Browsing by Author "Lakshan, A.M.I."

Now showing 1 - 20 of 27

The Association between Corporate Social Responsibility and Financial Performance - with Special Reference to Public Quoted Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Dilrukshika, M.G.C.M.; Lakshan, A.M.I.
The concept of corporate social responsibility (CSR) has developed in the Western world since the twentieth century (1950). Many businesses neglect to engage in social work and some business organizations voluntarily engage in different types of CSR. Also, listed companies spend huge amounts of money in CSR activities for different purposes. The impact of those spending is not clear and especially how CSR spending influence on performance of companies is a bit confusing. as well as, mixed empirical evidence has been found in relevant previous studies on the relationship between CSR and Financial performance. Moreover, almost every previous study provides evidence of developed countries. This investigation is based to fill the knowledge gap of developing countries. Accordingly, the aim of this study is to examine the impact of CSR on financial performance of selected listed companies in Sri Lanka. Based on literature, independent variable is CSR and three dependent variables (ROA, ROE and EPS), and two control variables Firm Size and Leverage have been chosen in this study. The sample of this study consists of 75 listed companies on the Colombo stock exchange and they are selected based on their market capitalization. Data collected from annual reports covering periods from 2015 to 2019. Data were analyzed using regression analysis and E-Views packages. findings of this study will be useful for listed companies to gain an understanding about the direction of impact of CSR on their profitability and they can take decisions regarding their avenue and amount of CSR spending. Further, findings can be useful to offer pivotal implications about CSR and Financial performance for policy makers and regulators.
Board Structure Best Practices and Its Impact on Firm Performance: Empirical Evidence from Public Listed Companies of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Priyantha, V.P.T.; Lakshan, A.M.I.
Board Structure is an important Corporate Governance mechanism, which would result in improved performance. Boards play an important role in advising top management. Purpose is this study was to examine the relationship between Board Structure and financial performance in Diversified Listed companies in Sri Lanka. In the existing literature, authors have studied the impact of board size and board composition on financial performance. However, studies of the above relationship in particularly unstable and there is paucity of research in Sri Lanka context. In order to fulfill this gap, the present study is initiated to find out that to what extent board size and board composition influence on financial performance. As per the identified board structure characteristics, the impact of board size, board balance, disclosure of board, board independence, board remuneration and CEO duality on the performance measures (ROA, ROE, and EPS) are investigated. The quantitative research approach is employed to investigate out the findings of the research study. This study tests the research hypotheses, the inferential tests used include the correlation analysis and regression analysis. The sample of the study comprises 40 listed companies in Sri Lanka and data obtained from published annual reports, company websites over the period of five years from 2014 to 2019. The findings of the study will be useful to decide board structure best practices in a way to ensure higher performance. Further, investors will have the opportunity to draw conclusions from the board structure of those institutions when making their investment decisions.
Corporate governance and corporate failure
(2012) Lakshan, A.M.I.; Wijekoon, N.
The purpose of this research is to examine the influence of corporate governance characteristics on the corporate failure of listed companies in Sri Lanka. This study utilized publicly available data from annual reports of a sample of 70 failed firms and a sample of matched 70 non failed firms listed on Colombo stock market for a period covering the 2002 to 2008 financial years with logistic regression analysis. Corporate governance characteristics comprises with board size, CEO duality, outside directors, outsiders’ ownership, audit opinion, presence of an audit committee and remuneration of board members. Outside director ratio, presence of an audit committee and remuneration of board members turn out to be negatively associated with the probability of corporate failure, While CEO duality is positively related with the likelihood of corporate failure. Board size, auditor's opinion and outside ownership do not appear to be significant determinants. The paper offers evidence on the extent to which corporate failure associated with corporate governance. It would be educational to investors, financial analysts, accounting professionals, management and be helpful for regulatory authorities in making decisions, evaluations and policies.
Determinants of Disclosure of Key Audit Matters in Listed Companies in Colombo Stock Exchange
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Rukshan, R.; Lakshan, A.M.I.
