Commerce and Management
Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/140
Browse
48 results
Search Results
Item Working Capital Management on the Financial Performance of Plantation Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Samarasinghe, N.D.A.K.; Madurapperuma, M.W.The purpose of this research study was to find out the influence of working capital management on the financial performance of plantation companies in Sri Lanka. Effective working capital management is crucial for businesses as it directly affects their liquidity, profitability, and overall financial health. However, the specific impact of working capital management practices on the financial performance of plantation companies in the Sri Lankan context remains largely unexplored. The research will employ a quantitative approach, utilizing financial data from a sample of 20 plantation companies listed in the Colombo Stock Exchange from 2016 to 2022. The study would focus on Return on Assets as the key financial performance. Additionally, working capital management variables, including cash conversion cycle, inventory turnover, and receivables/payables management, will be examined to understand their influence on financial performance. Through data analysis and statistical techniques such as regression analysis, the study aimed to provide empirical evidence regarding the relationship between working capital management and financial performance in the plantation sector of Sri Lanka. The findings helped shed light on the specific working capital management strategies that positively impact financial performance and highlight areas for improvement. The findings of this study significantly deviate from the previous international studies conducted in different countries. The results divulged that working capital management and profitability are positively correlated in Sri Lankan plantation companies. The study further showed that the number of days of inventory and the number of days of accounts payable are negatively correlated with a firm’s profitability, whereas the number of days of accounts receivables and cash conversion period reveals a positive relationship with corporate profitability. Overall, this research study aims to contribute to the existing literature on working capital management and provide valuable insights into the Sri Lankan plantation industry, enabling stakeholders to make informed decisions about financial management and performance improvement strategies.Item Factors Affecting on Capital Structure of Sri Lankan Listed Companies in Pre and During the Covid-19 Pandemic(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Samarasinghe, D.G.H.M.K.; Madurapperuma, M.W.This study aimed to investigate factors affecting the capital structure of Sri Lankan companies listed on the Colombo Stock Exchange (CSE) in pre- and during the COVID-19 pandemic. Every company needs to have a robust capital structure because it significantly impacts the financial decisions adopted by the company. The goal of the company is to effectively manage the debt-to-equity ratio (DER) to maximize shareholder wealth. The study is based on a sample of 30 non-financial listed companies, considering market capitalization. This research used secondary data and data taken from the annual reports during the six years (2017–2022). The independent variables consist of growth, tangibility, size, profitability, and liquidity. The dependent variable is capital structure, which is measured by the debt-to-equity ratio (DER). Panel data regression was employed to analyze the information collected to identify the factors affecting capital structure. Pre-COVID-19 period regression results suggest that company growth has a significant positive impact on capital structure and profitability has a significant negative impact on capital structure. Tangibility, firm size, and liquidity have an impact on capital structure that is insignificant. During the COVID-19 period, results found company growth has a significant positive impact on capital structure and firm size has a significant positive impact on capital structure. Tangibility, profitability, and liquidity have an impact on capital structure that is insignificant.Item Impact of Accounting Practices on Organizational Performance of Small and Medium Enterprises in Sri Lanka (Gampaha District)(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Ranshani, M.M.A.T.; Madurapperuma, M.W.Accounting practice is defined as the typical way a business entity's day-to-day financial actions are gathered and recorded. There is some empirical evidence that could be found to identify whether the accounting practices would impact the organizational performance of SMEs. Therefore, this study attempted to explore how accounting practices affect the organizational performance of SMEs. This study adopted a quantitative research approach. Thus, a self-administered survey questionnaire was applied to a sample of 220 Small and Medium Enterprises (SMEs). The sample was determined using the random sampling technique. The data were collected from the respondents through Google Forms. The multiple linear regression analysis was performed using the SPSS 20.0 version to test the hypothesized impacts between the constructs. According to the results, it is revealed that record keeping, budgeting practices, and inventory management have a significant positive impact on organizational performance. In contrast, payroll accounting did not significantly affect the organizational performance of SMEs. It can be recommended that academic institutions and other bodies that are responsible for SMEs should organize training programs for those operators who do not have the technical knowledge of how to apply accounting practices in the field of accounting and provide some SME-specific accounting guidelines and forms for capturing accounting practices for the operators to use.Item The Impact of Working Capital Management on Firm’s Profitability: Listed Companies in Sri Lankan Context(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Madushanka, R.M.D.; Madurapperuma, M.W.Efficient working capital management plays a pivotal role in determining a firm's financial health and overall profitability. This study investigates the relationship between working capital management and the profitability of listed companies in the context of Sri Lanka. Through a comprehensive analysis of financial data, the research aims to uncover the intricate dynamics that govern the impact of working capital management practices on the financial performance of these companies. The methodology involves an in-depth