Junior Research Symposia
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Item Comparison between Economic Value Added (EVA) and Accounting Measurements in Predicting Stock Return in Listed Manufacturing Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Nishadi, W.W.D.M.; Abeywardhana, D.K.Y.The objective of this research is identifying the best measurement and provides suggestions to predict the stock return in Sri Lanka considering the listed manufacturing companies of Colombo stock exchange. Economic value added (EVA), Net Profit (NP), and Net Operational Profit after Tax (NOPAT) is independent variables, and stock return is dependent variable in this study. Data collected from using annual reports of 20 manufacturing companies for the period of 2010 to 2016. The findings show that there is a positive relationship between the stock return and all the independent variables. NOPAT is the most important measure in predicting the stock return. Further this study suggested that random effect model should be accepted and then it explain that differences among entities have some influence on the dependent variable. Accounting measures are better in predicting stock return than EVA.Item Effectively maintain the working capital for manufacturing organization’s performance in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Nishadi, W.W.D.M.Working capital management plays a significant role of manufacturing firms. Firms can increase it performance by managing it an effective way. The profitability, liquidity tradeoff is important because if working capital management is not given due considerations then the firms are fallen and faced bankruptcy (Abdul et.al, 2010). Firms can achieve optimal management of working capital by making the trade-off between profitability and liquidity. It promotes to satisfy the short term liquidity, Profitability and shareholder wealth (Daniel, Ambrose, 2013). There is a main issue facing by the organization is regarding to this is the management compromise to be made between low profitability and high liquidity. According to the economist Assaf Neto (2003), liquid assets are usually less profitable than fixed assets. The optimum level of working capital will increase the organization value (Mousavi and Jari (2012). This paper analyzes the impact of working capital management on manufacturing firm’s performance in Sri Lanka for the period of 2009 to 2014. For this purpose data are analysis from 100 manufacturing firms based on the annual reports during this time period. The variables will expect to measure by using Net Operating Profitability. In order to find out the relationship between different variables, regression model and correlation analysis are expected to examine the Working Capital behavior of the firm. This research expects to find out the efficient working capital policy to maintain and assess the negative relationship between the working capital and profitability.