6th ICARE 2020

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The Association between Corporate Social Responsibility and Financial Performance - with Special Reference to Public Quoted Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Dilrukshika, M.G.C.M.; Lakshan, A.M.I.
The concept of corporate social responsibility (CSR) has developed in the Western world since the twentieth century (1950). Many businesses neglect to engage in social work and some business organizations voluntarily engage in different types of CSR. Also, listed companies spend huge amounts of money in CSR activities for different purposes. The impact of those spending is not clear and especially how CSR spending influence on performance of companies is a bit confusing. as well as, mixed empirical evidence has been found in relevant previous studies on the relationship between CSR and Financial performance. Moreover, almost every previous study provides evidence of developed countries. This investigation is based to fill the knowledge gap of developing countries. Accordingly, the aim of this study is to examine the impact of CSR on financial performance of selected listed companies in Sri Lanka. Based on literature, independent variable is CSR and three dependent variables (ROA, ROE and EPS), and two control variables Firm Size and Leverage have been chosen in this study. The sample of this study consists of 75 listed companies on the Colombo stock exchange and they are selected based on their market capitalization. Data collected from annual reports covering periods from 2015 to 2019. Data were analyzed using regression analysis and E-Views packages. findings of this study will be useful for listed companies to gain an understanding about the direction of impact of CSR on their profitability and they can take decisions regarding their avenue and amount of CSR spending. Further, findings can be useful to offer pivotal implications about CSR and Financial performance for policy makers and regulators.
Board Structure Best Practices and Its Impact on Firm Performance: Empirical Evidence from Public Listed Companies of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Priyantha, V.P.T.; Lakshan, A.M.I.
Board Structure is an important Corporate Governance mechanism, which would result in improved performance. Boards play an important role in advising top management. Purpose is this study was to examine the relationship between Board Structure and financial performance in Diversified Listed companies in Sri Lanka. In the existing literature, authors have studied the impact of board size and board composition on financial performance. However, studies of the above relationship in particularly unstable and there is paucity of research in Sri Lanka context. In order to fulfill this gap, the present study is initiated to find out that to what extent board size and board composition influence on financial performance. As per the identified board structure characteristics, the impact of board size, board balance, disclosure of board, board independence, board remuneration and CEO duality on the performance measures (ROA, ROE, and EPS) are investigated. The quantitative research approach is employed to investigate out the findings of the research study. This study tests the research hypotheses, the inferential tests used include the correlation analysis and regression analysis. The sample of the study comprises 40 listed companies in Sri Lanka and data obtained from published annual reports, company websites over the period of five years from 2014 to 2019. The findings of the study will be useful to decide board structure best practices in a way to ensure higher performance. Further, investors will have the opportunity to draw conclusions from the board structure of those institutions when making their investment decisions.
Credit Risk on Performance: Evidence from Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Sandakelumsiri, P.W.M.; Abeyawardhana, D.K.Y.
Credit risk is one of the most common causes of bank failures. Generally, Credit risk is the possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations. This study therefore sought to provide a response to the question: what is the effect of credit risk on the financial performance of commercial banks in Sri Lanka? Aim of this study is to investigate the effect of credit risk on banks performance. Data collected over the six-year period from 2014 to 2019 from the published annual reports of the selected banks and the CBSL reports. The CAMEL model is used as an indicator of bank credit risk and financial efficiency is measured using ROE. Pearson correlation analysis and a multiple regression model were the basis of the data analysis approach. This research paves the way for new data on the relationship between credit risk and the financial performance of Sri Lankan banks to be discovered. The required guidelines for various parties to mitigate credit risk issues in order to make adjustments and optimal investment decisions formulate policies and enforce them.
