International Conference in Accounting Researchers and Educators (ICARE)

Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/10217

Browse

Now showing 1 - 20 of 494

Accounting System on Polish Local Government in the Context of New Public Management
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Kowalczyk, M.
Accounting of the local government units in Poland has evolved within the last several years mainly and undoubtedly due to introduction of the New Public Management assumptions. The new concept of management implemented in the sector of public finances has significantly influenced on the accounting of local government. The purpose of the herein study is to demonstrate changes to the accounting of local government in Poland, which were caused by introduction of the New Public Management assumptions. On the basis of the research author will try to determine whether the changes introduced to the accounting of local government are beneficial and how they influence on the efficiency of operations. The object of the herein study is the accounting of public finances sector at the local level and the local government constitutes its subject. The article shall be elaborated with the use of literature research to demonstrate the evolution of accounting of local government in Poland within the last several years. The article will constitute of three parts. The first one presents the principles of operations of the local government in Poland. The second part concentrates on the core of New Public Management and its main assumptions. The further part constitutes critical analysis of assumptions of the new management concept on the basis of the literature in subject. The third part describes another changes to the accounting of local government in Poland which are being introduced.
Analysis of Dependence of Capital Efficiency on Company Size: Evidence from CEE Countries
(3rd International Conference for Accounting Researchers and Educators - 2017, 2017) Fashchuk, Y.; Lace, N.; Bistrova, J.
Large businesses have certain inherent advantages over smaller companies. Larger companies enjoy the benefits associated with economies of scale and higher penetration into the market and thus experience higher return on their capital. Stronger negotiating power provides larger companies with a competitive advantage in attractive capital and more favorable financial conditions. This research examines the effect of firm size on capital efficiency based on the analysis of companies in Central and Eastern Europe over the period from 2007 to 2014. The size of firms in the study is measured as annual market capitalization and ranges from the largest to small ones. Capital efficiency is measured as return on equity (ROE), return on assets (ROA), return on capital employed (ROCE) and cash flow return on investment (CFROI). Descriptive statistics, correlation analysis and regression analysis were carried out in relation to the objectives of the study. Findings from descriptive statistics indicated that large CEE companies have more equity in their capital structure than small ones that rely mostly on debt financing. Correlation analysis revealed the presence of weak positive relationship between ROA and ROCE and company size. However, regression results suggest that for companies located in Central and Eastern Europe firm size does not provide information in explaining capital efficiency.
Analysis of the Key Audit Matters and Revealing the Underlying Causes: Evidence Gather from Listed Banking and Insurance Companies in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Sandaruwani, S.A.D.R.; Munasinghe, M.A.T.K.
Global financial scandals and crises have placed the auditor's role into greater attention, especially regarding the value of the data in audit reports. The traditional audit report is not adequate due to its standardized format, which is considered by financial stakeholders as uninformative. This perception caused the establishment of global audit standards. One of the most recent changes is that the International Auditing and Assurance Standards Board (IAASB) published ISA 701, which requires auditors to report "Key Audit Matters" (KAMs). In the Sri Lankan context, the Auditing standard was introduced as SLAuS 701. The primary objective of this study is to analyse the Key Audit Matters of both banking and insurance companies listed on the Colombo Stock Exchange (CSE) and to find the identifying the underlying root causes that may not be covered. In this research study analysed, KAMs identified in audit reports of both banking and insurance companies listed in CSE over the period of 2018 to 2022 using the content analysis method. According to the findings of the study, it can be identified that the majority of KAMs disclosed under the areas of impairment of financial instruments and information technology systems and controls over financial reporting in the banking sector and the area of insurance contract liabilities in the insurance sector. Based on the results of this study, it can be identified that the underlying root cause behind those disclosed KAMs was it represent a significant portion of a particular company’s financial position, and this amount was calculated mainly based on the assumptions and estimations. Therefore, there is a significant impact on the financial position of the company. This research study found different kinds of estimation methods and calculation methods as well.
Analyzing the Impact of Behavioral Biases on Stock Investment Decision Making: Evidence from Sri Lanka Individual Investors at CSE
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Dissanayake, S.; Perera, W.T.N.M.
