Browsing by Author "Sujeewa, G.M.M."

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Aptitude of internal control systems to prevent and detect financial statement frauds in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Bandara, R.M.S.; Sujeewa, G.M.M.; Rathnasiri, U.A.H.A.
The emerging discipline of Forensic Accounting is a relatively new profession in Sri Lanka even though it was developed with many ideas and techniques centuries ago. The profession has been molded and shaped by many aspects of the shifting the world including the economy, society, and legislation and it has become one of key arenas for government, practitioners, investors, general public and regulatory bodies. Corporate failures all over the world time to time has enlighten the necessity of forensic accounting profession giving more attention to financial statement frauds. The small and medium organizations tend to suffer excessively large losses due to financial statement frauds and it will increase the importance of forensic accounting practices in Sri Lanka because more organizations are in small and medium scale in nature. Process affected by organization’s structure, work and authority flows, people and management information systems designed to help the organization accomplice specific goals or objectives as the internal control systems of an entity playing a vital role in detecting and preventing financial statement frauds. The current exploratory study examines the capability of internal control systems in preventing and detecting the financial statement frauds. Structured interviews, questionnaires and empirical research findings on the practice of forensic accounting were used to analyze capability of internal control systems for preventing and detecting the financial statement frauds in Sri Lankan companies. Purposive sampling method was used to select the sample and 25 senior managers and 10 auditors were participated as respondents for the research representing 24 private and companies. The study identified control environment and monitoring as the independent variables and number of frauds and its value as the dependent variables. The study identifies that the management integrity and the soundness of internal control systems can help to reduce the probability of occurring financial statement frauds. Further it is revealed that 68% of business entities’ internal control systems have not been facilitated for detection of frauds. Moreover the study recommends that effective and efficient internal control policies and procedures put in place should be monitored to prevent and detect financial statement frauds in Sri Lankan companies.
Assessing the Impact of Skills on the Effectiveness of Internal Audit: Empirical Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Kavinda, S.J.M.I.; Sujeewa, G.M.M.
In the dominion of Sri Lankan audit practices, this research endeavors to dissect the elaborate interaction between professional, interpersonal, technical, and audit-specific skills and their influence on the effectiveness of internal audits. The study draws upon a diverse sample of 120 participants from varied sectors such as hotels, manufacturing, banking, and audit firms to precisely assess the connection between these skills and the effectiveness of internal audit functions. Utilizing a strong conceptual framework where these skills are suggested as independent variables and internal audit effectiveness as the dependent variable, the research crafts and empirically evaluates four hypotheses. These hypotheses scrutinize the extent to which internal auditors’ skills possess the necessary to influence audit functions effectively. Findings explain a significant positive correlation between professional factors and internal audit effectiveness. This underscores the paramount importance of cultivating and honing professional skills such as accounting expertise and regulatory acumen to bolster audit performance. The study explained a persuasive link between interpersonal skills, and technical and audit skills with internal audit effectiveness, highlighting the instrumental role of effective communication, team collaboration, and relationship-building capabilities in enhancing audit outcomes. The implications of these findings extend beyond theoretical dimensions and concrete the way for actionable recommendations. The study underscores the imperative for technical skill enhancement programs, continuous skill assessments, and cross-industry collaborations to fortify the skill arsenal of Sri Lankan internal auditors.
Behavioral Intention to Use Forensic Accounting Services for the Detection and Prevention of Frauds in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Nisansala, H.A.; Sujeewa, G.M.M.
