Symposia & Conferences
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Item The Moderating Impact of Financial Performance and Stock Returns on the Relationship Between Corporate Governance and Corporate Value. Evidence from Top-Rated Companies in Sri Lanka’s S&P SL 20 Index(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Abeywickrama, H. W. A. D. S.; Kethmi, G. A. P.Introduction: This research demonstrates how financial performance and stock returns moderate the link between corporate governance and corporate value. The study has been conducted on firms in the S&P SL 20 Index. It addresses how sound governance mechanisms affect firm value, and how stock returns and financial performance either enhance or suppress these impacts. Methodology: The study uses a quantitative research methodology where data from 20 listed firms in the S&P SL 20 index is analyzed over the period 2014 to 2024. To conduct this analysis secondary data from annual and quarterly reports were utilized. The diagnostic test used the Panel data analysis to assess the model's validity. Further, to analyze the moderate effect of stock return and financial performance regression models were developed. Findings: This analysis shows a significant relationship between corporate governance and corporate value, a weakly positive relationship. Stock returns moderate the relationship between better corporate governance and corporate value. Financial performance, which is measured through ROA and ROE also enhances the link between good corporate governance and corporate value. Conclusion: The study supports the importance of proper governance structures in the development of corporate values. The findings are informative for policymakers and investors, calling for efforts to build governance mechanisms in firms while relying on financial indicators and market conditions to increase firm value.Item The Impact of Leverage on the Profitability of Commercial Banks in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kaushalya, A. P. H.; Liyanage, M. L. D. C. J.Introduction: This study investigates the impact of leverage on profitability in Sri Lanka's licensed commercial banks from 2020 to 2023 (using quarterly data), focusing on indicators such as Degree of Financial Leverage (DFL), Degree of Operating Leverage (DOL), Debt-to-Equity Ratio (DER), and Asset Growth. It aims to understand how excessive leverage, amidst fluctuating economic conditions, might affect both financial stability and profitability. Methodology: This quantitative study analyzes the impact of leverage on the profitability of 10 licensed commercial banks in Sri Lanka from 2020 to 2023 using secondary data from quarterly financial statements. Key leverage variables—Degree of Financial Leverage (DFL), Degree of Operating Leverage (DOL), Debt-to-Equity Ratio (DER), and Asset Growth—are assessed for their relationship with Return on Assets (ROA), which measures profitability. The study employs regression analysis to determine the influence of leverage on profitability, with correlation analysis examining the strength and direction of these relationships. Diagnostic testing ensures the reliability of the regression model by addressing potential issues like multicollinearity and heteroscedasticity. Findings: The overall regression model was found to be statistically insignificant with an R-squared value of 0.0349, indicating a poor fit. Among the independent variables, only DER showed a significant positive relationship with ROA, suggesting that higher debt relative to equity correlates with improved profitability. The other variables, DFL, DOL, and Assets Growth, were not significantly related to ROA. This implies that while DER can be a factor in enhancing profitability. Conclusion: The study concludes that traditional leverage measures, such as DFL and DOL, have no significant impact on bank profitability, while DER shows a marginally positive effect. Asset growth alone does not significantly enhance profitability. Therefore, banks should focus on optimizing their capital structure, improving operational efficiency, and managing assets strategically. Policymakers should promote sustainable leverage and better risk management. Researchers should explore other profitability determinants, and investors should prioritize banks with balanced leverage and effective asset management for sustainable growth.Item The Impact of Firm-Specific and Macroeconomic Factors on Financial Performance: Evidence from Companies in the Listed Food, Beverage and Tobacco Industry in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Tharindra, N. B. A. N.; Tennekoon, S. T. M. S.Introduction: Financial performance is a crucial aspect of assessing a company's overall financial health and can provide insights into its profitability, efficiency, and growth potential. A firm's financial performance is influenced by both internal (micro) and external (macro) factors. The purpose of this study is to examine the impact of firm-specific and macroeconomic factors on the financial performance of companies listed in the food, beverage and tobacco industry in Sri Lanka. Methodology: The population was forty-five listed food, beverage and tobacco firms in Sri Lanka. The representative sample consists of the twenty listed Sri Lankan food, beverage and tobacco companies based on their overall market capitalization. Consequently, ten companies with the highest market capitalization and ten companies with the lowest market capitalization. Firm size, liquidity and leverage were considered as firm-specific factors and interest rate, inflation rate and GDP growth rate were considered as macroeconomic factors. In contrast, the return on assets ratio (ROA) was used to measure the financial performance. Using a quantitative approach, this study collected secondary data from the annual reports of the selected companies from 2014 to 2023. A series of random-effects panel regression model was used to evaluate the hypotheses. STATA software was then used to analyze the data. Findings: The findings showed that firm size and liquidity positively influenced the financial performance of food, beverage and tobacco companies exhibiting the highest level of significance at 1%. The inflation rate is statistically significant at the 5% level, while the GDP growth rate demonstrates significance at the 10% level positively with ROA. However, leverage and interest rate do not emerge as a significant factor and negatively affect for the financial performance of food, beverage and tobacco companies in Sri Lanka. In conclusion, this study revealed