Key Audit Matters means, those matters that, in the auditor’s professional judgment, are of most significant in the audit of the financial statements of the specified period. The purpose of this study is to investigate the factors that auditors take into consideration when issuing Key Audit Matters. The research design is quantitative, with a population of non-financial companies listed in Colombo Stock Exchange in the period of 2018 – 2020, considering on the Number of Key Audit matters disclosure issued by independent auditors. This research includes the number of Key Audit Matters disclosure as dependent variable. The analysis is based on secondary data and multiple regression analysis is used to initiate the relationship between the dependent variable and independent variables. Independent variables include audit firm size, number of audit committee members, number of audit committee meetings, and the number of independent directors. Company’s characteristics includes company size, number of company’s subsidiaries, ratio of receivable and inventory to total assets, ratio of debt to equity, the earnings before interest and tax to total assets, and industry type are the control variables. This research will identify the relationship between Number of Key Audit Matters and determinants of Key Audit Matters.
DETERMINANTS OF PROFITABILITY UNDERLINING THE WORKING CAPITAL MANAGEMENT AND COST STRUCTURE OF SRI LANKAN COMPANIES
(2010) Morawakage, P.S.; Lakshan, A.M.I.
Efficient working capital management is an integral part of the overall corporate strategy to create shareholder value. Researchers investigated the relation between the companies? working capital, cost structure and their profitability. This relationship is examined using correlation and regression analysis. In this research, researchers have selected a sample of 65 Sri Lankan companies listed on Colombo Stock Exchange for a period of 5 years from 2003-2007, researchers have studied the effect of different variables of working capital management and cost structure on the profitability of Sri Lankan Companies including the Debtors turn over in days, Inventory turnover in days, Creditors payable in days, and working capital cycle representing the working capital and Administrative, Selling and Finance expenses representing the cost structure . The results suggest that managers can increase corporate profitability by reducing the number of inventory turn over days and increasing the creditors payable days in order to minimize the length of the working capital cycle. Increase in creditors payable days would give opportunities to the company for further investments. Also it suggests that the spending on selling and distribution would not increase the profitability and more finance cost would hinder the profits of the companies.
Determinants of Strategy Disclosure Quality in Integrated Reports of Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Thenuwara, D.J.; Lakshan, A.M.I.
Investors and other stakeholders are interested in strategy disclosure as part of integrated reporting (IR). Strategy disclosure can be seen as vital information for decision-making. Disclosure of just financial information is not sufficient. The purpose of this research is to investigate at the determinants of the quality of strategy disclosure in IR adopted listed companies in Sri Lanka. Hypotheses are formulated to study the determinants of voluntary strategy disclosure based on a theoretical analysis. Descriptive analysis, Correlation analysis, and Regression analysis are used to test the hypotheses. It is based on a hand collected dataset with a previously constructed scoring model (strategy disclosure score), which is used to evaluate the quality of strategy disclosure. The sample comprises IR adopted, highest market capitalized 50 listed companies in Sri Lanka for the period 2016 – 2020. The findings indicate that size of a company, firm growth, and capital adequacy all have a significant and positive impact on voluntary strategy disclosure in integrated reports. Companies which demonstrate characteristics of large in size, growing and with capital adequacy disclose more quality information about the strategy of the organization. Firm age, financial leverage, and profitability do not have any impact on voluntary strategy disclosure in integrated reports. This study makes a contribution to strategy disclosure in IR. The findings will be useful to the practitioners and regulators in gaining a better understanding of voluntary strategy disclosures made by IR practicing listed companies in Sri Lanka.
The Effect of Corporate Governance Characteristics on Corporate Social Responsibility Disclosure: Empirical Evidence from Public Listed Companies of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Karunarathna, N.P.; Lakshan, A.M.I.
