ICARE 2022

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Analyzing the impact of corporate social responsibility on corporate financial performance in covid-19 pandemic period: evidence from CSE listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Thenuwan, D.M.D.; Tilakasiri, K.K.
The concept of Corporate Social responsibility is an important area to discuss in Sri Lankan corporate sector. Therefore, this study is mainly focused to examine the impact of the Corporate Social Responsibility activities on firm performance on pre and during COVID-19 Pandemic period while considering the four types of CSR activities that will be considering by using the GRI discloser index. The study will develop a CSR scoring model to measure CSR with considering the lack of usage of the GRI guidelines of Listed companies in Sri Lanka. This research will use the return on equity (ROE) and Return on Assets (ROA) to measure the financial performance of the organization. The population of the study is all public listed companies in Colombo Stock Exchange and sample size was 50 companies. Since Sri Lanka had faced with covid 19 during the year 2020 onwards, the analysis will be divided into 2 phases whereby 1st phase will be named as “pre-covid period” from 2015 to 2019 and the 2nd phase will be named as “Post-covid Period” from 2020 and 2021. Data will be analyzed using Descriptive Statistics, Pearson Correlation and Panel Data Regression Analysis. Mean, standard deviation, variance graphs and tables will be used to discuss the findings, according to the descriptive analysis. Regression analysis used for testing the relationship between employee, environmental, social and market corporate social responsibility and firm financial performance. Findings of this research helps to take decisions of the stakeholders of companies in Sri Lanka. Finally, such information will help the investors, decision makers, regulators, policy makers and scholars to improve their knowledge about sustainable reporting practices.
Association between corporate governance practices and firm performance of manufacturing companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Samanmali, I.M.S.I.; Perera, P.R.M.R.
Effective corporate governance procedures are thought to be crucial for lowering investor risk, attracting in investment money, and enhancing company performance. However, depending on the economic, political, and social circumstances, corporate governance systems differ from one nation to the other. Agency theory, which emphasizes the division of ownership and control, served as the theoretical foundation for this investigation. This study explains how the board structure of Sri Lankan manufacturing companies affected business performance. Mainly Five Corporate Governance components were used in this study, such as Board Size, Board Independence, Audit Committee Composition, Gender Diversity and CEO Duality. Board Size refers to the number of board members in the Board. CEO Duality refers to the separation of the CEO and chairman roles; board composition refers to the Independence non executive directors on the board; Audit committee Composition refers to the number of directors in the Audit Committee and Gender diversity refers to the Female directors in the Board. Furthermore, the firm performance is measured by accounting base measurements (ROA) This study considered all Manufacturing Companies listed in the Colombo Stock Exchange from 2019 to 2022. It also looks at how corporate governance practices and business performance relate to each other. Each company's annual report served as the source for all the data gathered and analyzed using correlation, and panel regression analysis. This study contributes significantly to the body of knowledge on corporate governance in developing nations and illustrates the relationship between corporate governance and firm performance. This study supports the agency theory claiming that effective corporate governance measures increase boards' shareholder accountability and improve business performance.
Audit quality and its impact on earnings management: evidence from public listed companies in sri lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Thalangama, T.A.T.W.; Karunaratne, W.V.A.D.
