Browsing by Author "Munasinghe, M.A.T.K."

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Adaptation of e-commerce by Sri Lankan companies
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Munasinghe, M.A.T.K.; Kumari, P.W.N.A.
Electronic Commerce or E-commerce is the newest trading mechanism activated by means of the internet or other computer networks. This particular trade method is functioned in three forms namely Public relations, Brochuring and Retail. The Retail form represents fully adoption level of e-commerce. E-commerce offers excellent opportunities for growth in developing nations. Hence it is needed to have a better understanding of current adoption levels pertaining to it. To understand the potential for E-commerce and the current state of adoption in Sri Lanka it was supposed to conduct a survey on this particular field. All companies listed in CSE were selected for survey. The study is based on review of websites of each listed companies in Colombo Stock Exchange (CSE). CSE has 236 listed companies representing 2business sectors. CSE is one of the top performing markets in Asia with an average annual index growth rate of 27%. The research reveals that 41% of companies fall under the public relations, 27% of companies are brochuring and 17% of companies are retailing. Overall findings conclude that 85% of companies adopt E-commerce in Sri Lanka.
Analysis of the Key Audit Matters and Revealing the Underlying Causes: Evidence Gather from Listed Banking and Insurance Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Sandaruwani, S.A.D.R.; Munasinghe, M.A.T.K.
Global financial scandals and crises have placed the auditor's role into greater attention, especially regarding the value of the data in audit reports. The traditional audit report is not adequate due to its standardized format, which is considered by financial stakeholders as uninformative. This perception caused the establishment of global audit standards. One of the most recent changes is that the International Auditing and Assurance Standards Board (IAASB) published ISA 701, which requires auditors to report "Key Audit Matters" (KAMs). In the Sri Lankan context, the Auditing standard was introduced as SLAuS 701. The primary objective of this study is to analyse the Key Audit Matters of both banking and insurance companies listed on the Colombo Stock Exchange (CSE) and to find the identifying the underlying root causes that may not be covered. In this research study analysed, KAMs identified in audit reports of both banking and insurance companies listed in CSE over the period of 2018 to 2022 using the content analysis method. According to the findings of the study, it can be identified that the majority of KAMs disclosed under the areas of impairment of financial instruments and information technology systems and controls over financial reporting in the banking sector and the area of insurance contract liabilities in the insurance sector. Based on the results of this study, it can be identified that the underlying root cause behind those disclosed KAMs was it represent a significant portion of a particular company’s financial position, and this amount was calculated mainly based on the assumptions and estimations. Therefore, there is a significant impact on the financial position of the company. This research study found different kinds of estimation methods and calculation methods as well.
Board Involvement in Corporate Sustainability Reporting: Evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Gunarathna, M.M.C.P.; Munasinghe, M.A.T.K.
Organizations can decide what should be disclosed and what should be left out of their sustainability report, and this decision is made by the board of directors. Prior studies have found different types of relationships between an organization's sustainability reporting and the characteristics of the board of directors. The goal of this study is to determine the association between board characteristics and sustainability reporting of Sri Lankan-listed firms over the five years from 2016. This research relies on secondary data which was collected from annual reports of listed companies in the Colombo Stock Exchange. The sample of the study consists of have been consecutively disclosed their sustainability information various business industries. The study adopts a quantitative approach. Multiple Regression model, Correlation model, and Descriptive Statistics are planned to use to test the hypothesis and find out the strength and direction of relationships. By examining the composition of the board of directors, shareholders may make informed judgments about their investments, and firms can efficiently manage internal changes. The findings will assist Sri Lankan corporations in determining board characteristics in order to strengthen sustainability disclosures.
Cost Control Measures and their Impact on the Profitability of Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Nawarathna, K.G.N.M.S.D.; Munasinghe, M.A.T.K.
This study aims to examine the impact of cost control on the profitability of listed manufacturing companies in Sri Lanka with a survey study conducted using five selected listed manufacturing companies in Sri Lanka to provide a critical assessment of the need for and importance of cost control. This study used primary data obtained from five companies that have been in the apparel and fabric industry for many years among the thirty-seven listed manufacturing companies in the Sri Lanka stock market currently operating as manufacturing companies. Descriptive and analytical research design tools are used to examine the effect of some key variables such as budgeting, standard costing, internal and external costing, marginal costing, and so on. Survey data from five manufacturing companies were analyzed using various statistical tools. Hypothesis testing was done to find the relationship between independent variables and increase research quality. Data was collected by distributing a structured questionnaire to the management and employees of the respective company. The findings of the research show that cost control tools have a positive relationship with profitability. Moreover, the lack of adequate resources to apply cost control tools in manufacturing companies in Sri Lanka has created a more challenging situation. Therefore, the research found that all the above cost control instruments contribute greatly to controlling costs and increasing the profitability of organizations, among which marginal costing is recommended to be used as the most appropriate cost control instrument. As a result, companies will maximize value and control costs in the coming days.