In the current business environment, organizations believe that they have an obligation to act for the benefit of the community at large. CSR disclosure has become an essential requirement of stakeholders and thus, it become a mainstream component of corporate strategies. This study investigates the level of Corporate Social Responsibility (CSR) disclosure provided in the annual reports of companies listed on Colombo Stock Exchange (CSE) of Sri Lanka and to assess the impact of corporate governance characteristics on the extent of CSR disclosures. As a developing country, the underlined research area is not much discussed in previous researches in Sri Lankan context. CEO duality, board independence, audit committee, foreign ownership, board meetings and board size were considered as independent variables. Corporate social responsibility disclosures were used as dependent variables. Firm size, profitability and leverage were used as control variables. Data was collected for the last five financial years (2014/15 to 2018/19) from annual reports of 90 listed companies on Colombo Stock Exchange (CSE) of Sri Lanka representing all business sectors other than banks, diversified finance and insurance. A literature review was carried out to identify factors of corporate governance and corporate social responsibility disclosure. The research hypothesis was formulated and descriptive statistics are used to examine the importance of identifying corporate governance factors, and correlation and regression analyses are performed to identify relationships/impacts between independent variables and dependent variable. The findings of the study will provide useful insights to stakeholders, decision makers, investors and statutory bodies to take into consideration in identifying the corporate governance characteristics and CSR disclosures related measures.
The Effect of Corporate Governance Characteristics on Corporate Social Responsibility disclosures of public listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Imasha, S.H.S.; Lakshan, A.M.I.
Corporate Social Responsibility is an important part of the business environment. Nowadays, it becomes an important communication mechanism between the company stakeholders and investors. The purpose of this research is to determine the level of Corporate Social Responsibility (CSR) disclosure presented in annual reports of companies listed on Sri Lanka's Colombo Stock Exchange (CSE) and to assess the impact of corporate governance characteristics on the extent of CSR disclosures. Data was collected from annual reports of 50 listed companies based on the highest market capitalization for the period of 2017-2020. Companies were selected representing all business sectors other than Banking, Finance, and Insurance companies. The findings show that various corporate governance methods are highly correlated with the level of corporate social responsibility. The importance of identifying corporate governance aspects was investigated using descriptive statistics. Correlation and regression analyses were utilized to find a mutual relationship between the independent and dependent variables. Finally, corporate governance characteristics namely board independence, audit committee, and board size are found to have a positive impact and CEO duality have a positive lower impact on the level of corporate social responsibility disclosures. The findings of this study will help practitioners and regulators in gaining a better understanding on CSR reporting of public listed companies in Sri Lanka and accordingly they can make some mechanisms to improve the important aspects and encourage other companies to engage in or increase the CSR practices for the betterment of all. This study contributes the CSR disclosures.
The Effect of Corporate Governance on Equity Finance of Sri Lankan Listed Companies
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Premathilaka, D.M.R.; Lakshan, A.M.I.
The concept of corporate governance (CG) is a common concept that must be used by every listed company in the world. Further, better CG results in increasing investors trust towards the corporation and on the other hand, it helps corporations to access more equity finance in their capital market. This study aims to investigate the type of relationship that exists between CG and equity finance in Sri Lankan listed companies. In the context of Sri Lanka, to the researcher’s best knowledge, there is no any published study available in terms of firm-level CG and equity financing patterns. This study attempts bridge this gap and to enhance the existing literatures. This study aims to examine the relationship between firm-level Corporate Governance (CG) and firm equity finance as the primary objective. Subsequently, the study aims to investigate the relationships between individual organizational factors (Frim size, Profitability, Leverage, Age and Growth rate) and equity finance while identifying the variable that has a highest impact on firm’s equity finance. To measure the firm-level CG Index (CGI), this study uses 59 dichotomous CG practices under five sub-indices (Ownership concentration, Board structure and procedures, Shareholder rights, Internal controls and Disclosures and Corporate social responsibilities). Further, this study uses secondary data from published annual reports. Sample size is 76 list companies and data collected for 4 years from 2016 to 2019. Ordinary Least Squared (OLS) multiple regression model is used in SPSS to identify the relationships. The findings of this study are highlighted the need for Sri Lankan companies to formulate an optimal CG structure, which in turn would lead to the eradication of possible malpractices such as corruption, fraud and misappropriation of resources to ensure higher financial performance and long-term sustainability. Hence, policy makers and regulators such as SEC, CA Sri Lanka, and the Central Bank of Sri Lanka can draw insights from the findings of this study in making CG reforms in relation to minority protection and other related areas in developing an appropriate CG structure for public listed companies.