A strong and well-functioning auditing process can mitigate the manipulation of the company’s earnings and performance. Even though companies present excellent earnings growth in their audited financial statement, it arises doubts about the quality of the audit performed by the firm. The agency problem is the most popular issue emphasized by accounting and finance researchers. Hence, auditing is an important mechanism that can be implemented to answer the agency problem. Accordingly, Audit quality could impact the earnings management of the company. Thus, the current study primarily investigates the impact of audit quality on earnings management in publicly listed companies in Sri Lanka. Audit quality was measured in the study using two audit proxies: audit firm size and audit independence. The degree of earnings management was measured using three different perspectives: Discretionary accruals, Small positive earnings, and Earnings smoothing. The study’s scope focuses only on external audits and their impact on earnings management. There are several types of audits, but this study area is limited to external audits due to the availability and more reliable access to information. This research is mainly focused on secondary data gathered from publicly listed companies in Sri Lanka. Among 297 publicly listed companies in Sri Lanka, 50 companies were chosen for the study and take recent five years period annual reports issued from 2016 to 2020. Descriptive statistical measures, correlation analysis, and regression analysis were used to analyze the study data. Accordingly, the findings of this study will offer a better understanding of the impact of audit quality on earnings management. The study finds an insignificant association between audit quality and the degree of earnings management in Sri Lankan listed firms. Furthermore, the study reveals ineffectiveness in the oversight mechanism through the insignificant association reported between earnings management and the other variables, audit committee independence, the board size, board independence, and CEO duality.
Carbon disclosures and firm performance: evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Nawarathna, N.K.S.; Wijekoon, W.M.H.N.
Green House Gas emissions (GHG) have become one of the primary threats to life on earth. Companies are among the largest emitters of greenhouse gases, making them crucial to the fight against climate change. Therefore, companies are expected to play an increasingly important role in reducing their greenhouse gas emissions and stabilizing climate change. Businesses are required to disclose a greater amount of information about their climate change strategies and plans. The importance of carbon disclosure has grown dramatically in recent years, becoming a strategic decision making issue for organizations today. Most of the prior researchers conducted research on carbon disclosures and firm performance in the context of developed economies. However, there is limited research available from developing country context particularly. Hence, this study is aims to examine the relationship between Carbon disclosures and firm performance in the Energy and Material sector companies in Sri Lanka. Five independent variables used in the research are: GHG emissions accounting (Carbon footprint), climate change, energy consumption accounting, GHG reduction and carbon emission accountability. Return on asset (ROA) ratio has been used to measure financial performance. Sample of the study consist with all companies listed in the Energy & Material sector of the Colombo Stock Exchange (CSE) in Sri Lanka. Data will be collected from annual reports of listed companies in the Energy and Material sector for the period from 2017 to 2021. Data analysis will be performed using Eviews 10 software. The correlation analysis and regression will be used to examine the relationship and to determine the effect of the independent variables on the dependent variable. Finding of the research will help to the companies to understand the benefit of carbon disclosure and the importance of carbon disclosure. Additionally, these disclosures help to stakeholders such as shareholders and creditors to make better investment decisions for a particular company.
Corporate governance & firm performance during covid- 19 pandemic of listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Weerasingha, W.D.S.D.; Perera, P.R.M.R.
Many nations' economies are at a critical crossroads as a result of the SARS-CoV-2 epidemic, which is being further driven by a novel coronavirus. Corporate governance could be significantly impacted by the COVID-19 external economic shock.World operations have been redefined by COVID-19. The business sector is particularly feeling the effects of the COVID-19 pandemic. The purpose of this study is to ascertain how corporate governance affected firm performance in Sri Lanka during the COVID- 19 pandemic. For the period from 2018 to 2022, secondary data were gathered from 40 manufacturing companies listed in the Colombo Stock Exchange (CSE) ‘’using quantitative methodology’’. Results from COVID-19 demonstrated the impact of the pandemic on corporate governance (CG) measures.The effects of board size, board makeup, board committees, corporate reporting, and leadership structure were tested for their impact on business performance.Findings demonstrate how negatively COVID-19 is harming corporate governance traits and business performance. To aid the business sector in recovering from any crisis, corporate management, regulators, and investors should take board size and their qualifications into consideration. The findings further indicated that even in challenging circumstances during COVID-19 pandemic, solid corporate governance procedures were crucial to the success of businesses operating in Sri Lanka. However, boards should consider CSR strategies that are pertinent to the business and in the best interests of all stakeholders if corporate governance procedures are to fully affect firm performance.The literature on COVID- 19 and company performance in emerging nations gains valuable insight from this study.
