Junior Research Symposia
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Item The Impact of Sri Lanka Financial Reporting Standards (SLFRS)-16) on Key Financial Ratios of Listed Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Induranga, P.D.R.; Karunarathne, W.V.A.D.SLFRS sets out new rules for the recognition and measurement of leases in an organization. The introduction of the new standard removes the lessee's distinction between operating and finance leases, leading to an increase in leased assets and financial liabilities on the statement of financial position or balance sheet of the lessee. Hence, companies with material off-balance sheet leases will encounter significant changes in their key financial metrics. Several prior studies have investigated the potential impact on financial metrics due to the change in the new lease standard of SLFRS 16. By reviewing the previous studies thoroughly, they have revealed mixed results. Accordingly, some studies showed that significant deviations from the financial indicators and some studies had tested the impact of operating lease capitalization on investor decision making. Therefore, the present study aims to analyze the potential impact of operating lease capitalization on listed companies' key financial ratios in Sri Lanka using an advanced constructive capitalization method. This research examines the lease capitalization effects on companies' financial ratios listed on the Colombo Stock Exchange in the year 2018. The comparative model examines the change of a company's financial ratios in the sample before and after the capitalization of operating leases. The research findings intend to extend the scope of regulators and standard setters by requiring companies to disclose their operating lease. Additionally, it will increase the benefit of information on operating lease in decision making. Further, it will reduce the accounting practices that hide debts by voluntarily disclosing the present value of lease commitments in notes to the financial statements.Item A Study on Relationship between Working Capital Management and Firms’ Performance: Comparison between Manufacturing Sector and Food & Beverage Sector in Colombo Stock Exchange(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Karunarathne, R.M.H.L.; Karunarathne, W.V.A.D.This study examines the relationship between working capital management (WCM) on firms’ performance and also compare the correlation results in between manufacturing sector and the food and beverage sector firms in Sri Lanka. The goal of WCM is to ensure that the firm is able to continue its operations and that it has adequate cash flows to satisfy both maturing shortterm debt and upcoming operational expenses at minimal costs, and consequently, increasing corporate profitability (Angahar & Alematu, 2014). Though empirical evidence exists on the topic, yet there is an uncertainty in determining the optimum level of WCM, especially in Sri Lankan context. Since WCM may be different from industry to industry, firms have to adopt an appropriate WCM approach which is favorable to particular industrial sector. Hence this study compare the relationship between WCM and the firm’s performance of eighteen manufacturing firms and eighteen food & beverage firms listed in the CSE. Data were gathered from annual reports of the sampled firms for the period 2011-2015. The WCM measured in terms of Inventory Turn-over Days (ITD), Average Receivable Days (ARD), Average Payable Days (APD), Cash Conversion Cycle (CCC) and Sales Growth Rate (SGR) whereas performance was measured by the return on assets (ROA). According to the data analysis, there was a negative correlation between ROA and CCC, ITD, ARD. In addition to that, there was a positive correlation between APD and SGR with ROA. There was a significant relationship between WCM and firms’ performance in manufacturing and food & beverage sector. Keeping an optimal level of liquidity of the manufacturing and food & beverage sector and the value of the managers of companies in the manufacturing and food & beverage sector will have to increase the value of the firm thereby controlling the level of optimal working capital position.Item Factors Influencing the Usage of Credit Cards: With Special Reference to Customers in Private and Government Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Ishara, D.P.A.; Karunarathne, W.V.A.D.The credit card has developed into one of the most accepted, convenient and profitable financial products around the world. Many of consumers and merchants in the world accept it as a routine means of payment for all variability of products and services. This study is a quantitative research aimed to recognize the factors affecting for usage of credit cards with special reference to Private and Government banks in Sri Lanka. Researcher selected 200 credit card holders among selected five banks as the sample and mainly used the primary data for this study. Primary data was gathered from structured questionnaires. Data were evaluated through descriptive statistics, correlation analysis and multiple regression analysis. According to the results of the study, awareness, cost, credit limit and socio psycho attitudes was found to be significantly influence on credit card usage. Bank functions are not significantly influence on credit card usage. Awareness was the highly influential factor for usage of credit cards. This research will be helpful for the credit card issuing banks to design marketing and promotional strategies in order to progress their credit card portfolio as well as obtaining high portion in the credit card market.Item Impact of Dividend Policy on Financial Performance: With Special Reference to the Listed Hotels and Travelling Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Padmashantha, K.G.D.; Karunarathne, W.V.A.D.The primary purpose of the study is to examine the impact of dividend policy on financial performance of companies in Sri Lanka. This study has selected twenty listed hotel and travelling companies in the Colombo Stock Exchange (CSE) to the sample from the listed hotel and travelling companies in the CSE on random basis. Secondary data were used to the study and the dividend and performance related data were gathered through annual reports of hotels and travel companies for the period of 2010 to 2015. Net Operating Cash Flow (NOCF), Book Value of Equity (BVE), Price Earnings Ratio (PER) and Dividend Payout Ratio (DPR) were selected as independent variables. Dependent variable of the study is Financial Performance, which measures by using Return on Assets (ROA). Descriptive statistics, Correlation analysis and Regression analysis were applied for analyzing data. The results reviewed that dividend payout is significantly correlate with the ROA. However, NOCF, BVOE and PER is correlated with ROA. The regression results show that all the independent variables