Effect of the auditor’s behavioral and individual characteristics on Integrated reporting quality: Evidence from Sri Lankan companies
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Thineshkarth, S.; Lakshan, A.M.I.
Integrated Reporting (IR) represents the most recent evolution of the corporate reporting movement. The purpose of this paper is to examine the effect of the auditor’s behavioral and individual characteristics on the integrated reporting quality. This study is based on a sample of 50 Sri Lankan industrial companies, covering the period 2017-2020. Independent variables include Audit firm size, Auditor’s specialization, Auditor’s ethics and Auditor’s behavior. The dependent variable is the IR quality. The present study adopts methodology rests on the hypothetic deductive approach. The data analyzed by means of multiple linear regression models. Faced with the scarcity of studies linking the auditor characteristics and the integrated reporting quality, the present study is elaborated to provide some kind of modest contribution, whereby, the determinants of integrated reporting quality are distinguishably highlighted. The findings indicate that auditors’ behavioral characteristics have a significantly positive effect on the integrated reporting quality. The findings indicate that the auditors can make a significant impact to the IR quality of the companies. The findings may be important to the auditors, and managers of the corporations who have not adopted IR yet and regulatory bodies who work on popularizing IR among the listed companies. The study contributes to the IR literature by exploring auditors’ influence on IR quality.
Firm-Specific Characteristics and Quality of Integrated Reports – Evidence from Listed Non-Financial Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Hulugalla, W.M.D.M.K.; Lakshan, A.M.I.
Disclosure quality is momentous for all listed entities since they involve in the issue of shares to the general public. In recent years, attention to the new integrated reporting (IR) tool has grown in both academic and professional fields. However, this area is still little explored. The analysis of literature review revealed that there is a lack of literature on IR in developing and developed countries. The main objective of this study is to fill this gap by analyzing the nexus between firm-specific characteristics and quality of integrated reports. Independent variables of the study include three main categories: Structurerelated variables (Firm size, Debt, Firm age); Performance-related variables (profit margin, return on equity and Liquidity); and Market-related variables (Industry type, Audit firm size). The quality of integrated reports calculated by integrated reports disclosure quality index (IRDQI) which considers eight content elements, two fundamental concepts (capitals and value creation process), background, assurance and reliability, and form, is the dependent variable. Control variables comprise board size, board independence and board diversity. The sample consists of 50 non-financial companies. The data collected using annual reports for the period 2015 to 2020. Data are analyzed using descriptive statistics, correlation analysis and regression analysis. This is a significant study that analyses the impact of firm-specific characteristics as a determining factor of integrated reporting quality. The results reveal positive relationship between firm size, debt, firm age, profit margin, return on equity, industry type, audit firm size and quality of integrated reports. No significant relationship was found between liquidity and quality of integrated reports. The findings will assist current and prospective stakeholders in evaluating the expected quality of an integrated report of a company and accordingly help the better investment decisions. Further, management of the companies may understand the factors which are important to improve the quality of the integrated reports.
Identifying the Impact of Integrated Accounting System Efficiency on the Organizational Performance in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Jayasuriya, J.S.D.; Lakshan, A.M.I.