examination of the financial statements of selected listed companies, employing key indicators such as the Cash Conversion Cycle (CCC), Receivables Turnover, Inventory Turnover, and Payables Turnover. The findings of this study provide valuable insights for both academia and practitioners by contributing to the existing body of knowledge on the relationship between working capital management and firm profitability. Understanding these dynamics is crucial for companies in Sri Lanka as they strive to enhance their financial performance in a competitive and evolving market. Moreover, the research aims to offer practical recommendations for listed companies in Sri Lanka to improve their working capital management practices, thereby fostering sustained profitability and financial resilience. The implications of this study extend beyond the Sri Lankan context, serving as a reference for businesses globally seeking to refine their working capital strategies for enhanced financial sustainability.Item Impact of Inflation Targeting Monetary Policy on Economic Growth in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Leon, P.P.; Madurapperuma, M.W.This paper investigates the impact of inflation-targeting monetary policy on economic growth in Sri Lanka. The objective of this paper is to assess the effects of monetary policy on key macroeconomic variables in the small open developing economy of Sri Lanka. To this end, this paper is organized as follows: Section I introduces the established evidence on the effects of monetary policy in the long and short run as well as a brief introduction to monetary policy in Sri Lanka. Section II reviews the existing literature about the methods of assessing the effects of monetary policy on macroeconomic variables. Section III explains the methodology and data used in the analysis. Section IV analyses the results obtained while Section V summarizes and concludes the discussion. To assess the impact of inflation-targeting monetary policy on key macroeconomic variables in Sri Lanka, such as inflation, Output, and unemployment, to identify the channels through which inflation-targeting monetary policy affects economic growth in Sri Lanka, to examine the impact of inflation on economic growth in Sri Lanka over the period 2000-2022, To measure the degree of responsiveness of economic growth (GDP) to changes in the general price levels (Inflation rate). The research design, conceptual framework, formulation of hypotheses, details of the research design, population, and sample selection justification are all covered in the methodology chapter. The study uses time series data from 2002 to 2022 to quantitatively analyze the effect of Sri Lanka's inflation-targeting monetary policy on economic growth. It supports the duration, sample, and data-gathering techniques selected, and emphasizes statistical analysis for validation with E-Views 12 SV software. The analysis concludes that there is no discernible difference between the treatment and control groups regarding the rate of inflation and the growth of the gross domestic product throughout the study. However, the result indicates that when the economy must deal with exogenous uncertainties, emerging economies can manage the rate of inflation increase.Item The Relevance of Accounting Information to Stock Price, A Study of Listed Hotel & Travel Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Khan, A.K.M.A.; Madurapperuma, M.W.This study looks at the impact of accounting information on the stock prices of listed travel and hotel companies in Sri Lanka during Eleven years, from 2013 to 2023, and its value significance. This analysis attempts to fill the knowledge gap by examining the relationship between financial performance indicators specifically, book value per share (BVPS), earnings per share (EPS), and dividends per share (DPS) and market valuation in the context of the scarcity of empirical research in this economically significant sector. This long-term study uses multiple regression analysis on a sample of twenty companies to determine the predictive potential of various financial parameters on stock prices. The results show that DPS and BVPS have a substantial impact on stock prices, which is consistent with their significance in financial reporting and investor decision-making. On the other hand, EPS only marginally indicated relevance, indicating a more intricate relationship with sector stock prices. The research also finds that the residuals of the regression model have positive autocorrelation, which suggests that the model may have missed certain sector-specific or time-series properties. This emphasizes how future models must consider more variables to increase the reliability of prediction assessments for investment strategies. This study is significant because it adds to the limited research on the capital market behavior of Sri Lanka's hotel and tourist sectors. It highlights the crucial role that clear and understandable financial disclosures play in the capital markets and offers insights for investors, corporate management, and policymakers. According to the findings, stronger financial ratios and higher-quality accounting data may have a big impact on how much a company is valued in the market in emerging nations like Sri Lanka.Item The Impact of Covid -19 Pandemic on the Financial Performance of Tourism Industry in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Fernando, W.A.K.; Madurapperuma, M.W.The COVID-19 pandemic has had a profound effect on the global tourism sector, and Sri Lanka is no exception. This research paper focuses on analyzing the financial performance of the tourism industry in Sri Lanka amidst the pandemic and identifies the key factors that have contributed to its decline. The findings of this study indicate that the pandemic has had a severe impact on the tourism industry in Sri Lanka. There has been a significant decrease in the number of tourist arrivals, revenue generated, and employment opportunities within the industry. Several factors have been identified as contributors to this decline. Firstly, travel restrictions imposed by various countries have greatly hindered international travel, resulting in a decrease in tourist arrivals. Additionally, concerns regarding health and safety have discouraged potential tourists from visiting Sri Lanka. Furthermore, the lack of government support has further exacerbated the challenges faced by the industry. Moreover, this study highlights the varying impact of the pandemic on different sectors of the tourism industry. Accommodation and transportation have been particularly affected, experiencing