that firm characteristics and macroeconomic factors significantly impact the financial performance of food, beverage and tobacco industry in Sri Lanka. Conclusion: This research offers crucial insights for policymakers, investors, and management teams in Sri Lankan food, beverage, and tobacco companies. The findings provide strategic guidance for improving financial performance, particularly for food, beverage and tobacco companies operating in similar macroeconomic conditions, supporting informed decision-making and fostering industry growth.Item The Impact of firm specific and macroeconomic factors on financial performance: Evidence from listed material companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Shashini, K. L. A.; Tennekoon, S. T. M. S.Introduction: The material sector consists of a range of industries such as manufacturing and distribution of raw materials and finished products for infrastructure development and construction. And material companies contribute significantly to the country's GDP. In this study aim to investigate firm specific and macroeconomic factors on financial performance, based on the listed material companies in Sri Lanka. Methodology: The independent variables in this study include firm-specific factors such as firm size, leverage, and liquidity, as well as macroeconomic factors such as the inflation rate, interest rate, and GDP growth rate, while the dependent variable is financial performance. There are 18 material companies listed on CSE. The total population as a sample. The panel data regression analysis was employed for analysis purposes and using the STATA software. Findings: According to the results Firm size, Leverage and inflation rate have significant impact on financial performance of listed material companies in Sri Lanka, while liquidity, Interest rate and GDP growth rate do not have significant impact on financial performance of listed material companies in Sri Lanka. Conclusion: The analyses indicate that firm size and inflation rate positively and significantly affect financial performance, suggesting that larger firms and periods of inflation positively influence ROA. Conversely, leverage has a significant negative impact on ROA, indicating that higher debt levels reduce profitability.Item The Impact of Asset Liability Management on Financial Performance Before and During the Crisis: Evidence from Licensed Finance Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Fernando, W. H. J. T.; Gunasekara, A. L.Introduction: This study critically assesses the impact of ALM on the financial performance of licensed finance companies in Sri Lanka, focusing on pre-economic crises and during the crisis periods. This research integrates measures of financial performance, which include ROE and ROA, while using capital adequacy ratio, CAR; non-performing loans ratio, NPLR; operational efficiency ratio, OER; earning diversification ratio, EDR; and liquid asset ratio and LAR, as main ALM variables to provide holistic understanding in the role of ALM in navigating through financial instability. Whereas firm size is a control variable, COVID-19 pandemic, economic crisis, and combined crises are dummy variables created to capture the temporal and contextual variations. Methodology: The research conducted on panel data collected from 22 licensed finance companies over the period from 2016 to 2023. Using a quantitative research approach, secondary data was obtained from the annual reports of the selected companies. This study applies panel regression, including random effects and robust error adjustments. Findings: The results have proved that ALM significantly impacts financial performance, with positive effects of CAR on profitability and negative pulls from both NPLR and OER, especially at more heightened levels of economic stress. Earnings diversification and liquidity were found to moderate these effects. The findings also depicted differentiated impacts of crises and the way COVID-19 heightens the challenge of deterioration in asset quality and inefficient operations. Conclusion: The study underlines that ALM is important for treading economic turmoil and for achieving the highest level of financial stability. Effective ALM strategies improve resilience, thus allowing finance companies to maintain stability and stakeholder trust during crises. This paper provides useful insights for both policymakers and practitioners on how strategic improvements in the ALM framework should be undertaken to help attain financial sustainability in volatile markets.Item The Firm’s Specific Factors Affecting the Financial Performance of General Insurance Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Kavinya, W. A. D. E.; Sudasinghe, S. L.Introduction: The financial performance of general insurance companies is influenced by various firm-specific factors, including premium income, claim costs, underwriting results, and financial leverage. These factors are crucial in determining the profitability and overall financial health of insurance firms. This study aims to empirically test the impact of these firm-specific factors on the financial performance of general insurance companies in Sri Lanka. Methodology: This study on the impact of premium income, claim cost, underwriting results, and financial leverage on the financial performance of general insurance companies in Sri Lanka outlines the approach used to analyze these factors. The study uses a quantitative approach, relying on secondary data from the financial reports of 10 selected general insurance companies in Sri Lanka. Key variables, including premium income, claim costs, underwriting results, and financial leverage (debt-to-equity ratio), are measured and analyzed using statistical tools such as regression analysis to assess their effect on financial performance. Financial performance is measured using Return on Assets (ROA) as a dependent variable. Data analysis is performed using Random-effects panel regression models. The sample includes both publicly listed and private insurance companies, and the analysis focuses on data over a defined period. Findings: The results of the study revealed that premium income and underwriting results have a significant positive impact on ROA, suggesting that higher premium income and better underwriting practices enhance financial performance. Conversely, higher claim costs and increased financial leverage are found to have a negative effect on profitability, reducing ROA. These findings emphasize the importance of managing underwriting practices and claim costs, while also controlling financial