The main purpose of this study is to identify the impact of Integrated Accounting System efficiency on the organizational performance with reference to Ceylon Electricity Board. hypotheses were developed to achieve the major objectives of the study; this study examined the applicability of two theoretical perspectives of efficiency of the integrated accounting system as system quality and information quality. Those are the independent variables of the study. The survey conducted by using collected data from primary and secondary sources. Primary data was gathered from the 65 employees of Ceylon Electricity Board by using a well-structured questioner, Secondary data was collected from articles, books, internet browsing, documents and annual reports. Data analyzed using the mean values, percentages and standard deviation and presented the data by frequency tables and percentage tables. And correlation analysis and regression analysis were used to test hypotheses. According to the regression results, system quality and information quality have a significant impact on performance of the organization. The findings imply that organizational performance tend to be influenced by quality of the information. Therefore, this variable can contribute to predict the organizational performance. However, the results from the data analysis showed a negative relationship between system quality and organizational performance. The reason of this mismatch might be that employees' perspective and their attitudes towards the integrated accounting system. This study recommends Ceylon Electricity Board to improve the quality of information in order to improve the performance. Higher performance could be achieved by making accurate on time internal decisions with the support of quality information.
Impact of Integrated Reporting adoption on Firm Value of Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Nivanthi, R.; Lakshan, A.M.I.
Traditional accounting practices became less effective with the time being tosatisfy stakeholders’ expectations. Integrated Reporting (IR) is the latest reporting innovation to eliminate the shortcomings of the traditional reporting principles. By considering those trend, this study focuses to investigate how the concept of IR affects to the value of companies those registered in Colombo Stock Exchange (CSE). This research identifies the impact & relationship between the level of IR adoption and firm value of the CSE listed companies. For this study, all IR adopted Sri Lankan listed companies were taken as population and randomly selected 50 companies were taken as sample. Data was collected from 2015 to 2020 using annual reports of selected companies. Level of integrated reporting adoption was the independent variable while profitability, market value and leverage were taken as dependent variables to substitute to the firm value. Descriptive statistics, regression analysis and correlation analysis were used to find the results. Findings of the study shows a positive relationship between IR adoption and firm value. Results of the study brings an idea to the interested parties of business, how Sri Lankan organizations’ value creation process affected as they implemented and producing Integrated Annual Reports. This research is a good motivation to companies which have not adopted integrate reporting as reporting principle. The study is beneficial to interested parties of businesses such as investors. The findings of the study contribute to the literature of IR adoption and its impact on the firm value.
Impact of Integrated Reporting on Corporate Performance in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Liyanage, L.I.D.; Lakshan, A.M.I.
Integrated reporting (IR) has become a new reporting dimension in current financial reporting area. It is a concise communication about an organization’s strategy, governance, performance and prospects in the context of its external environment, leading to creation and preservation of value over short, medium and long term. This research explores how integrated reporting impact on corporate performance of listed companies in Sri Lanka. Objectives of this study include investigating the impact of the level of the IR compliance on the corporate performance and market capitalization across the listed companies in Sri Lanka. IR adopted 40 companies are selected based on stratified sampling method as the sample of the study. Data collected for 5 years from 2016 to 2020 using the annual reports of the sampled companies. Integrated Reporting score is measured using the self-constructed index representing the eight IR content elements from the IIRC framework. Performance explains using the return on equity (ROE), market value, firm size, leverage and growth. The study explores the relationship through descriptive statistics, correlation and regression analysis using E-views software. The findings revealed that there is a significant impact of return on equity, market value, firm size, leverage, growth on IR. This study contributes empirically and practically to the literature. The results will be of interest to regulators, accounting prepress, investors, Firms of developing countries who have already adopted and seeking to adopt IR in their countries.
The Impact of Integrated Reporting on Firm Performance: The Case of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayalath, C.Y.; Lakshan, A.M.I.
