ICARE 2022
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/25708
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Item The impact of corporate governance on the level of sustainability reporting in selected Sri Lankan listed companies(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Wimalarathna, Y.G.R.D.; Wijekoon, W.M.H.N.This study aims to analyze the impact of corporate governance on the level of sustainability reporting in Sri Lankan listed companies. Most of the prior research has been devoted to studying the impact of corporate governance on firm performance and only limited research has been undertaken to study the impact of corporate governance on sustainability reporting particularly in the context of developing countries such as Sri Lanka. This gap in the literature provides the rationale for the study. Corporate governance attributes such as Board Size, Board Independence, Frequency of Board Meetings, CSR Committee, and ESG Reporting have been used as independent variables of the study. The sample of the study consists of 50 listed Sri Lankan companies consecutively recognized for their sustainability reports by professional accounting bodies. Data was collected from the sustainability disclosures in the annual reports of the selected companies for the four years from 2017 to2021. The state of sustainability reporting for each company for each year was computed by scoring the GRI – GR core disclosures included in annual reports using a one-zero ordinal scoring model. Trend analysis was conducted for each company and all 50 companies based on the calculated state of sustainability disclosure and multiple regressions were conducted to identify the impact of corporate governance on the level of sustainability reporting disclosures of selected companies. The findings of the research will be useful to companies in understanding the importance of corporate governance practices that enhance the sustainability practices of companies.Item 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.Item Perception of auditors on the assurance service of integrated reporting in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sewwandi, W.D.; Wijekoon, W.M.H.N.Integrated Reporting is the latest development in corporate reporting transformation. To enhance the credibility of non-financial information and integrated reporting, there is a need for assurance. External assurances of non-financial information are typically performed in accordance with ISAE 3000. There is no statutory requirement that integrated reports should be assured but it is essentials for have same guarantees as traditional financial information for the integrated reporting from the stakeholder’s perspective. Therefore, this study aims to identify the auditor’s perception on assurance of integrated reporting in Sri Lanka. An analysis of literature reveals that there has been limited research available on IR assurance particularly in developing country context. This study will mainly focus on the importance of assuring the content of IR, form and content of an audit report on IR, challenges of assuring IR and future of the IR assurance. The population of the study consists of auditors who provide assurance services on Integrated Reporting in Sri Lanka. Two hundred questionnaires were sent to assurance experts generating 105 usable responses. Data collected through an online survey relating to integrated reporting assurance. In analyzing the data non-parametric tests would be used. Such as, Mann - Whitney U test, Chi-square test and Kruskal- Wallis test. This study makes several important contributions. Findings provide useful evidence about actual perceptions of auditors regarding the importance of assuring integrated reporting and the form and content of the audit report on integrated reporting. This information could be valuable for the International Integrated Reporting Council, the International Auditing and Assurance Standards Board, and other regulatory agencies looking to implement mandatory integrated reporting and the associated mandatory audits. In addition, these findings may be useful to audit practice as they focus on the difficulties faced by auditors in assuring integrated reporting.Item The impact of corporate governance on greenhouse gas disclosures of listed companies in the material & energy sector in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Sachinika, J.D.T.; Wijekoon, W.M.H.N.There has been a global consensus that Greenhouse Gas emissions including carbon dioxide are the main cause of climate change and global warming, which can have a significant impact on business activity and behavior. Thus, carbon information has become important for stakeholders to make an informed decision about a company’s greenhouse emissions performance. However, there is criticism that companies tend to disclose some unreliable climate change related information. It can be argued that corporate governance plays a critical role in determining how companies are responding to climate change. This is because companies that have a high quality of corporate governance are more likely to integrate climate change into their business strategy and are more likely to maintain the long term commitment to effectively address climate change risks and opportunities across their entire operating system. This study investigates the impact of corporate governance mechanisms on greenhouse gas emission disclosures. Numerous studies have been undertaken to find the impact of corporate governance on greenhouse gas disclosures in developed