Corporate social responsibility and capital structure of listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Gunasinghe, W.R.N.S; Wijekoon, W.M.H.N.
Corporate social responsibility plays a significant role in today’s corporate world. It is a way of describing how companies control and measure their impact on the whole of society. Apart from that, the capital structure plays the main role in the business. This means that the capital structure consists of equity capital and debt capital and it describes how companies finance their operations. The prior researchers conducted research on corporate social responsibility and financial performance, corporate governance and corporate social responsibility disclosures. Given this context, there were few researches available on the impact of corporate social responsibility on capital structure particularly in developing countries. Further, there were no studies on sector comparison relating to the impact of corporate social responsibility on the capital structure of listed companies in the Colombo Stock Exchange. Therefore, to fill this gap, this study aims to analyze the impact of corporate social responsibility on the capital structure of industrial and material sector companies listed in the Colombo Stock Exchange in Sri Lanka. Further this study will provide fresh insights by comparing two sectors with regard to corporate social responsibility and capital structure. This research will use an index which consists with economic, social, and environmental activities to measure the CSR disclosures. The debt-to-equity ratio was used to measure the capital structure. This research used industrial and material sector companies as the population and 20 companies were selected from each sector as the sample for the study. Data will be collected from annual reports for the period from 2017 to 2021. E- Views analysis software will be used to analyze the data. Accordingly, the findings of this study will offer a better understanding of corporate social responsibility and the capital structure of listed companies in Sri Lanka.
Corporate sustainability reporting and its impact on firm value; evidence by public listed companies in sri lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Mihiradha, K.A.D.I.; Karunaratne, W.V.A.D.
In the past few years, the adaptability of sustainability reporting has increased because companies should be responsible for the impact of their company activities on the environment. Hence most business organizations pay attention to identifying and connecting with the societal environment. This study mainly focuses on corporate sustainability reporting and its impact on firm value concerning the listed companies in Sri Lanka. The study used social, economic and environmental disclosure as corporate sustainability practices and evaluate their impact on the firm value of the companies listed on the Colombo Stock Exchange (CSE). In this study, 100 listed companies were selected that all the selected companies following the Global Reporting (G4) Guidelines. This study mainly used secondary data which gathered both financial and non-financial data from the annual reports of the selected companies. In this study descriptive statistics, correlation, and regression analysis were used to analyze data. The findings of this research demonstrate a moderate positive relationship between the corporate sustainability reporting disclosure including environmental, social, and economic disclosures and the firm value measured by ROA. Further, it shows a moderately positive correlation between ROE/ROA on firm value and corporate sustainability reporting, encompassing economic, environmental, and social disclosures. Thus, a company can achieve a moderately positive effect annually by taking into account both its financial and sustainability performance.
Cultural relevance to sustainable reporting in Asian and European banking
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dhananjaya, S.D.B.; Tilakasiri, K.K.
The foundation of creating a corporate sustainability environment is sustainability reporting. This research study mainly focuses on how does cultural relevance impact sustainability reporting in Asian and European banks? the sample consists of 25 banks from 20 banks in Asian countries and 10 banks in European countries. More specifically investigate whether Hofstede’s cultural dimensions are associated with a bank’s sustainable reporting and whether this association differs between banks from the Asian region and the European region. the GRI financial services sector supplement is used in this study to evaluate sustainability reporting. the dependent variable is sustainable reporting, which consists of economic indicators, environmental indicators, and social indicators. these variables are measured by the disclosure index of sustainability reporting guidelines from GRI g4. the result shows that sustainability reporting in European is higher than in Asian. the premise that there are major discrepancies in sustainability reporting between the two regions is further supported by different test results. according to the study, cultural values could have a big influence on sustainable behaviors. the current analysis offers insightful information about the sustainable reporting methods of public and commercial banks operating in Asia and Europe. in terms of data, Hofstede dimensions were established and developed more than 30 years ago, and dimensional scores have not changed over time. the study only examines the type and range of sustainability disclosure made by commercial banks doing business in Asia and Europe. the current analysis also ignored sustainability's economic indicators. future studies may address these problems. the banking industry and all other stakeholders should benefit from this study's insights on the challenges of implementing sustainable reporting in Europe and Asia.