The determinants of integrated reporting quality of listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Mary, M.N.; Munasinghe, M.A.T.K.
The organizational and financial drivers of integrated reporting (IR) quality of listed businesses in Sri Lanka are investigated in this study. The IIRC's long-term ambition is for a world where integrated thinking is ingrained in public and private sector business practice. Integrated Reporting (IR>) serves as a catalyst for this. Corporate reporting is the standard. An integrated report's main objective is to demonstrate to financial capital providers how a company develops value over time. In Sri Lankan context of research studies related to the integrated reporting practices, several researchers have studied the adoption level diffusion of IR and implications of IR. But there were only few prior studies conducted to analyze the determinants of integrated reporting quality in Sri Lankan listed firms as per the best of my knowledge. So this study will address the research gap of identifying the organizational level determinants of integrated reporting practice and the significant relationships between the determinants variables of integrated reporting quality. This research will use the return on equity (ROE), Natural logarithm of total assets, total assets ratio (ROA), Log of total assets, Age of the company since incorporation, Total number of board to measure the independent variables. The scoreboard model used in this study to measure IR quality (IRQUALITY). Hypotheses were tested using a regression model on the sample This study used all of the listed companies as the population, and 20 companies were chosen as the sample. Data will be gathered from annual reports covering the years 2017 to 2021.
The Effect of Corporate Social Responsibility on Customer Loyalty: A Study on Sri Lanka Telecom PLC
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Samindika, W.M.M.; Munasinghe, M.A.T.K.
Corporate Social Responsibility is used by many organizations as a marketing tool and Customer loyalty is one of the most essential consumer behaviors that companies seek to influence. Organizations are not well aware of the involvement of companies in Corporate Social Responsibility activities and how consumers feel about such activities. Therefore, the purpose of this study is to investigate whether the effect on Corporate social responsibility on customer loyalty, A study on Sri Lanka Telecom PLC. This study examines the effects of CSR activities on the four antecedents of customer loyalty. Such as, Customer Satisfaction, Customer trust, Service Quality, Brand Image and development hypothesis based on this. This study aims to identify how the CSR activities influence the different aspects of customer loyalty in special reference to the Sri Lanka Telecom PLC. All the Sri Lanka Telecom customers in the Gampaha district will be concerned as the population of this research and sample will select using a simple random sampling method. This study uses primary data of structured questionnaires for the data collection process and statistical data analysis will be performed in SPSS software. From the findings of this study, SLT can identify how the customer loyalty of their CSR activities and this research is most relevant to both customers and the business organizations to obtain information about CSR and customer loyalty.
Effect of CSR on Financial Performance of Public Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayalath, J.A.K.E.; Munasinghe, M.A.T.K.
Corporate social responsibility (CSR) is an important concept in the business world and affects the Financial Performance of organizations. Therefore, this study aims to investigate the effects of CSR on the financial performance in selected public listed companies in Sri Lanka. Prior studies have found different types of relationships between corporate social responsibility and financial performance of firms ranging from positive to negative. The objective of this study is to identify the relationship between corporate social responsibility and financial performance for the period of 5 years from 2015 of selected 30 public listed companies of Sri Lanka. This study uses the secondary data and data were collected from annual reports of the selected public listed companies. Other sources are newsletters, news articles, journals and websites. The data were analyzed using regression analysis. This study use Return on Assets (ROA), Return on Equity (ROE), Net Profit (NP) and Earnings per Share (EPS) to measure financial performance of the firms. The sample comprises 30 firms from 3 industry groups listed on Colombo stock exchange which are consumer durables & apparel, Food, Beverage & tobacco & Consumer services. The results of this study provide useful insights for the firms to improve the knowledge and management practices. Findings of this study would encourage companies to sense in depth about CSR.
The Effect of Internal Control System on Financial Performance of Licensed Commercial Banks 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) Bogahadeniya, B.D.S.A.; Munasinghe, M.A.T.K.
