ICARE 2021
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/24724
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Item The Impact of Financial Reporting Quality on Audit Opinion: Evidence from Listed Companies of Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Fernando, W.W.U.L.; Aruppala, W.D.N.Type of audit opinion is important for all stakeholders; A lot of stakeholders’ decisions depend on the financial figures presented and disclosed by the management of the relevant firm. Stakeholders, mainly shareholders can’t or because of limitations, they can’t individually join with firms’ operations, that’s why they depend on independent third-party opinion about the financial statement prepared by the management. Firm-specific characteristics have a direct impact on the type of audit opinion. The purpose of this study is to examine the association between financial reporting quality and audit opinions. This study uses a multivariate regression analysis to tests it hypotheses to a sample of firms listed in Colombo Stock Exchange during 2017–2020. Measure the financial reporting quality through Hutton et al. (2009) model and use type of audit opinion, and auditor’s remarks (explanatory notes) as the measure for audit opinions. This study provides empirical support for the theoretical views on the association between financial reporting quality and audit opinion. The results could be of interest of both auditors and managers, especially in emerging capital markets, who seek to improve financial reporting quality.Item Determinants that Influence the Funding of SMEs And Analyzing Its’ Impact on SMEs’ Performance: Evidence from SMEs in Anuradhapura District(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Wijerathna., K.G.D.M.; Aruppala, W.D.N.This study attempted to identify the capital structure determinants and its impact for the financial performance of Small and Medium Enterprises in Sri Lanka. This research based on primary data from the small and medium enterprises in Anuradhapura District. Firm sizes, liquidity, growth of business, age of business are independent variables that are considered as determinants of the capital structure. Dependent variables of the study are Return on investment (ROI), Return on assets (ROA) to measure financial performance. The researcher used survey method which was conducted by sharing a structured questionnaire to owners of the small & medium enterprise. In this research five hypotheses were developed and expected to identify the determinants of Capital Structure and its impact on Financial Performance of the SMEs.Item Impact on Macroeconomic Variables on Share Price: Evidence from Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Thilakarathna, R.M.N.T.; Aruppala, W.D.N.This study examines the relationship between macroeconomic variables and Sri Lanka stock prices regards the five factors which are real GDP growth rate, Change in Colombo Consumer price index (Inflation rate), interest rate, USD exchange rate and money supply. As the government concern about an attractive capital market within the country that could result in encouraging domestic as well as foreign investment which ultimately support enhancing economic development. This study conducted with the objective of measuring the impact of macroeconomic variables on share prices of Sri Lanka within 2000 to 2020. Quarterly time series data were extracted from central bank publications in related to GDP growth rate, Inflation rate, Average weighted prime lending rate, US dollar exchange rate and M2 money supply which are independent variables and all share price index which is the dependent. Multiple regression analysis is used in order to test the relationship between selected macroeconomic variables and all share price index. Macroeconomic policy makers and the government officials can use these research findings in formulating different policies to know what type of impact can be generated by those policies towards share prices.Item Determinants of Capital Structure of Commercial Banks in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Senarathna, A.T.M.; Aruppala, W.D.N.The financing mix of long-term debt and equity is known as capital structure in corporate finance and capital structure decisions are a key issue in a firm’s financial strategy. The optimal capital structure indicates the best debt-to equity ratio for a firm that maximizes its value while minimizing its cost of capital. This study aims to investigate the most important factors that affect the capital structure of commercial banks in Sri Lanka. Profitability (PROF), Earnings volatility (EVOL), Tangibility (TANG), Growth (GROW) and Bank size (BSZ) were used as independent variables while Book leverage (BLV) is used as the dependent variable. The study used secondary data of eighteen (18) commercial banks covering the period of 2011 to 2020. Data were analyzed using regression analysis and E-Views packages. The results expect that Profitability, Tangibility and Bank size will have negative impact on Book leverage while other variables have positive impact on Book leverage. This study will discuss the connection of trade- off theory and pecking- order theory with these relationships among variables as well. Findings of the study will be of interest mainly to managers which will help them to identify the bank- specific factors affecting the capital structure and choose the values enhancing optimal capital structure.Item Impact of Accounting Information Systems on Organizational Performance of Manufacturing Sector(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Jayamina, Y.K.D.; Aruppala, W.D.N.Accounting information system (IAS) is a system which provides the vital information for planning, organizing, directing, leading and control on the activities of the organization. It is mainly used to gather, store, direct, process, recover and report its financial data as information is an important resource for an organization. The main objective of this study is to identify the impact of Accounting Information Systems on Organizational Performance of Manufacturing Companies in Sri Lanka. Sub objectives are designed to identify the impact of speed of accounting information systems on organizational performance, the impact of work simplification of accounting information systems on organizational performance and the impact of quality information of accounting information systems on organizational performance. All listed manufacturing companies at Colombo Stock Exchange (CSE) are considered as the sample of this study. A self-administered questionnaire is used to collect data. Further data is analyzed using SPSS software in order to obtain quantitative measure of descriptive statics, correlation, and regression use to multiple linear regression analysis. Findings of this study is useful for all users and decision makers of Accounting Information Systems in Manufacturing Companies in Sri Lanka and other organizations.Item Board Composition and Its Effects on the Financial Performance of Listed Companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Gunathilake, K.S.; Aruppala, W.D.N.Corporate governance mechanism gained considerable attention during past two decades as corporate scandals have taken place in the world. Some corporate failures in Sri Lanka made introduction to corporate governance mechanism and new Companies Act No. 7 of 2007 which replaced the old Companies Act No. 17 of 1982. The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) Securities and Exchange Commission (SEC) issued corporate governance regulations and corporate