Browsing by Author "Weerawickrama, V.L."

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Corporate Governance and Financial Statement Frauds: Evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Rajapaksha, R.A.S.; Wijerathna, A.G.H.S.K.; Muthunayake, H.; Weerawickrama, V.L.
With the increased number of frauds taking place in the corporate world regulators and policymakers around the world have been making attempts avoid or reduce the frauds. Implementation of corporate governance code can be identified as one of the major mechanisms implemented against frauds. However, regardless of the implementation of such mechanisms still the frauds continued to be taking place. Accordingly, an attempt should be made to identify the extent of influence of Corporate Governance Code in the prevention and detection of frauds in the companies. The study was conducted based on 40 listed companies in Colombo Stock Exchange. The occurrence of the financial statement frauds was measured by incorporating Beneish M Score model. Corporate governance has been measured in terms of audit committee, CEO duality and Board Composition. As per the results of this study the corporate governance, board composition and CEO duality does not have a significant impact on the financial statement frauds. However, the results suggest that existence of audit committee has significant impact on the financial statements frauds. The existence of audit committee ensures the effective operation of internal controls which can prevent and detect frauds to a large extent.
The Impact of Trade Credit Usage on Firm’s Profitability 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) Weerawickrama, V.L.; Perera, H.A.P.L.
Trade credit has been recognized as a crucial source of short-term financing for listed manufacturing companies. A trade credit contract is a legally binding agreement between two parties that allows a buyer to purchase goods or services on account and pay the supplier at a later date. The main purpose of this study to investigate trade credit as a financing source among listed manufacturing companies particularly the influence of short-term credit usage on profitability of the companies and to ensure whether theoretical concepts of trade credit usages are practicable in real business environment. Ordinary least squares (OLS), fixed-effects and generalized method of moments (GMM) system models were used to analyze the data using Eveiws. The sample of this study is all the listed manufacturing companies in CSE during the period of 2009 to 2017. Initially there were 41 listed companies in the sample and due to the availability of data 31 listed manufacturing companies were selected for final analysis. The study provides empirical evidence that profitability significantly and negatively influenced by trade credit accounts payable and that short-term debt positively influences. Furthermore liquidity level and firm size are positively related to profitability, while firm age is negatively related to profitability. The present study adds to the literature by using OLS, fixed-effects and GMM system models to analyze a sample in an Asian country where trade credit is considered important financing instruments
Value Relevance of the Accounting Information; An Empirical Study of Selected Sri Lankan Firms
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Weerawickrama, V.L.; Tilakasiri, K.K.
This research examines the value relevance of the accounting information in Sri Lanka which has taken book value per share (BVPS), operating cash flow per share (OCFPS), earnings per share (EPS) and return on assets (ROA) as independent variables and the market value per share (MVPS) as dependent variable. The sample of the study includes six largest sectors in Sri Lanka with the observations of 1490. The research is based on Ohlson’s (1995) price model along with OCFPS and ROA are captured. Regression Study found that EPS, ROA and BVPS have significant positive relationship with market value per share. However OCFPS is not statistically significant, but it still acts as a one of the determinant of market value per share with other mentioned variables. The data have been taken from the period 2012 to 2019. The research has covered the periods after to the accounting restructure in 2012 in which Sri Lanka enforced LKAS and SLFRS that were fully converged to respectively IAS and IFRS.