Detecting financial statement fraud through new fraud diamond model with special reference to the selected listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Udayanganee, L.P.A.P.I.; Sujeewa, G.M.M.
Financial statement fraud can have serious consequences for both shareholders and society. The purpose of this paper is to evaluate the effect of the new fraud diamond model in explaining financial statement fraud. The variables used to analyze are motivation, opportunity, personal integrity, and capability. The population for this study was 25 companies from Food, beverages, and tobacco sector listed on the Colombo Stock Exchange from 2016 to 2021. According to the findings, the nature of the industry, and the history of sales significantly affect financial statement fraud. The findings of the study back up the new fraud diamond model theory in explaining the phenomenon of financial statement fraud. This study tries to examine the factors that enable financial statement fraud to occur using only secondary data available and freely accessible to the public. The sample for the study was limited to companies in the food, beverage, and tobacco industries. It is important that future research expand the scope of the analysis of corporate fraud by including an analysis of another type of corporate fraud. Researchers can change from collecting secondary data to collecting primary data, allowing for more complete and accurate research. More research into this theory is needed to strengthen the new fraud diamond model theory and determine whether it can be utilized as a reference for detecting financial statement fraud cases.
Detecting the probability of financial statement fraud due to earnings manipulation -evidence from listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Wijesuriya, M.W.A.D.T.R.; Kaushalya, M.D.P.
This study aims to investigate the probability of detecting financial statement fraud due to earnings manipulation in listed companies in Sri Lanka. Fraudulent financial reporting is one of the emerging topics in Sri Lanka in recent years and it made a huge noise about fraudulent financial reporting due to the large fraud cases happening in Sri Lanka. Companies will always try to find ways to prettify their financial statements and their earnings potential to appeal to all stakeholders. On the other hand, users of financial reports are worried about the truthfulness and fairness of financial statements. Current study tries to examine whether companies which are listed on the Colombo Stock Exchange would have engaged in earnings manipulation from the period from 2016 to 2021.This research uses Benish M-score Model which is a mathematical model as the methodology for reach the conclusion of this research. This research consider all listed companies in Colombo stock exchange in Sri Lanka during the period of 2016- 2021as the sample. According to the Sri Lankan context there is no significant study that has examine the probability of financial statement fraud due to earnings manipulation in all listed companies in Sri Lanka. This study provides valuable outputs relating the truthfulness of the financial statements of listed companies during the covid 19 outbreak.
Detection of relationship between earnings management and firm performance: evidence from Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Anosan, R.; Perera, W.T.N.M.
Earnings management is a newer concept in the Sri Lankan context as there is abundant foreign research that could be seen for the past three decades, most of them check the impact of firm performance on earnings management or test the impact of earnings management. The objective of this study is to find the relationship between earning management and firm performance with eight independent factors: day sales receivables index, gross margin index, asset quality index sales growth Index, depreciation index, leverage index, total accrual to total assets index, value-added productivity and two dependent factors: return on assets and return on equity on detection of the relationship between earning management and firm performance. Data from the entities within the sample will be extracted for ten years from the financial years of 2011/2012 to 2021/2022. The data collection will be done through secondary data sources such as company annual reports, the Colombo Stock Exchange, the Central Bank of Sri Lanka, and firm profiles to detect the relationship between earning management and firm performance. Scores for the ten factors were identified, and their relationship to earning management and firm performance will be measured using the SPSS.
Determinants of customer satisfaction for online shopping
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dilshan, H.Y.D.; Gunasekara, U.L.T.P.