Internal control systems play an important role in every organization as it help to accomplish their financial performance objectives. The main objective of this study is to determine the effect of internal control system on financial performance of licensed commercial banks in Sri Lanka. Internal controls are looked at from the perspective of Control Environment, Risk Assessment, control Activities, Information and communication and monitoring whereas financial performance focused on Return on Assets. The target population was 25 licensed commercial banks, supervised by the central bank under the banking Act No. 30 of 1988. The random sampling method was used to select the sample and sample size of the study was 16 licensed commercial banks in Sri Lanka that represent 62% of total population. The study relied on both primary and secondary data. Primary data obtained through the standard questionnaire in five likert scale format while the secondary data is gathered from financial statements. Multiple regression models were used to test whether internal controls have any influence on financial performance. The study adopted descriptive research design using both quantitative and qualitative approach. The data is analyzed by the aid of Statistical Package for Social Science (SPSS). Based on the research findings it can be concluded that internal control system is a positive significant predictor of financial performance. In addition, control environment, Risk Assessment, internal control activities, information and communication have positive relationship with financial performance licensed commercial banks
Empirical Analysis of Audit Opinions of Listed Companies in the Manufacturing Industry During Economic Crisis
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Dayawansha, W.N.S.D.; Munasinghe, M.A.T.K.
This study aimed to examine the companies’ Audit opinion responses to the COVID-19 pandemic by reviewing information disclosures in the company’s annual reports. Manufacturing companies have been selected for the sample, including the Consumer discretionary and consumer staple sectors. The sample of this study includes the annual reports of 100 listed manufacturing companies in Sri Lanka that published Audit opinions for six years during 2017-2022. The pre-and post-COVID situation was identified by taking 2020 as a benchmark, since the first patient reported in March 2020 in Sri Lanka. Qualitative content analysis was used to analyze the information contained in the reports to recognize the significant effects and key audit matters after using a checklist. Audit opinion type, Auditor type, and Significant key Audit matters have been analyzed through this investigation. As per the analysis of audit opinions, it does not change with the COVID situation, (the majority of the audit opinions are unqualified), but auditors are more likely to issue Going Concern Audit Opinions in response to COVID. However, most of the companies have faced going concern issues during the COVID situation. The main findings are that companies intend to have a going concern issue in their company in COVID 19 period, companies’ ability to continue as going concern basis, and management’s assessment of the probable impact of the COVID-19 pandemic on the operations of the company were significant and unique key audit matters in response to the COVID pandemic. Even if the company has a going concern issue, companies have decided to continue their operations with the financial support of their parent company. Other reasons are also mentioned in this study, in addition to the fact that hotel and plantation companies are facing going concern issues during this COVID-19 period.
Evaluation and Analysis of SDG Reporting: Evidence from Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Silva, A.A.G.K.; Munasinghe, M.A.T.K.
The SDGs are not just goals for governments; they are a call to action for everyone to play a part in creating a more sustainable future. Companies in Sri Lanka's banking industry are increasingly incorporating sustainable development goals (SDGs) into their operations, altering the way they conduct business. This shift is driven by the potential to gain a competitive advantage over rivals. While the annual reports contain information about the Sustainable Development Goals (SDGs), it's hard to assess their progress based on these reports alone. To enhance corporate contributions to the Sustainable Development Goals (SDGs), this study encourages the adoption of a proven scoring system, the GRI framework, to evaluate and report on SDG progress. The ultimate aim of this study can be identified by evaluating Sri Lankan banking sector companies’ efforts toward achieving SDGs through their disclosure of SDGs to motivate companies to make meaningful strides toward achieving the SDGs. The study selected Sri Lankan banking sector companies (according to the GICS classification) that were listed on the Colombo Stock Exchange (CSE) as the sample firms and, accordingly, the study utilized the annual reports of Sri Lankan banking sector companies from 2018 to 2022 as the main source of information. In addition to the annual reports, it made use of websites, magazines, and other publications published by Sri Lankan banking sector companies. The study adopts content analysis as the research methodology to evaluate the extent of SDG reporting by the Sri Lankan banking sector companies (according to the GICS classification).
Evaluation and Analysis of SDG Reporting: Evidence from Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Gamage, M.G.S.K.; Munasinghe, M.A.T.K.
