Symposia & Conferences
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Item The Impact of Corporate Governance on Earnings Management in Listed Manufacturing Companies in Sri Lanka(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Karunarathne, J.P.J.H.; Rathwatta, G.M.H.P.K.Earning Management is the very important indicator to any organization as some managers manipulate earnings and the financial statements do not present according to the true and fair value. This Study objective is to analysis the relationship between corporate governance and earning management in listed manufacturing companies in Sri Lanka. C.E.O Duality (CD), Board Independence (BDIN), Board Members with Financial Expertise (BDFX), Number of Board Meeting (BDMEET), Board Size (BDSIZE) used as the Main indicator of Corporate governance and Firm Size (SIZE) and Return on Asset (ROA) used as control variables. Then, Discretionary Accrual (DA) is applied as the Earning Management indicator. The study used secondary data of all Manufacturing Company from 2013 to 2017. Data were analyzed using regression analysis and E-Views packages. The findings of the study showed that CEO duality and board size are negatively and insignificantly associated with earnings management. That depict firms which have two separate positions for Chief Executive Officer and Chairman are more effective in reducing earning management than firms which do not. Also, firms with large number of directors have lessor amount of earnings management than firms with small board sizeItem The Impact of Internal Corporate Governance on Convergence of IFRS: Evidence from Sri Lanka(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Harshana, R.D.U.; Perera, H.A.P.L.The convergence of International Accounting Standards (IAS) with International Financial Reporting Standards (IFRS) is an important debate among standards setters, policy makers, regulators, professional bodies and companies worldwide. The objective of this research is to examine the impact of internal corporate governance on convergence of International Financial Reporting Standards (IFRS) and to measure the impact of individual corporate governance factors to the convergence of IFRS. Changes of equity during the year were used as the dependent variable of the model and no of financial and non-financial variables were used as independent variables. Financial and non-financial data were collected from annual reports published by the listed manufacturing companies in Colombo Stock Exchange (CSE) during the period of 2009 to 2015. This six (6) year period was divided into two categories as before and after convergence of IFRS. All the manufacturing sector companies were selected as the sample of the research. Due to the unavailability of data, there were 29 companies used for the final analysis. Panel data regression was used to analyze data using E-views software. The results of the study revealed that, effective internal corporate governance mechanism helps companies more aligned with convergence of local accounting standards to IFRS and thereby provide high quality financial information to users of the informationItem Impact of Corporate Governance on Banking Performances(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Nishshanka, N.A.S.S.S.; Rathwatta, G.M.H.P.K.Corporate governance is considered to have significant implications for the growth prospects of an economy. Good corporate governance practices are regarded as important in reducing risk for investors, attracting investment capital and improving the performance of companies. However, the way in which corporate governance is organized differs between countries, depending on their economic, political and social contexts. The main objectives of this study are to find out the relationship between corporate governance and banking performance and also find out the impact of corporate governance on banking performance. This study focused on four aspects of corporate governance namely; Board Size (BS), Board Diversity (BD), Outside Directors Percentage (OSDP), Board Meeting Frequency (MF) & Audit Committee Meeting Frequency (AM). Banking performance has been measured through Return on Assets (ROA). The study used secondary data of 11 commercial banks covering the period of 2008 to 2017. Data were analysed using regression analysis and E-Views packages. The empirical results of the present study indicate that there is positive relationship between Outside Directors Percentage (OSDP), Board Meeting Frequency (MF), Board Size (BS), and Audit Committee Meeting Frequency (AM) with Return on Assets (ROA). Further Board Diversity (BD) has a negative impact on Return on Assets (ROA). This study will be benefited to all investors other than the bank sector investors.Item The Impact of Board Characteristics on Sustainability Reporting: Empirical Evidence from Sri Lankan Firms(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Dimuthumali, H.G.K.S.; Rajapakshe, R.M.D.A.P.At the present scenario, Sustainability Reporting plays vital role in financial reporting as it is crucially impact on the growth and continuous development of a firm in certain and equity market. There are several factors influenced on sustainability reporting. Among them board characteristics impact more as disclosure decisions are one of the primary control functions of the board. The purpose of the research is to explore the role played by the board of directors in corporate