governance regulations made mandatory for all listed companies in Sri Lanka for the financial year commencing on or after 01st April 2008. This study focuses on four basic aspects of board composition that have been incorporated in recent reform of Codes of Best Practices: board size, CEO duality, gender diversity and independent directors in the board. The main objective of this study is to seek out the impact of board composition on the financial performance in listed companies. To get the efficient outcome, 50 companies were selected under ten GICS sectors in Colombo Stock Exchange (CSE) over 5 years from 2016 to 2021. Correlation and regression analysis utilized to find out the impacts of board structure on the financial performance. Moreover, this study is helpful for shareholders and policy makers to maximize the profit.Item Impact of Industry 4.0 on the Accounting Profession(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Dharmasena., I.P.N.; Aruppala, W.D.N.The world of technology is rapidly changing and evolving. It has positive and negative consequences on every sector of the world, directly or indirectly. Businesses are undergoing a number of obvious changes due to globalization, digitization and automation. The concept of Industry 4.0 can be identified as a combination of all these circumstances. This study examines how key technological changes in industry 4.0 affect business enterprises in Sri Lanka with a focus on four key technological innovations. These include Industrial Internet of Things, Big data analytics, Cybersecurity and The Cloud. The main objective of this study is to study the use of these technologies in Sri Lankan business entities and their impact on the accounting profession. To this end, secondary information gathering methods such as annual reports, websites, and newsletters are used. In addition, these technologies create challenges for the accounting profession such as IT skills, adaptation skills and global language skills. It is expected that this will enable future accounting professionals to develop a keen interest in developing the skills and competencies they will need to successfully meet these challenges.Item Nexus of Intellectual Capital and Firms’ Performance(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Amarasinghe, H.K.; Aruppala, W.D.N.Intellectual capital can recognize as a set of resources, capabilities, competences that directs organizational performance and value. Intellectual capital held and created by those human resources to manage it in a manner to achieve maximum effectiveness in firm performance. Most of the definitions of intellectual capital describes the intellectual capital as a knowledge capital or capital which derives from knowledge. Also, it has identified that the intellectual capital comprises with 3 domains of human capital, structural capital and the customer capital. Human capital is embedded in people, such as knowledge, skills, abilities and expertise, and social capital is the value that people gain through networks and relationship ties, and organizational capital is include in system, process, structure, culture of the firm. The main aim of this study to identify impact of intellectual capital on firm’s performance of the food & beverage industry which comprise with 49 listed companies in Sri Lanka. The data collection is based on annual reports for the years 2015-2020 of listed companies under Food & Beverage Industry at Colombo Stock Exchange. The Value-Added Intellectual coefficient (VAIC) method uses to measure the Intellectual Capital of the firm. Data is analyzed through linear regression model and use E-views software to perform statistical tests. Findings of this study will be beneficial for the decision makers in Food & Beverages Industry in Sri Lanka.Item Impact of Board Structure on Financial Performance - Evidence from Commercial Banks in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Medhdhawaththa, P.R.; Aruppala, W.D.N.Good Corporate Governance Practices are regarded as important to reduce the risk for investors, attracting investment capital and improving the performance of companies. The boards of directors play a critical role in monitoring companies in Sri Lanka. Board structure is important in the commercial banks due to the nature of business and the effect of government regulations, both of which limit to managerial discretion. Main objective of this study to find out the impact of board structure on financial performance. Further the study expects to identify how Board Size, Gender, CEO duality and number of non-executive directors’ components are affecting to the Financial Performance. Financial Performance is measured by accounting base measurements such as Return on Assets (ROA) and Return on Equity (ROE). The relationship between Board Structure and Firm Performances of Twenty- Four (24) Commercial Banks were considered as the sample of this study. The study conducted during the period of 2010 2020. All the data are collected from annual reports of each bank and data are analyzed by using Descriptive statistics, Pearson Correlation and Regression Analysis. The results indicate that Boards Size and Number of Non-Executive Directors has a significant positive impact on Financial Performance. Conversely, CEO Duality and Female Directors do not have a significant impact on Financial Performance. Further results of the study add insights on the relation between monitoring mechanisms and financial performance of commercial banks in an emerging market.Item Challenges of Implementing Computerized Accounting System in Small and Medium Scale Enterprises in Sri Lanka (With special reference to Western Province)(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Srimali, R.K.U.; Aruppala, W.D.N.Small and medium businesses make up 80% of all businesses in Sri Lanka. The major goal of this research is to determine the barriers to the implementation of computerized accounting systems in Sri Lankan SME's. This study focuses on the impact of cost, the nature of the organization, organization infrastructure, convenience of use, management aid, and government assistance on the adoption of a computerized accounting system in Sri Lanka, as a current topic. Computerized accounting system was a crucial component in the smooth operation of the firm due to the epidemic in the country. The research question is to find out why many small and medium-sized businesses in Sri Lanka don't use computerized accounting systems and what are the reasons on it. There has been no research on the reasons why small and medium sized businesses in Sri Lanka do not use computerized accounting systems, as well as the impediments to their use. This study contributes by encouraging small and medium-sized businesses to adopt computerized accounting systems. Most SMEs can get their technology decisions on computerized accounting systems through this research findings. This study is based on quantitative approach which uses numerical method. 150 SMEs in the western province were surveyed using a standardized questionnaire. The question is primarily based on the literature review conducted in conjunction with this research. The dependent variables are addressed in the first section, while the independent variables are addressed in the second section, which is the use of computerized accounting systems in SMEs. The data will be collected and analyzed using the SPSS software and tool. Furthermore, the study's findings will aid owners, managers, and other stakeholders to identifying obstacles that SMEs have while deploying computerized accounting systems.