Browsing by Author "Thilakerathne, P.M.C."

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Corporate social responsibility and financial performance in the Sri Lankan context
(Faculty of Social Sciences, University of Kelaniya, 2009) Thilakerathne, P.M.C.
Determinants of Profitability in Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Chandrasiri, C.L.S.S.; Thilakerathne, P.M.C.
The main purpose of this research study was to explore factors which follow Influence to determine profitability of commercial banks in Sri Lanka. During this period of 2011 – 2015 the Sri Lankan central bank presented new rules for amalgamation for financial institutions. In the perspective banking amalgamation valuing particular bank is having contemporary importance in that period. The focus of this study is mainly to get idea about determinants of commercial bank profitability in Sri Lanka. There are several factors which are impact to commercial bank profitability, only considered about internal quantitative factors which are influence to commercial bank profitability. But there are several factors which impact on commercial banks as internal and external. To identify internal quantitative factors which are impact to commercial bank profitability, got Return on asset (ROA) as profitability proxies that one is dependent variable of that research and also Banks capital and total Banks deposits. Those two considered as independent variables. To run linear regression and other programs used secondary data of 08 listed commercial banks and 02 semi government banks over 10 years’ quarterly data. Outs come of this study are, according to model there is a significant and positive relationship in between banks capital and banks total deposits with return on assets.
Economic Value Added (EVA) Disclosure Practices of Sri Lankan Listed Companies
(Journal of Finance and Accounting, 2015) Thilakerathne, P.M.C.
Transparency, disclosures and information sharing with stakeholders, command a considerable degree of value to the accompanying financial statements of any corporate or business enterprise. Investors and stakeholders are increasingly looking at the performance of companies which they have invested their hard earned funds. To meet such expectations, good governed companies do adopt practices which add to enhance the value of financial statements and value to its readers. The ideas of free cash flow and the evaluation of business on a cash basis developed by Modiglaini and Miller (1961) were extended into the concept of the Economic Value Added (EVA) (Stewart and Stern 1971). The traditional financial performance measures have not presented the real shareholder value of an enterprise. Thus, the EVA is one of main evaluation criteria of companies’ commitment with shareholder value maximization. In this context, this research investigated the EVA disclosures in the annual reports of Sri Lankan listed companies. Analyzing annual reports of Sri Lankan largest 85 listed companies over a period of 5 years from 2009 to 2013, the results indicated that 15 numbers of listed companies, as a percentage of 17.65 of the sample disclosed the EVA statement in their annual reports. The study further explored the industry composition, residential status, medium of disclosure, areas of EVA application and extent of EVA related computation prepared and disclosed by EVA reporting companies. Univariate analysis was used to identify the extent of EVA disclosures of listed companies in Sri Lanka and it was found that, existence of significant inconsistencies and irregularities in measurement of EVA and its major components of EVA reporting listed companies. The second part of the study explored that the corporate attributes such as back ground information and financial performance indicators of companies are influenced to the choice of EVA disclosure. Therefore, research performed a comparison of differences between EVA reporting and EVA non reporting listed companies on the basis of their background indicators and financial performance measures. Research employed the two independent sample t-tests to identify the factors influencing to EVA usage and disclosure choice of Sri Lankan listed companies in terms of company size, profitability, leverage etc. Research finds that the EVA usage and EVA disclosure choice of Sri Lankan companies are influenced by the company size, leverage and earnings potential. Further, the study recommends the importance of implementing EVA disclosures as a mandatory requirement for Sri Lankan listed companies.
The Effect of Macroeconomic Variables on Stock Market Returns in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Narayana, S.N.B.M.V.N.; Thilakerathne, P.M.C.
