Symposia & Conferences
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Item The Effect of Capital Structure on Profitability in Sri Lankan Listed Companies(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Madhubhashani, M.A.C.D.; Jayamaha, A.The capital structure decision is essential for any business organization. To understand how companies finance their operations, it is necessary to examine the determinants of their financing or capital structure decisions. All decision relevant to the capital structure is crucial for every company. The decision is very impotent due to impact of this decision has power to achieve competitive advantage as well as the prove survival of the company (Shubita & Alsawalhah, 2012). Capital structure decision is the vital one since the profitability of an enterprise is directly affected by such decision. The successful selection and use of capital is one of the key elements of the firms’ financial strategy (Velnampy & Niresh, 2012). This paper seeks to investigate the relationship between capital structure and profitability of listed companies on the Colombo Stock Exchange (CSE) during a five-year period. In order to meet the objectives of the study, data will collect from secondary data from financial statements of the selected companies and descriptive analysis, correlation and regression analysis is used as the methodology in this paper. Variables used for the analysis include profitability and leverage, equity ratios. Profitability measured by Return on Assets (ROA). The overall result of the study suggests short term debt and debt to equity in Sri Lankan context to be negatively related to profitability of the company. As well as long term debt to total assets and sales growth of the firm positively influenced to the profitability of the company.Item FINANCIAL PRACTICES AND EFFICIENCY OF COOPERATIVE RURAL BANKS IN SRI LANKA(2010) Jayamaha, A.; Mula, J.M.Many small financial institutions (SFIs) in developing countries make great effort to provide efficient services to the poorhouse holders. It is generally accepted that maintaining the financial strength which is importance in corporate governance mechanism of institutions, has a close relationship with the efficiency of financial institutions, although they are small. However, there is a doubt of efficiency of SFIs in developing countries due to not maintaining appropriate financial practices. In Sri Lanka, recent collapses of many financial institutions also signal that they do not maintain sound financial practices. Cooperative rural banks in Sri Lanka (CRBs) one of the formal SFIs in Sri Lanka which serve a large number of customers, deal with a large amount of funds and have substantial contributions to the rural financial sector during the last four decades. This paper seeks to test financial strength of cooperative rural banks in Sri Lanka (CRBs) and whether these strengths have a significant impact on efficiency of these institutions. The financial strength of CRBs was assessed using ratios of capital adequacy, liquidity, asset quality, loan to deposit, profitability, loan portfolio yield, operational efficiency, and operational self-sufficiency. The efficiency of CRBs in Sri Lanka was examined by using Data Envelopment Analysis (DEA), a non-parametric analytic technique. Based on the data extracted from CRBs? financial statements, correlation coefficients showed that several financial practices have significant associations with the efficiency of CRBs in Sri Lanka. This confirms that efficient SFIs maintain sound financial practices which contribute to higher levels of efficiency.