Browsing by Author "Pushpakumara, W.P.N."

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Corporate Reporting Practices in Sri Lanka with special reference to the Manufacturing Companies Listed in Colombo Stock Exchange
(Research Symposium 2010 - Faculty of Graduate Studies, University of Kelaniya, 2010) Pushpakumara, W.P.N.; Rajapakse, R.M.D.A.P.
In recent years all over the world there has been increasing demand for transparency of operations with respect to environmental and social performance of the corporate in addition to its financial performance. The environmental and social reporting is a tool for extending a broad dialogue with stakeholders, those who are interested in the organization. Environmental and social reporting is a gesture to reveals Company’s commitment towards sustainability, it underlines their responsiveness to those who always want to know the company betterment. Thus corporate reporting on social is grown significantly throughout the world. This study has been carried out to analyze the extent of corporate reporting by the listed companies in manufacturing sector of the Colombo Stock Exchange and the how it influenced by the company attributes. The researches have identified five main categories of disclosures such as Information on Accounting and Finance, Information on Personal, Information on Marketing, Information on Production and General Information. The research population is manufacturing sector in Sri Lanka, and the research is based on 3listed companies has been selected on the sample from manufacturing industry listed in Colombo Stock Exchange. The research is based on the secondary data of the companies for the period covering 2008 to 2010. The empirical results of the study indicate that a large number of reporting items have lesser disclosure score in the selected sample during the period. Information on Accounting and Finance has gained maximum disclosure score percentage during the period while general information has the lowest score of disclosure. Further it has found that a positive significant relationship between the sizes and the disclosure and also turnover and disclosure of the company. Finally it concludes that the disclosure practices of Sri Lankan manufacturing companies still not in a satisfactory level, therefore corporate sector of the Sri Lanka must be pays special attention on this regard.
Determinants of profitability in banking sector in Sri Lanka
(Research Symposium 2009 - Faculty of Graduate Studies, University of Kelaniya, 2009) Pushpakumara, W.P.N.; Fernando, J.M.R.
Banking industry has been changed dramatically in recent past with the new technological development, legal reforms, and environmental changes. These changes have led to increase in resource productivity, increasing level of deposits, credits and profitability. However, the profitability, which is an important criteria to measure the performance of banks. Accordingly, in this paper researchers have made an attempt to identify the key determinants of profitability of the banking sector in Sri Lanka. The objective of the study is to identify the key determinants of the profitability of selected banks and to find out what extend the selected variables describe the profitability of the banking sector. The researchers have selected Total Assets (TA), Share Capital (SC), Retained Profit (REP), Number of Branches (NOB) and Number of Products in the Portfolio (NOP) as independent variables and Profit Before Interest and Tax (PBIT) as the dependent variable. This paper adopt quantitative approach base on Secondary data which were collected through published financial statements. The research population is banking sector in Sri Lanka and the research is based on the listed banks in Colombo Stock Exchange. The data was collected over the period of 5 years covering 2004 to 2008. Correlation, regression, t test and ANOVA are the statistical techniques selected for analyzing the data. The result shows that the Total assets, Share capital, Number of branches and Number of products in the portfolio play a critical role in determining profitability and have positive correlation. The above independent variables collectively as a model sufficiently explain the profitability of the Banking sector.
Determinants of Stock Market Development in Sri Lanka
(Research Symposium 2009 - Faculty of Graduate Studies, University of Kelaniya, 2009) Pushpakumara, W.P.N.; Anthony, C.S.W.
In the present situation it is frequently discussed about the movement in the Sri Lankan Stock Market and the stock market has recorded a trillion worth Market Capitalization in recent past. In October 2009 the Colombo Stock Exchange recorded as world best emerging stock market. Therefore it is very much important to examine the Macro Economic factors which influence the Stock Market Development. So this paper aims to examine how Macro Economic variables like Consolidated Broad Money Supply, National Savings, National Investment, Lending Interest Rate, Exchange Rate of Rupee with US $ ,Inflation Rate and Gross Domestic Product (GDP) affect the Stock Market Development in Sri Lanka. Stock Market Development was measured using Market Capitalization and the research was carried out for a period of ten years starting from 1999 to 2008. This paper adopts a quantitative approach based on secondary data collected through Central Bank Annual Reports and Pronouncements of Securities and Exchange Commission in Sri Lanka. Correlation, regression, t test and ANOVA are the statistical techniques selected for analyzing the data. It is shown GDP, National Investment, National Savings and Consolidated Money Supply play a significant role in determining the Stock Market Capitalization and has a positive relationship. Exchange rate and Inflation rate have a marginal positive relationship with Stock Market Capitalization (SMC) and Interest rate resulted a marginal negative relationship with SMC. These Independent variables adequately explain the variation of the SMC. This research findings are justified since the increase in money supply will leads to increase in the national investments and market capitalization consequently. The same result will arise in the event of increase in the GDP.