sustainability reporting among the listed companies in Sri Lanka. Research problem is based on the board characteristics and it is impact on the detailed sustainability reporting. Data collected from the sample of 60 Sri Lankan listed companies over a period of four years (2014-2017), representing practically four business sectors which represent the highest number of companies under sector classification of CSE in 2017. Board size (BS), Board independency (BIND), Dual leadership (DL), Board with female directors (BFD), Board ethnicity (BE) and Impact of ownership structure (OS) were used as the board characteristics. Binary logistic regression is the method which used to analyze the research data. The results reveals that firms which follow a detailed sustainability reporting have larger boards, more female directors and higher portion of independent directors. This study also found that dual leadership, board ethnicity and board ownership have no influenced on detailed sustainability reporting. This study contributes to provide value addition into the existing literature on this subject by providing sufficient evidences to fill up the gap in the existing literatureItem The Use of Corporate Governance in Predicting Corporate Failure of Listed Companies in Sri Lanka(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Randika, R.W.M.K.M.; Wijekoon, W.M.H.N.The main purpose of this study is to investigate the relationship between corporate governance variables and corporate failure of listed companies in Sri Lanka. In modern business world sudden failure of corporation became one of most discussed topics and it is a common problem of both developing and developed economies. It is claimed that corporations are failed due to poor corporate governance systems. An analysis of literature revealed that only few studies were carried out on corporate failure prediction in Sri Lanka and such studies were based solely on financial ratios. Therefore, this study addresses the empirical gap exists in the local context. The study used logistic regression analysis to a data set of 58 matched pairs of failed and non-failed companies listed in the Colombo Stock Exchange in Sri Lanka over the period 2008 to 2017. Seven corporate governance variables were used for prediction of corporate failure such as board size, CEO duality, Outside directors, Audit opinion, Presence of audit committee, director’s remuneration, foreign ownership. The results of the study revealed that CEO Duality alone has significant positive impact to the failure of the corporations in the first year before failure and two years before failure. In three years before the failure both CEO duality and outside directors has significantly impact to the prediction of corporate failure. Therefore, results of this study can assist investors, managers, shareholders, financial institutions, auditors and regulatory agents in Sri Lanka to forecast corporate failure of listed companiesItem Corporate Governance and Financial Performance: A Study of Sri Lankan Banking Industry.(8th International Conference on Business & Information ICBI – 2017, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2017) Perera, W. T. N. M.; Aruppala, W. D. N.Corporate governance has become an emerging area of research because of its significant implications throughout the world while baking industry undertakes the critical and vital roles in the financial system; the well-being of the economy and the mechanism of the banking system interconnected. The concept of corporate governance has become conspicuous in conjunction with the banking industry. The main objective of the study is to discover the relationship between internal corporate governance structure and firms’ financial performance in the Sri Lankan banking industry. The correlation analysis is used to test the relationship between corporate governance and financial performance. This study found that there is a positive relationship exists between financial performance, number of board meetings and education level of the board of directors. Besides that, the study concludes that a negative relationship exists between financial performance, board size, the gender composition of the board of directors, outside directors and CEO duality. Consequently, this study concludes that there is no equivalence in the disclosure of corporate governance practices made by banks operates in Sri Lanka.Item Corporate Governance and Voluntary Disclosure Level: Evidence from Banking and Finance Companies in Sri Lanka.(8th International Conference on Business & Information ICBI – 2017, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2017) Panditharathna, K. M.; Abeywardana, N. L. E.Drawing on the Agency Theory, the main objective of this research is to identify the relationship between corporate governance variables and voluntary disclosure level in banking and finance companies listed in the Colombo Stock Exchange (CSE). Sri Lanka. This study developed a voluntary disclosure index which includes 83 items under 9 sub categories. Through the content analysis for the period between 2012 and 2015 exhaust to gauging the levels of disclosures and panel data analysis used to measure the relationships. Moreover this study used size of the board, proportion of independent directors, and board with female directors and a large audit firm as independent variables and size of the firm, profitability, age and leverage are used as control