Browsing by Author "Panditharathna, K.M."

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Corporate Governance and Agency Costs in Non-Financial Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Weerapperuma, A.D.A.P.; Panditharathna, K.M.
The purpose of this research study is to analyze the corporate governance mechanisms on agency costs in Sri Lankan listed firms. To analyze this effect; board size, board independence, remuneration, and managerial ownership are considered as effective governance mechanisms in this study. The study was adopted a quantitative research approach and panel data analysis was used to estimate the association between corporate governance and agency costs using the annual reports’ data of 50 non-financial listed firms in Colombo Stock Exchange during 2016- 2019. The empirical results indicated that board size, independent directors on the board, managerial ownership have negative impact on the assets utilization ratio also firm size is negatively related to the assets utilization ratio. But remuneration and leverage has a positive impact on agency cost. Evidence of this study revealed that there is a significant relationship between corporate governance mechanisms and agency costs in Sri Lanka. This study supports shareholders, managers, and other stakeholders on how internal corporate governance practices are affected to minimize conflict of interest between principal and agent.
Corporate Governance and Firm Performance
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Panditharathna, K.M.
This study examines the relationships between corporate governance attributes on firm performance of listed financial sector companies in Sri Lanka. Empirical analysis focused on 56 companies registered in the Colombo Stock Exchange (CSE) covering the industries of banking, finance and insurance for the years 2012, 2013, 2014 and 2015. The study used Ordinary Least Squares (OLS) method to analyze the data. The study finds that relationship between corporate governance and firm performance are not strong. Board size, proportion of independent directors and the proportion of female directors have not significant relationship with performance measures. But board effectiveness has a significant positive relationship with ROE. This study enables to companies to evaluate and restructuring of their board to enhance the performance of the company while contributing to the economic development of the country. Findings of prior study are more focused to the developed countries. This study fills that research gap and contribute to the present literature on corporate governance in the industries of banking finance and insurance.
Financial mismanagement of small businesses: a study based on the hotel industry in nuwara eliya district
(Faculty of Management Studies & Commerce, University of Jaffna, 2023) Kariyakarawana, K.I.P.; Panditharathna, K.M.; Ranwala, R.S.; Nimeshi, G.K.S.
The purpose of the study was to identify the financial mismanagement of small businesses and their effect on the business’s success. This research used the qualitative approach and continued the study through the general qualitative method. Sample were selected based on the purposive sampling method. Accordingly, data collection was done through in-depth interviews with owners of six small businesses in the Talawakele - Lidula Municipal Council area in the Nuwara Eliya District. The data were analysed, and themes were derived using thematic analysis. The main mismanagement identified from the study was mismanaging start-up capital, cash flows, budgetary system, personal spending, retained earnings, and working capital. Due to these mismanagements, businesses cannot run with a proper plan. The findings of this study will enable small businesses to identify their financial mismanagement. These findings will also help policymakers to identify the areas that are required to improve the financial management literacy of small business owners.
Mainstreaming microfinance: balancing financial performance and outreach
(Faculty of Graduate Studies, University of Kelaniya, Sri Lanka., 2024) Panditharathna, K.M.; Rajapakse, R.P.C.R.
There is an unsolved dilemma in the Sri Lankan microfinance sector: whether microfinance institutions target low-income earners or seek profitability. To contribute to this debate, this research investigates the effect of financial performance on outreach and the effect of outreach on financial performance. Balancing financial performance and outreach of microfinance institutions have been conducted in various countries and regions, but specifically not for Sri Lanka after implementing No.06 of 2016 Microfinance Act. This study used an empirical data set for ten years, from 2010 to 2019. Data was collected from 16 MFIs and the panel data regression model was used for the analysis. According to the results MFIs can achieve financial and social objectives simultaneously when serving a larger number of customers and a high percentage of female borrowers. But providing services to the core poor people diminishes their financial performance. As per the findings, policy makers are required to make a roadmap to protect both customers and organization financial sustainability. This study emphasizes the importance of having a proper reporting system for the microfinance sector and future research may wish to consider more MFIs by considering a long period and future research can occupy financial performance and outreach variables which are good at forecasting.