This study investigates the factors that influence the behavioral intention to use forensic accounting services in the detection and prevention of fraud in Sri Lanka. The research was motivated by the underutilization of forensic accounting services, an essential and effective fraud detection and prevention method. The low usage of this service by companies in Sri Lanka and worldwide has been pointed out as a contributing factor in the escalation of fraud. The organizational intention to use professional services including forensic accounting services has not been researched previously. The study uses a quantitative approach to its research methodology. The Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB), Health Belief Model (HBM), and Hierarchy of Effects Model (HOE) were found to be significant to the study of behavioral intention during the second part of the literature review. Quantitative data is gathered from Chief Financial Officers (CFOs), Business Owners/CEOs, Internal Auditors, Finance Managers, Compliance Officers, Risk Managers, and Audit Committees of Sri Lankan companies during the third phase. The multiple regression approach using ordinary least squares was used to examine quantitative data. The findings support the significant positive impact of awareness, stakeholder pressure, and threat perception factors on the behavioral intention to use forensic accounting services, as well as the negative impact of financial costs and legal factors. This research contributes theoretical as well as practical. The integrative conceptual model, which has effectively integrated factors from the TRA, TPB, HBM, and HOE in examining the behavioral intention of using forensic accounting services, is the theoretical contribution. There has never been an investigation into the company's intention to use professional services, such as forensic accounting services. Additionally, this study is the first to use HOE's awareness and HBM's risk perceptions in an ethical decision-making model. The study's practical implications allow the government of Sri Lanka, professional associations, board of directors, stakeholders in the organization, and accounting firms to gain a better understanding of the reasons behind organizations' resistance to using forensic accounting services for fraud detection and prevention. It will also enable them to create workable techniques and marketing plans to raise forensic accounting services' profile, obtain acceptance, and eventually be used in the battle against fraud.
Corporate Governance and Firm Performance: Empirical Evidence from Selected Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dehipegedara, B.A.C.; Sujeewa, G.M.M.
Corporate governance practices are very important to the corporates and its impact to the company’s performance is much debated areas. Good corporate governance practices enable to reduce the risk of the investors, to attach more investments and to improve the performance of companies. This study analyzed the current context of corporate governance and firm performance in listed companies in Sri Lanka. Data and other reliable information are taken from the audited financial statements and the governance section of annual reports from each selected companies. The sample was obtained from the “business today top 25 companies 2014- 2015” journal article, for the period from 2010 to 2014. Descriptive statistics, Pearson’s correlation, regression analysis and analysis of variance were applied to analyze the relationship between corporate governance and firm performance. The results shows that there is a positive relationship between corporate governance practices and ROE and ROA, in the Sri Lankan context. And also it was found that the relationship between number of meetings that hold by the companies and board composition with ROE and ROA is negative, and the relationship between Board committees and Board leadership structure with ROA or ROE is Positive. It is concluded that there is a positive relationship between corporate governance and firm performance in listed companies in Sri Lanka. On the other hand, some corporate governance practices were significantly related with firm performance and some other corporate governance practices were insignificantly related with firm performance.
Degree of operating leverage and stock returns: an empirical study of Colombo Stock Exchange
(University of Kelaniya, 2008) Ranjani, R.P.C.; Sujeewa, G.M.M.
The impact of accounting information on stock market has been one of the most studied topics in the Accounting and Finance research literature. Most of the studies are aimed at identifying in what ways and dimensions of the accounting information is effectively relevant for the investors' decision making. When making decisions with the purpose of maximizing wealth, investors take into account the impact of macro economic and firm specific variables. But, most of the studies have focused on accounting information such as Profitability, Earning per Share (EPS), Return on Capital Employed (ROCE) etc. The present study draws an attention to another important accounting variable, Degree of Operating Leverage (DOL) which is the relationship between Earning Before Interest and Tax (EBIT) and Sales. Hence, this study was undertaken with the purpose of determining the impact of the Degree of Operating Leverage on Stock Return in the Colombo Stock Exchange. This research was based on data from manufacturing firms listed on the Colombo Stock Exchange for the period of 2003 to 2007. The final sample contained 27 companies out of 31 companies in the manufacturing sector. Empirical tests were performed to test the hypothesis that the Degree of Operating Leverage has a positive impact on Stock Returns. We find that there is not a positive and significant relationship between those two variables as expected.
Detecting financial statement fraud through new fraud diamond model with special reference to the selected listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Udayanganee, L.P.A.P.I.; Sujeewa, G.M.M.