variables. Empirical results show that independent directors and female directors on the board have significant positive relationships with voluntary disclosures whereas the board size has an insignificant positive relationship with voluntary disclosures and there is a significant negative relationship between voluntary disclosures and corporate governance.Item The Impact of Corporate Governance Issue on Business Failure(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Madhubhashini, T.; Aruppala, W.D.N.Corporate governance is the process to control and direct the companies for long term results. There have been many ways to achieve this via good corporate governance but failure of some big companies raised various questions and issues. This study is motivated by the frequent reforms to strengthen the effectiveness of corporate boards and their oversight committees, in the wake of high profile corporate failures. The empirical question which is tested by this study is enhance board and their committee effectiveness and in this way, reduce the likelihood of firm‘s failure. This examines whether the lack of capability of achieving the corporate governance perspectives are related to the probability of business failure. Accordingly, the objective of this study is to find out the relationship between Corporate Governance issue and the Business Failure. As the methodology of this study, the all data will be collected through the secondary sources. The corporate governance will be measured by the terms; Accountability, Integrity, Transparency and Efficiency. The Business Failure will be measured by the Working capital to total assets ratio, Leverage of the firm, return on Total assets (ROI), Gearing Ratio, Asset turnover Ratio of the selected firms. The conclusion of this study is; there is a relationship between Corporate Governance issue and the Business Failure. The findings of this study provides a guidance to managements of these companies and existing other listed companies in the Sri Lankan context.Item The Effect of Corporate Governance on Performance of the banking Industry in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Lekamge, A.L.I.C.; Thilakarathne, C.R.In the worst financial crisis, the banking sector faces to more difficulties. According to the studies that difficulties build on the lack of corporate governance in banks and companies. Purpose of this study was to identify the impact of Corporate Governance for the Banking Profitability in Sri Lanka. Board size, Board Ownership, Management ownership and the Board balance were used as the determinant factors and the Return on Assets was used for the performance indicator. Nine listed Commercial Banks over nine years were selected for the analysis. Descriptive analysis, Pearson Correlation and the regression analysis methods were used to find out relationship between the corporate governance and banking performance. One main model constructed under the regression analysis. Result of the analysis were found that there was significant relationship between Board size and the Board ownership. There was no significance relationship between Management Ownership and the Board Balance. According to the analysis the overall model is significant and the Corporate Governance is significantly affected to the Profitability of the banking industry in Sri Lanka.Item The Impact of Corporate Governance on Financial Performance: Evidence from Sri Lankan Banking Industry(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Perera, W.T.N.M.; Aruppala, W.D.N.Baking industry undertakes the critical and vital roles in the financial system; the well-being of the economy and the mechanism of the banking system interconnected. The concept of Corporate Governance has become conspicuous in conjunction with banking industry. Attention to Corporate Governance has quite a long history since the seminal paper on the subject of the “Principal – Agent Problem” by Meckling which argued that the Principal – Agent problem as a consequence of the separation of ownership and control. Over the last two decades; Sri Lankan economy has encountered substantial fluctuations from countless amalgamation with the global economy ((CBSL), 2013). In 1990 Sri Lanka has utilized the capital market reforms and adopted the Anglo American Structure of Corporate Governance (Edirisinghe, 2015). The regulatory requirements which affianced with the Corporate Governance in Sri Lanka; governed by the Banking Act No. 13 of 1988, Companies Act No. 07 of 2007, Codes of Best Practices and Regulations issued by the Institute of Chartered Accountants of Sri Lanka (ICASL) and Securities and Exchange Commission (SEC) of Sri Lanka. This research empirically examines the quality of Corporate Governance practices in Sri Lankan banking industry and their impact on banks’ financial performance in the context of an emerging market such as Sri Lanka. The study concludes that there is no equivalence in the disclosure of corporate governance practices made by banks in Sri Lanka. Nevertheless they all disclose their corporate governance practices, but what is disclosed does not conform to any particular standard. Furthermore this study conclude that a positive relationship exist between financial performance, number of board meetings and education level. Besides that the study conclude that a negative relationship exist between financial performance, board size, gender, outside directors and CEO duality.