Commerce and Management
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Item Board Characteristics and Intellectual Capital Disclosures: Evidence from Sri Lanka(Department of Finance, University of Kelaniya., 2021) Chandraratne, K. A. D. P. M.; Pathirawasam, C.; Mohamed, M. S.Purpose: The purpose of this study is two-fold. First, to examine the state of intellectual capital disclosures. Second, to investigate the relationship between board characteristics and intellectual capital disclosures. Design: This study selected thirty non-financial listed companies with the highest market capitalization from the Colombo Stock Exchange in Sri Lanka. An intellectual capital disclosure index comprising 61 items was developed to understand the level of intellectual capital disclosure in the selected companies. Panel data analysis techniques were applied to test the proposed hypotheses. Findings: Results indicated that role duality and proportion of female directors have a significant and positive impact on intellectual capital disclosures. Firm leverage was found to have a significant and negative effect on intellectual capital disclosures. Insufficient empirical evidence between other corporate board characteristics and intellectual capital disclosure in Sri Lanka may be attributed to a non-mandatory corporate disclosure environment. Originality: This is among the few studies to examine the link between corporate governance and intellectual capital disclosures employing panel data in Sri Lanka. However, a discourse on the role of corporate governance and corporate disclosures is warranted in a small island developing economy with a fragile financial system like Sri Lanka. Future Research Directions – The study calls for more studies to investigate the relationship between corporate governance and intellectual capital disclosures in the case of Sri Lanka by employing data from different industries for longer periods.Item Impact of Corporate Governance on Intellectual Capital Efficiency - Evidence from Sri Lankan Banking Sector(Journal of Accountancy and Finance, 2024) Weerasinghe, I.K.H.N.; Thilakasiri, K. K.The study explores the intricate link between Corporate Governance (CG) factors and Intellectual Capital (IC) efficiency within the Sri Lankan banking sector. It delves into the impact of variables such as Board Size (BSIZE), Board Activity (BACT), Board Independence Composition (BIND), Audit Committee Size (AUDS), and Frequency of Audit Committee Meeting (AUDM) on Intellectual Capital, treating the latter as the dependent variable. For the five years between 2018 and 2022, the research technique comprises a thorough investigation of banking sector company in Sri Lanka, excluding three banks. The goal of the study is to obtain understanding of the connection between CG variables and IC efficiency through secondary data analysis using data from stock market transactions and audited financial statements. The main analytical tools are descriptive statistics and regression modeling, which enable a detailed comprehension of the relationship between CG dynamics and IC efficiency. Through a detailed examination of these variables across time and across different financial institutions, the study seeks to illuminate the ways in which CG practices impact the creation and application of IC in the banking industry. In the conclusion, the results of this study are important not only for scholars but also for professionals and decision-makers in the banking sector in Sri Lanka. The study provides significant insights that can guide strategic decision-making, governance reforms, and resource allocation within banking institutions, ultimately leading to improved organizational efficiency and long-term sustainability. This is achieved by revealing the complex relationships between Corporate Governance and Intellectual Capital.Item Relationship between Intellectual Capital and Company Performance: Empirical Evidence from Bank, Finance and Insurance Listed in Colombo Stock Exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Gunasekara, H.V.R.L.It is no doubt that successful companies tend to be those that persistently renovate, depend on new technologies and emphasizing on skills and knowledge of their workforce. Knowledge being the new engine of financial institutions, High-tech institutions as well as in the manufacturing companies in order to sharpen their competitive edge. Not only by the knowledge base, but also value is generated by the intangible assets. So the Intellectual Capital (IC) has become more and more important to the companies. This study provides insight into the relationship between IC and organizational performance as the main topic of the research. Population is companies listed in Colombo Stock Exchange (CSE) under the Bank Finance and Insurance sector. The selected sample is 30 companies and it is fifty four percent of the sector. Research used data from the period of 2010 to 2014, using the Value Added Intellectual Coefficient (VAIC) method as the evaluation system. The study constructed three empirical research model based on economic performance, financial performance and stock market performance to find out the company performance. Through results of the study it can be concluded that economic performance, financial performance and stock market performance are affected by Intellectual Capital.Item Intellectual Capital and Financial Performance in Sri Lankan Banks(Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Aruppalal, D.; Wickramasinghe, V.; Mahakalanda, I.The purpose of this paper is to examine the impact of Intellectual Capital (IC) on financial performance of Sri Lankan banks. This analysis is about the level of intellectual capital, level of financial performance and the impact of IC on financial performance of Sri Lankan banks. The Value Added Intellectual Capital coefficient (VAIC) approach developed by Pulic (2000) is used to determine the IC performance. Accordingly human capital, structural capital and capital employed efficiency are used as intellectual capital constituents of this research. Return on Equity (RoE) and Market to Book Value Ratio (M/B) are used to measure the financial performance and value creating competency of selected banks. The data obtained from corporate annual reports are regressed to measure the impact of intellectual capital constituents on financial performance. Findings of this research indicates that, Sri Lankan banks, in general, have relatively lower human capital and structural capital efficiency compared to capital employed efficiency. So the results depict a greater impact of capital employed efficiency on financial performance compared to other intellectual capital constituents. Further these findings would be both conceptually and practically appealing for bankers to apply knowledge management practice in their institutions. Also this study would provide some information to the stakeholders and potential investors to assess the value creating capabilities of selected banks. Findings of this study help decision makers be aware of the importance of intellectual capital as a key factor that can enhance a firm’s ability to maintain their competitive position.Item The Impact of Intellectual Capital and Its Components on Firms' Market Value: A Comparative Study Based On Manufacturing and Service Sectors in Sri Lanka(2011) Ranjani, R.P.C.; Jayendrika, W.A.D.K.This comparative study attempts to identify the impact of intellectual capital and its components on firms? market value in manufacturing sector and service sector in Sri Lanka. The study was based on 52 public listed companies (PLCs) in two sectors in Colombo Stock Exchange (CSE) and the annual reports of PLCs from 2005 to 2009 were employed to collect the data. Value Added Intellectual Coefficient (VAICTM) and its 3 components, developed by Ante Public (1998) were utilized to measure the intellectual capital efficiency, whilst Market-to-Book Value Ratio (M/B) measured the market value. The findings revealed that, intellectual capital does not affect to the market value of PLCs in both sectors and they are consistent with Chan (2009) and Firer and Stainbank (2003). Physical capital plays a significant role in market value in service sector and it is consistent with Chan (2009), Chen et al. (2005), and Najibullah (2005).