Determinants of Bank Profitability: Evidence from Sri Lankan Banks
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Fonseka, W.P.H.L.; Dilini, Aruppala
Financial institutions can be identified as one of the most important part of the financial system of any country. Among them banks play a major role in economic development of a country. Main objective of this study is to identify internal and external factors that effect on the profitability of Sri Lankan banks. To accomplish the above objective there are eight independent variables and one dependent variable is used. Those are bank age (BA), bank size (BS), operating cost (OC), capital adequacy ratio (CA), liquidity risk (LR), total deposit (TD) as internal variables and gross domestic product (GDP), inflation rate, (IR) as external variables and return on assets, (ROA) used as dependent variable. Eleven commercial banks and six specialized banks total of nineteen bank used as sample of this study for the period of ten years from 2010 to 2019. Data analysis is done using regression analysis using E-Views. Finally, the results of this study will helpful to policy makers and bank’s managers to make effective and efficient decision and improve the performance of the banks.
The Determinants of Corporate Sustainability Reporting Disclosures: Evidence from the Listed Manufacturing and Finance Companies in the Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Karunathilaka, K.A.C.S.; Karunaratne, W.V.A.D.K.
The term “corporate sustainability” describes a new corporate management model. These include the linkages between environmental, social, and economic issues as well as long-term perspectives. The goal is to provide long-term value for stakeholders without compromising people, the planet, or the economy. This study investigates the impact of determinants on corporate sustainability reporting (CSR) disclosure. While many studies have investigated sustainability reporting in developed countries, there is a dearth of research in developing countries. As a developing country in the Sri Lankan context, it was confirmed that a few times and the researchers gave comparatively less attention to investigate the impact of firms’ specific determinants on sustainability reporting disclosures in Sri Lanka. Thus the study aimed to investigate the impact of firm characteristics on corporate sustainability reporting in Sri Lanka related to the Manufacturing sector and Finance sector. In the study, the firm’s age, firm size, Leverage, Firm profitability, Ownership concentration, Management qualification are considered as independent variables. Those variables are measured by using the total asset, the number of listed years, Total debt to total asset ratio, Return on equity, Common shares owned by individual investors, Degree holding, respectively. The dependent variable of CSR was measured by using the Global Reporting Initiatives (GRI) index. Consequently, these quantitative data were employed in the panel data regression model using EViews software to scientifically analyze the data to identify the significant relationship between these two variables. This study helps the shareholders and investment community evaluate the firm and get the optimum decisions. Furthermore, the management can also get knowledge for making decisions and making differences by getting efficient outcomes from that.
Determinants of Financial Performance of Listed Companies of Financial Sector in Colombo Stock Exchange.
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Chandrasekara, C.M.N.N.; Sujeewa, G.M.M.
The bank and non-bank financial institutions are considered to be an important source of financing in any economy. Stability of earnings is one of the preconditions for survival and growth of any industry in the long run. Keeping the importance of financial performance in mind, this paper aims to find out the determinants of financial performance of financial sector listed companies in Colombo Stock Exchange during the period 2015 to 2019. Return on equity is defined as the dependent variable while Company size, Liquidity risk, Operating cost and Capital adequacy are identified as independent variables. The panel data is employed, and E-views software is used for data analysis. Descriptive statistics and inferential statistics, simple linear regression model, correlation matrix, Fixed Effect Model and Random Effect Model are used to analyze the data. The findings will be important to the management of listed companies in finance sector to manage their portfolios efficiently in order to protect the long run investments of profit-making.
The Determinants of Profitability in the Banking Industry: An Evaluation from Licensed Commercial Banks and Licensed Specialized Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Kavirathna, T.A.; Jayamaha, A.
The banking sector in Sri Lanka plays a major role in the overall in financial and economic development. Also, the profitability of the banking sector is very important for the stability of the country’s finance sector. This study investigates the factors that determine the profitability of the banking industry in Sri Lanka. Most of the literature on determining bank profitability is based on data from banks in developed countries, and several studies provide evidence of commercial banks in developing countries. This study hopes to contribute to the literature that determines the profitability of the banking industry: it is evaluated by licensed commercial banks and licensed specialized banks in developing countries such as Sri Lanka. Profitability is measured using Return on Assets (ROA). It explains bank size (BSZ), Capital Adequacy ratio (CAR), Deposits (DEP), GDP Growth rate (GDP), Inflation Rate (INF). The study examines a sample of 10 Licensed Commercial banks and 2 Licensed Specialized banks in Sri Lanka for a period of 10 years from 2010 to 2019 using the annual reports published by the Colombo Stock Exchange of Sri Lanka. This study will use the pooled ordinary least square (POLS) method to analyze the data. The empirical results will show what are the significant determinants that affecting the profitability of the banking industry in Sri Lanka.