Financial statement fraud can have serious consequences for both shareholders and society. The purpose of this paper is to evaluate the effect of the new fraud diamond model in explaining financial statement fraud. The variables used to analyze are motivation, opportunity, personal integrity, and capability. The population for this study was 25 companies from Food, beverages, and tobacco sector listed on the Colombo Stock Exchange from 2016 to 2021. According to the findings, the nature of the industry, and the history of sales significantly affect financial statement fraud. The findings of the study back up the new fraud diamond model theory in explaining the phenomenon of financial statement fraud. This study tries to examine the factors that enable financial statement fraud to occur using only secondary data available and freely accessible to the public. The sample for the study was limited to companies in the food, beverage, and tobacco industries. It is important that future research expand the scope of the analysis of corporate fraud by including an analysis of another type of corporate fraud. Researchers can change from collecting secondary data to collecting primary data, allowing for more complete and accurate research. More research into this theory is needed to strengthen the new fraud diamond model theory and determine whether it can be utilized as a reference for detecting financial statement fraud cases.
The Determinants of Financial Institutions Profitability A Study on the Banking and Non-Banking Financial Institutions in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Koswatta, K.M.S.M; Sujeewa, G.M.M.
Financial Institutions plays a major role in providing better financial services in any economy. Profitability of the financial institutions has become vital for financial stability. The purpose of this paper is to investigate the relationship between bank and finance companies-specific characteristics on profitability in Sri Lankan banking and non-Banking sector. The research is conducted using twenty-four licensed Commercial Banks and forty-one licensed finance companies in Sri Lanka as the sample out from the population. It is used the secondary data collected from published financial statement of listed in Colombo Stock Exchange (CSE) for the period of five years from 2015 to 2020. Banking and non-banking financial institutions size, Capital ratio, Loan ratio, Deposits, Loan loss provisions are considered as independent variables while Return on equity (ROE), Return on assets (ROA), Net interest margin are considered as profitability measure of this study as dependent variables. The collected data are analyzed though multiple regression analysis. The finding of study will provide information to present and potential investors for making optimal decisions on which internal factors to be considered in making investments on finance sector in Sri Lanka.
Determinants of Financial Performance of Listed Companies of Financial Sector in Colombo Stock Exchange.
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Chandrasekara, C.M.N.N.; Sujeewa, G.M.M.
The bank and non-bank financial institutions are considered to be an important source of financing in any economy. Stability of earnings is one of the preconditions for survival and growth of any industry in the long run. Keeping the importance of financial performance in mind, this paper aims to find out the determinants of financial performance of financial sector listed companies in Colombo Stock Exchange during the period 2015 to 2019. Return on equity is defined as the dependent variable while Company size, Liquidity risk, Operating cost and Capital adequacy are identified as independent variables. The panel data is employed, and E-views software is used for data analysis. Descriptive statistics and inferential statistics, simple linear regression model, correlation matrix, Fixed Effect Model and Random Effect Model are used to analyze the data. The findings will be important to the management of listed companies in finance sector to manage their portfolios efficiently in order to protect the long run investments of profit-making.
Determinants of Risk Management Disclosures in Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Ravindi, N.G.T.N; Sujeewa, G.M.M.
Risk is an inseparable and unavoidable part of any organization. The purpose of the study is to investigate the determinants of risk disclosures in Listed Companies in Sri Lanka by referring to the annual report for the period of 2016- 2020 with the highest market capitalization. Board size, Firm size, Risk management units and Leverage are used as the independent variables while Risk management disclosures considered as the dependent variable. The methodology used in the study is content analysis. The findings of the study will identify the relationships between the independent variables and Risk management disclosures. Thereby this study will fill the gap of inadequate analysis done in countries like Sri Lanka. Furthermore, the findings will contribute to the potential investors to make relatively effective decisions by considering the risk exposure and also the findings contribute to the literature.
Does revenue create better picture among its stakeholders?
(Department of Accountancy, University of Kelaniya, 2014) Herath, H.M.V.; Sujeewa, G.M.M.
The Effect of Internal Controls on Financial Performance; Special Reference to Western Province in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Dharmasena, R.I.M.D.N.; Sujeewa, G.M.M.