The objective of this study is to analyze the impact & relative importance of several prominent behavioral finance variables covered by the behavioral financial literature (overconfidence, loss aversion, risk perception, and herding) on stock investment decision-making at the Colombo Stock Exchange (CSE). This study's significance stems from the fact that local studies focusing on behavioral finance are rare, and thus the researchers believe that such research will raise awareness in this domain. A total of 303 active individual investors who actively traded on the Colombo Stock Exchange during the research period were included in the study. Following authorization of the questionnaire's reliability and validity, data were collected using a Likert scale questionnaire and analyzed using descriptive statistical tests, factor analysis, correlation analysis, multiclonality test, and paired sample T-test using SPSS software. The findings revealed that behavioral finance observed variables have an impact on the Colombo Stock Exchange, as represented by four behavioral factors influencing individual investors' investment decisions: overconfidence, loss aversion, risk perception, and herding. According to the findings, the variables Risk perception and Loss aversion had the highest impact and relative significance on the individual investor's investment decision-making at CSE. The study made recommendations for CSE investors to use scientific bases when making stock investment decisions, as well as need further research on the impact of behavioral finance on the several types of risks and yields at CSE.
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.
Anti-Money Laundering and Countering of Terrorist Financing: Factors Affect to Prevent Money Laundering and Terrorist Financing in the Financial Institutions – Evidence from Sri Lanka (Western Province)
(5th International Conference for Accounting Researchers and Educators (ICARE – 2019), Department of Accountancy, Faculty of Commerce & Management Studies, University of Kelaniya, Sri Lanka, 2019) Manoj, S.D.; Tilakasiri, K.K.
Preventing money laundering and terrorist financing is a major national and international problem today. Several attempts have been made to prevent money laundering by national and international dimensions. These are often counteracted by the multi dynamic nature of the crimes. However, launders are often to use remittance systems to clean their ill-gotten money. This study presents the role of domestic financial institutions and the effective practices and actions that can be implement within domestic financial institutions to control and prevent financial crimes. This research highlights the progress that requires in Sri Lanka to prevent money laundering and terrorist financing, further it is an original contribution to the knowledge in an under researched field in Sri Lanka.
Are We on Track? A Theoretical Inquiry into Integrated Reporting Regulations in Sri Lanka
(3rd International Conference for Accounting Researchers and Educators - 2017, 2017) Abeysinghe, A.A.C.
Traditional corporate reporting focuses on financial outcome and is criticized against its less attention on non-financial aspects, which have implications on sustainability of a business firm. As a result of continued studies and debates an integrated reporting framework has been issued by the International Integrated Reporting Council by 2013. Sri Lanka has adopted it. However, practitioners of integrated reporting are still vague on this. This paper attempts to understand the possible reasons for this situation. The research is carried out by with not fieldwork, but analyzing the current version of integrated reporting framework in the context of a theoretical framework. This benefits from Stakeholder theory and stakeholder-agency theory. The analysis reveals that the current practice of integrated reporting based on IIRC’s integrated reporting framework, including initiatives suggested by the Integrated Reporting Council of SrI Lanka are not in the direction of satisfying intentions of reporting on sustainability of a business firm. The paper suggests a path for improving integrated reporting practice.
Assessing the Factors Influencing Profitability of Listed Hotels in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Begam, A.M.R.
The purpose of this paper was to investigate the factors influencing profitability of listed hotels in Sri Lanka. This study is significant for the developing country like Sri Lanka as a prominent tourist attraction in south Asian region. Sri Lankan government has identified the Tourism sector as a key growth area in the post-conflict development era, with a target of attracting 2.5 million visitors by 2016. Tourism arrival has increased by 160 % since 2009, as the number of arrival was recorded in 2013 was 1.3 mn compared to 0.5 mn in 2009. However, JLL (2016) report reveals that the Average profit per room (Rev per AR) of the hotel industry was showing a decreasing trend. Hence, the objective of the research is to identify the factors influencing the profitability of listed hotels in Sri Lanka. Findings of this research would be useful for the hoteliers to identify the factors influencing the profitability of the firm. Hoteliers can follow the recommended practices to increase the profitability in the hotels. This research was based on secondary data. Secondary data collection focuses on extracts of financial statements of randomly selected 26 listed hotels for last 3 years, i.e. from 2012 to 2015. Financial ratios and financial variables were used to test applicability of independent variables and hypotheses on dependent variables. This study was tested the degree of influence of the independent variables of operational efficiency, investment in training and development of associates, hotel size, investment in research and development and amount of interest bearing loans on the dependent variable of Profitability of listed hotels. Operational efficiency and amount of interest bearing loans were identified as significant variables of influencing the profitability of the listed hotels.
Assessing the Impact of Skills on the Effectiveness of Internal Audit: Empirical Evidence from Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Kavinda, S.J.M.I.; Sujeewa, G.M.M.
