Browsing by Author "Jayamaha, A."

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Accounting information of cooperative rural banks in Sri Lanka
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Jayamaha, A.
Many small financial institutions (SFIs) in developing countries make great effort to provide efficient services to the poorhouse holders. In Sri Lanka, Cooperative rural banks (CRBs), one of the formal SFIs in Sri Lanka, serve a large number of customers, deal with a large amount of funds and have substantial contributions to the rural financial sector during the last four decades. In recent literature, accounting information, integral part of the corporate governance mechanism has been highlighted in regulatory and supervisory framework of SFIs (Bushman and Smith2001; Mullineux 2006; Cayanan 2007). However, there is a doubt of providing relevant and sufficient information to the stakeholders in SFIs in developing countries due to not maintaining appropriate accounting practices. In Sri Lanka, recent collapses of many financial institutions also signal that they do not provide relevant and sufficient information to their stakeholders. This paper seeks to assess the accounting practices of CRBs in Sri Lanka. In the absence of accepted standards for the preparation and presentation of financial statements of SFIs in Sri Lanka, the accounting practices of CRBs were assessed, by using generally accepted accounting principles for financial institutions and international guidelines for Microfinance institutions. Those are considered as the most appropriate benchmark for CRBs in Sri Lanka. The empirical analysis reveals that there is considerable variation in the accounting practices for the provision for loan losses and write-off of loan losses across CRBs. Some CRBs use accounting practices that are on par with those accepted by global financial institutions even though no specific guidelines exist for Sri Lankan CRBs.
Assessment in internship – experiences of accountancy degree programme – university of Kelaniya
(Department of Accountancy, University of Kelaniya, 2015) Aruppala, W.D.N.; Jayamaha, A.
Internship has become an important component in accounting degree pragrammes in universities over the past decades. Academics and researchers believe that internship provides smooth transition of undergraduates from oncampus environment to the working environment (Muhamad et al 2009). Further, practitioners in accounting profession have identified that internship experience benefits not only to improve the quality of the degree programme and the skills of the students but also benefits to the employing entity during and after the internship (Beard 2006). Hence, interaction and evaluations among students, faculty and practitioners during and after the internship is invaluable in measuring outcome of the internship programme. Department of Accountancy (DoA), University of Kelaniya, Sri Lanka has introduced internship to the accounting degree curriculum in 1998. DoA believes that the objective of introducing the internship component to Accounting programme is to facilitate students to gain practical exposure from the dynamic business environment, and to enhance teamwork sprit and the employability. To achieve these objectives multiple assessment activities have been introduced in par with the International Accounting Bench Marks designed by Universities and professional institutions, and those activities have been increasingly changed to strengthening the programme. The objective of this paper presents the multiple assessment activities created by DoA in internship pragramme since 1998 to maintain the quality of the accounting degree programme. The assessment activities presented in this article are useful for other accounting pragrammes for improving quality and for accreditation of their degree programmes.
Audit Expectation Gap: A Comparative Literature Analysis of Private Sector and Public Sector
(Department of Business Management Wayamba University of Sri Lanka, 2023) Deepal, A.G.; Jayamaha, A.
The Audit Expectation Gap (AEG) issues are steadily expanding around the globe, irrespective of the particular sector involved. A comparative analysis will be more crucial for the AEG literature since the significance of the expectation concerns stems from the concepts of "stewardship and public accountability", which are applicable to audits in both private and public sectors. Thus, the purpose of this study is to analyze the similarities and distinctions between the AEG studies conducted pertaining to the private and public sectors. This research is directed by theoretical considerations and arrives at conclusions based on the extant literature. An exhaustive search of the published literature was conducted by applying the search terms “expectation gap” and “audit expectation gap” combined with “public sector”, “government sector” and “performance audit” in the Google Scholar search engine and three databases of Scopus, Jstor, and Emerald were performed separately and independently for each sector from 1970 to 2022. Thus, only the articles published in reputable journals concerning the AEG were selected after applying some selection criteria. It was found that the research contexts, selected target populations, and the dimensions applied to assess AEG were found to be significantly different, despite the fact that the definitions and statistical techniques used were found to be comparable in both sectors. This comparison study opens up a wealth of doors for conducting further research in the future.
Audit Expectation Gap: A Review of Literature
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Deepal, Deepal, A.G.; Jayamaha, A.