The stock market investment is one of many potential investment vehicles in which investors can invest their disposable income and reap the returns of its growth over a period of time. When investors value stocks, they mostly consider about the macroeconomic variables. This study investigates the effect of macroeconomic variables on the stock market returns in Sri Lanka. During the period from 2009 to 2019 macroeconomic factors were experienced unexpected changes due to national and international economic conditions. Even though, there are various researchers’ investigated the impact of macroeconomic variables on the stock prices or stock returns, there were only a few researchers’ investigated the relationship between macroeconomic factors and the stock market returns by considering above significant periodical changes. Therefore, this study investigates the effect of macroeconomic variables on stock returns. This study employs the multiple regression analysis by following (Balagobei, 2017); (Ilahi, Ali and Jamil, 2015). Selected macroeconomic variables are Inflation rate (INF), Interest rate (IN) and Exchange rate (EX). The stock market return was measured by using All Share Price Index based on monthly observations of listed companies selected for the study. This study will facilitate investor confidence, make optimal decisions when macroeconomic factors diverge in different time periods in the economy. Therefore, outcome of this research and subsequent policy recommendations may assist policy makers to prudently manage the macroeconomic forces to optimize the performance of Sri Lankan capital market in order to formulate of economic targets and policies.
An examination of accounting internship on subsequent academic performance
(science publishing group, 2014) Thilakerathne, P.M.C.; Madurapperuma, M.W.
Increasingly, internship has become an essential component of the undergraduate degree programmes. It provides students with a smooth transition from on-campus environment to the working environment. It is often viewed as a ‘win-win’ situation for both the intern and the intern’s employers. Students are able to learn about the profession and gain practical experience while simultaneously being able to reflect on what they have learned in the classroom. Employers benefit from internships because interns are sources of future employees. The relationship between Internship and academic performance on accounting degree is significantly under-researched. This paper examines the effect of accounting student internships on subsequent academic performance in one of the national universities in Sri Lanka. For this purpose post-internship course unit performance of students with accounting internship experience were considered. Readily available data on internship status, gender and prior achievement of accounting special degree undergraduates were used. Linear regression models were constructed using the data with undergraduates. Research finds that internships do a have a positive impact on learning and higher scores tend to have a higher GPA and gender is negatively correlated with GPA signaling that male students performed better than female students.
The Impact of Capital Structure Choice on Firm Performance: Empirical Evidence from Diversified Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Abeyrathne, A.H.M.U.S.; Thilakerathne, P.M.C.
The Capital structure decision is fundamental for any business organization, because of the need to maximize return to the various stakeholders and such decision has great impact on the firms’ ability to deal with competitive environment (Awunyo-Vitor, 2012). Therefore managers need to take decision very carefully regarding to the capital structure of company. Hence the researcher investigated the impact of capital structure choice on firm performance. The objective of this research is to evaluate the impact of capital structure choice on performance of diversified companies in Sri Lanka. The study used secondary data for a sample of 14 listed diversified companies in Colombo stock exchange during 2008-2016.Short Term Debt to Asset Ratio and Long Term Debt to Assets Ratio used as measurements of capital structure. Further firm size used as control variable and also Net Profit Margin, Return on Equity and Return on Assets used as measurements of performance of the diversified companies. The results indicated that firm performance, which is measured by Return on Asset, Return on Equity and have negative relationship with Short Term Debt to Asset Ratio and there is no significant relation with Short Term Debt to Asset Ratio. Further Short Term Debt to Asset Ratio has a negative significant impact on Net Profit Margin. Moreover, Long Term Debt to Asset Ratio has a negative significant impact on Return on Asset and Return on Equity. Therefore, there is negative relationship between capital structure choice and performance of diversified companies in Sri Lanka.
The impact of embedding information and communication technology content in accounting courses and its effect on overall students’ performance
(Department of Accountancy, University of Kelaniya, 2015) Thilakerathne, P.M.C.; Madurapperuma, M.W.
This study examines the impact of embedding Computer Aided Learning (CAD) in accounting courses in one of the conventional university’s accounting courses and its effect on overall students’ performance. It differs from the previous research in that accounting undergraduates taught MYOB accounting software in their second year of four year honours degree. At the same time other ICT courses in the accounting curriculum geared towards training students to prepare financial statements using spreadsheets etc. Student performance does not alone describe the ICT content in accounting curriculum and in effect included prior accounting knowledge, English knowledge and gender as other explanatory variables. Multiple regression analysis on student performance shows that prior accounting knowledge and its performance, internship performance, English knowledge at the entry level to the accounting degree programme together with MYOB course performance of students and internship marks significantly explained the overall performance of accounting graduates.