Integrated Reporting is a process found on Integrated Thinking which relates communications about organizations strategy, governance, performance and prospects. This results in value creation over the short, medium and long term. This study investigates the impact of integrated reporting (IR) on firm performance with relevant to the listed companies in Sri Lanka. IR was introduced to the reporting world around seven years back as an official reporting framework to the corporate world. Therefore, the concept IR is relatively new to the reporting world. Hence, the application of the concept, the impact of it is yet to discover. Specifically, how IR impact on firm performance is under research and in Sri Lankan context, it is at zero level. Therefore, the research problem of this study is to investigate the impact of IR adaption on the performance of organizations. This Study is identified as a quantitative study which draws on secondary data. This research is based on all the IR adopted companies which are listed in Colombo Stock Exchange. Therefore, 79 companies listed in the CSE are selected for the purpose of conducting this research. Among 79 companies, 38 companies were eliminated due to some limitations. The integrated reporting adopted period is designated as 2015 to 2019. Therefore 41 companies were selected as the sample which comprises 205 firm year observations. IR is measured by using an index which was used by Zhou et al. (2017) and firm performance were measured based on ROA and Tobin’s Q. This study employs Ordinary lease square multi variate regression analysis to investigate the impact of IR on firm performance. The findings of the study will provide useful insights to the accounting professionals and managers who are seeking for the adoption of IR in their companies and regulators seeking to accelerate the adoption of IR among listed companies.
Impact of Intellectual Capital on the Financial Performance of Finance Sector listed Companies in Sri Lanka
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Jayawickrama, A.P.D.S.N.; Lakshan, A.M.I.
Propagation in the gap between companies’ market value and their book value has resulted in numerous investigations into identifying the factors that influence the market value. Intellectual Capital primarily drives wealth and growth in today’s economy. The rise of new economy has highlighted the fact that the value created depends far less on their physical assets than on their intangible ones. The specific objective of this research is to identify the relationship between firms’ intellectual capital and firms’ financial performance. This study uses Value Added Intellectual Capital model (VAIC) in determining intellectual capital and its three major components: Human Capital Efficiency (HCE); Structural capital efficiency (SCE); and Capital Employed Efficiency (CEE). Financial performance measure Return on Assets (ROA) uses as the dependent variable of the study. The data collection is based on annual reports for the years 2013 – 2017 of 25 listed finance companies at the Colombo stock exchange. Multiple linear Regression analysis is used to study the impact of IC on financial performance using E-views package. Empirical results indicate a significant influence of intellectual capital on the financial performance (ROA) of the finance sector listed companies in Sri Lanka. The findings conclude that intellectual capital is crucial in achieving organizations’ financial performance and more emphasis should be placed on the intellectual capital
Impact of Liquidity and Financial Leverage on Profitability of Industrial Sector In Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Senanayaka, S.S.S.R.; Lakshan, A.M.I.
Liquidity and financial leverage are two of the important aspects that every business organization should manage in the best way. Proper management of these two aspects are very important to the performance of each company. This study investigates simultaneously the impact of liquidity and leverage on the profitability of Industrial sector listed companies in Sri Lanka. The literature indicates disparate findings everywhere in the world to the topic. Therefore, the impact of leverage and liquidity on profitability is an interesting research question to investigate. The sample of the study consists of 40 Sri Lankan listed companies. The sample includes listed Energy, Materials, Capital goods, Consumer Durables & Apparel, Household & Personal Products companies. The sample is selected based on market capitalization on March 20, 2020. This study uses secondary data extracted from the published financial statements of the selected companies for a period of five years, from 2015 to 2019. This study used panel data Regression analysis by the use of the E-Views software to investigate the impact of liquidity and leverage on profitability. It is found that Current ratio and Debt ratio indicate negative and significance relationships with ROE. Quick ratio and Debt to Equity ratio positively and significantly impact on ROE. Debt ratio and ROA indicates a negative and significance relationship. The results revealed that there is a positive relationship between Quick ratio and profitability and negative relationship between current ratio and profitability. There is a positive relationship between Debt to Equity ratio and profitability and negative relationship between Debt ratio and profitability. The findings will be practically important to the listed and non-listed companies and managers of those companies in determining proportions of liquidity and financial leverage ratios. This study contributes empirically and practically to the literature.
Impact of Organizational Corporate Social Responsibility on Employee Motivation in Public Quoted Companies in Sri Lanka
(2011) Mahindadasa, U.; Lakshan, A.M.I.
