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

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Factors Influence Foreign Portfolio Investment in the Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Kodithuwakku, I.P.; Rajapaksha, R.M.D.A.P.
Foreign investment is a major driver of global economic growth. Foreign portfolio investment, as part of foreign investment, plays an important role in the economy. Foreign portfolio investment influencing factors are crucial in determining a country's portfolio investment flows. Investors will respond positively or adversely to portfolio investments in a nation based on the variation of these elements. The purpose of this research is to examine the factors that influence foreign portfolio investment in the Colombo Stock Exchange over twelve years, from 2011 to 2022, to better understand the dynamics that drive portfolio inflows from developing countries. The interest rate, foreign exchange rate, inflation, industrial production growth, market capitalization, and stock market performance were used as independent variables, and foreign portfolio investment was used as a dependent variable. The FPI was calculated using net foreign purchases on the CSE. The data was acquired from CBSL publications, Census and Statistics Department papers, the CSE database, and other public sources. The researcher used analytical methods such as descriptive analysis, correlation, unit root test, and regression analysis. Findings from the study's regression analysis revealed that interest rates are both positively and significantly impacted by FPI. Inflation and market capitalization are positively but insignificantly impacted by FPI. Foreign exchange rate and industrial production growth have a negative and significant impact on FPI. Furthermore, stock market performance shows a negative and insignificant impact on FPI. Moreover, the researcher also found that the data did not exhibit serial correlation, suggesting that the variables used in the study were independent and appropriate. This research is important for new researchers, as it provides a systematic approach to improving foreign portfolio investment in developing countries, such as Sri Lanka. The researcher also highlighted practical implications for policymakers.
Impact of accounting software on business performance: perspective of accounting professionals in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Pradhanage, P.M.U.N.; Rajapaksha, R.M.D.A.P.
As the global economy became more interconnected, businesses from all over the world were forced to compete on a global scale, giving rise to a new set of accounting challenges. Accounting software adoption becomes a crucial aspect in deciding an organization's survival and success as businesses need more information, whether financial or non-financial, to deal with a larger scale of uncertainties in the competitive market. This study's objective is to assess how accounting software systems affect the success of Sri Lankan companies. Utilizing attributes of the accounting software such as efficiency, reliability, ease of use, data quality, and accuracy, which evaluates the performance of the company. The results of this study help the owners and employees of the company to appreciate the value of using the Accounting Information System (AIS) bought through Accounting Software to achieve performance. 100 employees who are familiar with accounting systems were selected as the study's sample from the population of employees in both private and public organizations in the Gampaha District. A questionnaire was used to gather data for the study from company management and employees. The structured questionnaire is divided into two sections: section A questioned about the respondents' personal information for the study, and section B measured how much respondents agree that accounting methods have an impact on organizational performance. Data will be analyzed using the SPSS program. And it is expected to find that all independent variables exist a significant impact on the accounting systems.
Impact of green practices on firm performance: evidence from hospitality sector in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Perera, G.D.S.; Rajapaksha, R.M.D.A.P.
Due to the boom in tourism, hotel investments have been trendy. It is no longer uncommon for tourists to consider new and unusual tourist issues such as environmental protection, waste treatments, energy efficiency, greenhouse gas emissions, water consumption, and renewable energy. Hotel and hospitality professionals have come to associate "green" and "sustainability" with the industry. The environmental impact of corporate green practices is increasingly on the minds of hotel guests and potential customers. Because of this, companies invest heavily and spend plenty of marketing dollars to promote green management. Even though Green reporting or Green Practices are not mandatory requirements, hoteliers keep moving towards the green to get the maximum benefits from customers' perceptions. The relationship between adopting green practices and how those will impact companies' performance has been extensively studied. However, there is a gap in Sri Lankan research in this area. This study primarily investigates the impact of Green Practices on the performance of the Hotel Industry in Sri Lanka. A descriptive research design will be used in this study, and a closed-ended questionnaire will be used to collect data. The approach for this study is Deductive. As the analyzing aid, Statistical Package for the Social Sciences (SPSS) will be used since it is a more convenient data analysis software that most researchers widely use. The population for the study will be the hotels ranked 3, 4, and 5 stars, and among those, 100 hotels will be taken as the sample. Using the findings of the studies, hotel owners and managers will be able to be ecofriendly by initiating more green practices. Ultimately, it will lead to a better firm performance by attracting new customers. There is no doubt that Sri Lanka's hotel industry plays a vital role in driving economic growth.
The impact of IFRS adoption on financial reporting quality: with special reference to the selected listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Fernando, L.A.; Rajapaksha, R.M.D.A.P.