With the development of the Internet infrastructure, online shopping is becoming a regular shopping behaviour around the world. Therefore, there is a need of investigating how customers experience this new mode of shopping. Customer satisfaction with online shopping is dependent on several factors. Since the COVID-19 pandemic, there has been a tremendous intensification towards online shopping, making customer satisfaction a significant catalyst for online businesses, and it serves as an indicator to manage and improve business performance. This study examined the determinants that could influence online shopping satisfaction by taking a sample of university students. However, consumer satisfaction depends on what the consumer expects from shopping online: information, convenience, low cost, and time, or the availability of products and services. This study aimed to explore the antecedents that influence online customer satisfaction. Convenience sampling was used to gather data from individuals who were conveniently available to take part in the study. A total of 103 questionnaires were handed over to respondents. All the data that are obtained, along with the factors, are analysed and interpreted by different statistical techniques using SPSS version 24. This study utilised descriptive and multiple regression analysis to test the seven hypotheses. Customer satisfaction has been identified as an important phenomenon in relation to online shopping. The investigation of what causes customer satisfaction has become paramount for the further improvement of online businesses.
Determinants of integrated reporting disclosures of award-winning IR-adopted listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Thushari, K.A.M.; Wijekoon, W.M.H.N.
Integrated reporting adoption has been increased though it is not a mandatory requirement in many countries around the globe. However, the quality of the disclosures of IR differs between companies. Therefore, the study aims to determine what are the levels of integrated reporting disclosure alignment in annual reports by award-winning IR-adopted listed companies in Sri Lanka and to identify the factors influencing these disclosure levels. The study adopted the quantitative approach of the research. Using a disclosure index, the study assesses the extent to which firms' annual reports include the content elements mandated by the IR Framework. E-views software was used to analyze the quantitative data collected in the study and descriptive analysis, correlation, and regression analysis were performed to achieve the research objectives of the study. The sample consists of 50 award-winning listed companies in Sri Lanka and data was collected from annual reports of these companies from 2017 to 2021. The study will document that, on high, Award-winning listed firms disclose information required by the IIRC Framework. The disclosure levels will positively be associated with board size, board independence, foreign ownership, subcommittees, gender diversification, and financial acumen. The findings of the study will be useful to other non-award-winning companies to understand the characteristics of companies that won an award for IR. Further, the findings of the study provide some insights into the inclusion of the content elements required by the IIRF by the companies. The author offers policymakers recommendations based on their findings on the issue of regulating and implementing IR in Sri Lanka.
The determinants of integrated reporting quality of listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Mary, M.N.; Munasinghe, M.A.T.K.
The organizational and financial drivers of integrated reporting (IR) quality of listed businesses in Sri Lanka are investigated in this study. The IIRC's long-term ambition is for a world where integrated thinking is ingrained in public and private sector business practice. Integrated Reporting (IR>) serves as a catalyst for this. Corporate reporting is the standard. An integrated report's main objective is to demonstrate to financial capital providers how a company develops value over time. In Sri Lankan context of research studies related to the integrated reporting practices, several researchers have studied the adoption level diffusion of IR and implications of IR. But there were only few prior studies conducted to analyze the determinants of integrated reporting quality in Sri Lankan listed firms as per the best of my knowledge. So this study will address the research gap of identifying the organizational level determinants of integrated reporting practice and the significant relationships between the determinants variables of integrated reporting quality. This research will use the return on equity (ROE), Natural logarithm of total assets, total assets ratio (ROA), Log of total assets, Age of the company since incorporation, Total number of board to measure the independent variables. The scoreboard model used in this study to measure IR quality (IRQUALITY). Hypotheses were tested using a regression model on the sample This study used all of the listed companies as the population, and 20 companies were chosen as the sample. Data will be gathered from annual reports covering the years 2017 to 2021.
Determinants of internet banking adoption in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Mohotti, D.S.W.C.; Aruppala, W.D.N.