It is an acceptable fact that the human resource is the most important asset in the world. The importance of human resources is more in Sri Lanka since the service sector is growing rapidly. In order to get the maximum output from this valuable resource, HR professionals of organizations execute different strategies to motivate their employees. This study focused on analyzing the concept of corporate social responsibility and how it affects on employee motivation. The research was carried out with executive level employees in public quoted companies in Sri Lanka. Selected sample size was hundred executive level employees and convenience sampling method was used. Data collection was done by a questionnaire and reliability was checked by Cronbach Alpha. Results of covariance analysis reveal that the organizational corporate social responsibility has positive and significant impact on employee motivation. So, it is suggested Human Resource Management to take a leading role in encouraging CSR activities at all levels. The combined impact of CSR and human resource activities, which reinforce desirable behavior, can make a major contribution in creating long term success in organizations.
Impact of Sustainability Reporting on Organizational Financial Performance
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Thathsarani, S.H.T.; Lakshan, A.M.I.
Sustainability is meeting our own needs without compromising the ability of future generation to meet their own needs. Sustainability reports present organization values, governance model and demonstrate the organization strategy via the information published about economic, environmental and social impact. This research investigates the impact of SR on organizational financial performance. Moreover, SR expects to influence overall performance and profitability of the organizations. It might impact on organizational financial performance positively as well as negatively. In Sri Lanka context, this area is under researched and in–depth investigations need to be carried out to recognize the factual impact of sustainability reporting. Therefore, the research problem is to investigate how SR impact on the companies’ financial performance. Accordingly, the aim of this study is to empirically examine sustainability reporting in publicly listed companies (financial sector) in Sri Lanka, its extent, nature and possible drivers, specifically considering the use of the Key Performance Indicators and its impact on firm performance. The study is based on secondary data from 13 banks, 41 diversified financials and 08 insurance companies listed on Colombo Stock Exchange. The independent variable is SR (general, economic, environmental, and social) and dependent variables are Return on Assets (ROA) and Return on Equity (ROE). Apart from these, the analysis uses control variables of total assets (TA) and total equity (TE). The study covers data for 5 years from 2015 to 2019. Panel data regression was used to analyze data using E-views. The findings of the study important to the stakeholders of the relevant companies mainly, primarily investors who are interested in the accuracy of their investment decisions and the customers who cares about the companies’ stability and regulatory bodies of SR initiatives. The findings are also important to the employees as they focus on remuneration increments bonuses and job security.
Impacts of Environmental Practices on Firms’ Performance – Evidence from Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Chathurani., S.H.D.B.; Lakshan, A.M.I.
The importance of environmental practices for a firm's performance and production strategy has been increasing at an unprecedented level across the globe. Sri Lankan government has also introduced such policies with adoption guidelines in order to comply with global requirement of environmental protection. On the other hand, regular authorities such as Institute of Chartered Accounts of Sri Lanka and Security Exchange Commission of Sri Lanka have also published reporting requirements regarding the complying with such environmental protection practices of the country. In this study, Environmental Disclosure Index used as indicators of environmental practice; ROE, ROA, Profit Margin used as measures of Performance. The sample consists of 40 listed companies at the Colombo Stock Exchange. The data collected for five years from 2015 to 2020 based on annual reports of the companies. Descriptive statistics, Correlation, Multiple regression methods used to examine the study. Most of the Sri Lankan listed companies have begun to publish their annual reports complying with these requirements adopting relevant guidelines. Accordingly, it is very important to find out the actual environmental protection practices undertaken by companies in order to find out the contribution of corporate individuals towards protection of environment. The findings revealed that there is a significant impact on Return Assets, Return on equity, Profit Margin, Firm size, Leverage on Environmental Practices on Firms Performance. This study examine contributes empirically and practically to the literature. The results will be of interest of regulators, both firms of developing and developed who have already adopted the seeking to adopt Environmental practices in their countries.