Browsing by Author "Rajapakse, R.M.D.A.P."

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Application of LKAS 16 & LKAS 39
(Department of Accountancy, University of Kelaniya, 2016) Jayasinghe, B.G.W.A.C.W.; Rajapakse, R.M.D.A.P.
PQR Lanka is a non-profit organization in Sri Lanka. The organization was registered in 1995 with the mission and vision to provide assistance and help to those who are living under the poverty line and to help people who were affected by the war in Sri Lanka. This case is relating to an issue of identification criteria of Property, Plant & Equipment.
Change Driven to Success Case Study on Screenline Holdings (Pvt) Ltd, Sri Lanka
(Staff Development Unit, Faculty of Commerce & Management Studies, University of Kelaniya, 2015) Rathnasiri, U.A.H.A.; Rajapakse, R.M.D.A.P.; Perera, H.A.P.L.; Aruppala, W.D.N.; Kaushalya, M.D.P.; Thilakarathna, W.D.N.; de Silva, N.M.T.; Kumara, N.
Our desire in writing Change Driven to success was to provide faculty with a developed teaching package that allows them to enhance students’ learning and application of knowledge in business management. Appropriate use of theory and the acquisition of factual content and analytical skills are also important goals, but the main objective is to improve the ability of handling different types of managerial problems and opportunities intelligently. This case study book depicts a wide range of business management applications specially focusing on Entrepreneurship Development, Strategic Management, Management and Financial Management etc. Sufficient information is given in each module to support students in analyzing and decision making. The Change Driven to success reflects on the identified structural change in Screenline Holdings (Pvt) Ltd. which is one of the Sri Lanka’s largest screen printers and embellishers. This book comprises with five modules and each module ends with a contribution to practice to assist students in combining theoretical aspects with emerging workplace realities. This case study book submitted in partial fulfilment of the requirement for Staff Development Programme, Faculty of Commerce and Management Studies, University of Kelaniya conducted for Probationary and Assistant Lecturers.
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.
Corporate Tax Planning and Financial Performance of CSE-Listed Tea Plantation Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Kodithuwakku, K.A.L.L.; Rajapakse, R.M.D.A.P.
This meticulous study unravels the intricate interplay between corporate tax planning strategies and the financial performance of tea plantation companies listed on the Colombo Stock Exchange (CSE) in Sri Lanka. The overarching aim is to comprehensively investigate and analyze the nuanced impact of tax planning on these entities. The research spans a meticulously selected sample of 14 tea plantation companies, encapsulating the dynamic period from 2016 to 2022. An exhaustive exploration of key variables, including Return on Equity (ROE), Effective Tax Rate (ETR), Intensity of Capital (IC), Intensity of Inventory, Leverage, and Firm Size (FMS), offers a multifaceted lens through which to examine the complex relationships at play within these corporate structures. The methodological approach involves the scrupulous retrieval of financial statements from diverse and pertinent sources, establishing a robust foundation for the subsequent analysis. Through the application of panel regression analysis, the study unveils a spectrum of noteworthy findings that significantly contribute to the existing body of knowledge. Surprisingly, the Effective Tax Rate emerges without statistical significance, suggesting that the observed impact of tax planning is not statistically significant within the context of the tea plantation companies studied. Nonetheless, the study uncovers positive and statistically significant relationships between Capital Intensity, Firm Size, Leverage, and Return on Equity (ROE). In light of these compelling findings, the study offers strategic recommendations that underscore the importance of optimizing leverage to enhance overall financial performance. These insights not only enrich the academic discourse surrounding tax planning and financial performance but also provide actionable implications for tea plantation companies navigating the intricate landscape of financial management in the unique context of Sri Lanka.
The Effect of Disclosure of Corporate Social Responsibility on Financial Performance in Manufacturing Companies: from Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Farook, T.N.; Rajapakse, R.M.D.A.P.
Today’s competitive and dynamic market environment has formed new set of tasks for any business which are not only connected to economics. To survive and grow, firms must connect the gaps in economic as well as social systems. Maximizing shareholder wealth is every time important, but satisfying that condition alone is no more valid in computing the financial success. Corporate Social Responsibility is significant and fundamental to the sustainable functioning of businesses. Similarly, financial performance is undoubtedly fundamental to the continued functioning of any company. The purpose of this Research is to study the relationship between corporate social responsibility disclosure percentage and the financial performance of manufacturing companies in Sri Lanka. Sample of study is the highest share volume of 20 companies listed in the Colombo Stock Exchange (CSE) in the manufacturing sector and data were collected over a five-year period from 2011 to 2015, this study explores and tests the significant of the relationship between corporate social responsibility disclosure percentage and financial performance. According to the result of the significant relationship between corporate social responsibility (CSR) disclosure percentage and financial performance. According to that that Sri Lankan listed manufacturing firms should step up their Corporate Social Responsibility programs and disclosures most especially environment, community, employee, and consumer responsibilities. Because of Corporate Social Responsibility is impact to the Corporate Performance as significantly.
