Browsing by Author "Rosa, S.J.S."

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Differential Patterns of Textual Characteristics in the Chairman’s Statement and Company Performance: Evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Rosa, S.J.S.; Kawshalya, M.D.P.
Corporate annual reports are continuously getting important in external reporting. The chairman statement is one of leading section of annual report that provides information beyond what is required by legislative. It is well-known fact that, those who prepare financial statements have motivation to exercise the content of Chairman’s Statements. In Sri Lanka, since Chairman’s Statement being a prominent requirement of annual report, this research investigates the textual differences of chairman’s statement in companies with higher performance and poor performance in terms of market capitalization. The research question is investigated by examining a range of textual characteristics in the chairman’s statements of 25 companies with highest market capitalization and 25 companies with lowest market capitalization listed in the Colombo Stock Exchange (CSE). The results of the current study indicate that content of chairman’s statement significantly affected by firm’s underlying performance. Since, Chairman’s statement is one of most widely read section of annual report, this study will provide an understanding and guidelines to the stakeholders who make decisions regarding organizations by reading chairman’s statement.
The Impact of Company Performance on Chairman’s Statement
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Rosa, S.J.S.; Kawshalya, M.D.P.
Accounting information are getting increasingly important in external reporting. The chairman's statement usually occupies a prominent place in the annual report and provides information beyond what is required for statutory financial reporting. It is a recognized fact that those who arrange corporate annual reports have important motivations to exercises the content of Chairman Statements. This study tries to identify is there any different pattern between how most profitable and the least profitable companies report their organizational information in the chairman statement. There are prior studies related this topic in different developed countries. In Sri Lanka, Chairman Statement is mandatory requirement of annual report whereas no any evidence of prior research regarding chairman statement in Sri Lankan content. Accordingly, this research investigates the relationship between financial performance and chairman statement textual characteristics in Sri Lankan Content. Impression management is given motivation for poorly performing management to report their performance. This study is trying to identify whether companies chairman statement reporting strategies depend on underlying financial performance. The research question is investigated by examining a range of textual characteristics in the chairman’s statements of 20 extremely profitable and 20 extremely unprofitable Sri Lankan listed companies. Since, Chairman’s statement is one of most widely read section of annual report, this study will provide an understanding and gridlines to the stakeholders who make decisions regarding organizations by reading chairman’s statement.