In the dominion of Sri Lankan audit practices, this research endeavors to dissect the elaborate interaction between professional, interpersonal, technical, and audit-specific skills and their influence on the effectiveness of internal audits. The study draws upon a diverse sample of 120 participants from varied sectors such as hotels, manufacturing, banking, and audit firms to precisely assess the connection between these skills and the effectiveness of internal audit functions. Utilizing a strong conceptual framework where these skills are suggested as independent variables and internal audit effectiveness as the dependent variable, the research crafts and empirically evaluates four hypotheses. These hypotheses scrutinize the extent to which internal auditors’ skills possess the necessary to influence audit functions effectively. Findings explain a significant positive correlation between professional factors and internal audit effectiveness. This underscores the paramount importance of cultivating and honing professional skills such as accounting expertise and regulatory acumen to bolster audit performance. The study explained a persuasive link between interpersonal skills, and technical and audit skills with internal audit effectiveness, highlighting the instrumental role of effective communication, team collaboration, and relationship-building capabilities in enhancing audit outcomes. The implications of these findings extend beyond theoretical dimensions and concrete the way for actionable recommendations. The study underscores the imperative for technical skill enhancement programs, continuous skill assessments, and cross-industry collaborations to fortify the skill arsenal of Sri Lankan internal auditors.
Assessment in internship – experiences of accountancy degree programme – university of Kelaniya
(Department of Accountancy, University of Kelaniya, 2015) Aruppala, W.D.N.; Jayamaha, A.
Internship has become an important component in accounting degree pragrammes in universities over the past decades. Academics and researchers believe that internship provides smooth transition of undergraduates from oncampus environment to the working environment (Muhamad et al 2009). Further, practitioners in accounting profession have identified that internship experience benefits not only to improve the quality of the degree programme and the skills of the students but also benefits to the employing entity during and after the internship (Beard 2006). Hence, interaction and evaluations among students, faculty and practitioners during and after the internship is invaluable in measuring outcome of the internship programme. Department of Accountancy (DoA), University of Kelaniya, Sri Lanka has introduced internship to the accounting degree curriculum in 1998. DoA believes that the objective of introducing the internship component to Accounting programme is to facilitate students to gain practical exposure from the dynamic business environment, and to enhance teamwork sprit and the employability. To achieve these objectives multiple assessment activities have been introduced in par with the International Accounting Bench Marks designed by Universities and professional institutions, and those activities have been increasingly changed to strengthening the programme. The objective of this paper presents the multiple assessment activities created by DoA in internship pragramme since 1998 to maintain the quality of the accounting degree programme. The assessment activities presented in this article are useful for other accounting pragrammes for improving quality and for accreditation of their degree programmes.
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.
The Association between Firm Specific Characteristics and Voluntary Disclosures of Non-Financial Sector in Sri Lanka
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Herath, C.G.H.S.M.; Wijekoon, W.M.H.N.
The main purposes of this research are to assess the level of disclosure in the annual reports of non-financial (excluding banks finance and insurance sector) Sri Lankan firms which are listed in the Colombo stock exchange and to investigate the impact of firm specific characteristics on the extent of voluntary disclosure. A disclosure checklist consisting with 20 voluntary items was developed to assess the level of disclosure of 100 listed companies in Sri Lanka during the period 2017/2018. The association between the level of disclosure and firm specific characteristics were analyzed using E-views 8.0 statistical software package. Out of the total selected companies 58% companies have disclosed more than the mean level of disclosure index. It was found that firm size was significantly positively associated with the level of disclosure. This means that large size companies have more interest in disclosing additional information as compared to small size companies. Profit margin was also significantly positively associated, and debt was significantly negatively associated with the level of disclosure. The remaining variables, however, were found to be insignificant in explaining the variation of voluntary disclosure. The results of this study are very useful for the investment community to assist in evaluating the extent of voluntary disclosure by Sri Lankan listed firms and explaining the variation of disclosure. Further, the results provide useful insights to policy makers and regulators who want to improve voluntary disclosures in their countries
Association of accounting information on stock prices of licensed commercial banks in Sri Lanka
(Department of Accountancy, University of Kelaniya, 2015) Perera, R.M.S.M.; Gunaratne, Y.M.C.