have a significant impact on ROA. Study found that regular dividend policy and irregular dividend policy affect to the financial performance. Finally, the study represented, that dividend policy affects to the financial performance of hotel and travelling companies listed on CSE in Sri Lanka.Item The Impact of Credit Risk Management on Performance of Commercial Banks(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Navoda, G.N.; Karunarathne, W.V.A.D.Banking industry is one of the largest sector in current world, with branches and subsidiaries throughout everyone’s life. However, commercial banks are facing risks when they are operating. Credit risk is the one of the significant risk that banks face, considering that granting is one of the main source of income in commercial banks in Sri Lanka. There for the management of the risk related to that credit affect the Performance of the banks. The main purpose of the research is to investigate if there is a relationship between credit risk management and Performance of commercial banks in Sri Lanka. Research model, ROE and ROA are measurement tools of Performance and CAR, NPLR, LR and CIR are defined as tools of credit risk management. The population of this study is 24 commercial banks in Sri Lanka, and 11 commercial banks will be identified as the sample. The analyze has been made the credit risk management and its impact on profitability capacity during 2006 to 2015 (10 years) financial year of commercial banks in Sri Lanka. The research data will be collect from annual reports of sample banks. Correlation and multiple regression analysis are used for analysis. The findings reveal that positive relationship between credit risk management and performance. And also credit risk management is significant impact on performance of commercial banks in Sri Lanka.Item Impact of Firm Specific Factors on Stock Market Prices: A Study of Listed Hotel & Travels Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Manoji, L.P.; Karunarathne, W.V.A.D.The impact of firm specific factors on stock market prices is one of a popular area in Accounting Based Capital Market Research. Investors desire to buy shares of listed companies in Colombo Stock exchange (CSE) to maximize their wealth. Therefor share prices are very important one to investors and other related parties. The objective of present study is to provide empirical evidence on the impact of firm specific factors on the stock market price in listed hotels and travels companies in Sri Lanka. The study sought to examine by using the selected listed hotel & travels companies in the CSE during 2010 to 2015. Secondary data were collected from the annual reports of the hotel & travels companies and used random sampling method by selected the sample for the study. These data were analyzed using SPSS software through descriptive and inferential statistics such as measuring central tendency & dispersion, Correlation analysis and Regression analysis. The findings are indicated that a significant positive impact of dividend per share and book value per share on stock market prices. There is a significant negative impact of return on equity and dividend yield on stock market prices. Hence the study will be concluded that firm specific factors are important and also affecting on companies’ stock market price.Item Determinants of Firm Performance; With Special Reference to Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Senanayaka, S.M.D.J.; Karunarathne, W.V.A.D.Study was to discover the determinants, which affect to the profitability of Commercial banks in Sri Lanka. In the economy that the financial system is, important criteria and commercial banks are playing a key role under the financial system in the economy. The purpose of this study is to identify the determinants of the firms’ performance of commercial banks in Sri Lanka. There are many factors, which affects to the performance of commercial banks. In this study, it pays attention on the internal factors, which affects to commercial banks’ performance. The study has used Return on asset (ROA) and Return on Equity (ROE) alternatively to identify the banks’ performance. Capital Adequacy, Financial Leverage, Number of Branch and Liquidity ratio were considered as independent variables of the study. Secondary data of eight (08) listed commercial banks over 10 years were selected to the sample of the study. Correlation and Regression analysis were performed to analyzed data of the study. Constructed two models were used as alternative models. According to first model, that Capital Adequacy ratio, Debt to Equity ratio, Number of branches and the Liquidity assets ratio significantly affected the Return on Assets (ROA). According to the second model, that Capital Adequacy ratio and the Liquidity Assets ratio were significantly affected on Return on Equity (ROE) and the Debt to Equity ratio and the Number of branches were not affected on ROE significantly.Item The Impact of Job Satisfaction and Organizational Commitment on Employee Turnover Intention: With Special Reference to Corrugated Box Manufacturing Industries in Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Batagoda, S.D.; Karunarathne, W.V.A.D.During the past decade employee turnover has become a very serious issue for many organizations in the business world and it has negatively impacted on the growth of the manufacturing sector as well as service sector. Managing retention of employees and keeping the turnover rate below the industry level is one of the most challenging issues for any organization. Recent studies reveal that 81% of current employees are interested in changing their jobs within next 12 months. The purpose of this study is to examine and find out the influences of job satisfaction and organizational commitment on employee turnover intention in a corrugated box manufacturing industries in Sri Lanka. Questionnaire method was used to collect data from 240 employees in five main corrugated box manufacturing companies in Sri Lanka. Both descriptive and inferential statistical techniques were applied to analyze the data. Percentage analysis was used to explain data. Kolmorogov-Sminar test and Shapiro-Wilk test used to test the normality of turnover intention. It was revealed that the distribution of that data is non-normal. Hence the Spearman rank Correlation Coefficient was applied to measure the relationship between independent variables and dependent variable in this study. The results of the research highlighted that there is a weak negative relationship between job satisfaction and employee turnover intention and it is statistically significant at 0.05 level. The relationship between organizational commitment and employee turnover intention is also weak negative and it is statistically significant at 0.05 level. This finding can be applied to prepare a strategy for retaining employees within the organization.