The Sustainable Development Goals of the United Nations are now a key framework for resolving important issues in society, the economy, and the environment as humanity moves towards a more sustainable future. Sustainable development goals are already included into corporate processes and are changing the types of movement for entities. Due to the opportunity for obtaining an advantage over their competitors, Sri Lankan companies in the manufacturing sector are becoming more and more concerned with sustainable development goals. Although, the annual reports provide information on the Sustainable development goals. But, it is not possible to evaluate them after reviewing the annual reports. Therefore, the purpose of this study is to motivate them to move forward through turning the Sustainable development goals disclosures into a score. This study is conducted by analyzing the content of annual reports, websites, and magazines issued by listed manufacturing companies in Sri Lanka. The sample includes 46 food, beverage and tobacco, listed manufacturing companies for five years from 2018 to 2022. Qualitative content analyses are used to determine the nature of company responses to SDG and encourage them to move forward in a competitive marketplace. The findings indicate that food, beverage and tobacco listed manufacturing companies initially only declared a small number of SDGs, but today they typically publish over 12 of the 17 goals in their annual reports, and their strategies emphasize their commitment to these goals and today many companies of manufacturing sector have advanced in terms of SDGs. During the early reporting periods, companies released more information detailing the specific SDGs, but now less information regarding the sustainability impacts of the SDGs. Companies have followed GRI guidelines when reporting relevant information, including more photos and graphs in addition to narratives. There aren’t many publications in Sri Lanka about how companies are working towards the SDGs. By focusing on how companies provide SDG- related information, relate it to SDG- focused programs, and motivate them to move forward in the competitive world of business, this study offers some answers to that issue. Furthermore, this study proposes that further research be done on the use of sustainable strategies.
Financial Service, Internal Audit, Fraud Management, Organizational Status, Internal Audit Competence,
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Tharaka, A.B.S; Munasinghe, M.A.T.K.
Environmental issues are one of the most crucial global concerns the world has currently to address and which has become most critical recently. To respond to higher consumer awareness about the seriousness of environmental issues and the value of environmental protection, an increasing number of hotels are revising their operations by implementing eco-friendly practices. On the other hand, Sri Lanka is one of the fastest – growing tourists’ destinations in the world and tourism has traditionally been the third largest foreign exchange earner in Sri Lanka. Thus considering the value of environmental protection and the importance of hotel industry as a top foreign exchange earner, this study problematizes the influence of hotel’s green practices on tourist’s perceived value, satisfaction and loyalty. Accordingly, the objective of this study to identify the influence and the relationship between ‘green’ initiatives and the tourists’ value perception, satisfaction and intentions to revisit the hotel and to spread positive word-of-mouth (WOM). A quantitative study will be constructed based on questionnaires. Data will be collected from a sample of foreign and local tourists who visited the selected hotels which were awarded National Sustainable Tourism Certification in 2019 by Sri Lanka Tourism Development Authority. Data will be analyzed by using correlation & coefficient analysis, multiple regression analysis and descriptive statistical analysis. The findings of this study will provide useful insights for managers for devising green marketing strategies for the hotel sector and encourage managers to pay more attention to environmental initiatives as an essential tool.
Governance: Corporate vs SME A Review of Theories and Empirical Literature
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Kumara, K.M.C.; Munasinghe, M.A.T.K.
The governance mechanism of institutions is a key to the success of any institution either it is a corporate or a SME as it has a greater bearing on institutional strategies and operations. However, depending on institutional system structures and complexity of operations and function, the nature of governance becomes complex. For corporates, good governance becomes crucial due its public accountability. However, governance of SMEs, cannot be disregarded as its impact on the success and survival of SME itself and considering the SME contribution to the economy of countries particularly labeled as low- and middle-income earning countries. This study aims to understand weather and how governance differs between the two types of institutions, Corporate Vs SME, paying especial attention to entrepreneurial setups, this article reviews prior literature on empirical findings and relevant theories used in such studies. Findings reveal that mostly used theories are agency theory and stakeholder theory and additionally theory of reasoned action, the theory of planned behavior and ultra vires theory have also been used to explain the owner's governance behavior. Review of literature helps finding some important issues that shows improper separation of ownership and governance, inequalities in benefit distribution between the owner and the management as critical. Such issues reveal the nature of difference of the governance between corporates vs SMEs mainly influenced by the owner’s behavior and centralized power of a single personality. The empirical findings question the suitability of benchmarking a governance structures of a Corporate for SMEs. This necessitates developing a proper governance structure to be able to guide the SMEs for adopting in their governance.
Impact of Accounting Practices on Performance of the Small & Medium Enterprises: Evidence from Colombo District
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Preethimali, E.B.M.P.; Munasinghe, M.A.T.K.