The value relevance of accounting information has become one of the most researched area among accounting researchers. However the value relevance literature provides contradictory conclusions on the association between accounting information and stock prices in different stock exchanges including both developed and developing market settings whilst there is a very limited knowledge in this regard in Sri Lankan Context. Hence this paper focused on examining the association between accounting information and stock prices of licensed commercial banks in Sri Lanka to bridge the knowledge gap in Sri Lankan context. The study conducted based on the hypothesis that there is significant association between accounting information and stock prices in licensed commercial banks in Sri Lanka. Core Capital Adequacy Ratio, Total Capital Adequacy Ratio, Net Non Performing Advances Ratio, Interest Margin, Return on Assets, Return on equity and Statutory liquid Assets Ratio were used as proxy for accounting information. The sample period of the study spans for 5 years from 2007 to 2011. The relevant data was collected from the CSE data library and the published annual reports of all the licensed Commercial Banks whose data is available for the sample period. Both descriptive statistics and inferential statistics were used to analyze data. The statistical analysis revealed that 36% of variations of share prices of Licensed Commercial Banks in Sri Lanka could be explained through the independent variables under study. Further this study revealed that there is a significant relationship between share price and Interest Margin, Return on Equity and Return on Asset. Accordingly this study concluded that there is an association between the accounting information and the share prices of the licensed commercial banks in Sri Lanka hence the accounting information is value relevance in determining share prices of such companies.
The Audit Committee Characteristics and Earnings Quality of Public Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Rathnayake, M.L.M.L .; Kawshalya, M.D.P.
This study examines the impact of Audit Committee Characteristics on Earnings Quality of Public Listed Companies in Sri Lanka. Several prior studies have examined this relationship in developed countries. There appears to be a dearth of literature on the subject in developing and Asian countries and Sri Lanka in particular. Moreover, the extant literature provides mixed results and therefore, comprehensive evidence is missing relating to the subject. This study contributes to the existing literature by integrating both Audit Committee Characteristics and Earnings Quality. Quantitative approach is adopted in the study to find answers for the research questions. Audit Committee Size, Audit Committee Independence, Number of Audit Committee Meetings, Financial Experience of Audit Committee Members and Percentage of Common Stocks Owned by Audit Committee are used as independent variables and Earnings Quality used as the dependent variable of the study. Regression analysis is used to analyze data. The dataset covers all companies in the Colombo Stock Exchange in Sri Lanka except banks, finance and insurance companies and collected data for 5 years period from 2016 to 2020. Findings of the study will be useful to identify the impact of disclosure quality on the financial performance of the listed companies in Sri Lanka. Findings also provide useful insights to regulators and policymakers in coming up with appropriate policies.
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.
Auditor’s Opinion, Auditor’s Size, and Value Relevance of Accounting Information
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Saran, V.; Kawshalya, M.D.P.
The main Purpose of this research is to study the effect of auditor’s opinion and audit firm size on the value relevance of accounting information of the companies listed on the Colombo stock exchange during the years 2018-2021. The feature of financial information to significantly affect the investors’ decision-making process, reflected by the stock price or stock return, is called value relevance The research includes a sample of 107 companies’ observations for 4 years drawn from the listed companies, and the research hypotheses were analyzed using multivariate regression model based on panel data. Data are hand collected from the annual reports of the companies. Financial institutions, banking, finance, and investment firms are also eliminated since their accounting and reporting environments differ from those in other industries.
Awareness and Acceptance of Information Technology Driven Banking Services in Sri Lanka: Special Reference to Local Banks
(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Subasena, E.S.I.; Thilakarathne, C.R.
According to traditional banking, in order to carry out banking transactions customers are supposed to undergo time wasting, tedious process by visiting branches. Therefore with the technological developments in the country the banks are introducing different kind of information and technology driven banking services such as ATM services, online banking, Mobile banking, telephone banking and internet payment gateway to their customers. This research investigates awareness and the factors associated with the customer acceptance of information technology driven banking services (ITDBS) in Sri Lanka. Customer awareness and acceptance are identified as the dependent variable and factors associated with the customer awareness and acceptance is identified independent variable variables. After an extensive survey of the existing literature and referring to TAM model, perceived usefulness, perceived ease of use, perceived trust and perceived security are mainly tested under independent variables. Data will collect through a sample of 300 local banks’ customers using primary data collections methods such as questionnaires. In order to test the hypothesis built using variables, regression analysis and Pearson correlation analysis of SPSS software package is used. The result reveals that ATM services and internet banking and SMS banking are most popular among banking customers while other services are not much popular among them. Further it reveals that perceived usefulness and perceived ease of use are mainly affected to adoption of information technology driven banking services while perceived trust and perceived security affect both negatively and positively for adaption and non-adaption of some services
Behavioral Factors Affecting Investments in Unauthorized Deposit Taking Institutions in Sri Lanka
(5th International Conference for Accounting Researchers and Educators (ICARE – 2019), Department of Accountancy, Faculty of Commerce & Management Studies, University of Kelaniya, Sri Lanka, 2019) Jayasinghe, T.N.