countries. However limited research available in developing country context particularly in Sri Lanka. Hence the purpose of this study is to investigate the impact of corporate governance on greenhouse gas disclosures of the listed energy & material companies in Sri Lanka. This research will use the board size, board gender diversity, board activities and CEO duality to measure the corporate governance of the organization and profitability and liquidity ratios are used as the control variables. Discloser level is measured by Greenhouse gas Discloser Index. Twenty seven listed companies from Sri Lankan material and energy sector have been selected as the sample of the study. The data of the study were collected using annual reports, Carbon Disclosure Project, sustainability reports, and corporate websites from the period 2016 to 2021.Data will be analyzed using study, descriptive statistics, Pearson correlation analysis, and regression analysis.Item Intellectual capital reporting and financial distress of listed companies in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Piumika, V.G.R.; Wijekoon, W.M.H.N.This study aims to investigate the relationship between intellectual capital Reporting and financial distress. Intellectual capital is becoming a crucial performance and long term growth factor in a knowledge-based economy where companies identify their core competence as intangible assets rather than tangible assets. Intellectual capital reporting is mostly unregulated in Sri Lanka, due to the fact that it is voluntary disclosure. In the recent past, there has been a growing dissatisfaction with traditional financial reporting. Further, Intellectual Capital performs an increasingly more important position in sustaining competitive advantages and creating corporate value for a corporation. Therefore, there is a strong need to study whether intellectual capital reporting influences the firms’ financial distress. The dependent variable in this research is financial distress and it is measured by the Altman Z Score Model. Content analysis is supported by a disclosure index that measures a variety of intellectual capital Reporting. The independent variables used this research are namely, human capital, structural capital and relational capital. Data was collected from the annual reports of non-financial firms listed in the Colombo Stock Exchange (CSE) for three years from 2019 to 2021 and data was analyzed by using EViews 11 statistical package. This study used descriptive statistics, correlation, and regression analysis to find out the association between independent and dependent variables. Accordingly, the findings of this research will offer a better understanding of the influence of intellectual capital reporting on financial distress. Further the findings of this study will be useful for regulatory bodies to understand the existing level of intellectual capital reporting in Sri Lankan listed companies on the Colombo Stock Exchange, and it will be helpful for Auditors, Managers and Investors. They can get correct decision for their company in the future. In addition to that, the different other stakeholders, such as present and potential investors, also can use these findings to get an understanding of the impact of intellectual capital reporting on financial distress of listed companies in Sri Lanka.Item 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.Item Study of the role of professional accountant as a business advisor to upliftment of small and medium-size enterprises in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2022) Kumara, S.M.N.N.S.; Wijekoon, W.M.H.N.Small and Medium Enterprises (SMEs) are the backbone of the Sri Lanka as job producers and key players in the local and regional economy. Therefore, it is very important to constantly advise to them on their businesses. As of today, the SMEs receive many kinds of advice from various parties and among them the professional accountants are playing and important role towards improving the financial accounting practices. However, an analysis of literature reveals that there is dearth of literature available on the role of professional accountants as business advisors for SMEs in the context of developing counties particularly in Sri Lanka. Therefore, the purpose of the study is to identify the Role of professional accountant as a business advisor to small and medium-size enterprises in Sri Lank. Further, this study provides fresh insight on the relationships between accountants and SMEs, Institutional support, and the perspective of the accountant as business advisor to enhancement of the SMEs in Sri Lanka. This research adapted quantitative approach using a questionnaire survey with 150 professional accountants of audit firms in Colombo and Gampaha districts who provide business advice for SMEs in Sri Lanka. Accordingly, eighty-three useable responses were received for the analysis. The primary data collected through the questionnaire survey was analyzed using the Statistical Package for the Social Sciences (SPSS). Descriptive statistics such as simple frequencies and mean ratings will be computed on the demographic characteristic. Finding of the research will provide useful information on the services currently provided by professional accountant to SMEs, and Accountants perceive as barriers in their work with SMEs. Further findings provide useful insight to professional accountant in expanding their future services to SMEs.Item 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.Item 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.