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.
Environmental Accounting Practices and Firm Financial Performance: An Empirical Analysis of Selected Listed Manufacturing and Construction Companies in Colombo Stock Exchange of 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) Lakmal, A.A.H .; Rajapakse, R.M.D.A.P.
This research focused on the Environmental Accounting practices (disclosures) and the firm financial performance of the selected listed Construction and Manufacturing companies in Sri Lanka. The main objective of this research is to investigate the present state of environmental reporting practice of Sri Lankan listed companies and to show the relationship between EA disclosure level and financial performance of the selected companies. Environmental Accounting disclosures and financial performance are being the main variable. GRI Guidelines were used as independent variable and also financial performance as dependent variable. Material, Energy, Water, Biodiversity and Emissions are used as environmental accounting disclosure aspects. All the companies listed in Colombo Stock Exchange under Manufacturing and Construction sectors were considered in this research. As well as the methodology follows the content analysis. The target population was 04 listed construction companies and 45 listed manufacturing companies. Both qualitative and quantitative data were collected using annual reports. The findings of this research indicate that the environmental disclosure practice of listed Manufacturing and Construction companies in Sri Lanka is not at a satisfactory level. But there is a significant relationship between EA disclosure level and firm financial performance
The Impact of Corporate Governance on Financial Distress: Evidence from Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Bandara, K.M.J.K.; Rajapakse, R.M.D.A.P.
The study aims to analyze the effect of corporate governance on financial distress among companies listed on the Colombo Stock Exchange from 2018 to 2023. The research methodology involved the use of panel regression to investigate the impact between corporate governance factors and financial distress. The major findings of the study indicate that board size and audit committee significantly impact financial distress, while board independence and board meeting show a non-significant relationship with financially distressed companies. The implications of the study extend to stakeholders such as investors, creditors, policymakers, and shareholders, providing valuable insights for decision-making regarding financially distressed companies and their behavior. In conclusion, the research emphasizes the importance of good corporate governance practices in reducing the likelihood of financial distress by promoting accountability, openness, and smart decision-making. The study's empirical evidence contributes to a more informed understanding of the link between corporate governance and financial performance, offering valuable insights for regulatory bodies, investors, and academics.
The Impact of Environmental Reporting on Company Financial Performance of Listed Manufacturing 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) Anuradha, P.H.; Rajapakse, R.M.D.A.P.
The impact of business activities on the environment is gradually increasing. Hence it is vital for stakeholders to be concern on the relationship between environment aspects and company’s decision making process. This study aims to investigate the impact of environmental reporting on the financial performances of listed manufacturing companies in Sri Lanka. Further, this study extends to explain the interaction between the environmental disclosure and firm’s specific variables such as firm size and leverage on firm’s financial performance. The main variables of the study are, environmental disclosure being the independent variable, firm size and leverage as the control variables and Return on Assets (ROA) as the dependent variable. The current study use secondary data of 41 manufacturing companies in Colombo Stock Exchange for the period of 5 years from 2013 – 2017 by using content analysis. Correlation and multiple regression models is used to analyze the relationships of this research study. The results reveal that there is a significant relationship between environmental accounting disclosures and firm’s financial performance when environmental accounting is moderated by firm specific variables such as firm size and leverage of the selected companies.
The Impact of Foreign Direct Investment on Economic Growth in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Gunarathna, T.M.S.; Rajapakse, R.M.D.A.P.
The growth of international production is driven by economic and technological forces. It is also driven by the on-going liberalization of Foreign Direct Investment (FDI) and trade policies. The growth of FDI has been focused in several studies examining the channels of transmission between FDI and growth. Economic models of endogenous growth were combined with studies of diffusion of technology in an attempt to show the effect of FDI on the economic growth of several economies The FDI is assumed to benefit to underprivileged country like Sri Lanka, not only by adding internal investment, but also in terms of employment creation, transfer of technology, increased domestic competition and other positive externalities. According to the Sri Lankan context Sri Lanka follow the attractive policies to accept FDI in to the country. As the result of this FDI has increased last year’s gradually. This paper seeks to identify that is there any relationship between foreign direct investment and economic growth in Sri Lanka. Data is collected by using secondary evidence. Data get from central bank report in Sri Lanka. Data is analysed using regression method. According to the data analysis there is positive relationship between FDI and Economic growth in Sri Lanka however the relationship is not significant.