The Impact of Exchange Rate Movements on the Stock Returns of Commercial Banks 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) Bandara, A.W.M.S.S.C.; Thilakerathne, P.M.C.
Foreign exchange rate is price of the local currency stated in terms of another currency. It is widely held that foreign exchange rate is important financial and economic factor which affects the value of common stocks. Exchange rate movements are highly affected for creating risk in banking institutions. This paper investigates the impact of exchange rate on the stock returns of commercial banks listed in Colombo Stock Exchange (CSE). Data were extracted from the Central Bank of Sri Lanka (CBSL) and CSE. Data were analyzed by using linear regression analysis for the period of July 2013 to June 2018 using monthly observations. The results of the study indicates that there is significant exposure of Sri Lankan listed commercial banks to major exchange rate movements suggesting that an appreciation (depreciation) of domestic currency value (Sri Lankan Rupee) against four major currencies such as US Dollars, Japanese Yen, Euro and Great Britain Pounds delineates positive as well as impact on stock returns of the respective banking institutions. The important characteristic in this study is that estimation of the exposure coefficients are based on the individual firm level data
Investors Attitudes and Investment in Unit Trusts: A Case Study of Sri Lanka
(University of Portsmouth, United Kingdom, 2007) Thilakerathne, P.M.C.; Abeywardhana, D.K.Y.
Methodological Issues in Forecasting Corporate Failure: A Review
(International Conference on Business and Information (ICBI – 2019), [Doctoral Colloquium], Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2019) Samaraweera, A.S.A.; Thilakerathne, P.M.C.
Forecasting corporate failure has been a hot topic during for more than eighty years. From the univariate model of Beaver (1966), and the Multivariate Discriminant Analysis model of Altman (1968) to models based on Logit, Probit, Artificial Neural Networks (ANN), Bayesian models, Fuzzy models, Genetic Algorithms (GA), Decision trees, Support vector machines, Knearest neighbor, Hazard and Hybrid, model building has evolved during this period with the focus of enhancing prediction accuracy. The literature can be classified into three main methods, namely; statistical methods, intelligent techniques and theoretical approaches to forecast corporate failure. The paper aims to contribute to the existing literature by analyzing methodological problems in the above three areas. A systematic review is performed on 76 articles spanning a period from 1966 to 2018 in scholarly reviewed journals. The results on the SLR indicates that there has been significant prior work in the areas of forecasting corporate failure, but there lacks a sound theoretical view for a highly accurate, simple and widely used model.
Methodological Issues in Forecasting Corporate Failure: A Systematic Literature Review
(19th Conference on Postgraduate Research, International Postgraduate Research Conference 2018, Faculty of Graduate Studies,University of Kelaniya, Sri Lanka., 2018) Samaraweera, A.S.A.; Thilakerathne, P.M.C.
Research on predicting corporate failure has been reserved vital place over eighty years. Previous researchers adopted vivid methodological approaches in this area of study. Literature stems from the univariate model of Beaver (1966), and the Multivariate Discriminant Analysis model of Altman (1968) to models based on Logit, Probit, Artificial Neural Networks (ANN), Bayesian models, Fuzzy models, Genetic Algorithms (GA), Decision trees, Support vector machines, K-nearest neighbour, Hazard and Hybrid, model building has evolved during this period with the focus of enhancing prediction accuracy. Vast array of literature can be classified into three main methods, namely; statistical methods, intelligent techniques and theoretical approaches to forecast corporate failure. This research paper aims to contribute to the existing literature by analyzing methodological problems in the above three areas. A systematic review is performed by using 76 articles spanning a period from 1966 to 2018 appeared in scholarly reviewed journals. The results on the systematic literature review indicates that there has been significant prior work in the areas of forecasting corporate failure, but there lacks a sound theoretical view for a highly accurate, inclusive and widely used model. A best model should be evolved considering the relationship between the corporate failure and theoretical arguments through existing economic theory.
Seasonality Effect of Emerging Stock Markets: Evidence from Sri Lanka
(University of Portsmouth, United Kingdom, 2007) Thilakerathne, P.M.C.; Amarasiri, K.P.M.M.; Abeywardhana, D.K.Y.