Today, the banking industry is essential for managing financial assets and offering financial services. All banks implement some new technical breakthrough for its institution as a result of the evolution of information systems and information technology. Clients are the most crucial component in the banking industry. Traditionally, every transaction is completed manually. Customers had to frequently visit a bank branch. Therefore, it involves a lot of time and money. However, internet banking is gaining popularity today and saves money and time. This study attempts to identify the determinants of online banking adoption in Sri Lanka. The research framework was based on the factors of advantages, technology, social influence, security and customer trust. When considering the Sri Lankan contest limited research has been undertaken on factors influencing the customer’s adoption of internet banking. Therefore, there is a need for studying further on this ground. Approximately about 200 students will be considered as the sample to initiate the collection of data and SPSS 20 will be used to analyze data. It is expected to identify technology and social influence as the most influential factors of online banking adoption. Further the findings of this study will be useful inputs for the decision makers of Sri Lankan banking industry.
Determinants of women entrepreneurs’ success: a study of small-and medium-sized enterprises in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Perera, P.A.K.P.; Aruppala, W.D.N.
Women in today's era are recognized as successful entrepreneurs through their passion, qualities and abilities for strong economic development. In Sri Lanka women entrepreneurs, especially in small and medium-sized enterprises, play a crucial role in rural economic development. Due to such an important contribution of women in economic development, this study focusses on examined the determinants of women entrepreneurs’ success of small and medium-sized enterprises in Sri Lanka. Starting a business is a rational choice faced by an individual who chooses precarious self-employment between certainty as an employee and possibly unemployment, depending on the expected utility in each state. This study focuses on individual determinants such as entrepreneurial characteristics, family background and institutional support. Data will be collected from 250 women entrepreneurs in small and medium-sized enterprises in Sri Lanka using structured questionnaire. Correlation and regression analysis is employed in data analysis of this study. This study is significant in many ways as it mainly examines the success of women entrepreneurs in the small and medium-sized enterprises who contribute greatly to the development of national economy. Many women entrepreneurs in developing countries like Sri Lanka face many challenges while running their businesses such as continue the entity and survival, innovation etc. Findings of this study will helpful to policy makers in developing SME sector and SME institutions to design their service offers. Further this will provide a good starting point to identify appropriate metrics. And this study will lead to a comprehensive study that can develop a valuable specification model for Sri Lanka's financial sector.
The effect of corporate social responsibility practices on the firm’s reputation and performance: evidence from the listed licensed commercial banks in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dissanayake, D.M.V.P.S.; Karunaratne, W.V.A.D.
This study is aimed to examine the effects of Corporate Social Responsibility practices on the firm’s reputation and performance. This study used listed licensed commercial banks in the Sri Lanka context. This study has used corporate social responsibility dimensions such as employee satisfaction and customer satisfaction. The data is collected from the annual reports of listed licensed commercial banks in Sri Lanka, employees who work in listed licensed commercial banks in Sri Lanka and customers who consume banking facilities in listed licensed commercial banks in Sri Lanka. The data is collected from a structured questionnaire as a primary data source. The study examined a sample from Sri Lankan-listed licensed commercial banks covering the period of 2012–2021. The regression analysis and descriptive statistics are absorbed for analyzing data using SPSS software and EViews software. Days in the present, corporate social responsibilities are the most talkative concept in the world. According to the Covid-19 pandemic situation, CSR is considered the main concept of an entity. Recently banks are used CSR practices to improve their performance and the reputation of the company through the attention of the customers and their employees. Company reputation is the most important factor to improve the level of customers. There is no significant and appropriate evidence regarding the effects of Corporate Social Responsibility practices on the firm’s reputation and performance Sri Lankan commercial banking industry. According to previous studies, there are four approaches to CSR that have been specified inactive, reactive, active and proactive. This research will be used this model to identify the relationship between CSR practices and firms’ performance and reputation. The findings of the study would be useful to the policymakers, potential investors and different types of other stakeholders in the banking industry.
