Symposia & Conferences
Permanent URI for this communityhttp://repository.kln.ac.lk/handle/123456789/10216
Browse
7 results
Search Results
Item Audit Quality and Earnings Management: Evidence from Food & Beverage and Hotel Sectors of Sri Lanka(Faculty of Commerce and Management Studies, University of Kelaniya Sri Lanka, 2023) Randenigala, C. J.; Wijesinghe, M. R. P.The company's earnings are crucial for investors' decision-making since they provide emblems about value-creating ability. However, with the possibility of manipulating earnings, the whole purpose of financial reporting becomes valueless. External auditing can be identified as one of the control mechanisms that minimizes earnings management. This study examines the impact of audit quality on earnings management in the food and beverage sector and hotel companies in the Colombo Stock Exchange from 2013 to 2019. The real earnings management approach and total accruals are used to measure the earnings quality, while audit firm size, presence of the audit committee, frequency of the audit committee meetings and audit timeliness are the audit quality proxies. The study used regression analysis as the main analysis tool, and the findings reveal the existence of earnings management in the food and beverage and hotel sectors. Interestingly, audit quality does not significantly impact earnings management in the food and beverage sector, while it can be identified as impacting earnings management in the hotel sector. Moreover, the size of a company and its leverage also significantly impact earnings management in both sectors. These findings suggest that effective regulation and monitoring are necessary to improve audit quality for both sectors, especially in the hotel sector companies in Sri Lanka. Hence, enhancing audit quality would minimize earnings management and improve earnings quality, which is instrumental to the decisionmakers, especially investors and creditors. Henceforth, we suggest improving the audit quality in the food and beverage and hotel sectors and enhancing disclosure requirements such as research and development expenses, audit time, and non-audit service.Item The Impact of Company Performance, Earnings Quality and Macroeconomic Variables on Foreign Portfolio Investment: Evidence from Sri Lanka.(Faculty of Commerce and Management Studies University of Kelaniya, Sri Lanka., 2020) Wijesinghe, M. R. P.; De Silva, A. L. C. M.The development flows signs renewed foreign interest in the stock market during mid- 2017 recording an all-time high in foreign purchases. With the realization of investment opportunities and potential in capital markets in Sri Lanka, foreign investors actively participated in trading in CSE making volatility in Foreign Portfolio Investment (FPI), which lead the researcher to investigate the determinants of FPI under company performance (ROA, ROE and OPM), market specific factors (MC, MI and BETA), earnings quality (EQ) measured by total accruals (TA) and macro-economic variables (IR and GDP) using evidence from Sri Lanka. Using the three dependent variables of TNFP, TFP, and TFS the researcher analyzed quarterly data for the period from 2011 to 2016 under panel data regression model and arrived at the conclusion that, ROE, MC, MI, BETA, GDP Growth and IR has a significant relationship with foreign portfolio investment where the results suggested that earnings quality does not have any impact on foreign portfolio investment.Item Market Share and Company Performance: Special Reference to Listed Insurance Companies in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Perera, M. S. R.; Wijesinghe, M. R. P.Introduction - Insurance services are now being integrated into wider financial industry and the insurance sector plays an important role in service-based economy of Sri Lanka. The impact of market - share on profitability subjects for many studies and found that different impacts between these two variables. No significant studies have been conducted in Sri Lanka regarding this topic and relating to the insurance industry. Analyzing the impact of market share on profitability of insurance industry in Sri Lanka is the main objective of this study. Design/methodology/approach - Two profitability ratios are used to measure the profitability namely Return on Assets (ROA) and Net Profit Margin (NPM). Secondary data is used for studying the impact of market share on profitability. Data is collected from published annual reports of insurance companies during the five year (2013- 2018) period of time. There are 28 listed insurance companies in Sri Lanka and among these companies 17 companies are selected as the sample. Descriptive statistics, correlation analysis and Regression analysis techniques are applied for data analysis. Findings - The findings of this study indicated that the higher level of market share associates for higher level of performance and lower level of market share associates for the lower level of profitability. Overall result of this study indicated that there is a significant and positive relationship between market share and performance. Conclusion - This study indicated that the higher level of market share associates for higher level of performance and lower level of market share associates for the lower level of profitability. Overall result of this study indicated that there is a significant and positive relationship between market share and performance.Item Critical Illnesses Coverage Pricing in Health Insurance Products(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Fernando, M.D.K.; Wijesinghe, M. R. P.Introduction - Health insurance is a one of the major solution for the financial issues due to medical needs of peoples in various types. The health issues of the people are very deferent. Because some people have high risky health issues. The study focuses on type of critical illnesses affect in to the people and how to design a customer oriented coverage. Using these critical illnesses, the insurance companies are offer a coverage of “critical illness benefit coverage”. This study focus to describe how to pricing critical illness coverage premium. In that coverage usually include 40 types of critical illnesses in most of the insurance companies. It mainly depends on mortality risk and risk behaviour of the various type of critical illnesses in Sri Lanka. Design/methodology/approach - Mortality data collected by IMMR report (2004- 2018) of health ministry of Sri Lanka. All the data adjust from the population of Sri Lanka. After that made calculations and found the relationship among the variables. Insurance companies are usually providing critical