Junior Research Symposia
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Item The Impact of Corporate Governance Issue on Business Failure(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Madhubhashini, T.; Aruppala, W.D.N.Corporate governance is the process to control and direct the companies for long term results. There have been many ways to achieve this via good corporate governance but failure of some big companies raised various questions and issues. This study is motivated by the frequent reforms to strengthen the effectiveness of corporate boards and their oversight committees, in the wake of high profile corporate failures. The empirical question which is tested by this study is enhance board and their committee effectiveness and in this way, reduce the likelihood of firm‘s failure. This examines whether the lack of capability of achieving the corporate governance perspectives are related to the probability of business failure. Accordingly, the objective of this study is to find out the relationship between Corporate Governance issue and the Business Failure. As the methodology of this study, the all data will be collected through the secondary sources. The corporate governance will be measured by the terms; Accountability, Integrity, Transparency and Efficiency. The Business Failure will be measured by the Working capital to total assets ratio, Leverage of the firm, return on Total assets (ROI), Gearing Ratio, Asset turnover Ratio of the selected firms. The conclusion of this study is; there is a relationship between Corporate Governance issue and the Business Failure. The findings of this study provides a guidance to managements of these companies and existing other listed companies in the Sri Lankan context.Item The Impact of Corporate Governance on Financial Performance: Evidence from Sri Lankan Banking Industry(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, W.T.N.M.; Aruppala, W.D.N.Baking industry undertakes the critical and vital roles in the financial system; the well-being of the economy and the mechanism of the banking system interconnected. The concept of Corporate Governance has become conspicuous in conjunction with banking industry. Attention to Corporate Governance has quite a long history since the seminal paper on the subject of the “Principal – Agent Problem” by Meckling which argued that the Principal – Agent problem as a consequence of the separation of ownership and control. Over the last two decades; Sri Lankan economy has encountered substantial fluctuations from countless amalgamation with the global economy ((CBSL), 2013). In 1990 Sri Lanka has utilized the capital market reforms and adopted the Anglo American Structure of Corporate Governance (Edirisinghe, 2015). The regulatory requirements which affianced with the Corporate Governance in Sri Lanka; governed by the Banking Act No. 13 of 1988, Companies Act No. 07 of 2007, Codes of Best Practices and Regulations issued by the Institute of Chartered Accountants of Sri Lanka (ICASL) and Securities and Exchange Commission (SEC) of Sri Lanka. This research empirically examines the quality of Corporate Governance practices in Sri Lankan banking industry and their impact on banks’ financial performance in the context of an emerging market such as Sri Lanka. The study concludes that there is no equivalence in the disclosure of corporate governance practices made by banks in Sri Lanka. Nevertheless they all disclose their corporate governance practices, but what is disclosed does not conform to any particular standard. Furthermore this study conclude that a positive relationship exist between financial performance, number of board meetings and education level. Besides that the study conclude that a negative relationship exist between financial performance, board size, gender, outside directors and CEO duality.