Unexpected failures of corporate giants such as Enron, World Com, Arthur Andersen, and Xerox together with scams and financial scandals in the world have seriously damaged the image of the audit profession. As a result, society’s confidence and reliance on auditors have decreased while their expectations pertaining to the audit profession have increased, establishing an Audit Expectation Gap (AEG). Hence, the concept of AEG has been studied using various interpretations, as well as varied manifestations of the structure, limitations of each component, and related contributing variables. The purpose of this paper is to construct a new synthesis to the existing knowledge of AEG discovered by numerous scholars in the world. Hence, this study reviewed literature pertaining to definitions and meanings of AEG, relevant theories and models deployed, the factors contributed to the gap and several research methods used in empirical studies by numerous scholars. As a desk research, this study further reviewed the empirical studies pertaining to the developed and developing countries separately. As per the methodology in this study, the keywords, namely “audit expectation gap” and “audit expectation-performance gap” were used to search relevant publications in google scholar database. The research articles published from 1974 onwards were mainly selected. It was found that the empirical studies pertaining to the public sector is very few whereas there is a dearth of such studies in Sri Lanka. Finally, a fresh, but a more straightforward definition was created and described the significance of AEG, adding novelty to the extant literature, and given suggestions for further studies.
Best financial practices analysis and efficiency of small financial institutions: Evidence from cooperative rural banks in Sri Lanka
(2011) Jayamaha, A.; Mula, J.M.
Many small financial institutions (SFIs) in developing countries make great effort to provide efficient services to poor house holders. It is generally accepted that maintaining the best financial practices which are of importance in corporate governance mechanism of institutions, has a close relationship with the efficiency of financial institutions, although they are small. This paper seeks to test best financial practices of cooperative rural banks in Sri Lanka (CRBs) and whether these practices have a significant impact on the efficiency of these institutions. The financial practices of CRBs was assessed using ratios of capital adequacy, liquidity, asset quality, loan to deposit, profitability, loan portfolio yield, operational efficiency, and operational self-sufficiency. The efficiency of CRBs in Sri Lanka was examined by using Data Envelopment Analysis (DEA). Based on the data extracted from CRBs’ financial statements, correlation coefficients showed that several ratios have significant associations with the efficiency of CRBs. This confirms that efficient CRBs maintain best financial practices which contribute to their higher levels of efficiency.
Budgetary process and organizational performance of apparel industry in Sri Lanka
(2012) Silva, L.M.D.; Jayamaha, A.
The budgetary process has been a part of management control system of the organization. This process encourages managers to plan, consider the stakeholders involved, provides information for improved decision making, increases and enhances communication and coordination among departments, and for evaluation. This paper seeks to evaluate budgetary process of apparel industry in Sri Lanka (BPA) and see whether budgetary process has significant impact on performance of such industry. The budgetary process of apparel industry was assessed by using variables such as planning, coordination, control, communication and evaluation. The performance of apparel industry in Sri Lanka was examined by using Return on Assets. Based on the data extracted from apparel industry’s financial statements, correlation coefficients and regression analysis showed that budgetary process have significant associations with the organizational performance of apparel industry in Sri Lanka. This confirms that efficient apparel companies maintain sound budgetary process which contributes to higher levels of organizational performance.
Capital Structure Effectiveness on Financial Performance of Manufacturing Firms in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Pathiraja, P.M.K.K.; Jayamaha, A.
Capital structure shows a significant role in financial decision making process in any business organization. Capital structure decision is more important because organizations need to maximize return and growth the value of the firm. Manager’s responsibility is a decide mix of debt capital and equity capital then it increase the value of the firm. Objective of this research is examine the impact of Capital Structure on financial Performance of manufacturing firms in Sri Lanka.by using 25 firms listed in Colombo stock exchange In this study data collect from secondary evidence through Annual Reports published by company which listed in Colombo stock exchange. There are four variables use for this study. Return on Asset (ROA) is a dependent variable and other explanatory variables are Debt to equity Ratio (DER), Long term Debt Ratio (LTDR) and Debt to Asset Ratio (DAR). Considering the relationship between the capital structure and financial performance. In debt to equity ratio has a negative relationship between Return on Asset and long term debt ratio has an insignificant negative relationship with ROA .and In Debt to Asset Ratio has a positive relationship between ROA. Relationship established between the capital structure and the financing structure is a part whole type relationship can be seen. It is recommended that firms should use more of equity than debt in financing their business activities. To get the better investment decision of mix of capital structure recommend to establish performance standards and those are properly communicate to the investors.