Determinants of Profitability of Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Ranathunga, M.K.Y.N.; Jayamaha, A.
This study investigates the magnitude of the impact of the bank specific determinants on the profitability of commercial banks in Sri Lanka. Banks act as financial intermediaries between money savers and borrowers. Banks therefore represent one of the most vital groups in the financial market which has crucial economic role in any economy. Banks convert deposits into profitable investments which provide acceleration to the economy. The profitability of the bank has become essential for financial stability. They can get the correct and favorable decision by analyzing these findings. This paper investigates what are the key determinants of profitability in Licensed Commercial Banks in Sri Lanka. There are 26 Licensed Commercial Banks in Sri Lanka. Among that in this paper consists sample of 13 local Commercial banks. The study uses annual data relating to the bank specific performance during 8 years period from 2012- 2019. Data collects by investigating annual reports of each bank separately. There are two profitability measures namely Return on Average Assets (ROAA) and Return on Average Equity (ROAE) are included as dependent variables to make results more comprehensive. The independent variables employed are Liquidity Asset Ratio, Capital Adequacy Ratio, Cost to Income Ratio and Size of the bank as control variable. Panel data regression analysis has been used to find out the independent variables which are statistically significant in explaining the profitability measures. This study provides supporting to Government officers, Investors, University Students for their academic activities and people who prefer in economy in the country.
Effect of CEO Duality, Board Size, Board Composition on Corporate Governance Disclosure in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Perera, B.H.N.U.; Perera, Prabath
Corporate Governance (CG) plays an important role for better decision making to all the stakeholders of the organization. This study examines the effect of CEO duality, board size and board composition on corporate governance disclosure practices in Sri Lanka. Related prior studies have examined the level of corporate governance disclosure in various countries by using the same CG disclosure traits. However, no formal research has so far been conducted to measure the effect of duality, board size and board composition on corporate governance disclosure in Sri Lanka. So there is a need for researchers to focus on the development of more reliable and valid measurements of the corporate governance disclosure model. In accordance with that, it will fulfill the gap between effects of duality, board size, board composition in corporate governance within the Sri Lankan context. Accordingly, the main purpose of this study is to investigate the impact of corporate governance traits such as CEO duality, board size and board composition on the level of corporate governance disclosure practices in listed companies in Sri Lanka. This study employs the Corporate Governance Disclosure Score containing 29 items, which are very similar to the S&P disclosure score. To facilitate the analysis, a Corporate Governance Disclosure Index (CGDI) has been computed. For the reviewing purpose of score items, highest market capitalized 64 listed companies had been selected using market capitalization report as at 31.03.2019 of Colombo Stock Exchange. Annual reports of the fiscal year 2015 to 2019 were considered for data collection and used panel regression technique to estimate the model. The findings of this study will provide useful insights to all stakeholders of the company to investigate the accuracy of their decisions. Further, these practices help developing economies to get sustainable rates of growth and enhance the confidence of a national economy.
The Effect of Corporate Governance Characteristics on Corporate Social Responsibility Disclosure: Empirical Evidence from Public Listed Companies of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Karunarathna, N.P.; Lakshan, A.M.I.