The Impact of Forensic Accounting Knowledge on Corruption Prevention: A Study Based on Sri Lankan Accounting Students
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Herath, H.M.U.G.A.M.; Rajapakse, R.M.D.A.P.
This research addresses the relationship between forensic accounting education and corruption prevention among accounting students in Sri Lanka. Given the critical role accountants play in combating fraud and corruption, it seeks to understand how forensic accounting knowledge influences attitudes toward corruption prevention. By using a variety of quantitative research methods, including descriptive statistics, reliability testing, correlation analysis, and regression modelling, the study provides valuable insights. Preliminary results indicate that students' perspectives on corruption prevention and their understanding of forensic accounting concepts are diverse. Regression analysis successfully determines the significant effect of forensic accounting expertise on attitudes toward corruption prevention, and factor analysis reveals the underlying structures of these variables. The study highlights the potential for improving forensic accounting education to promote an ethical culture among accounting professionals, thereby strengthening anticorruption measures. Recommendations include curriculum improvements and collaborative efforts between academic institutions and professional organizations. With a sample size of 94 respondents, this study lays the groundwork for future inquiries into the complex relationship between forensic accounting education and ethical behavior in the accounting field.
The Impact of Green Supply Chain Management on Organizational Performance in Sri Lankan-Listed Companies
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Sathsarani, N.L.A.; Rajapakse, R.M.D.A.P.
This study intends to examine the impact of implementing Green Supply Chain Management Practices on Organizational performance, in terms of environmental, operational, and financial performance among listed companies in Sri Lanka especially concerning sectors, Capital Goods, Food, Beverage and Tobacco, Material, Consumer Durables & Apparel, Retailing, Automobile & Components, and Healthcare Equipment & services. Further, the researcher examined the impact of Green Supply Chain Management (GSCM) Practices on performance dimensions of environmental, operational, and financial separately to identify which performance dimension has the highest impact from the green supply chain management practices in the Sri Lankan context. The Survey Questionnaire was collected from 115 managerial positions in listed companies that are included in above mentioned sectors. Numerous studies have been done to find the impact of green supply chain management and organizational performance worldwide. Nevertheless, there is a research gap based on this in the Sri Lankan context. The empirical evidence verifies a significant impact of GSCM practices and organizational performance. It can be concluded that There is a positive impact of Green Supply Chain Management on Organizational Performance in terms of environmental, operational, and financial. Further, the operational performance dimension has the highest impact from GSCM practices.
Impact of Liquidity on Profitability: With Special Reference to Listed Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Hirantha, P.A.N.; Rajapakse, R.M.D.A.P.
The ultimate goal of the companies is to enhance the wealth of the shareholders. For that purpose, the liquidity and profitability plays the vital and crucial role. That brings the problem that provided the basis for his research “how liquidity effects on profitability of listed manufacturing companies in Sri Lanka?” Especially the liquidity and its management affects to a great extent to the growth and profitability of a firm. The liquidity management becomes most important one as the inadequate liquidity may injurious to the smooth operations of the firm as well as the excess liquidity can be disturbed to achieve the greater profits. In this way, the present study is aimed to investigate the relationship between liquidity and profitability. The analysis is based on quarterly data of 20 manufacturing companies listed in the Colombo Stock Exchange over a period of past six years from 2010 to 2015. Return on equity and Return on assets were used as the dependent variables while Quick ratio, Current ratio and Liquid ratio were used as independent variable. Correlation and regression analysis as well as the descriptive statistics were applied in the analysis and findings suggest that there is a significant relationship exists between liquidity and profitability listed manufacturing companies in Sri Lanka. According to this study there has an influence in liquidity on the profitability of manufacturing companies.
The impact of Tax Policy Changes and Gross Domestic Production on the Tax Revenue 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) Begam, M.I.S.; Rajapakse, R.M.D.A.P.
Taxation is a mode of revenue mobilization, providing resources for National Budgets and forming an important part of the macroeconomic management. The tax revenue is one of the major sources of income in every government. Tax policy and Gross Domestic Production influence to the government revenue of a country. Sri Lanka has been continuously producing budget deficits even though the tax revenue as a whole has been rising throughout the years. This study aims to identify the impact the tax policy changes and GDP of Sri Lanka has had on the tax revenue collected in Sri Lanka covering 17 years throughout the period from 2000 to 2016. Data was analysed using trend analysis and with the aid of IBM SPSS, OLS regression and correlation was used to understand the impact. The overall model predicts 89% of variance in the tax revenue. The results revealed that the correlation analysis confirms that there is no significant relationship between tax policy changes and tax revenue and the Gross Domestic Production of the country has a positive and significant impact on the Tax Revenue
Performance Measurement and Employee Incentive of Manufacturing Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Hearth, H.M.D.M.; Rajapakse, R.M.D.A.P.
