ICARE 2018

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/19607

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Author: search.filters.author.Wijekoon, W.M.H.N.

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    Internal and External Determinants of Bank Profitability 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) Wijethunga, K.D.P.I.M.; Wijekoon, W.M.H.N.
    The bank provides a vital role as a financial intermediary for the development of countries’ economy. Bank performance has significant impact on investment, growth as well as economic development. The purposes of this study therefore, are to: investigate the relationship between internal and external factors and bank performance; and identify which factor is most important for the banking industry in Sri Lanka. This study employed following independent variables in order to examine the impact of internal and external factors on profitability of Sri Lankan banks: Bank Size (BS); Bank age (BA); Operating Cost (OC); Capital adequacy (CA); Liquidity Risk (LR); Total Deposit (TD); The real GDP growth (RGDP); and the yearly growth of householders’ disposable income (YGHDI). Sample of this study consists with twenty licensed commercial banks and specialized banks and data were gathered from multiple sources such as annual reports, bank web sites and central bank web site over the periods from 2009 to 2017. The data were analyzed using multiple panel regression model. Results of the study indicated that the Bank Age, Total Deposit, Yearly Growth of Household Disposable Income has a positive relationship with bank profitability. Liquidity ratio, Capital Adequacy ratio and Operating Cost negatively effect to the performance of banks in Sri Lanka. In addition, Bank Size and GDP which have reported a positive insignificant relationship with ROA. Results concluded that both internal and external factors contributed on the performance of Sri Lankan Banks.
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    The Use of Corporate Governance in Predicting Corporate Failure of Listed 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) Randika, R.W.M.K.M.; Wijekoon, W.M.H.N.
    The main purpose of this study is to investigate the relationship between corporate governance variables and corporate failure of listed companies in Sri Lanka. In modern business world sudden failure of corporation became one of most discussed topics and it is a common problem of both developing and developed economies. It is claimed that corporations are failed due to poor corporate governance systems. An analysis of literature revealed that only few studies were carried out on corporate failure prediction in Sri Lanka and such studies were based solely on financial ratios. Therefore, this study addresses the empirical gap exists in the local context. The study used logistic regression analysis to a data set of 58 matched pairs of failed and non-failed companies listed in the Colombo Stock Exchange in Sri Lanka over the period 2008 to 2017. Seven corporate governance variables were used for prediction of corporate failure such as board size, CEO duality, Outside directors, Audit opinion, Presence of audit committee, director’s remuneration, foreign ownership. The results of the study revealed that CEO Duality alone has significant positive impact to the failure of the corporations in the first year before failure and two years before failure. In three years before the failure both CEO duality and outside directors has significantly impact to the prediction of corporate failure. Therefore, results of this study can assist investors, managers, shareholders, financial institutions, auditors and regulatory agents in Sri Lanka to forecast corporate failure of listed companies
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    The Association between Firm Specific Characteristics and Voluntary Disclosures of Non-Financial Sector 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) Herath, C.G.H.S.M.; Wijekoon, W.M.H.N.
    The main purposes of this research are to assess the level of disclosure in the annual reports of non-financial (excluding banks finance and insurance sector) Sri Lankan firms which are listed in the Colombo stock exchange and to investigate the impact of firm specific characteristics on the extent of voluntary disclosure. A disclosure checklist consisting with 20 voluntary items was developed to assess the level of disclosure of 100 listed companies in Sri Lanka during the period 2017/2018. The association between the level of disclosure and firm specific characteristics were analyzed using E-views 8.0 statistical software package. Out of the total selected companies 58% companies have disclosed more than the mean level of disclosure index. It was found that firm size was significantly positively associated with the level of disclosure. This means that large size companies have more interest in disclosing additional information as compared to small size companies. Profit margin was also significantly positively associated, and debt was significantly negatively associated with the level of disclosure. The remaining variables, however, were found to be insignificant in explaining the variation of voluntary disclosure. The results of this study are very useful for the investment community to assist in evaluating the extent of voluntary disclosure by Sri Lankan listed firms and explaining the variation of disclosure. Further, the results provide useful insights to policy makers and regulators who want to improve voluntary disclosures in their countries