In the current business environment, organizations believe that they have an obligation to act for the benefit of the community at large. CSR disclosure has become an essential requirement of stakeholders and thus, it become a mainstream component of corporate strategies. This study investigates the level of Corporate Social Responsibility (CSR) disclosure provided in the annual reports of companies listed on Colombo Stock Exchange (CSE) of Sri Lanka and to assess the impact of corporate governance characteristics on the extent of CSR disclosures. As a developing country, the underlined research area is not much discussed in previous researches in Sri Lankan context. CEO duality, board independence, audit committee, foreign ownership, board meetings and board size were considered as independent variables. Corporate social responsibility disclosures were used as dependent variables. Firm size, profitability and leverage were used as control variables. Data was collected for the last five financial years (2014/15 to 2018/19) from annual reports of 90 listed companies on Colombo Stock Exchange (CSE) of Sri Lanka representing all business sectors other than banks, diversified finance and insurance. A literature review was carried out to identify factors of corporate governance and corporate social responsibility disclosure. The research hypothesis was formulated and descriptive statistics are used to examine the importance of identifying corporate governance factors, and correlation and regression analyses are performed to identify relationships/impacts between independent variables and dependent variable. The findings of the study will provide useful insights to stakeholders, decision makers, investors and statutory bodies to take into consideration in identifying the corporate governance characteristics and CSR disclosures related measures.
The Effect of Corporate Governance on Equity Finance of Sri Lankan Listed Companies
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Premathilaka, D.M.R.; Lakshan, A.M.I.
The concept of corporate governance (CG) is a common concept that must be used by every listed company in the world. Further, better CG results in increasing investors trust towards the corporation and on the other hand, it helps corporations to access more equity finance in their capital market. This study aims to investigate the type of relationship that exists between CG and equity finance in Sri Lankan listed companies. In the context of Sri Lanka, to the researcher’s best knowledge, there is no any published study available in terms of firm-level CG and equity financing patterns. This study attempts bridge this gap and to enhance the existing literatures. This study aims to examine the relationship between firm-level Corporate Governance (CG) and firm equity finance as the primary objective. Subsequently, the study aims to investigate the relationships between individual organizational factors (Frim size, Profitability, Leverage, Age and Growth rate) and equity finance while identifying the variable that has a highest impact on firm’s equity finance. To measure the firm-level CG Index (CGI), this study uses 59 dichotomous CG practices under five sub-indices (Ownership concentration, Board structure and procedures, Shareholder rights, Internal controls and Disclosures and Corporate social responsibilities). Further, this study uses secondary data from published annual reports. Sample size is 76 list companies and data collected for 4 years from 2016 to 2019. Ordinary Least Squared (OLS) multiple regression model is used in SPSS to identify the relationships. The findings of this study are highlighted the need for Sri Lankan companies to formulate an optimal CG structure, which in turn would lead to the eradication of possible malpractices such as corruption, fraud and misappropriation of resources to ensure higher financial performance and long-term sustainability. Hence, policy makers and regulators such as SEC, CA Sri Lanka, and the Central Bank of Sri Lanka can draw insights from the findings of this study in making CG reforms in relation to minority protection and other related areas in developing an appropriate CG structure for public listed companies.
Effect of Corporate Governance on Firm Capital Structure; Evidence from Sri Lankan Context
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Manawadu, J.C.; Tilakasiri, K.K.
This study explores the effect of corporate governance on firm capital structure in Sri Lanka. Though the governance on financial decisions has much researched in developed country context, scarcely any local studies have been found. Moreover, prior empirical studies have presented mixed results and have failed to identify most significant governing attributes affecting capital structure. This study fills this gap by taking into consideration significant attributes. Therein study aims to explore the effect of governance mechanisms such as board independence, CEO duality, board committees and board independence on capital structure decisions in Sri Lanka. Multiple regression analysis is employed to identify the association between corporate governance attributes and capital structures of Sri Lankan firms. This study employs a representative sample of all non-financial sector companies for a 5 years of latest period from 2014 to 2019. The sample comprises of 50 non-financial firms and 250 firm-year observations. Thereby, the paper will be of much value for leading Sri Lankan corporates to successfully compete by understanding importance of corporate governance on firm decisions. Educators are expected to gain knowledge and potential researchers will also be beneficiaries.
