1st ICARE Student's Conference - 2015
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/10239
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Item Effect of financial leverage on firm size in Sri Lankan manufacturing industry(Department of Accountancy, University of Kelaniya, 2015) Waniganeththi, W.V.D.A.M.Companies differ in the use of financial leverage since it depends on a number of factors such as the size, nature of product, capital intensity, technology, market conditions, management attitude etc. Corporate size seems to be one of the most theorized determinants of financial leverage. Each company uses deferent level of financial leverage. But not all the companies are achieved success. Some corporates are achieved high market shares & growth rate. But some firm which has faced bankruptcy because they take more debt than the ability of repayment. There for financial leverage affect to the success of the company. In Sri Lanka, many companies they do not know how to maintain capital structure. So we won’t to known how to maintain capital structure on firm size. The purpose of this Research is to investigate, from a manufacturing market perspective, the firm size as a determinant of corporate financial leverage. Take 5 years data from 3 difference size firms, regression model is used to estimate the relationship between financial leverage and firm size. This research shows how firm size affects to financial leverage in Sri Lankan manufacturing industry.Item An impact analysis of financial sector institutions’ capital structure influence over its performance in Sri Lankan(Department of Accountancy, University of Kelaniya, 2015) Balendra, V.The capital structure of a firm is basically a mix of debt and equity, which a firm deems as appropriate to enhance its operations (Kyereboah-Coleman, Anthony, 2007). A lot of investigations are being done on the implications of capital structure’s selection on organization’s value and its performance since the seminal work of Modigliani and Miller (1958). A wee little is empirically known about such implications in emerging economies such Sri Lanka. The purpose of this research is to explore empirically the impact of capital structure decisions on the financial sector organizations’ financial performance in srilanka as one of emerging economies. Regression analysis will be used in this research to identify the relationship between the leverage level and the performance of the financial institutions. Broad data covering the five year periods from 20102015 of financial institutions in srilanka will be gathered and analyzed with the regression analysis. The data all are quantitative in nature and already available on Colombo stock exchange database (secondary evidence).There are 69 financial institutions in Sri Lanka and most of them are levered firms. Based on Return on Capital Employed financial performance measurement and a financial institution’s leverage level the results are expected to reveal that capital structure has a moderate level of impact on organization’s financial performance.Item The impact of capital structure on profitability of banks in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Tharangani, D.L.M.The concept of capital structure means the way a firm finances its assets by the use of a mix of debt and equity. Capital structure decision is the important one, because the profitability of an enterprise is directly affected by such decision. In the financing decision the manager is concerned with determining the best financing mix or capital structure for his firm. According to Buser (1981), the capital structure decision of a bank is similar to that of a non-financial firm. The objective of this study is to examine the impact of capital structure on profitability of five banks in Sri Lanka from 2010 to 2014, to find an optimal capital structure that would be associated with the best performance and to suggest the banks in the way to increase profitability through adapting a better strategic framework of capital structure.. All data for this research will be collected by secondary data through financial statements. Based on the findings of the study, there are a few key points that can be used to conclude this study. It is very important that the total debt is the determining factor of profitability in the Banking Industry of Sri Lanka. The outcomes of the study may guide banks, loan-creditors and policy planners to formulate better policy decisions as far as the capital structure is concerned. Further, the study reinforces and refines the body of knowledge relating to capital structure and profitability in Sri Lankan Banks.Item Capital structure effect on firm financial performance(Department of Accountancy, University of Kelaniya, 2015) Pathiraja, P.M.K.K.Capital structure is defined as combination of equity, debt or hybrid securities through which a company finances its assets. Firm’s leverage refers to the percentage of total debt in total financing. . Decision of Capital structure involve what type of source should be used either equity, or short or long term debt, or mix of sources of funding which better the firm’s financial performance. Initiating a business require purchasing assets in order to fulfill the purpose of organization. (Allen, 2011). An emerging consensus that comes out of the corporate governance literature (Smith, 2005) is that the interactions between capital structure and ownership structure impact on firm values. (Morck, 1988) Objective of this research is investigates the relationship