Browsing by Author "Ariyarathna, J.M.D."

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Corporate Governance and Working Capital Management Efficiency: A Comparative study Between Capital Good Sector and Food, Beverage & Tobacco Sector
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Dhanushika, K.K.M; Ariyarathna, J.M.D.
The issue of corporate governance has risen in prominence while the confidence of the private sector has grown world-wide. The Asian Economic Crisis (1997) further pointed out why the issues of transparency and accountability in corporate governance are important to the reliance of investors and for national economic performance. The aim of this study is to identify the impact of corporate governance on working capital management efficiency in selected capital good sector and the Food, Beverage & Tobacco sector in Sri Lanka. Prior studies have given less attention to the Food, Beverage & Tobacco sector companies and comparative studies haven’t been done between two sectors. Therefore, this study focuses on doing a comparative study between the Capital Good sector and the Food, Beverage & Tobacco sector in Sri Lanka to fulfill this gap. Data are gathered from the published audited annual reports of 20 companies listed under the Capital Good sector and the 20 companies listed under the Food, Beverage & Tobacco sector for the period from 2015 to 2020. Multiple regression analysis is used to find out the significant influence of corporate governance on working capital management in each sector, and an independent sample t test is used to compare the working capital management efficiency between these two sectors. The results of this study will provide useful insight to investors, stakeholders and regulators to develop guidelines and get better decisions.
The Impact of Corporate Governance and Corporate Social Responsibility of Company Financial Performance of Sri Lankan Listed Companies
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Godakanda., G.A.U.S.; Ariyarathna, J.M.D.
The influence of corporate governance and corporate social responsibility monitoring mechanisms on the decision of CSR participation. After controlling for numerous business characteristics, the study reveals that CSR choice is positively associated with corporate governance and monitoring mechanisms, such as board leadership, board independence, institutional ownership, analyst following, and antitakeover provisions. After then, a CSR disclosure index was created by aggregating CSR disclosure elements from annual reports and company websites. The researcher followed a secondary data collection strategy in this experiment. As a result, data was collected using public annual reports. This strategy is called secondary data collection, and the researcher did not collect or collect data personally from the responding parties. Data are collected from issued annual reports. To analysis with the IBM Statistics Sociology Package (SPSS 22), the data in the annual reports of publicly traded. The relationship between corporate governance and corporate social responsibility based on top 40 manufacturing firms in listed companies are highly regulated and study outcome would be changed due to that nature. As a result, the problem statement would be what influence does The Impact of Corporate Governance and Corporate Social Responsibility. Increasing nonexecutive directors benefits and expanses reduce company overall performance level. As well as, other three independent variables have positive relationship with financial performance of banking, finance and insurance institutions of Sri Lanka.
Impact of Dividend Policy on Stock Return; Evidence from Manufacturing Companies Listed in Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Gunarathna, J.M.N.N.; Ariyarathna, J.M.D.
The objective of this study was the impact of dividend policy on stock return of manufacturing companies listed in Colombo Stock Exchange. This research relies on secondary data which was collected from annual reports of listed companies in Colombo Stock Exchange. Data was collected from a sample of 20 companies under material sector over consecutive five financial years from 2015 to 2019. The independent variable was dividend policy which is measured by dividend payout ratio and dividend yield ratio while depended variable was stock return. Descriptive analysis and correlation analysis were used to perform the data analysis while regression model was expanded by adding three control variables named earnings per share, book value per share and size of the firm. While confirming the empirical results; findings of this study showed a negative insignificant relationship between dividend payout ratios with stock return and showed positive insignificant relationship with dividend yield ratio with stock return. Moreover, stock return has negative correlation with firm size and book value of firm while positive correlation with earnings per share. Based on the findings of this study, dividend payout ratio and dividend yield have negative impact on stock return. Findings of this study revealed that there is an insignificant relationship between dividend policy and stock return.
The Impact of IFRS 9 on SME Credit Facilitation of Banking Sector in Sri Lanka
(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2019) Mahendrarajah, L.; Ariyarathna, J.M.D.; Abeywardhana, D.K.Y.
The purpose of study is to explore the impact from the latest impairment model developed under the new financial reporting standard and to develop a researchable model to study the impacts of same on the performance of the Sri Lankan Banking Sector (SLBS) under SME credit facilitation. The research focuses on secondary data collected from sources such as annual reports of Central Bank of Sri Lanka (CBSL), Banks’ annual reports, financial sector stability report of CBSL, etc. The research conducts in a deductive approach in which arguments and explanations are mainly associated by theoretical contents which are supported by empirical evidences. Asset quality of the banking sector especially in the domain of SME has deteriorated drastically in the recent past with increasing Non-performing Loans (NPLs) and provisioning. Also, researcher reveals that the performance of the banking sector in Sri Lanka deteriorated during this study period. Apart from the above the impairment provisioning methods and revenue recognition as per new reporting standard has further deteriorated the profitability of the banking sector of the country. This area is relatively new since the implementation of IFRS 9 was initiated only in January 2018. However, the issue is widely debated among the financial sector of Sri Lanka due to dramatic changes it made on the financial reporting standards of Sri Lankan banking and finance sector.
Impact of Integrated Reporting on Financial Performance - Evidence from Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Dharmasiri, P.H.A; Ariyarathna, J.M.D.
In today context integrated reporting became an important reporting concept. At present most of the businesses adopt this concept for their business reporting. Most of the businesses use the integrated reporting to enhance the organizational relationship and communication with their stakeholders (Abeywardana, 2016). After the global financial crisis (2007-2009) stakeholder require both financial and non-financial information about the organization (Appiagyei, 2016). Hence firms consider the integrated reporting for fulfill that requirements. This study aims to investigate impact of integrated reporting system on firm performance of listed companies in Sri Lanka. In order to achieve this objective data were collected from the annual financial statements. Complete integrated reporting system is measured through eight IR content elements from the IIRC framework and financial performance is measured through the Return on asset (ROA). This study considered the 30 integrated reporting adopted listed companies through the period of 2015- 2020. The results of this study will be helpful to investors, companies, researchers and analysts to understand the importance of integrated reporting
The Impact of SLFRS 15 Revenue from Contracts with Customers on Profitability of Sri Lankan Listed Companies
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Hansamali, K.M.I; Ariyarathna, J.M.D.
This study investigates the impact of applying SLFRS 15 standard on profitability on Telecommunication, Capital goods and Retailing sectors of Sri Lankan Listed companies in Colombo Stock Exchange. This study address three sectors out of all sectors as per big four expectation highly impacted sectors are used. The study addresses four independent variables, namely Return on Assets, Return on Equity, Earning Per Share and Gross Profit Margin and their impact on revenue before and after implementation of SLFRS 15. The researcher has investigated the relationship and impact of the independent variables on dependent variables by analyzing financial statements before and after applying IFRS 15 for 2017,2018, 2019, 2020. This is followed by regression analysis which showed that associated at a statistically significant level with changes in revenue. The study concludes that there is a relationship and impact between changes in revenue and ROA, ROE and GPM.