accounting quality
measurement indicators, measurement and ratios
2018-01-01T00:00:00Z