The Effect of Corporate Governance on Tax Avoidance in Listed Companies of Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Wimalaweera, H.C.C.; Perera, Prabath
Tax avoidance is a transaction scheme to reduce tax amounts by making use of the loophole of tax regulations in a country. Corporate Governance is a mechanism or system that provides regulations and controls a company to create value added for all stockholders. The purpose of this study is to find the effect of corporate governance on tax avoidance in listed companies in Sri Lanka. This area is not widely researched in Sri Lanka, but a few studies have been selected in this area to study the global context and up until now, researchers have failed to generate knowledge that can fit into the local context. So, the focus of this study is to fill this knowledge gap and to determine the exact relationship between corporate governance and tax avoidance in Sri Lanka. The dependent variable in this research is tax avoidance and the independent variables in this research are institutional ownership, managerial ownership, independent commissioner board, audit committee and audit quality. The samples of this study were 50 companies in the food, beverage and tobacco sector and the capital goods sector listed in the Colombo Stock Exchange for the period of 2014 – 2020. The data were analyzed using the E-views Statistical Package. The findings of the study can have important implications for the Government, business owners, researchers and academicians, board of directors and employees, bank and financial institutions and potential investors.
The Effect of Credit Risk Management on Shareholder Value: With Special Reference to Licensed Commercial Banks in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Karunarathna, K.A.D.N.M.; Thilakarathne, P.M.C.
This study investigates the effect of credit risk management on the shareholder value of the licensed commercial banks in Sri Lanka. The banking industry is facing enormous challenges due to various risk categories exposed by banks such as credit risk, operational risk, market risk, control risk, liquidity risk, reputational risk, IT risk, legal risk and strategic risk. Among those credit risk has a significant effect on the shareholder value. In the world context researchers found that there is an effect of credit risk management on the shareholder’s value. But in the Sri Lankan context there are a few studies investigated in this important research problem. So, the findings of this study offers a better understanding on the status of the effect of credit risk management on the shareholder value of licensed commercial banks in Sri Lankan context. The sample comprises 20 licensed commercial banks encompassing ten years (from 2009/2010 to 2018/2019). The secondary data extracted from audited financial statements and annual reports of banking institutions and analysed using the multiple regression. The findings of this current study will be beneficial for decision making parties in the banking sector, on deciding how to sustain their performance efficiently and effectively by achieving the shareholder value. Further this will beneficial for the parties who are interested in conducting studies relates to credit risk management and shareholder value.
Effect of CSR on Financial Performance of Public Listed Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Jayalath, J.A.K.E.; Munasinghe, M.A.T.K.
Corporate social responsibility (CSR) is an important concept in the business world and affects the Financial Performance of organizations. Therefore, this study aims to investigate the effects of CSR on the financial performance in selected public listed companies in Sri Lanka. Prior studies have found different types of relationships between corporate social responsibility and financial performance of firms ranging from positive to negative. The objective of this study is to identify the relationship between corporate social responsibility and financial performance for the period of 5 years from 2015 of selected 30 public listed companies of Sri Lanka. This study uses the secondary data and data were collected from annual reports of the selected public listed companies. Other sources are newsletters, news articles, journals and websites. The data were analyzed using regression analysis. This study use Return on Assets (ROA), Return on Equity (ROE), Net Profit (NP) and Earnings per Share (EPS) to measure financial performance of the firms. The sample comprises 30 firms from 3 industry groups listed on Colombo stock exchange which are consumer durables & apparel, Food, Beverage & tobacco & Consumer services. The results of this study provide useful insights for the firms to improve the knowledge and management practices. Findings of this study would encourage companies to sense in depth about CSR.
The Effect of Firm Specific Characteristics on Financial Leverage: Evidence from Listed companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Nanayakkara, S.K.; Wijekoon, W.M.H.N.
The study examines the impact of firm specific characteristics on financial leverage of listed companies in Sri Lanka. An analysis of previous research indicates gaps in the literature. Prior research on the subject provides mixed findings and therefore, comprehensive evidence is missing relating to the firm specific characteristics that impact on financial leverage. There appears to be a dearth of literature on the subject in developing and Asian countries and Sri Lanka in particular. Therefore, this study aims to fill this gap in the research by investigating the impact of firm’s characteristics on financial leverage of listed companies in Sri Lanka. Quantitative approach was adopted in the study to find answers for the research questions of the study. firm size, tangibility, profitability, and firm age were used as independent variables and Financial Leverage used as the dependent variable of the study. A fixed-effects regression technique is used to analyses data. The dataset used covers 100 non-financial companies in the Colombo Stock Exchange in Sri Lanka and collected for data for 8 year period from 2012 to 2019. Findings of the study will be useful to policy makers in developing policies on corporate finance and to managers in formulating strategies to increase firm value and performance by considering changes in firms characteristics and its impact on financial leverage. Findings also provide useful insights to managers in determining the capital structure based on firm’s characteristics.
