Economics

Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/4627

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Start date: 2022End date: 2023

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    The effect of board characteristics on tax aggressiveness: the case of listed entities in Sri Lanka
    (Emerald Publishing Limited, 2023) Shamil, Mohamed Mihilar; Gooneratne, Dulni Wanya; Gunathilaka, Dasitha; Shaikh, Junaid M.
    Purpose – This study examines the effect of board characteristics on the tax aggressiveness of listed companies on the Colombo Stock Exchange in Sri Lanka. Design/methodology/approach – The sample consists of 264 firm-year observations of non-financial listed companies in Sri Lanka from 2014 to 2019. The dynamic panel system GMM technique was used to test the hypotheses, and further analyses were performed using the propensity score matching technique. Findings – All four effective tax rate measures’ mean values were lower than the statutory tax rate, indicating the likelihood of tax planning. Whether board attributes are likely to mitigate tax aggressiveness is uncertain because the results are inconsistent and depend on the ETR measure. Similarly, the logistic regression results derived using the PSM approach are inconsistent, suggesting that board characteristics may have a limited effect on tax aggressiveness. Hence, the corporate governance-tax aggressiveness nexus is limited in the case of Sri Lanka. Research limitations/implications – This investigation is limited to non-financial listed companies in Sri Lanka and incorporates only four tax aggressiveness measures. Findings are imperative for policymakers, regulators, and professional bodies to improve corporate governance codes and rules to enhance organizational transparency toward corporate tax payments. Social implications – Aggressive tax planning by companies will reduce government tax revenue, hinder social progress, and cause public mistrust of large corporations and institutions. Originality/value – This study provides insight into the nexus between corporate governance and tax aggressiveness in a middle-income economy in South Asia hit by an economic crisis where tax revenue has fallen and tax enforcement is weak.
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    Elements of microfinance on spatial poverty alleviation in Sri Lanka: Structural equation modeling
    (Policy Studies Organization., 2022) Kumari, P.
    Sri Lanka being a developing country, its poverty can be identified as a serious issue for the development of the country. Poverty can be identified as a spatial characteristic in Sri Lanka which can be seen in the high poverty rates in several areas as the result of disparities of natural and physical resources distribution and, geographical disadvantages. Microfinance has been identified as a significant tool for eradicating poverty in many Asian countries after the 1990s. Sri Lanka also launched several microfinance programs to reduce poverty in the country. Despite the availability of microfinance in Sri Lanka, very few studies have been carried out; therefore, only limited knowledge of the empirical and theoretical impacts of the various microfinance elements on poverty alleviation is available. This study is an attempt to remedy this paucity of knowledge. Primary data were gathered through a Likert scale questionnaire that was distributed among 497 borrowers of the Samurdhi microfinance program. This sample was chosen from five districts of Sri Lanka. Structural Equation Modeling was used for testing the hypotheses. The findings of the study revealed that microcredit was the most significant element of microfinance for alleviating spatial poverty in Sri Lanka. Nonfinancial Services and Insurance Services also had a positive impact on spatial poverty alleviation. Micro Savings and Social Intermediation Services did not have a notable positive impact on spatial poverty alleviation in Sri Lanka. The findings of this study enhance the existing knowledge of microfinance, providing conceptual and empirical contributions. This study could substantially contribute to the government by offering it deeper insight into its programs. Therefore, policymakers and regulators will be able to introduce better tools for eradicating poverty, based on this new knowledge.