Browsing by Author "Yashodha, K.A.D.H."
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Item Detection of earnings manipulation; evidence From Sri Lanka(International Journal of Accounting & Business Finance, 2022) Wijesinghe, M.R.P.; Perera, W.T.N.M.; Yashodha, K.A.D.H.Stream of literature on earnings management highlighted managers' opportunistic behavior to manipulate financial information with the view of extracting numerous unethical benefits. The purpose of this study is to investigate whether earnings manipulation exists in Sri Lanka as fabricating earnings which adversely triggers to the economy as a whole. We utilized Beneish model in our study as this model is a widely accepted, successful and important fraud sensitive indicator in detecting earnings manipulation under specific accruals method. As the sample, we considered twenty listed firms from Colombo Stock Exchange (CSE) for the period of 2013 to 2017 on quarterly basis. Days Receivable Index (DSRI), Gross Margin Index (GMI), Asset Quality Index (AQI), Sales Growth Index (SGI), Depreciation Index (DEPI), Sales General and Admin Expense Index (SGAI), Leverage Index (LVGI) and Total Accruals to Total Asset Index (TATA) were used to calculate the M-Score of the model which determines the susceptible companies where earnings manipulation could exist. Results, reveals that earnings manipulation exists in the entities listed on CSE at different degrees based on financial structure of such companies operating in different sectors. Our findings facilitate regulatory authorities to enhance effectiveness of standard-setting and monitoring to eliminate dodges where earnings could be manipulated. In addition, the study contributes to the knowledge base of academics and policymakers to make effective economic decisions.Item Determinants of Stock Returns: Evidence from Listed Commercial Banks in Sri Lanka(International Conference on Business and Information (ICBI – 2019), [Accounting, Finance and Economics], Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2019) Withanage, W.S.; Yashodha, K.A.D.H.; Wijesinghe, M.R.P.This research study attempts to investigate the determinants of stock returns using evidences from listed commercial banks in Sri Lanka. Inflation rate, GDP growth rate and Interest rate are taken as the macroeconomic determinants for this study while earnings quality measured by accruals also considered as a paramount variable. The study was carried out by using quarterly data for the period from 2010 to 2015 under the regression model, granger causality test, Vector Error Correction Model and impulse response test. Results concluded that macroeconomic variables and earnings quality except GDP growth rate have insignificant effect on stock returns of selected Listed Licensed Commercial Banks in Sri Lanka. GDP growth rate has a significant negative impact on stock returns while inflation rate has insignificant positive impact on stock returns. Earnings quality and interest rate have insignificant negative relationship on stock returns. Moreover, results showed that there is a higher response from GDP growth rate to stock returns.