Effect of Leverage on Firm Growth: With Special Reference to Food, Beverage and Tobacco Companies Listed in Colombo Stock Exchange
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Aberathna, H.P.D.C.N.; Abeywardhana, D.K.Y.
This study investigates the effect of leverage on firm growth with special reference to the food, beverage and tobacco companies listed in Colombo Stock Exchange. The relationship between leverage and firm growth in food, beverage and tobacco industry in developing countries have not adequately addressed in the previous literatures and there is a debate in findings of previous researches about the relationship between leverage and firm growth. The main problem of this study is to investigate whether the leverage influences negatively or positively on signaling the firms’ growth. This study uses secondary data from annual reports of every selected company for 5 years. The sample comprises 20 firms from 2015-2019. This study will use a panel regression model to examine the relationship between variables. Overall leverage, long-term leverage and short term leverage are used as independent variables and Revenue Growth rate is used as the dependent variable. In addition, firm size and Asset Tangibility use as control variables in the econometric model. According to the results of this study managers can optimize firm revenue and firm growth by changing financial leverage. The findings of this study will help to managers and further researchers to get an idea about the effect of the leverage on firm growth.
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.
Effect of Trade Receivables Management on The Profitability of Retailing Firms Listed in The Colombo Stock Exchange
(Faculty of Science, University of Kelaniya, Sri Lanka, 2020) Akmeemana, N.D.; Perera, K.H.
Trade receivables will lead to increased core revenue and operational profits. However, if trade debtors due is not collected within the agreed time period, it will lead to bad and overdue receivables, leading to a decrease in operational profits and ultimately total profit. Therefore, this study was conducted to explore the relationship between Trade Receivable Management (TRM) and profitability of retailing companies listed under the Colombo Stock Exchange for a period of nine years. There are thirteen companies listed under the retailing industry and the total population was selected for the study to ascertain a better and reliable conclusion. Profitability was measured using Return on Asset (ROA); and the Debtor Collection Period (DCP), bad debt to receivables ratio and accounts receivables turnover were used to measure the trade receivables management of companies. Secondary data was obtained from the published annual reports of the sample and analyzed using SPSS. Correlation and regression analysis was used to measure the results. Findings of this research will help the management in making decisions that will assist in the overall working capital management in formulating their strategies and when negotiating with clients, credit control managers in the organization, etc. Also this study will assist researchers to build into the existing body of knowledge to assist in additional researches.
Exploring the Factors Influencing Employee Turnover Intention: With Special Reference to the Shared Service Operations Section
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Warnasuriya, A.G.H.M.; Gunasekare, U.L.T.P.
Employee turnover is well studied topic in literature but least monitored problem in organizational settings. There are many factors leading to employee turnover and these factors appeared to have less coherent in different situations. This study is focused on shared service sections of organizations that is mostly common business practice today. The study conducted with the aim of identifying the factors influencing employee turnover intention of Shared Service Operations section of the organizations and the relationship of those factors with the employee turnover intention. Based on the literature review, six factors that may influence the employee turnover intention were found. This research study focused on the employee turnover intention that can lead to the Unwanted Employee Turnover (UET) due to the various reasons such as; high job stress, poor working environment, high workload, poor work life balance, low pay and benefits & job dissatisfaction. The sample of 200 employees representing different age, gender and job levels were selected randomly. The findings of the study will provide useful insights about employee turnover intention in shared service operations sector. Further, the results of this study are most important to the human recourse departments of shared service operation sector to reduce employee turnover intention of their organizations.