ICARE 2022
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/25708
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Item Impact of corporate governance on integrated reporting quality; evidence from listed companies in Colombo stock exchange in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Wimukthi, F.H.C.; Perera, P.R.M.R.The changing economic and business environment has emphasized the weaknesses of business reporting historical information and financial information. Most investors are currently interested in both financial and non-financial information. As a result, a new business reporting framework named the Integrated Reporting Framework was introduced by the International Integrated Reporting Council (IIRC). This study primarily investigates the impact of corporate governance mechanisms on the integrated reporting quality (IRQ) of the listed companies in Sri Lanka. Adopting integrated reporting practices is not a mandatory requirement in Sri Lanka. However many companies voluntarily adopt to an integrated reporting framework to present and disclose their financial and non-financial information in one comprehensive report. Numerous studies have been done to find the impact of corporate governance on IRQ worldwide. Nevertheless, there is a research gap in the Sri Lankan context. This research uses the IRQ index to measure Integrated Reporting Quality. All the listed companies are considered as the population, and 50 companies were selected as the sample for the study. Data to be collected from annual reports for the period from 2018 to 2021. In this study Pearson correlation analysis, and regression analysis are used to find relationships. Findings will offer a better understanding of the impact of corporate governance mechanisms on integrated reporting quality. Further, the findings will be useful for regulatory bodies to understand the existing level of integrated reporting in Sri Lankan listed companies on the Colombo Stock Exchange, and helpful for developing a common reporting framework. In addition to that, the different other stakeholders, such as present and potential investors, also can use these findings to obtain an understanding of the impact of corporate governance mechanisms on integrated reporting quality.Item 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.Item Impact of accounting software system towards enhancing the business performance in small and medium enterprises (SMES) in Matara district, Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Liyanage, H.L.T.; Perera, P.R.M.R.Due to the advancement of technology and the current global development trend, the majority of small and medium enterprises (SMEs) are interested in adopting computerized accounting software in reporting their regular business operations. It is advantageous for the routine business operations and business performance. The objective of this study is to assess the impact of an accounting software system on business performance of SMEs in Matara district to fill an important research gap. Previous researchers revealed that accounting software systems ensure the effectiveness of business operations and that there is a positive relationship between accounting software systems and business performance. This study further analyses how the characteristics of accounting software such as efficiency, reliability, ease of use, data quality, and accuracy influence business performance in SMEs. Data from 120 respondents was gathered for the study using a questionnaire, and respondents were contacted via email, WhatsApp, Google, and in-person visits. The main research finding is that, there is a positive correlation between accounting software characteristics and firm performance in the Matara district of Sri Lanka. The sample being restricted to the Matara District and the survey being limited to employee level responses are two research constraints. Future research should focus on widening the sample and testing the relationship in different contexts.Item The impact of corporate social responsibility on financial performance in listed manufacturing companies – pre and during the covid 19(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kumari, P.A.D.D.; Perera, P.R.M.R.The concept of corporate social responsibility (CSR) has developed in the western world since the twentieth century (1950). Many organizations neglect to engage in social work and some organizations voluntarily engage in different types of CSR. Also due to the COVID-19 pandemic, listed companies spend huge amounts of money in CSR activities. This study primarily investigates the impact of CSR on the financial performance of the listed manufacturing companies in Sri Lanka on a pre & during COVID-19 basis. Even though adopting CSR is not a mandatory requirement in Sri Lanka, most companies voluntarily adopt CSR activities to present and disclose their financial and non-financial information in the annual report. Numerous studies have been done to find the impact of CSR on financial performance worldwide. However, a few studies have been done to find the impact of CSR on financial performance during COVID-19 pandemic. This study will mainly test the relationship between the CSR and its influence on the financial performance of the firms. This research will use return on assets (ROA), return on equity (ROE) and return on sales (ROS) to measure the financial performance of the firms. The dichotomous approach (disclosure index) is used to measure corporate social responsibility. All listed manufacturing companies are the population, and 50 companies were selected as the sample for the study. Data will be collected from annual reports for the periods from 2017 to 2021. Correlation analysis, regression analysis are used to analyze the data. The findings will offer a better understanding of the influence CSR has on financial performance in pre and during COVID-19 and the findings will be useful for managers of listed manufacturing companies to focus on CSR activities to improve their profitability. Further they can take decisions regarding their avenues and amount of CSR spending. Further these findings can be useful to offer pivotal implications about CSR and financial performance for policy makers and regulators.Item The relationship between corporate social responsibility and market performance of listed companies in Sri Lanka - pre and post covid situation(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Dananjali, P.D.D.; Perera, P.R.M.R.This study examines the relationship between Corporate Social Responsibilities (CSR) and Market Performance by comparing the Pre COVID-19 results and Post COVID - 19 results using evidence from Diversify financial companies, listed in Sri Lanka. The COVID – 19 has redefined the world operation. Specially COVID – 19 pandemic showed the significant impact on the financial sector businesses. CSR is one of the best methods to increase customer attraction to the company which can earn more profits in the future. As a result of CSR activities companies can survive in the market and win the competition. Hence this study compares the