The Determinants of Capital Structure: Evidence from Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Kuruvita, K.A.S.P.; Jayamaha, A.
The aim of this study is to investigate, the factors that affect to the capital structure decision of manufacturing companies in Sri Lanka. Capital structure decision is most debatable topic in the current business environment. There are several factors which determine the leverage level of the firm. Therefore, it is more essential to identify the key firm specific factors, which determined the leverage of the firm. Different capital structure theories are reviewed (Modigliani – Miller Theory, Pecking order theory, Static trade-off theory and Agency cost theory) in order to formulate hypotheses regarding the determinants of capital structure of the listed manufacturing companies. For this study, a sample of 28 listed manufacturing companies was considered for the period 2011 to 2015. Five firm specific explanatory variables (Tangibility, Profitability, Growth, Age of the company and Tax-shield) were selected to discover what determines capital structure. This study employs Descriptive analysis, correlation analysis and multiple regression analysis to measure relationship between variables, individual and overall impact on optimal capital structure and to test the operational hypotheses. The major result of the study indicated that Age, Profitability and tax-shield variables are the significant firm specific determinants of capital structure in Sri Lankan manufacturing companies. In addition to this, the two variables (Tangibility of Assets and Profitability) showed negative relationship between leverage (Debt equity ratio). That negative result consistent with implication of pecking order theory. Remaining selected three variables (Growth rate, Age, Tax-shield) are positively correlated with capital structure, which is help to prove trade-off theory, and agency cost theory. The researcher believes that research findings should help managers to make optimal capital structure decisions.
The Determinants of Profitability in the Banking Industry: An Evaluation from Licensed Commercial Banks and Licensed Specialized Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Kavirathna, T.A.; Jayamaha, A.
The banking sector in Sri Lanka plays a major role in the overall in financial and economic development. Also, the profitability of the banking sector is very important for the stability of the country’s finance sector. This study investigates the factors that determine the profitability of the banking industry in Sri Lanka. Most of the literature on determining bank profitability is based on data from banks in developed countries, and several studies provide evidence of commercial banks in developing countries. This study hopes to contribute to the literature that determines the profitability of the banking industry: it is evaluated by licensed commercial banks and licensed specialized banks in developing countries such as Sri Lanka. Profitability is measured using Return on Assets (ROA). It explains bank size (BSZ), Capital Adequacy ratio (CAR), Deposits (DEP), GDP Growth rate (GDP), Inflation Rate (INF). The study examines a sample of 10 Licensed Commercial banks and 2 Licensed Specialized banks in Sri Lanka for a period of 10 years from 2010 to 2019 using the annual reports published by the Colombo Stock Exchange of Sri Lanka. This study will use the pooled ordinary least square (POLS) method to analyze the data. The empirical results will show what are the significant determinants that affecting the profitability of the banking industry in Sri Lanka.
Determinants of Profitability of Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Ranathunga, M.K.Y.N.; Jayamaha, A.
This study investigates the magnitude of the impact of the bank specific determinants on the profitability of commercial banks in Sri Lanka. Banks act as financial intermediaries between money savers and borrowers. Banks therefore represent one of the most vital groups in the financial market which has crucial economic role in any economy. Banks convert deposits into profitable investments which provide acceleration to the economy. The profitability of the bank has become essential for financial stability. They can get the correct and favorable decision by analyzing these findings. This paper investigates what are the key determinants of profitability in Licensed Commercial Banks in Sri Lanka. There are 26 Licensed Commercial Banks in Sri Lanka. Among that in this paper consists sample of 13 local Commercial banks. The study uses annual data relating to the bank specific performance during 8 years period from 2012- 2019. Data collects by investigating annual reports of each bank separately. There are two profitability measures namely Return on Average Assets (ROAA) and Return on Average Equity (ROAE) are included as dependent variables to make results more comprehensive. The independent variables employed are Liquidity Asset Ratio, Capital Adequacy Ratio, Cost to Income Ratio and Size of the bank as control variable. Panel data regression analysis has been used to find out the independent variables which are statistically significant in explaining the profitability measures. This study provides supporting to Government officers, Investors, University Students for their academic activities and people who prefer in economy in the country.