illness coverage for all 40 illnesses. Findings – The study focus and practically implement to how to pricing customer oriented critical illness health coverage for the customer preference and opinion. As per the customer point of view, company had an opportunity to minimize to the customer extra payment for their non-essential coverage and they had an opportunity to design their needed coverage. Otherwise organization point of view, they had an opportunity to their product development for the need of customer. Conclusion - According to the finding and discussion finally researcher practically implement the objective of the study for the appropriate manner.Item Impact of Job Attitudes on Turnover Intention in XYZ Insurance Company(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Samarasinghe, P.G.N.; Wijesinghe, M. R. P.Introduction - In present competitive world, organizational Turnover has become a great challenge to any organization and in literature has been also illustrated this issue as well as employee Turnover has been developed as a painful challenge in any industry. Especially the insurance industry due to the rapid competition, organizations try to minimize the Turnover to save the cost. Job-related attitudes are one of the most important factors that determine employee Turnover Intention. Based on that, this study investigates the Impact of Job Satisfaction, Organizational Commitment, and Job Involvement on employee Turnover Intention in the XYZ insurance company. Design/methodology/approach – As a quantitative research approach, the data was collected via a structured questionnaire survey from XYZ insurance company. The sample was selected using the random sampling technique and it consisted of low and middle-level 156 employees. The study used multiple linear regression method to test the hypothesized relationships between the constructs. Findings – Through the findings of the study, it is indicated that Job Satisfaction, Organizational Commitment and Job Involvement has a significant negative effect on Turnover Intention. Conclusion – Organizations can acquire advantages of dropping Turnover Intention and absenteeism by developing a dedicated workforce using findings of this study. Finally, suggestions are given to enhance the current positive job-related attitudes and increase employee retention in the Organizations.Item The Determinants of Financial Performance of the Commercial Banks in Sri Lanka(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Athapaththu, A. M. K. B.; Wijesinghe, M. R. P.Introduction - The Banking sector being one of the major sectors in Sri Lanka, it plays a central role in the operation of the economy and the concept of profitability is more important for financial institutions and banks are the part of them. As efficient and vibrant commercial banking and financial system are essential ingredients for any market economy to become successful, it is expected to provide lifeblood to the efficient and effective functioning of an economy. Hence, this paper aims to examine the determinants of financial performance of the commercial banks in Sri Lanka. Design/methodology/approach – the study analyses data for 10 license commercial banks from 2010 to 2019 using Eviews. Descriptive statistics and multiple regression models are used to analyse the data. The dependent variables of the study are return of assets, return of equity and stock return while the independent variables of the study are bank size, operating expenses, credit risk, deposits, capital adequacy, inflation, GDP and interest rate. The research follows a quantitative approach. Findings – Bank specific factors of capital adequacy has contributed significantly and positively to the performance while operating expense, credit risk and liquidity significantly and negatively impact on performance of commercial banks. The specific variable of industry growth under industry specific variables, which was not considered in previous literatures has insignificant and negative impact on performance of the commercial banks. The results further show that macroeconomic determinants of economic growth rate have a significant and positive impact on performance while interest rate has insignificant and negative impact on performance of commercial banks. Conclusion – By considering industry specific variable of industry growth, this study provides some interesting new insights for a better understanding of the mechanisms that determine the financial performance of commercial banks in Sri Lanka.Item Determinates of Sri Lankan Stock Market’s Performance with Special Reference to Colombo Stock Exchange(Department of Finance Faculty of Commerce and Management Studies University of Kelaniya, 2020) Munasinghe, W.U.S.; Wijesinghe, M. R. P.Stock market actives mainly concern in distributing nation’s wealth by enabling wide ownership of public company stocks. Investors can buy shares of publicly listed companies which enable them to be the owners of the business and earn share of profits according to their invested capital. Stock market performance depends on many factors. It is highly volatile to countries’ economic and political conditions. There are many factors to determining stock market performance, Specifically, this examine the determinants (treasury bill rate, exchange rate, balance of payment and gross domestic production) of Sri Lankan stock market performance. The main objective of this research is to investigate the which determinates have influence on stock market performance over the period 2010 to 2019. Second objective is find out there is a what kind of relationship between short term interest rate and stock market performance and using newly data. The sample in this study includes 40 observations which cover the quarterly time series data over the period 2010 to 2019. Secondary data obtained from Colombo stock exchange publications and central bank quarterly indicators. Data analysis includes Descriptive statistics, correlations, and multiple linear regression. The software used for the data analysis is E-Views 11. The Correlation Analysis concludes that the short term Interest rates have a negative correlation with Stock market performance and other macrocosmic variables are positively correlated with ASPI. Regression analysis address that when macroeconomic variables individually changes which are TBR and EX influence to ASPI negatively and GDP and BOP influence positively. By testing of Coefficient, four null Hypotheses were rejected, and one of the null hypotheses accepted that is there is no relationship between balance of payment and Sri Lankan Stock Market performance.