Symposia & Conferences
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Item Audit Expectation Gap: A Review of Literature(Faculty of Commerce and Management Studies, University of Kelaniya, 2021) Deepal, Deepal, A.G.; Jayamaha, A.Unexpected failures of corporate giants such as Enron, World Com, Arthur Andersen, and Xerox together with scams and financial scandals in the world have seriously damaged the image of the audit profession. As a result, society’s confidence and reliance on auditors have decreased while their expectations pertaining to the audit profession have increased, establishing an Audit Expectation Gap (AEG). Hence, the concept of AEG has been studied using various interpretations, as well as varied manifestations of the structure, limitations of each component, and related contributing variables. The purpose of this paper is to construct a new synthesis to the existing knowledge of AEG discovered by numerous scholars in the world. Hence, this study reviewed literature pertaining to definitions and meanings of AEG, relevant theories and models deployed, the factors contributed to the gap and several research methods used in empirical studies by numerous scholars. As a desk research, this study further reviewed the empirical studies pertaining to the developed and developing countries separately. As per the methodology in this study, the keywords, namely “audit expectation gap” and “audit expectation-performance gap” were used to search relevant publications in google scholar database. The research articles published from 1974 onwards were mainly selected. It was found that the empirical studies pertaining to the public sector is very few whereas there is a dearth of such studies in Sri Lanka. Finally, a fresh, but a more straightforward definition was created and described the significance of AEG, adding novelty to the extant literature, and given suggestions for further studies.Item Determinants of Profitability of Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Ranathunga, M.K.Y.N.; Jayamaha, A.This study investigates the magnitude of the impact of the bank specific determinants on the profitability of commercial banks in Sri Lanka. Banks act as financial intermediaries between money savers and borrowers. Banks therefore represent one of the most vital groups in the financial market which has crucial economic role in any economy. Banks convert deposits into profitable investments which provide acceleration to the economy. The profitability of the bank has become essential for financial stability. They can get the correct and favorable decision by analyzing these findings. This paper investigates what are the key determinants of profitability in Licensed Commercial Banks in Sri Lanka. There are 26 Licensed Commercial Banks in Sri Lanka. Among that in this paper consists sample of 13 local Commercial banks. The study uses annual data relating to the bank specific performance during 8 years period from 2012- 2019. Data collects by investigating annual reports of each bank separately. There are two profitability measures namely Return on Average Assets (ROAA) and Return on Average Equity (ROAE) are included as dependent variables to make results more comprehensive. The independent variables employed are Liquidity Asset Ratio, Capital Adequacy Ratio, Cost to Income Ratio and Size of the bank as control variable. Panel data regression analysis has been used to find out the independent variables which are statistically significant in explaining the profitability measures. This study provides supporting to Government officers, Investors, University Students for their academic activities and people who prefer in economy in the country.Item Impact of Board Structure on Financial Performance with Special Reference to Sri Lankan Public Quoted Companies(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Perera, K.T.J.J.; Jayamaha, A.Corporate governance received a considerable attention during last 20 years. Good corporate governance practices are regarded as important in order to reduce the risk for investors, attracting investment capital and improving the performance of companies. However, the way in which corporate governance is organized vary from country to country, depending on their economic, political and social context. The security and exchange commission of Sri Lanka is committed to improving and practicing the use of international best practices which is essential for the development capital market improvement of professionalism among market participate and raising the profile of Sri Lankan capital market in keeping with its objectives. The existing studies showed that large board size has a positive effect, CEO duality has a negative impact, appraisal of board performance has positive effect and director’s stockholding has a positive impact on firm’s performance, but there is conflicting point between them the significance of current research is aimed to clarify this conflicting point among these studies. The main object of this study is to find out the significant impact between board structures on firm performance. To get the efficiency Performance through the best corporate governance 40 public quoted companies were selected as the sample of five years starting from 2014 to 2018 financial years based on higher capitalization. Mainly three corporate governance