The Effect of Capital Structure on Profitability in Sri Lankan Listed Companies
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Madhubhashani, M.A.C.D.; Jayamaha, A.
The capital structure decision is essential for any business organization. To understand how companies finance their operations, it is necessary to examine the determinants of their financing or capital structure decisions. All decision relevant to the capital structure is crucial for every company. The decision is very impotent due to impact of this decision has power to achieve competitive advantage as well as the prove survival of the company (Shubita & Alsawalhah, 2012). Capital structure decision is the vital one since the profitability of an enterprise is directly affected by such decision. The successful selection and use of capital is one of the key elements of the firms’ financial strategy (Velnampy & Niresh, 2012). This paper seeks to investigate the relationship between capital structure and profitability of listed companies on the Colombo Stock Exchange (CSE) during a five-year period. In order to meet the objectives of the study, data will collect from secondary data from financial statements of the selected companies and descriptive analysis, correlation and regression analysis is used as the methodology in this paper. Variables used for the analysis include profitability and leverage, equity ratios. Profitability measured by Return on Assets (ROA). The overall result of the study suggests short term debt and debt to equity in Sri Lankan context to be negatively related to profitability of the company. As well as long term debt to total assets and sales growth of the firm positively influenced to the profitability of the company.
Efficiency of small financial institutions in Sri Lanka using data envelopment analysis
(2012) Jayamaha, A.
In Sri Lanka, the formal rural financial sector comprises a large number of small financial institutions (SFIs). Among SFIs, cooperative rural banks (CRBs) play an important role in meeting the rural credit needs in rural sector in Sri Lanka. CRBs have gained an increasing share of financial assets, which has been particularly helpful for satisfying the growing demand for loans and advances in poor people in the country. However, performance of SFIs in Sri Lanka is less than satisfactory and highly criticised today. Poor performance has been attributed to poor management of assets and consequently, the sustainability of these institutions is uncertain. Moreover, an attention to the efficiency of SFIs in Sri Lanka is more concern to the general public given collapses of several formal and informal SFIs. Hence, aim of this study is to evaluate the overall efficiency of SFIs in Sri Lanka by taking all CRBs operate in Sri Lanka. CRBs established in 1964 and end of 2010 there are 1,933 branches operate in all 25 districts of the country. Data envelopment analysis (DEA) is used to measure efficiency. The study found that the efficiency of CRBs in Sri Lanka have declined during the study period of 2005 to 2010. Further found that there were significant differences in the efficiency of CRBs by geographical locations and the efficient banks are closely associated with size of the Banks. The findings of this study may convince industry decision makers to establish more comprehensive policy settings for promoting particularly, CRBs activities, and overall all SFIs in Sri Lanka’s rural financial sector.
FINANCIAL PRACTICES AND EFFICIENCY OF COOPERATIVE RURAL BANKS IN SRI LANKA
(2010) Jayamaha, A.; Mula, J.M.
Many small financial institutions (SFIs) in developing countries make great effort to provide efficient services to the poorhouse holders. It is generally accepted that maintaining the financial strength which is importance in corporate governance mechanism of institutions, has a close relationship with the efficiency of financial institutions, although they are small. However, there is a doubt of efficiency of SFIs in developing countries due to not maintaining appropriate financial practices. In Sri Lanka, recent collapses of many financial institutions also signal that they do not maintain sound financial practices. Cooperative rural banks in Sri Lanka (CRBs) one of the formal SFIs in Sri Lanka which serve a large number of customers, deal with a large amount of funds and have substantial contributions to the rural financial sector during the last four decades. This paper seeks to test financial strength of cooperative rural banks in Sri Lanka (CRBs) and whether these strengths have a significant impact on efficiency of these institutions. The financial strength of CRBs was assessed using ratios of capital adequacy, liquidity, asset quality, loan to deposit, profitability, loan portfolio yield, operational efficiency, and operational self-sufficiency. The efficiency of CRBs in Sri Lanka was examined by using Data Envelopment Analysis (DEA), a non-parametric analytic technique. Based on the data extracted from CRBs? financial statements, correlation coefficients showed that several financial practices have significant associations with the efficiency of CRBs in Sri Lanka. This confirms that efficient SFIs maintain sound financial practices which contribute to higher levels of efficiency.
Financial Practices and Performance of Small and Medium - sized Enterprises in Sri Lanka
(2011) Karunananda, A.; Jayamaha, A.