Performance measurement system would play a key role in communicating, evaluating and rewarding the achievement of strategic objectives. Many manufacturers have instituted programs to reduce costs and improve their operations but frequently fail to evaluate whether their operational changes achieved their desired results. An active performance measurement system can help to determine areas to improve before invest or money. Organizations adopt performance measurement systems typically classified as financial and non-financial measurements. Some manufacturers even use performance measurements to determine compensation and incentive bonuses. This research attempt to assess the performance measurement in manufacturing companies and plan the employee incentives like the adding the short term cash benefits for basic salary of their. The findings were that company performance has significant relationship with employee incentive in manufacturing companies in Sri Lanka. The findings have shown significant relationship EVA, ROA and ROI with employee incentive. This paper recommends that management must identify the both financial and nonfinancial performance measurement to determinate the employee incentive. This method is important to achieving of business objectives and whether the main purpose of that maximizes their own utility instead the interest of shareholder.
Recognition of Commission on Insurance between Insurance Agent and Insurance Brokerage Company
(Department of Accountancy, University of Kelaniya, 2016) Muanasinghe, G.W.G.I.W.; Rajapakse, R.M.D.A.P.
AF Company is a public limited company incorporated and domiciled in Sri Lanka under the Companies Act No.07 of 2007 and classified under banking & finance industry by Colombo Stock Exchange. During the financial year 2014/15 AF PLC become a parent company of “A Insurance Brokerage Company” by acquiring their associate company as a subsidiary. The company provided a vast range of financial services which included accepting deposits, leasing, hire purchase, loan facilities, pawn brokering and other financial services. This issue is relating to the violation of Insurance Act No 3 of 2011 section 88 that given a maximum rate of commission that might be paid by an Insurance broker to an insurance agent.
Relevance of Financial Indicators on Investor’s Decisions in Banking Sector in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Bandula, M.G.V.M.; Rajapakse, R.M.D.A.P.
Shareholders use financial indicators as their main source of obtaining the information regarding the performance of a business. Business entities do have to prepare and present their financial information in a way that can be useful to investors and attract them. Accounting Information contained in financial statements should be accurate and transparent enough to provide an indication of a business performance and financial condition to the decision makers including investors. According to the previous studies related with this topic, investors tend to focus on information contained in financial statements. The main objective of this is to study the validity of Accounting Indicators (AI) for investor‘s decision in Banks registered under Colombo Stock Exchange (CSE) in Sri Lanka. The validity of Accounting Indicators was measured by correlation coefficient between Market Price Per share (MPS) and selected Accounting Indicators as Earning Per Share (EPS), Return On Equity (ROE) and Earnings Yield (EY). The sample was based on the Accounting Indicators derived from the published financial statements of the Commercial Banks listed under CSE. It covers a period of 5 years from 2011 to 2015. According to the results there is a significant relationship between Accounting Indicators and Market Price Per Share. Further it concluded that the investors still tend to consider Accounting Indicators obtained through published financial statements of Commercial Banks in Sri Lanka for investment decisions. Therefore the companies when preparing their financial statements have consider this in to fact an present them in a way that is easily understandable to the investors.
THE VALUE RELEVANCE OF FINANCIAL STATEMENTS?INFORMATION: WITH SPECIAL REFERENCE TO THE LISTED COMPANIES IN COLOMBO STOCK EXCHANGE
(2010) Karunarathne, W.V.A.D.; Rajapakse, R.M.D.A.P.
Investors and other interest parties of accounting make use of financial statements and disclosures, among other publically available information, to assess the risk and value of firm when taking the investment decisions. According to Sushma Vishnani, Bhupesh Kr. Shah (2008) ?Value relevance? implies ability of the financial information contained in the financial statements to explain the stock market measures. The purpose of this paper is to investigate the value relevance of financial information that extracted from financial statement directly or indirectly. Especially the study considered the value relevance of earnings and cash flows in stock prices. In addition, the study pays attention on the firm size effect on value relevance. A hundred (100) companies have been selected to the sample representing the all the business sectors except banking, finance and insurance over a period of 5 years from 2004 to 2008 listed in the Colombo Stock Exchange (CSE) and the pooled time regression method is used to analyze the data. Return model as well as Price model was used to determine the value relevance of financial statements? information. It revealed that the value relevance of accounting information under the Price model has more explanatory power than Return Model. The empirical results of the study indicate that Earning Per Share (EPS) is the most value relevant variable in this study and it is significant at 0.01 level. Regression of earnings, book value and cash flows on stock price results indicate that the cash flows from investment is another value relevance variables at 0.01 significant level. When running stepwise regression to determine the best model of value relevance, EPS is the only value relevant variable for determining stock prices.