In the today’s turbulent business context, the decision of investment depends on several underlying behavioural elements of the investors. This study aimed at identifying the behavioural factors that influence the decision to invest in unauthorised deposit taking entities. Both quantitative and qualitative methods were used. The sample of 425 investors of unauthorized deposit taking institutions were responded to a structured questionnaire. Qualitative data were collected by one to one interviews. And data was analysed using multiple regression technique. The initial model consisted with five variables namely, attractiveness of returns to investors, risk preference of investors, use of personal referrals, use of financial information and firm reputation. The results of the model show that attractiveness of returns to investors, risk preference of investors and use of personal referrals have a significant influence over the behaviour of individual investors to perform investments in unauthorised deposit taking entities in the Sri Lankan context. However, it is found that both use of financial information and firm reputation do not have a significant influence over the decision to invest in unauthorised deposit taking entities.
Behavioral Intention to Use Forensic Accounting Services for the Detection and Prevention of Frauds in Sri Lanka
(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Nisansala, H.A.; Sujeewa, G.M.M.
This study investigates the factors that influence the behavioral intention to use forensic accounting services in the detection and prevention of fraud in Sri Lanka. The research was motivated by the underutilization of forensic accounting services, an essential and effective fraud detection and prevention method. The low usage of this service by companies in Sri Lanka and worldwide has been pointed out as a contributing factor in the escalation of fraud. The organizational intention to use professional services including forensic accounting services has not been researched previously. The study uses a quantitative approach to its research methodology. The Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB), Health Belief Model (HBM), and Hierarchy of Effects Model (HOE) were found to be significant to the study of behavioral intention during the second part of the literature review. Quantitative data is gathered from Chief Financial Officers (CFOs), Business Owners/CEOs, Internal Auditors, Finance Managers, Compliance Officers, Risk Managers, and Audit Committees of Sri Lankan companies during the third phase. The multiple regression approach using ordinary least squares was used to examine quantitative data. The findings support the significant positive impact of awareness, stakeholder pressure, and threat perception factors on the behavioral intention to use forensic accounting services, as well as the negative impact of financial costs and legal factors. This research contributes theoretical as well as practical. The integrative conceptual model, which has effectively integrated factors from the TRA, TPB, HBM, and HOE in examining the behavioral intention of using forensic accounting services, is the theoretical contribution. There has never been an investigation into the company's intention to use professional services, such as forensic accounting services. Additionally, this study is the first to use HOE's awareness and HBM's risk perceptions in an ethical decision-making model. The study's practical implications allow the government of Sri Lanka, professional associations, board of directors, stakeholders in the organization, and accounting firms to gain a better understanding of the reasons behind organizations' resistance to using forensic accounting services for fraud detection and prevention. It will also enable them to create workable techniques and marketing plans to raise forensic accounting services' profile, obtain acceptance, and eventually be used in the battle against fraud.
Board Characteristics & Integrated Reporting Quality – Evidence from Listed Companies in Sri Lanka
(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Dilhani, A.V.H.; Wijekoon, W.M.H.N.
Integrated reporting is the most recent innovation in the world of corporate reporting. It's a tool that can more accurately represent a company's ability to build value over time. In recent years, both professional and academic disciplines have become more aware of this reporting tool. However, despite previous studies that looked at many areas of integrated reporting, the quality of integrated reporting and the determinants that influence it are still little explored. This study, therefore, aims to bridge this gap by examining the impact of board characteristics on integrated reporting quality according to an agency theory approach. Therefore, the findings of this study offer a better understanding on the impact of board characteristics on integrated reporting quality of listed companies in Sri Lanka. Among the companies that publish integrated reports, the three companies with the highest market capitalization in all sectors of CSE are considered as sample. Accordingly, 60 companies were taken into consideration for the period from 2017 to 2020 with total number of 240 integrated reports. The data in this study were analyzed using descriptive analysis, Pearson correlation analysis, and linear multiple regression analysis. This study contributes to expanding literature in this field in various ways. First, it broadens the scope of agency theory's application. second, it reveals additional internal determinants of integrated reporting quality. Further, findings provide useful insights for practitioners, particularly for corporate executives and high-level corporate governance bodies. Moreover, findings are useful to policy makers and standard setters in revising and developing existing integrated reporting practices.