a significant decline in business. This discrepancy in impact emphasizes the need for tailored strategies to address the challenges faced by each sector. In conclusion, this research provides valuable insights into the challenges faced by the tourism industry in Sri Lanka during the COVID-19 pandemic. It also offers practical recommendations to aid in the recovery of the industry. These recommendations include the necessity for a coordinated response from industry stakeholders and the government, the development of innovative products and services, and the adoption of digital technologies. By implementing these recommendations, the tourism industry in Sri Lanka can work towards mitigating the impact of the pandemic and facilitating its recovery.Item Impact of Public Debt and Corruption on Economic Growth in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Dissanayake, D.M.P.J.; Madurapperuma, M.W.Governments tend to borrow financial resources from domestic as well as external sectors when their tax revenues are not sufficient to meet the required financial needs. In the Sri Lankan context, there has been a gradual increase in the accumulation of public debt since the post-liberalization phase. Herein, this ambiance of public debt has caused congenial effects while leading to some unfavorable effects on the economy. With that, there are many studies that look into the relationship between public debt and economic growth. It is hard to find, however, research addressing the role of corruption between these two variables in the Sri Lankan context. Noticing this vacancy in the current literature, this study strives to investigate the effect of public debt and corruption on economic growth in Sri Lanka over the period 1973–2022. The study used public debt and corruption as explanatory variables and investment, savings, debt service, and trade openness as control variables to determine their effect on GDP growth. The study follows some econometric steps, respectively, the unit root test, the Johansen co-integration test, and finally employing the Vector Auto Regression Model (VAR) to detect the short-run impact, on the one hand, between public debt and economic growth and, on the other hand, between corruption and economic growth. The results indicate that there is a negative relationship between public debt and economic growth reveal evidence for the presence of a crowding-in effect of public debt, implying a significant association between public debt and economic growth. In addition, the study’s empirical results show that a negative relationship between corruption and economic growth also indicates that corruption hinders economic growth in Sri Lanka. The finding suggests that using government debt for priority investment expenditures with a prudent debt management strategy to curtail the impact of crowding out investment will have a favorable impact on the economic growth of the country, particularly in the long run. It also suggests that the issue of corruption be tackled head-on by strengthening anti-corruption laws, which should apply to high-level and low-level positions in the public sector. These findings are important for the government of each regional country to further manage the corruption in the country and for public service providers in their decision-making processes.Item An Impact of Credit Risk Management on Financial Performance: Evidence from Licensed Finance Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Bandara, K.D.M.M.M.; Madurapperuma, M.W.The sustainable development of any country in today's world heavily relies on the stability of financial intermediaries' performance. In Sri Lanka, Licensed Finance Companies (LFC) serve as the primary financial intermediaries. Credit risk, stemming from borrowers' inability to repay loans or fulfill contractual obligations, stands out among the various risks faced by LFCs, playing a crucial role in determining their financial performance. While numerous previous studies have explored the impact of credit risk management on LFCs' financial performance, there is a scarcity of research specifically comparing such impacts within the Sri Lankan context. Therefore, this study seeks to bridge this empirical gap by investigating the influence of credit risk management on the financial performance of LFCs. Additionally, the research assesses the level of credit risk management practices in the Sri Lankan LFC sector using the CAMEL rating method. The sample includes 26 LFCs, and the study spans from 2018 to 2022. The panel regression model is employed for estimation, and data is gathered from published annual reports. Utilizing EViews Statistical software, the analysis includes descriptive analysis, correlation, and regression analysis. The study's results, indicating the best sector of credit risk management based on the lowest CAMEL composite ranking, offer valuable insights for investors to make more informed and profitable investment decisions with lower risks. Furthermore, the study concludes, through regression analysis, that both asset quality and capital adequacy significantly impact the performance of LFCs."Item The Impact of Monetary Policy on Economic Growth in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2021) Sathya, D.M.S.; Madurapperuma, M.W.Using monetary policy to maintain price stability and low inflation can help a country's economic growth. Economic growth is the increase in a country's volume of products and services. A developing economy, like Sri Lanka, produces commodities and services in every order, indicating capacity and productivity increases. This study examines the role of monetary policy in Sri Lanka's growth. Various arguments exist in the literature study about the link of certain variables in various nations. But not everyone who discovers can immediately adapt to Sri Lanka. Thus, this study seeks to fill a research vacuum on present monetary policy instruments and economic growth in Sri Lanka. This study focuses on GDP, inflation, and other monetary policy tools (money supply, interest rate). It's vital to examine the short- and long-term links between economic growth and monetary policy. This is because the study examines the behavior of two macroeconomic variables. The Sri Lankan economy is being studied to understand the important relationship between monetary policy and economic growth. The annual time series data are from 1990 to 2019. The data will be analyzed using unit root test, correlation, and OLS regression. The study will use quantitative methods to examine the relationship between GDP growth, interest rates, money supply, and inflation.