The Effect of Employee Share Ownership Plans on the Corporate Profits
(Research Symposium 2009 - Faculty of Graduate Studies, University of Kelaniya, 2009) Pushpakumara, W.P.N.; Rajapakse, R.M.D.A.P.
Human capital is one of key determinant of performance of a company. Many companies use several techniques or incentive plans for retain and motivate their employees. Employee Stock Ownership Plans (ESOP) recently have become popular as an employee benefit plans. Louis Kelso has been most responsible for promoting this concept during the 1950s. Traditionally stock option plans have been used as a way to reward top management and key employees and link their interest with those of the company and the other stakeholders. Now ESOP has become worldwide phenomena. The ESOP, properly adapted to Sri Lankan realities, can be a powerful means to accomplish the goal of Sri Lanka’s peoplisation programmes: to transfer the share ownership of state-owned enterprises to their employees. The ESOP has been equally used in Sri Lankan’s existing private sector, to expand the ownership of companies while increasing their profitability through greater employee satisfaction. The objective of this study is to find out the impact of the ESOP to the corporate profitability of selected companies in Sri Lanka. The researches have selected three major classes of financial ratios, which include profitability, leverage and liquidity. Financial ratios are calculated for each firm and mean and the paired sample t-test was used to analyze the significance of the ESOP for the profitability of the firm. The research population is the ESOP companies in Sri Lanka and the research sample is based on the ESOP implemented listed companies in Sri Lanka. Data was collected from three years immediately prior to the implementation and three years immediately after the implementation of the ESOP. The results indicate that ESOPs is not a significant determinant of the corporate profitability in Sri Lanka. This can be due to Sri Lankan firms are issued insignificant amount of share option to employees, most of the shares are nonvoting shares issued to the employees and most of the companies willing to adopt this plan as one of the compensation tool for the employees. This research finding is compatible with the literature findings in other countries.
Empirical Investigation of Determinants of Trade Balance in Sri Lanka
(Research Symposium 2009 - Faculty of Graduate Studies, University of Kelaniya, 2009) Pushpakumara, W.P.N.; Kumari, P.W.N.A.
The balance of trade is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation’s imports and exports. There was a continuous increasing negative trade balance (TB) in Sri Lanka over the past few decades which adversely affect to the Sri Lankan Economy. Therefore it is high right time to investigate the Macro Economic Variables which are likely to affect the TB as suggested by the literature. Hence, the objective of this paper is to provide some insights on the links between trade balance and a broad set of economic variables proposed by the literature such as Exchange Rates, Gross Domestic Products (GDP), Interest Rate and Inflation Rate. This study was conducted using secondary data extracted from the Central Bank Annual Report, pronouncement of Securities and Exchange Commission in Sri Lanka for the period 1999 to 2008. This paper adopts quantitative approach on secondary date collected from the above sources. Correlation, regression, t test and ANOVA are the statistical techniques used to analyze the data. Stepwise regression was run to find out the best model which describes the variation of the TB. The results of this research shown that, GDP and the Exchange Rate are significant variables in determining the TB and has a negative relationship with trade deficit. Inflation Rate and Interest Rate have a marginal positive relationship with Trade Deficit and are not significant. There were two models which adequately explain the variation of TB, but the model 2 which comprise of GDP and Exchange Rate is the best model selected based on the adjusted R squared technique. This finding is compatible with literature finding in the other counties.
Impact of Gender on Effective Utilization of the Microfinance Credit Facilities in Sri Lanka
(2011) Pushpakumara, W.P.N.
Microfinance institutions can play vital role in giving solution this poverty problem especially in developing countries like Sri Lanka. Microfinance Institutions generally provides savings, credit facilities and some other services like providing education, technology, insurance etc. Experience shows that microfinance can help the poor to increase income, build viable businesses, and reduce their vulnerability to external shocks. It can also be a powerful instrument for self-empowerment by enabling the poor, to become economic agents of change. Microfinance institutions (MFIs) provide credit facilities to poor with no collateral or having a minimum security. Therefore the recovery of loans is at a higher risk to maintain the sustainability of the MFIs. So that it is important to analyze to whom the credit facility is given, for what purpose and returns earned from that program as well as the recoverability of the loan. Therefore this research focus on the qualities between genders about micro financing expectations to identify better gender to focus on developing these habits. Sample units were selected from the District of Kurunegala and the sample comprised 150 individuals who are currently engage in microfinance credit scheme and 50 individuals who are about to start their Microfinance projects. Equal number of men and women were included in the sample. Primary and secondary were collected from the borrowers and MFIs using a questionnaire, interviews and institutional records to analyze the attitude towards credit scheme, their repayment habit, saving patterns and the performance of microfinance projects. In this study, the researcher assesses the performance of men & women in microfinance credit schemes to find out whether men or women will achieve the microfinance goals favorable manner. The research finding shows a favorable impact of achieving microfinance goals by women rather than men. Women show a good record of repayment of loans, increase of their savings and earn more capital return than men.