between capital structure and firm financial performance as well as examine if more efficient firms choose more or less debt in their capital structure. This research methodology has gone some way in reconciling some of the empirical Irregularities reported in prior studies. Only report the results obtained from estimating dynamic models for both the efficiency and leverage equations. All data will collect by the secondary evidence by use the financial statement data. Result of this research is the effect of dispersed ownership is different across different capital structures. positive but insignificant for low leveraged firms and (significantly) negative for high leveraged firms. The latter finding is consistent with the view that the fear of bankruptcy induces managers of highly levered firms to lower debt.Item Effect of capital structure on firm financial performance(Department of Accountancy, University of Kelaniya, 2015) Kuruvita, K.A.S.P.This study seeks to investigate the impact of capital structure on firm’s financial performance by analyzing the relationship between financial performances of Public limited (Quoted) Company in Sri Lanka. Capital structure is most significant discipline of company’s operations. This attempt to identify the impact between Capital Structure and Companies Financial Performance, taking into consideration return on asset (ROA), return on equity (ROE), Gross Profit and Net Profit of Companies. This study covers 20 sectors of Colombo Stock market in Sri Lanka, and 20 firms were identified as the sample. The analyze will be made the capital structure and its impact on Financial Performance capacity during 2010 to 2014 (04 years) financial year of Business companies in Sri Lanka. For the purpose of this study, the data will be extracted from the annual reports of sample companies. Correlation and multiple regression analysis are used for analysis. The results revealed there is positive relationship between capital structure and financial performance. And also capital structure is significantly impact on financial performanceItem Impact of ownership structure on firm capital structure(Department of Accountancy, University of Kelaniya, 2015) Wijewadhana, H.S.S.The ownership of the company is more important because it more impact viruses area in the business and defer each one Which of these forms is right for your business depends on the type of business you run, how many owners it has, and its financial situation. No one choice suits every business: Business owners have to pick the structure that best meets their needs. This article introduces several of the most important factors to consider, including One of the most important decisions you will make about your company involves its ownership structure The relationship between ownership structure, capital structure and firm performance is far from being unambiguous. Traditional literature highlights that agency problems between managers and shareholders may reduce the leverage ratio below the optimum level, in an attempt to ensure the continued viability of the firm. Jensen and Meckling, (1976) however argue that introduction of managerial share ownership may reduce these agency problems, thus aligning the interests of managers and shareholders.1 Brailsford et al.(2002) have gone further to suggest that the This research is aimed at determining the relationship capital structure while the impact of this relationship on value of the firm using the panel data of selected large non-financial firms will also be investigated. A contrasting relationship was observed between capital structure and the firm’s performance while firm’s capital structure was dominated by short term leverage. Leverage was negatively related to return on assets, number of board meetings and the board size while it was positively related to board composition. It was also observed that firm’s performance was positively related to leverage, number of board meetings and board size while it was negatively related to board composition.Item The relationship between capital structure and performance of non-financial companies in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Dulaji, D.E.R.K.This paper characterizes that relationship between capital structure and firm performance of financial companies in Sri Lanka. Capital structure is a financial tool that helps to determine ‘how do firms choose their capital structure? The capital structure theory was first postulated by Modigliani & Miller (1963). Capital structure decision is the mix of debt and equity that a company uses to finance its business (Damodaran, 2001). The relationship between capital structure and corporate performance has been extensively investigated in the past four decades. However managers and practitioners still lack adequate guidance for attaining optimal financing decisions (Kibet,Kibet,Tenei& Mutwol, 2011). This situation has led to loss of investors’ wealth and confidence in the stock market. The objective of this research is to discover any relationship between Capital Structures and Firm’s Performance of financial companies. Firm’s Performance was measured using ROE, ROA, and gross profit margin. Capital structure will be measured by short-term debt to asset ratio, long-term debt to asset ratio, and total debt to total assets. Multiple regression analysis was applied to estimate the relationship between the leverage level and performance. This study will find a significantly relationship between capital structure and corporate performance in Financial companies.