The secret to SMEs' success is the effective management of their financial performance, which is a complex undertaking. The creation and maintenance of a strong internal control framework become crucial tools in this endeavor. The purpose of the study was to establish the effect of internal controls on financial performance; special reference to Western Province, Sri Lanka. The study was guided by the following research questions; To what extent does the control environment influence the financial performance of SMEs in Sri Lanka? How does risk assessment affect the financial performance of SMEs in Sri Lanka? What is the impact of control activities on the financial performance of SMEs? How does information and communication impact the financial performance of SMEs in Sri Lanka? What is the relationship between monitoring and the financial performance of SMEs in Sri Lanka? The study specifically investigates the influence of internal control components, including the control environment, risk assessment, control activities, information and communication, and monitoring, on the financial performance of SMEs. Financial performance is measured using Return on Assets (ROA). The study employs a cross-sectional research design, which limits the ability to establish causal relationships. While it can identify associations between internal controls and financial performance, it may not conclusively demonstrate causation. Assistants, Executives, and Managers at SME make up the target population for this study, which is only focused on the Western Province, Sri Lanka. A sample length of 100 respondents has been chosen for this examination. For the purpose of gathering survey data, this study uses a quantitative strategy over a cross-sectional time period. Data was systematically gathered using a structured questionnaire with Likert scale questions. Primary data was collected using a structured questionnaire. The Study used SPSS 26 to analysis the data. Quantitative data was analyzed, and the output presented using descriptive statistics namely: mean, standard deviation, percentages. A multiple linear regression model was used to assess whether internal controls have an effect on the performance of SMEs. the data presentation and analysis of the study which covered the exploratory data analysis, illustrations of demographic factors and descriptive statistics of the sample. Validity and reliability of data has been tested. Further this chapter elaborated the correlation coefficient between Internal control systems and financial performance in Sri Lankan SMEs and evaluated the regression of the model using statistical means to arrive at the outcome to test the hypotheses.
The Effect of Liquidity Management on Finance Distress in Listed Non-financial Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Madadeniya, M.G.P.M.; Sujeewa, G.M.M.
This study aims to evaluate the effect of liquidity management on financial distress in listed non-financial companies on the Colombo Stock Exchange (CSE) under the highest market capitalization. The sample of this study includes annual reports of 50 listed non-financial companies in Sri Lanka for five years from 2019 to 2023. This research used secondary data; data taken from the annual reports. The independent variable is liquidity management, which consists of current ratio management, quick ratio management, solvency ratio management, and cash coverage ratio management. The current ratio, quick ratio, solvency ratio, and cash coverage ratio measure these variables. The dependent variable is financial distress, which is measured by Altman’s Z-score model. Ordinary Least Square Regression was used to analyze the information in the reports to recognize liquidity management's impact on financial distress. The study concluded that the current ratio, quick ratio, and solvency ratio have a significant negative effect on financial distress. In contrast, the cash coverage ratio has a negative non-significant effect on financial distress. Based on the findings, it was recommended that listed companies implement accurate liquidity management methods to prevent bankruptcy. It was concluded that liquidity management is a precondition for financial distress in the listed non-financial corporations in Sri Lanka.
Effect on Internal Control Functions in Preventing Employee Frauds in the Banking Industry Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Lasara, J. Y.; Sujeewa, G.M.M.
This study aims to examine the impact between internal control functions and fraud Prevention. Accordingly, this study examines the effect of the control environment, control activity, risk assessment, information and communication, and monitoring on fraud prevention in the banking industry Sri Lankan context. The study's target Population consisted of the 80 financial service companies presently trading in Sri Lanka. Data from systemically important banks, including Bank of Ceylon, Commercial Bank of Ceylon, Hatton National Bank, People's Bank, Sampath Bank, and Seylan Bank, which together hold 78 percent of the country's banking assets, were gathered through a questionnaire survey, resulting in a total of 235 responses. According to the findings, Monitoring activities have the most influence on preventing fraud in Sri Lanka's banking sector and are a key predictor of preventing fraud. In terms of findings, the results show that all five components have a significant positive impact on employee fraud prevention in the banking industry in Sri Lanka and are important predictors of fraud prevention. It is emphasized that the use of the COSO Framework in each financial sector is considered a valuable function of an organization, specifically to prevent fraud, it has become increasingly vital in the modern era, characterized by complex financial products, digital transactions, and stringent regulatory requirements. The researchers anticipate contributing to the current corpus of research and address the lack of knowledge about rising nations. The findings have relevance for internal audit managers and policymakers since they may enhance the effectiveness of the internal audit function inside an organization.