The objective of this research is to find out the financial practices among Small & Medium-sized Enterprises (SMEs) in Sri Lanka. Further, it finds out the impact of financial practices upon business performance amongst SMEs in Sri Lanka. The SME sector has become a crucial segment and a major section of private sector in developing countries. Therefore, for the developing countries, it is important to accelerate the growth of SMEs in order to gain sustainable development. However, poor record keeping, inefficient use of accounting information to support their financial decision-making and the low quality and reliability of financial data are part of the main problems in financial management concerns of SMEs. Therefore, through this research an attempt is made to ascertain the comprehensiveness of financial practices adopted by SMEs in Sri Lanka and evaluate whether financial practices have an impact on performance of these organizations. The data and information required for the study are obtained through a questionnaire survey conducted. The primary concern is with the various financial practices within cooperating SMEs. Here, financial systems and their review, financial audit, historical and future-oriented financial reporting practices and historical financial statement analysis practices are all considered. Secondly, the study is able to establish some associations exist between the comprehensiveness of financial practices adopted by SMEs in the study sample and measures of SME performance and the relationship were evaluated by using correlation coefficients. The findings suggest a significant difference in comprehensiveness of financial practices between small enterprises and medium-sized enterprises in study sample, with these practices being more extensive in medium-sized concern. Further, the findings establish that the comprehensiveness of financial practices may have some potential as an explanatory factor for business performances in SMEs. Overall, findings seem that SMEs who are complying with financial practices are performing well than the SMEs, who are not complying with financial practices.
Impact of Board Structure on Financial Performance with Special Reference to Sri Lankan Public Quoted Companies
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Perera, K.T.J.J.; Jayamaha, A.
Corporate governance received a considerable attention during last 20 years. Good corporate governance practices are regarded as important in order to reduce the risk for investors, attracting investment capital and improving the performance of companies. However, the way in which corporate governance is organized vary from country to country, depending on their economic, political and social context. The security and exchange commission of Sri Lanka is committed to improving and practicing the use of international best practices which is essential for the development capital market improvement of professionalism among market participate and raising the profile of Sri Lankan capital market in keeping with its objectives. The existing studies showed that large board size has a positive effect, CEO duality has a negative impact, appraisal of board performance has positive effect and director’s stockholding has a positive impact on firm’s performance, but there is conflicting point between them the significance of current research is aimed to clarify this conflicting point among these studies. The main object of this study is to find out the significant impact between board structures on firm performance. To get the efficiency Performance through the best corporate governance 40 public quoted companies were selected as the sample of five years starting from 2014 to 2018 financial years based on higher capitalization. Mainly three corporate governance components were used in this study, Board stockholdings, CEO Duality (CED) and Board Size (BZ). Furthermore, the firm performance is measured by accounting base measurements (ROA and ROE and ROCE). All the data were collected from annual reports of each companies and data were analyzed by using descriptive statistics, Pearson correlation and regression analysis utilized to find out the significance of board structures impacts on financial performance.
Impact of Capital Structure on Firm Financial Performance of Manufacturing Sector Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Fernando, W.R.S.; Jayamaha, A.
The discussion about the optimum capital structure has been a core topic in corporate finance from several years in Sri Lanka. Capital structure defines as a combination of debt capital and equity capital in an organization. Organizations have different financing sources. It can be categorize into two sources, the internal financing and external financing. It is challenging for firms to identify the right mixture of debt and equity to achieve firms goals. This study was investigated the relationship between capital structure and firms financial performance of manufacturing listed companies in Sri Lanka. The sample of the study consisted of 14 manufacturing listed companies in Sri Lanka. This analysis is done by analyzing the financial statements of these companies from 2010 to 2015. The findings revealed that capital structure as measured by debt to equity ratio (DE) had statistically insignificant positive relationship with financial performance (ROA). Whereas long term debt to total assets (LDTA) had statistically significant negative relationship with financial performance (ROA) and similarly, short term debt to total assets (SDTA) had a negative and statistically significant relationship with financial performance (ROA).
The importance of letters in “Pride and Prejudice” and “Emma”
(Department of English, University of Kelaniya, 2015) Jayamaha, A.; Botheju, K.; Jayatilaka, R.; Prasangi, D.; Welgama, E.; Gunawardana, Y.