components were used in this study, Board stockholdings, CEO Duality (CED) and Board Size (BZ). Furthermore, the firm performance is measured by accounting base measurements (ROA and ROE and ROCE). All the data were collected from annual reports of each companies and data were analyzed by using descriptive statistics, Pearson correlation and regression analysis utilized to find out the significance of board structures impacts on financial performance.Item The Determinants of Profitability in the Banking Industry: An Evaluation from Licensed Commercial Banks and Licensed Specialized Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Kavirathna, T.A.; Jayamaha, A.The banking sector in Sri Lanka plays a major role in the overall in financial and economic development. Also, the profitability of the banking sector is very important for the stability of the country’s finance sector. This study investigates the factors that determine the profitability of the banking industry in Sri Lanka. Most of the literature on determining bank profitability is based on data from banks in developed countries, and several studies provide evidence of commercial banks in developing countries. This study hopes to contribute to the literature that determines the profitability of the banking industry: it is evaluated by licensed commercial banks and licensed specialized banks in developing countries such as Sri Lanka. Profitability is measured using Return on Assets (ROA). It explains bank size (BSZ), Capital Adequacy ratio (CAR), Deposits (DEP), GDP Growth rate (GDP), Inflation Rate (INF). The study examines a sample of 10 Licensed Commercial banks and 2 Licensed Specialized banks in Sri Lanka for a period of 10 years from 2010 to 2019 using the annual reports published by the Colombo Stock Exchange of Sri Lanka. This study will use the pooled ordinary least square (POLS) method to analyze the data. The empirical results will show what are the significant determinants that affecting the profitability of the banking industry in Sri Lanka.Item Relationship between Financial Management Practices and Firm Performance of SME's in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, 2020) Dewmini, H.P.; Jayamaha, A.The purpose of this study is to find out, whether the relationship between financial management practices and firm performance in small and medium sized enterprises in Gampaha district by using three components. Such as working capital management, Capital Structure Management and accounting information system.Most past researchers are selected this area to review in globally, locally, developing countries & developed countries also but there's no previous research related to Gampaha district, Sri Lanka. This study aimed to fulfil this knowledge gap and to search out the answer for the way does impact of financial management practices to firm performance of small and medium size enterprises in Sri Lanka: evidence from Gampaha district. This paper relied on a sample of 100 small and medium sized enterprises using purposive sampling and data collected through the self-administered questionnaires. Data were analysed using descriptive statistics, correlation analysis and multiple regression analysis by using SPSS. SMEs performance was measured by Return on Assets and Return on Equity. Result of the study revealed that, there is a significant difference between small and medium enterprises, who are cohering with financial practices are well performing than the small and medium enterprises, who are not complying with financial practices. According to this research shows that, SMEs need to improve financial management practices to improve their firm’s performance.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 The Determinants of Capital Structure: Evidence from Listed Manufacturing Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Kuruvita, K.A.S.P.; Jayamaha, A.The aim of this study is to investigate, the factors that affect to the capital structure decision of manufacturing companies in Sri Lanka. Capital structure decision is most debatable topic in the current business environment. There are several factors which determine the leverage level of the firm. Therefore, it is more essential to identify the key firm specific factors, which determined the leverage of the firm. Different capital structure theories are reviewed (Modigliani – Miller Theory, Pecking order theory, Static trade-off theory and Agency cost theory) in order to formulate hypotheses regarding the determinants of capital structure of the listed manufacturing companies. For this study, a sample of 28 listed manufacturing companies was considered for the period 2011 to 2015. Five firm specific explanatory variables (Tangibility, Profitability, Growth, Age of the company and Tax-shield) were selected to discover what determines capital structure. This study employs Descriptive analysis, correlation analysis and multiple regression analysis to measure relationship between variables, individual and overall impact on optimal capital structure and to test the operational hypotheses. The major result of the study indicated that Age, Profitability and tax-shield variables are the significant firm specific determinants of capital structure in Sri Lankan manufacturing companies. In addition to this, the two variables (Tangibility of Assets and