relationship between CSR and the market performance of diversified financial sector companies listed in the CSE. This research has used diversified financial sector companies as the population, and 40 companies were selected as the sample for the study. Data were gathered from annual reports, web sites and CSR reports of the companies for the period 2017-2021. The CSR practices were measured using GRI guideline and the dichotomous approach. Firm size was identified as a control variable whereas market performance was measured by the share price movement. Pearson correlation analysis, and regression analysis are used to analyze data. Findings show that higher levels of CSR disclosure are associated with higher market performance. Furthermore, CSR disclosure by companies operating in Pre COVID-19 and Post COVID-19 in sensitive industries state what relationship was found with market performance comparing the five years. The research concludes that CSR disclosure provides incremental value-relevant information to investors beyond financial accounting information.Item Impact of covid-19 pandemic on the relationship between working capital management and firm performance in Sri Lankan listed hotel companies(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sandaruwan, M.M.S.; Perera, P.R.M.R.Especially, the COVID-19 pandemic has had a greater effect on the business world. Considering this, the purpose of this study is to determine how WCM impacted firm performance before and during the Covid-19 pandemic in Sri Lanka. All businesses have regarded working capital management as an essential tool. Working capital management is crucial for the company to succeed. For businesses to be sustainable, working capital management must be at its best.Objective of working capital management is to make sure that the company can carry on with its operations and has sufficient cash to pay down maturing short-term debt as well as anticipated operational expenses. This study investigates how COVID-19 impacts the relationship between WCM and the business performance of Sri Lanka's listed hotel industry. The study's objectives are to assess how working capital management affects firm performance and to determine how COVID-19 has affected both working capital management and the performance of Sri Lankan listed companies. 31 hotels that were listed in the Colombo Stock Exchange during the years 2015 and 2021 make up the sample. Accordingly, the Colombo stock exchange and corporate websites were referred to collect secondary quantitative data for this study. While performance was measured by Return on Assets (ROA). The WCM was quantified in terms of Inventory Turnover Period (ITP), Average Collection Period (ACP), Average Payment period (APP). The results show that ITP has a significant negative impact on the ROA while APP has a significant positive impact. The study further discovered that the ACP has no significant impact on the firm's performance. Findings on the effect of COVID-19 on WCM showed that the organizations were significantly impacted by the pandemic and the performance of the listed hotel sector was lower than it was prior to COVID-19. Maintaining an ideal level of liquidity in the hotel industry and increasing the value of the management of those companies will raise the firm's value and control the ideal level of WC positionItem 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.Item Sustainability reporting and firm value of listed companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Rajapaksha, R.M.E.W.; Perera, P.R.M.R.Sustainability reporting refers to the voluntary, solicited, or required disclosure of nonfinancial performance information to outsiders of the organization. Sustainability reporting is a relatively new topic in Asia, thus only a few studies have been conducted. This study investigates the relationship between sustainability and firm value, which helps to validate the importance of sustainability reporting. The research uses three independent variables which are economy, environment, social category and three dependent variables which are return on asset (ROA), return on equity (ROE) & market value per share to measure the firm performance. This study's sample include 20 manufacturing companies that publish sustainability reports and are listed in the Colombo Stock Exchange (CSE) from 2018 to 2022. Multiple regression model is used to test the hypotheses. Secondary data were collected from annual reports and sustainability reports from each selected manufacturing company based on predetermined criteria. In addition, data are gathered from the Colombo Stock Exchange. This research would fill a contextual gap in this field. Based on the findings, researchers can provide some guidelines for increasing the firm's value through sustainability reporting. Sustainability reporting will aid the company's long-term success and survival by increasing its firm value, which will attract more investors. Managers of companies can better position their firms to withstand by understanding the three pillars of sustainability reporting and how they influence firm value. This knowledge can help firm management to make better decisions in order to maximize firm value.Item The impact of corporate governance structure on the quality of sustainability reporting of finance sector listed companies in Sri Lanka.(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Neranji, J.G.T.; Perera, P.R.M.R.Companies, management, and shareholders employ a set of interconnected rules known as corporate governance to regulate their behavior. One of the factors that can be used to explain the wide range of sustainability reporting by organizations is corporate governance structure, whether it takes the form of internal or external procedures. The purpose of this study is to investigate the impact of corporate governance structure on the quality of sustainability reporting from the perspectives of agency theory and resource dependence theory. In this study, stakeholders include the environment, employees, consumers, and shareholders, while elements of corporate governance include the effectiveness of the board of commissioners and family ownership. This study demonstrates how different stakeholder categories and corporate governance structures in finance sector PLCs respond to CSR and consequently affect the quality of sustainability reports. Corporate governance was evaluated in terms of board independence, board size, dual leadership, female directorship, accessibility of the CSR committee, and cross directorship. The degree of sustainability reporting was evaluated in accordance with GRI G4 recommendations. Regression analysis was used to examine the impact of corporate governance structure on the quality of sustainability reporting. Data collected for this study from 250 sustainability reports of Sri Lankan finance companies that are listed in the CSE for the period of 2017 to 2022.Findings of this study would offer important insights for companies to focus on accepted corporate governance practices to enhance the quality of the Quality of Sustainability Reporting.