The Empirical Relationship Between Board Involvement, Board Structure and the Financial Performance of Non - Financial companies in Colombo Stock Exchange (CSE)
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Herath, P.P.M.S; Sujeewa, G.M.M.
Board structure is one of the most important mechanisms of corporate governance, which would result in improved the financial performance of the organizations. The purpose of this study is to identify the empirical relationship between board involvement, board structure and the financial performance of the non- financial companies in Colombo Stock Exchange (CSE). This study is based on the secondary data extracted from annual reports for the period of 2015/16 to 2020/21 based on the higher market capitalization. Moreover, this study uses panel regression model to analyze the data. Board size, Board Independence, Board Gender, CEO Duality and Proportion of Non – Executive Directors are used as independent variables and Return on Asset, Return on Equity, Net Profit Margin and Tobin’s Q are used as dependent variables. The findings of the study will identify the significant relationships between Board Involvement, Board Structure and the Financial Performance of Non – Financial companies in CSE. And it will provide a new perspective of studying the relationship between board involvement, board structure and the financial performance in Sri Lanka.
Examine the External Auditors’ Fraud Tendency Perception in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Amarasingha, J.M.N.M.; Sujeewa, G.M.M.
This study considers external auditors’ fraud tendency perception as the dependent variable, Pressure (PRE), Opportunity (OPP), Rationalization (RAT), Competence (COM), Arrogance (ARR), and Collusion (COL as the dependent variable. This aim is to measure the level of external auditors’ fraud perception, the association between components of fraud hexagon to fraud perception. The population is people who are participating in public practice including senior auditors, supervisors, managers, and partners who engage in external audit functions in Big four and non-Big four audit firms in Sri Lanka. An online survey was used to collect the data, which was then examined using the IBM Statistical Package for Social Sciences (SPSS 23). The data were mostly described using descriptive and inferential statistics. The results indicate that external auditors' perception of fraud triggers does not fully support all six components of the fraud hexagon theory. Among the six components, Opportunity, rationalization, and competence are found to have a significant influence on the perception of fraud tendency. However, other three components do not have a significant impact. The Hexagon idea has received less academic attention because it is a more recent theory. Studies on auditors' perceptions of fraud have been few despite the fact that many new fraud hypotheses have been studied, the majority of which concern industries like manufacturing and banking. While most studies have focused on examining the components of fraud, fewer studies have studied the tendency for fraud to occur. Numerous studies on this battle from various perspectives have been undertaken by various nations. There are, however, not many studies on this topic that apply to Sri Lanka. Due of this, it is necessary to look at the Sri Lankan background. The variables influencing the external auditor's judgment of fraud tendencies on the link between parameters connected to fraud and perceptions of fraud have also been the subject of conflicting findings in some international studies. The primary aim of the study is to determine the impact of the elements of the fraud hexagon theory on the fraud perception of Sri Lankan external auditors. According to that, the researcher has investigated the most important factors affecting external auditors’ fraud tendency perception. Hence, this chapter consists of the background of the study, problem statement, research questions, and objectives. Subsequently, this chapter highlights the importance of the study and provides a brief overview of the research methodology and the extent of the study.
Factors influence on survival of micro, small and medium enterprises in Sri Lanka: in context of Covid 19
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Senadheera, S.A.G.M.; Sujeewa, G.M.M.
This research is related to identifying the factors that impact on Survival of Micro, Small and Medium Enterprises in Sri Lanka in the context of Covid 19. There are many research papers available related to factors impact on growth of Micro, Small and Medium Enterprises. The purpose of this study is to explore the factors that impact on survival of MSMEs in Sri Lanka: In the context of Covid 19. Qualitative methodology was used in the study and findings are based on survey analysis. The survey was done through a questionnaire created by the researcher from the literature and distributed among MSMEs owners in Sri Lanka. This study basically used correlation and regression analysis to analyze the data. Further data analysis was conducted through the Statistical Package for Social Sciences which is called SPSS software. The major finding of this study was entrepreneurial skills, technology, Usage of accounting practices, marketing platforms and government support have a positive impact on the survival of the MSME sector. The findings of this study will support to survival MSMEs sector under the sudden shock in the economy as well as other organizations to survive.