Small and Medium Enterprises are an important segment in many countries including Sri Lanka, due to its contribution towards the economic growth. Accounting can play a major role in SMEs successes as it does for corporates. However, little is known in this regard. Accordingly, the key purpose of this study is to identify the impact of accounting practices on the financial performance of small and medium-sized enterprises. A sample of 40 SMEs were selected from the Colombo District depending on the accessibility and time constraints. Data collected through questionnaires were analyzed using descriptive statistics. As findings reveals that financial reporting practices affect to the financial performance of SMEs in Sri Lanka. This study findings will be useful for Small and Medium Enterprises in Sri Lanka to improve the performance of the firm.
The impact of audit committee characteristics on firm performance: a comparative study of listed manufacturing companies and listed hotels in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dulanjali, H.P.D.; Munasinghe, M.A.T.K.
The auditor, an important instrument of corporate governance, ensures the transparency and accountability of the firm to the stakeholders that helps to control and monitor management in the organization. This study aims to investigate the impact of various audit committee (AC) characteristics on the performance of listed manufacturing companies and listed hotels in Sri Lanka. A panel data approach has been used in this study. The sample consists of 10 listed manufacturing companies and 10 listed hotels from 2012 to 2021 in Sri Lanka. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson’s correlation and multiple regression analysis (Eviews). The outcome of the study revealed that the professional financial education of the AC chairman, independence, directors of committee, members and internal processes of AC positively affects the performance, the frequency of the AC meetings bears an adverse relationship with performance. Further audit committee size is not found to have a significant impact on the organizational performance. This paper will be greatly beneficial for financial practitioners and policymakers because it provides practical suggestions and recommendations who are entrusted with the establishment of ACs in light of the ongoing regulatory reforms. To the best of the authors’ knowledge, to date, no previous research has evaluated a comparative study of the impact of audit committee features on the firm performance of listed manufacturing companies and listed hotels in Sri Lanka. This study recommends that the regulatory authority and audit committee should review the frequencies of audit committee meeting to make it more effective to ensure better firm performance.
The Impact of Cash Conversion Cycle on the Profitability of Listed Hotel Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Udayakumara, P.D.A.A.; Munasinghe, M.A.T.K.
Cash conversion cycle (CCC) has been considered a useful measure of firm's effective working capital management. The cash conversion cycle or operating cycle is the length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable. Profitability is measured using Return on Assets and Return on Equity. There are scant research studies relating to hotel industry. The objective of the study is to investigate the impact of cash conversion cycle on the profitability of listed hotel companies in Sri Lanka and furthermore to explore the impact of COVID 19 on CCC of hotel companies. The sample consists of 38 hotel companies listed on Colombo stock exchange during the period of year 2015-2019. Accordingly, this study uses secondary quantitative data by using company websites and Colombo stock exchange. Qualitative data will be collected to explore the impact of Covid on selected hotels. This study will contribute to the body of knowledge by identifying how hotel companies manage their CCC with working capital to maximize their profitability and how COVID 19 influences on cash conversion cycle in hotel industry. Then, it will be useful to decision makers and policy makers to ensure effective working capital management. This study concentrates more on these WCM concepts in order to conduct profitability in a good manner.
Impact of Challenges in Fair Value Measurement in Biological Assets on Financial Information from auditors’ perception
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayawardana, W.M.S.S.; Munasinghe, M.A.T.K.
Agriculture is the key contributor to the Gross Domestic Production in Sri Lanka. This study investigates the impact of challenges in fair value measurement in biological assets on financial information from auditors’ perceptions in Sri Lanka. Related prior studies have found mixed empirical evidence about the challenges in fair value measurement of biological assets. The findings of this study provide a better understanding of the challenges of measuring the fair value of biological assets and their impact on a company's financial information. Accordingly, the purpose of this study is to identify the effect of challenges in fair value measurement of biological assets on financial information. This study uses auditors’ perceptions to identify the challenges of fair value measurement of biological assets and those effects on financial information. A sample of 70 responses uses to achieve the research purpose. Descriptive and inferential statistics will be applied in data analysis. The findings of the study will provide useful insights for accounting regulators in assessing whether financial information will be affected by the challenges that arise when measuring fair value. Furthermore, the results will be of interest to accounting professionals, accounting developers, and investors.
Impact of Challenges in Fair Value Measurement in Biological Assets on Financial Information from auditors’ perception
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayawardana, W.M.S.S.; Munasinghe, M.A.T.K.