Epistolary writing is a feature which only a few novelists have adopted. The research is aimed at examining epistolary writing with regards to Jane Austen’s novels Pride and Prejudice and Emma. Both the novels Pride and Prejudice and Emma contain several letters that fulfill the task of developing the plot through its aim of creating incidents. The novel Emma mainly contains only one letter in specific, which is Frank Churchill’s letter that we find in Chapter 50 and all the others are incidents where someone else speaks up about what is conveyed through a letter. Letters of confession, letters of love marriages, letters of unspoken emotions and letters of informing certain trivial matters as arrivals and illnesses, day to day casual letters are mentioned in both novels. Through the information revealed by the letters, the plot too develops in a certain way, manifesting certain characteristics of the characters and adding up to the themes. Letters Austen mentions in both novels can be categorized according to the message the letter conveys and how a letter adds to the development of the plot can be analyzed with a close examination of the letters and the incidents where letters are brought out.
Information and communication technology facilitated education in national universities of Sri Lanka
(2013) Godamanna, E.H.; Jayamaha, A.
The global adoption of Information and Communication Technology (ICT) has majorly captured the area of education, as it is the foremost important method to create a technology equipped generation. Uses of ICTs in education are widespread and are continually growing worldwide. However in many cases, the adoption has not kept its promises up to the expected standard. The main purpose of the study is to investigate the related factors that have a significant influence on the use of ICT facilitated education in National Universities of Sri Lanka. These factors contain the Organizational Factors, Individual Factors, Educator Factors, Technological Factors and Social/Cultural Factors. Further the study also aims at assessing whether ICT facilitated education in National Universities would improve the Digital Literacy of the students. The study uses a quantitative method to collect data on the population of graduates of national Universities of Sri Lanka. Questionnaire responses are analyzed for the findings and 176 graduates selected from the three national universities. The results of the study confirms that Organizational, Educator and Technological Factors act as barriers for effective implementation of ICT facilitated education in national universities of Sri Lanka. At the same time the expected outcome of ICT facilitated education which is improving the Digital Literacy has not achieved. Based on the findings, it is recommended that policy-makers should attempt to alleviate the concerns of barriers found and try to take steps to convert the barriers in a favorable manner.
Productivity and Efficiency Measurement Models: Identifying the Efficacy of Techniques for Financial Institutions in Developing Countries
(2011) Jayamaha, A.; Mula, J.M.
The concepts of productivity and efficiency have received a great deal of attention in many countries and organisations and by individuals in recent years. In any country, the growth of productivity and efficiency affects national income and inflation. In recent years, small financial institutions (SFIs) have become the most favoured option for poverty alleviation in developing countries. The efficiency of these institutions is highlighted in all aspect of stakeholders? of these institutions recently, due to the collapse of several financial institutions. Many different approaches have been applied by many researchers to the measurement of productivity and efficiency changes in various types of institutions but there is no consensus of opinion on the best measurement method and many measurement obstacles remain. The aim of this paper is to review the literature dealing with concepts of productivity and efficiency and to review various techniques used in measurement techniques of these constructs directions are given for future research.
The Relationship between Capital Structure and Performance; Evidence from Selected Sri Lankan Hotels Listed in Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dulaji, D.W.R.K.; Jayamaha, A.
The performance of hotel industry is most important to the wealthy of the Sri Lankan economy. Hotels compete in a global economy with infinite opportunities. Hence, hotels need more financial strength in order to run the day to day operations of the business. Capital Structure is one of the main criteria which concerned in financial strength of the hotels. The capital structure of listed companies is most important dimension that every stakeholder is very much concerned. The objective of this study is to identify the relationship between capital structure and performance in the listed hotels in Sri Lanka. Furthermore, this study also aims to indicate what is the most influential factor for capital structure? Short term debt, Long term debt and debt to equity ratio are used as measurement of capital structure. Performance of hotel was dependent variable and it measured by ROA. The study has been used panel data procedure for a sample of 26Sri Lankan hotels listed in Colombo Stock Exchange during 2010-2015.The data for all the variables in the study were abstracted from audited annual reportsThis quantitative analysis used descriptive statistic, regression analysis and correlation analysis to demonstrate relationship between capital structure and performance. This study found that a significant positive relationship between capital structure and performance of hotels listed in CSE. Based on findings, it can be arrived to an overall conclusion that an appropriate mix of capital structure improves the performance of hotels.