The effect of environmental reporting on financial performance of listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kavindya, Y.H.A.; Wijekoon, W.M.H.N.
Environmental reporting has become increasingly important in the modern corporate world since it helps modern businesses stay competitive by keeping society informed about ongoing social actions. Even though environmental reporting is not yet mandatory, the company's management will always endeavor to reveal information about the company's environmental background. However, there is dearth of literature available on environmental reporting particularly in Sri Lankan context. Hence, this study investigates the impact of environmental reporting on financial performance of listed companies in Sri Lanka. The study used three independent variables namely greenhouse gas emission, water consumption and waste disposal. Return on asset (ROA) and return on equity (ROE) used to measure the financial performance. The population includes all manufacturing companies listed in Colombo Stock Exchange (CSE) under the previous industry classification. All listed manufacturing companies were selected as the sample of the study. However, firms who did not have complete data for the relevant time period were eliminated from the sample for this analysis. The annual reports from the website of Colombo Stock Exchange, sustainability reports for the 5 years period (2017-2021) and web site of the firms were used as sources of data collection. The data were examined utilizing descriptive statistics, correlation, and multiple regression analysis. The Findings of this research will provide useful evidence for manufacturing companies in understanding the importance of functioning in a socially and responsibly manner and its impact on financial performance. Further, this research will help to the individuals to understand the concept and importance of environmental reporting and increase community understanding of the importance of making decisions based on it.
Effect of microfinance on profitability of commercial banks in Sri Lanka: comparison between pre & during covid - 19 pandemic
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Jayasundara, M.G.C.M.K.; Perera, W.T.N.M.
Microfinance enables small-scale financial services, such as microloans, savings, insurance, leasing and other financial services to small and medium-size entrepreneurs; Microloans are powerful development instrument that enables the underprivileged and small-scale enterprises who lack access and facilities to traditional banking and capital markets to be provided with the bare minimum of regulatory restrictions. Commercial banks with licenses play a huge and essential part in the country's financial system. With their introduction into the microfinance industry, they increased their contribution towards the financial system's stability and the country's development. State-owned commercial banks provide microloan services for different reasons. Their main focus is to carry out the government's policies such as poverty alleviation objectives. In contrast, private banks mainly focus on seeking a public image or maybe the ultimate objective is to increase profits. Only a few studies addressing the profit motive of commercial banks entering the microloans market could be found in the literature. As a result, the ultimate goal of this study is to determine the influence of microloans on commercial bank profitability and the impact of Covid-19. For measuring, the study acquired secondary data from published annual reports of 24 commercial banks operating in Sri Lanka, including the state banks, across the past 10 years to achieve this research goal. To evaluate and analyze the results, these data were analyzed using regression and exploratory data analysis. Microloans have a favorable link with commercial banks' net interest income and profit before tax, according to data research. In the microloans market, state-owned banks are the most dominant and active participants among commercial banks. They have the largest and most significant microloans portfolio and have made the most money by providing microlending services. The study's key finding was that microloans have a considerable impact on commercial bank profits and also there is an impact of Covid-19 as well. This finding would aid commercial bank decision-makers in their decision-making processes towards their success.
The effect of social and intellectual capital on frauds: evidence from listed companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Chathuranga, M. P. S.; Kaushalya, M. D. P.
This study aims to assess the relationship between intellectual and social capital and financial statement fraud of Sri Lankan. In other words, this paper seeks to answer the question of “whether the intellectual and social capital can contribute favorably to fraud in financial statements or not. For the study, the multivariate regression model is used for hypothesis testing. Research hypotheses have been examined using a sample of 50 listed firms on the Colombo Stock Exchange during 2017–2021, using the panel data technique-based multivariate regression pattern and fixed-effect model. This study provides helpful information for the users, analysts and legal institutions about intellectual capital and social capital that contributes significantly to the fraud of business units. Moreover, the study results help the development of science and knowledge in this field and fill the existing gap in the literature.