Due to the need for standardization, consistency, trustworthiness, and comparability of organizational financial statements, the implementation of International Financial Reporting Standards (IFRS) has risen rapidly among developed and developing nations and there is a lacuna of research in the South Asian Region. Hence, the primary objective of this study is to investigate the impact of IFRS adoption on financial reporting quality (FRQ) of the listed companies in Sri Lanka. Using earnings management, this research used modified Jones’ discretionary accruals model as a proxy for financial reporting quality. Data will be collected from annual reports for the period from 2009 to 2011 for the pre-adoption era from 2012 to 2014 for the post adoption era from 50 listed companies. Hypothesized relationships will be tested using correlation analysis, and regression analysis. Further findings of this study will be useful for regulatory bodies to understand the existing level of IFRS adoption in Sri Lankan listed companies on the Colombo Stock Exchange, and it will be helpful for a better financial reporting framework. IFRS adoption enhances the quality of firms’ financial reports within the Sri Lankan capital market, which is investigated to boost confidence and attract more capital. In addition to that, the different other stakeholders, such as present and potential investors, also can use these findings to get an understanding of the impact of IFRS adoption on financial reporting quality.
The Impact of Information Technology Usage on Tax Management
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Madushan, R.D.S.D.; Rajapaksha, R.M.D.A.P.
This study examines the transformative impact of information technology on tax management in the Sri Lankan corporate sector. In the contemporary world, information technology has a wide presence and assumes a unique role across various domains. Research focuses on applying information technology to corporate tax-related activities, targeting individuals directly or indirectly involved in corporate tax activities. Using employment probability and simple random sampling, 52 respondents comprising tax consultants and accountants engaged in corporate taxation were selected. Descriptive statistics were used to analyze the demographic characteristics of the respondents and regression analysis was used to evaluate the impact of information technology on tax management. The results confirm a substantial and positively impactful relationship between Information Technology (IT) and tax management in Sri Lanka's corporate sector, highlighting the significant contribution of IT tools and systems to improving various taxation-related processes. Based on these findings, recommendations are suggested to improve the integration of information technology in tax management practices. The increasing trend of technology adoption for tax-related processes highlights the imperative of improving internet facilities, recognizing its critical role in facilitating effective tax systems. Respondents' consensus on the challenge of system malfunctions in online tax payment calls for a proactive approach, emphasizing the importance of regular system updates as a potential remedy. Additionally, addressing system congestion during critical periods is advised to optimize efficiency. The collective sentiments of respondents on the complexity of online VAT registration highlight the need to streamline and simplify registration systems to improve accessibility and user-friendliness. These recommendations advocate for strategic improvements in IT infrastructure and processes to optimize tax management practices in Sri Lanka's corporate sector.
Impact of liquidity management on corporate failure: evidence from non-financial companies in Colombo stock exchange
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Jayarathna, P.G.A.M.; Rajapaksha, R.M.D.A.P.
The aim of his study is to investigate the effects of liquidity management on the survival of listed companies in Sri Lanka. The study examined the effect of the current ratio, quick ratio, solvency ratio and cash coverage ratios on the survival of listed firms in Sri Lanka. The study used secondary data gathered from audited financial statements of the listed firms in Sri Lanka except financial companies over 2017 – 2021. The data was analyzed using Auto-Regressive Moving Average Generalized Least Square Regression. The study found that quick ratio, solvency ratio and cash coverage ratios, have a significant positive effect on the corporate survival of listed firms in Sri Lanka. The study equally found that the current ratio has a positive and non-significant effect on the corporate survival of listed firms in Sri Lanka. It was concluded that liquidity management is a prerequisite for corporate survival in the listed firms in Sri Lanka. Based on the findings, it is recommended that listed companies should put in place accurate liquidity management procedures to avoid bankruptcy issues.
Working capital management and solvency management on financial performance: empirical evidence from capital goods sector in Colombo stock exchange
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Abdulla, M.A.; Rajapaksha, R.M.D.A.P.
The study aims to examine the working capital management and solvency management on the financial performance of Sri Lankan capital goods sector companies listed on the Colombo Stock Exchange, for a period of 9 years from 2013 to 2021. The size of the company was used as a control variable. The study employs Return on Assets (ROA) and Earnings Per Share (EPS) to measure financial performance. Current ratio (CR) Inventory turnover ratio (ITR) and total debts to total assets were used as proxies for liquidity, Inventory management and solvency management, while the logarithm of total assets was used to measure the size. Correlation and multiple regression analyses have been applied to analyze the data. The results show a statistically significant impact of working capital management and solvency management on financial performance, while the detailed results of the hypotheses indicate that liquidity has an insignificant reverse impact on financial performance. Further, there is a significant positive impact of size on performance and a significant negative impact of solvency on performance. The study suggests in light of the results, increasing investments in companies’ assets by focusing on internal financing, such that large-sized companies with low leverage will have a good performance.