Profitability) showed negative relationship between leverage (Debt equity ratio). That negative result consistent with implication of pecking order theory. Remaining selected three variables (Growth rate, Age, Tax-shield) are positively correlated with capital structure, which is help to prove trade-off theory, and agency cost theory. The researcher believes that research findings should help managers to make optimal capital structure decisions.Item Impact of Capital Structure on Firm Financial Performance of Manufacturing Sector Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Fernando, W.R.S.; Jayamaha, A.The discussion about the optimum capital structure has been a core topic in corporate finance from several years in Sri Lanka. Capital structure defines as a combination of debt capital and equity capital in an organization. Organizations have different financing sources. It can be categorize into two sources, the internal financing and external financing. It is challenging for firms to identify the right mixture of debt and equity to achieve firms goals. This study was investigated the relationship between capital structure and firms financial performance of manufacturing listed companies in Sri Lanka. The sample of the study consisted of 14 manufacturing listed companies in Sri Lanka. This analysis is done by analyzing the financial statements of these companies from 2010 to 2015. The findings revealed that capital structure as measured by debt to equity ratio (DE) had statistically insignificant positive relationship with financial performance (ROA). Whereas long term debt to total assets (LDTA) had statistically significant negative relationship with financial performance (ROA) and similarly, short term debt to total assets (SDTA) had a negative and statistically significant relationship with financial performance (ROA).Item Capital Structure Effectiveness on Financial Performance of Manufacturing Firms in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Pathiraja, P.M.K.K.; Jayamaha, A.Capital structure shows a significant role in financial decision making process in any business organization. Capital structure decision is more important because organizations need to maximize return and growth the value of the firm. Manager’s responsibility is a decide mix of debt capital and equity capital then it increase the value of the firm. Objective of this research is examine the impact of Capital Structure on financial Performance of manufacturing firms in Sri Lanka.by using 25 firms listed in Colombo stock exchange In this study data collect from secondary evidence through Annual Reports published by company which listed in Colombo stock exchange. There are four variables use for this study. Return on Asset (ROA) is a dependent variable and other explanatory variables are Debt to equity Ratio (DER), Long term Debt Ratio (LTDR) and Debt to Asset Ratio (DAR). Considering the relationship between the capital structure and financial performance. In debt to equity ratio has a negative relationship between Return on Asset and long term debt ratio has an insignificant negative relationship with ROA .and In Debt to Asset Ratio has a positive relationship between ROA. Relationship established between the capital structure and the financing structure is a part whole type relationship can be seen. It is recommended that firms should use more of equity than debt in financing their business activities. To get the better investment decision of mix of capital structure recommend to establish performance standards and those are properly communicate to the investors.Item The Relationship between Capital Structure and Performance; Evidence from Selected Sri Lankan Hotels Listed in Colombo Stock Exchange(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Dulaji, D.W.R.K.; Jayamaha, A.The performance of hotel industry is most important to the wealthy of the Sri Lankan economy. Hotels compete in a global economy with infinite opportunities. Hence, hotels need more financial strength in order to run the day to day operations of the business. Capital Structure is one of the main criteria which concerned in financial strength of the hotels. The capital structure of listed companies is most important dimension that every stakeholder is very much concerned. The objective of this study is to identify the relationship between capital structure and performance in the listed hotels in Sri Lanka. Furthermore, this study also aims to indicate what is the most influential factor for capital structure? Short term debt, Long term debt and debt to equity ratio are used as measurement of capital structure. Performance of hotel was dependent variable and it measured by ROA. The study has been used panel data procedure for a sample of 26Sri Lankan hotels listed in Colombo Stock Exchange during 2010-2015.The data for all the variables in the study were abstracted from audited annual reportsThis quantitative analysis used descriptive statistic, regression analysis and correlation analysis to demonstrate relationship between capital structure and performance. This study found that a significant positive relationship between capital structure and performance of hotels listed in CSE. Based on findings, it can be arrived to an overall conclusion that an appropriate mix of capital structure improves the performance of hotels.