Financial fraud control in a digital environment: forensic accounting
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sandeepa, P.D.W.; Sujeewa, G.M.M.
The technology, which takes on specific systems and capabilities with every passing day, has left organizations to engage greater with digital surroundings. While processing the enterprise records in digital surroundings consequences in advantageous outcomes, which include saving time and charges for organizations, it has additionally triggered a brand-new fraud method to return into question, which is a bad effect. This method is known as financial fraud. It has led to a brand-new career to return to prominence in monetary fraud management accomplished in digital surroundings, where the 3M theory and competence detail play a significant function with inside the awareness of monetary fraud. Developments in technology have triggered state-of-the art instances inside agencies to grow and strategic choices to come to be greater enormous, and as a treatment for those causes, allowed forensic audit reviews and forensic accounting to come to be prominent. This study has attempted to analyze whether core skills and traits are powerful in monetary fraud audits in digital surroundings. For this purpose, a survey has been implemented for internal auditors, executive management persons, and forensic accountants of licensed bank companies in Sri Lanka. which have engaged with forensic accounting practices, and due to the survey, it changed into concluded that the core skills and traits of the auditors evaluated as forensic accountants have been near forensic accountants overseas, however, there has been no specific forensic accounting software program in opposition to monetary frauds accomplished digitally and the transactions have been made on audit software program at some point of monetary fraud audits. On the alternative hand, it changed into observed, with inside the studies records, that the accounting career changed into improvement in Sri Lanka, there has been no longer sufficient infrastructure provided, and forensic accounting was also effective in internal audit and quality financial reporting.
Firms’ Internal Audit Function and Quality of Its Financial Reporting in Sri Lankan Listed Companies
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Sangeeth, H.A.N.; Sujeewa, G.M.M.
The purpose of this paper is to investigate the relationship between firms’ internal audit function and the quality of its financial reporting. The paper uses questionnaires sent to internal audit departments in listed companies in Sri Lanka. Financial reporting quality recognized as the dependent variable and internal audit function identified as the independent variable. Independent variable measures using twelve variables; time and resources devoted to (1) financial auditing, (2) operational auditing, (3) compliance auditing, (4) management auditing, (5) Specialization of internal auditor in financial audits, (6) Internal auditor training and knowledge of accounting regulations, (7) Review of the management and financial information systems, (8) Review of the accuracy and reliability of the accounting records and financial reports, (9) external audit requests information, studies from the internal auditor, (10) periodic meetings between internal and external auditors, (11) external auditor provides important information for the internal auditor to develop its work, (12) internal auditors collaborate with external auditors in annual audit. The collected data analyses using two analysis techniques; (1) regression analysis, (2) Univariate and multivariate analysis. The findings of the study are important to regulators, management, boards of directors, and investors should all be aware of the findings. These findings help to enhance the transparency, integrity, and quality of financial reporting. Previous empirical researchers have examined at the quality of financial reporting with different variables in the corporate governance such as board of directors, audit committee, and external audit, and hard to find studies on relationship between firms’ internal audit function and the quality of its financial reporting.
Identifying the revenue of an export company which sells goods under FOB terms
(Department of Accountancy, University of Kelaniya, 2014) Perera, H.D.D.; Sujeewa, G.M.M.
The impact of acquisition on financial performance of subsidiary companies of Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Weerasinghe, M.I.S.; Sujeewa, G.M.M.
Acquisition is a famous business expansion concept of the developed countries over the past decades. Nowadays it has been a good trend in developing countries too. There were many mergers and acquisition carried out in Sri Lanka between 2000-2020. Therefore, it is essential to find out the impact of merger and acquisitions on firms’ financial performances. This study have investigated the impact of acquisition on financial performance of target firms listed in Sri Lanka. For this study sample was thirty listed subsidiary companies from few different sectors such as manufacturing, plantation, hotels etc. which involved in acquisitions between 2000- 2015. Financial ratio analysis has used to determine the effect of acquisition on financial performance of target company and significance of changes in financial performance have tested by a paired T-test. The result of this study shows that there is no any significant changes in post-acquisition period compared to the pre-acquisition period.