Agriculture is the key contributor to the Gross Domestic Production in Sri Lanka. This study investigates the impact of challenges in fair value measurement in biological assets on financial information from auditors’ perceptions in Sri Lanka. Related prior studies have found mixed empirical evidence about the challenges in fair value measurement of biological assets. The findings of this study provide a better understanding of the challenges of measuring the fair value of biological assets and their impact on a company's financial information. Accordingly, the purpose of this study is to identify the effect of challenges in fair value measurement of biological assets on financial information. This study uses auditors’ perceptions to identify the challenges of fair value measurement of biological assets and those effects on financial information. A sample of 70 responses uses to achieve the research purpose. Descriptive and inferential statistics will be applied in data analysis. The findings of the study will provide useful insights for accounting regulators in assessing whether financial information will be affected by the challenges that arise when measuring fair value. Furthermore, the results will be of interest to accounting professionals, accounting developers, and investors.
The Impact of Corporate Governance Characteristics on Environmental Disclosure Level – Evidence From listed Companies Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Kumarapeli, M.S.; Munasinghe, M.A.T.K.
In the twenty-first century, environmental accounting and reporting has become a critical component of a company's external information system. Companies have been influenced to operate in an environmentally responsible manner by increasing pressure on them to be socially responsible. The purpose of this study is to investigate the relationship between environmental reporting and corporate governance attributes of companies in Sri Lanka. The corporate governance attributes include board size, board independence, CEO duality, managerial ownership and women representation selected through code of best practice on corporate governance issued by CA Sri Lanka in 2017. In addition, control variables used are firm size and profitability. The paper adopts a quantitative analysis approach. It examines the annual reports during four years from 2018, 50 companies. Those represent industries of retailing, capital goods, material, consumer service, and food, beverage, and tobacco sectors listed on Colombo stock exchange. A checklist of items based on the Global Reporting Initiative guidelines is used to analyze environmental disclosures. Environmental disclosure items are extracted from annual reports and sustainability reports using content analysis. The study examines the relationship between corporate governance and environmental disclosure using stakeholder theory, agency theory, and legitimacy theory. The data are analyzed using correlation and multiple regression analysis of E views statistical software. This research will provide empirical evidence for Sri Lankan regulatory bodies, policymakers, and company strategists to improve corporate governance mechanisms and environmental disclosure levels of listed companies.
The impact of corporate governance on financial distress: evidence from listed financial institutions in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Perera, T.M.A.Y.M.; Munasinghe, M.A.T.K.
ETI finance (Private) Limited, Seylan bank, S. R. Property Sharing Investment (Private) Limited are a few entities among a large pool of other entities that collapsed due to financial distress in Sri Lanka during the past two decades. The fallout of each these collapses resulted in thousands of victims who had to suffer and bare these losses without any proper composition. And each of these collapses were accompanied by malpractices of the board of directors or the senior management and the overall failure of the corporate governance structure. So, this study is an attempt to understand the role of corporate governance in predicting financial distress within the finance sector of Sri Lanka. Several researches have been done on this topic, but none has solely focused on the financial sector of the country. So, a research gap exists within the literature in this context. Board Size, Board gender diversification, Frequency of board meetings, Audit quality, Board member remuneration, CEO duality, Education level of the board members, Board independence are the key measure of corporate governance of this study. Additionally, Firm size, profitability and firm leverage is incorporated to the study as control variables to enhance the findings of the study. And financial distress is measured on the basis of an institute having a negative profit, cash flow or worth for more than three years as the unique nature of financial institutions prevents traditional methods of measuring financial distress such as Altman Z score model in providing reliable results. This research has used all listed financial institutes of Sri Lanka as its population and seventy-two of them were selected as the sample of study. Data will be collected from primary data sources (i.e. financial statements) from 2017 to 2022. In this study, descriptive analysis, Pearson correlation analysis, and regression analysis are used to analyze the data. Accordingly, the findings of this study do provide a better understanding of how corporate governance structure of financial institutions can be used to predict institutions who are at the risk of being financially distressed. The findings of this study will supplement and enhance the decision-making process of investors, savings holders and any other related party. Also, the organizations that resides within the financial sector them self will be able to incorporate the findings of this study when incorporating corporate government policies to avoid future financial distress situations followed by inappropriate governance practices. And finally, the policy makers will be able to incorporate these finding of this paper when implementing new policies or modifying the existing governance policies.