leverage to improve overall financial performance. Conclusion: The study underscores the significant role that premium income, claim costs, underwriting results, and financial leverage play in shaping the financial performance of general insurance companies in Sri Lanka. To enhance profitability and solvency, insurance firms should focus on increasing premium income, optimizing underwriting results, and managing claim costs and financial leverage effectively. These insights provide valuable guidance for investors, management, and policymakers aiming to improve the financial health of the Sri Lankan insurance industry.Item The Impact of Internal Controls on Financial Performance in Public Sector Banks 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) Prabath, H.K.E.; Kawshalya, M.D.P.Internal control systems play a major role in every organization to achieve their management objectives. In the recent past, some public sector organizations (specially in baking sector) have been reported some corruptions, frauds and errors, because of the shortcoming in the internal control systems. This investigation focuses on public sector banks in Sri Lanka to examine the impact of internal control systems on financial performance. In the current study, internal controls are measured based on five component of internal controls namely control environment, control activities, accounting information and communication, risk assessment and monitoring which are identified in COSO framework. For the current study, data are is collected using questionnaire from the employees attached to Accounting, Finance and Audit divisions of public sector banks in Sri Lanka. Based on the regression estimate obtained the current study concludes that there is a positive relationship between internal controls on financial performance of the public sector banks in Sri LankaItem Organization Culture and its Impact on Firm Performance with Special Reference to 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) Minzan, M.N.M.; Gunasekare, U.L.T.P.The goal of this study is to identify the impact of organization culture on firm performance in listed companies in Sri Lanka. Further we set apart the findings relating to different industries and compared how firm performance changes in manufacturing and service organization as culture differs. The purpose of this study to know; how culture of an organization assists or hinders the organizational performance. Return on Investment and earning per share was used to measure the organizational performance. Our main focus is on Hofstede's cultural dimensions theory and its role in increase organizational performance. Structured questionnaire used, which consisted of four parts of Hofstede’s culture dimensions (power distance, uncertainty avoidance, individualism and masculinity) were employed. The samples was selected through random stratified sampling at sample size of 50 with companies covering both service and manufacturing industries in western region and survey data use from around 150 respondent which include both manager and employees. Quantitative research approach was followed and adopted survey method in which a questionnaire is used to collect the data. Regression and mean models used to test the research hypothecs. The study variables consisted of both dependent variables and independent variables, with organization culture being the independent variable and performance as dependent variable. The findings revealed that culture has a strong impact on company financial performance while uncertainty avoidance and power distance clearly indicated major association with organizational cultureItem Financial leverage and Firm Performance: Evidence from Sri Lankan Beverage, Food and Tobacco Companies(4th International Conference for Accounting Researchers and Educators, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2018) Imalka, H.A.; Aruppala, W.D.N.This study investigates the effect of firm leverage and product diversity towards the financial performance of Sri Lankan Beverage, food and tobacco companies. Beverage, food and tobacco companies listed in Colombo Stock Exchange (CSE) for the period of 2011 to 2017. Financial leverage was considered as the independent variable and a financial performance was considered as the dependent variable. Accordingly debt to equity ratio & debt to asset ratio was used to measure the financial leverage and ROA; ROE & EPS were used as measures of financial performance. Product diversity was used as the moderating variable of this study. The secondary data obtained from corporate annual reports of sample companies were used in this study and descriptive statistics, correlation and regression analysis were used to analyses data of this study. Results of the study show a positive relationship between financial leverage and financial performance. Thus, alternative hypothesis which proposed as there is a relationship between financial leverage and firm performance was accepted and rejected the null hypothesis which proposed as there is no relationship between financial leverage and firm performance. Findings conclude that Beverage, food & tobacco sector companies of Sri Lanka can enhance their financial performance and profitability margins by having proportion of leverage in their capital structuresItem Corporate Social Responsibility and Financial Performance of Listed Food and Beverage Tobacco 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) Thilakshi, T.N.H.; Gunasekare, U.L.T.P.CSR has become a greater important area of research among researches in the financial area in recent years. Most of entities perform CSR activities for its stakeholders than shareholders. This has led to the emergence of new dimension in financial reporting known as social responsibility reporting. It is not mandatory in Sri Lanka as in many other countries. Hence CSR disclosures are provided in the voluntary disclosures (Abeysinghe & Basnayake, 2013). This study was carried out to identify the level of CSR disclosure and its relationship with financial performance in listed Food and beverages tobacco sector companies in Sri Lanka. Study consisted 15 food and beverages tobacco sector companies as the sample. The study was carried out using secondary data. Data were obtained by using annual reports of the selected companies over the last ten years starting from 2008 to 2017. The financial performance of the companies was measure by using ROE. CSR disclosure was measured by using Global Reporting Initiatives (GRI G4 guidelines). The results revealed that the level of CSR disclosure in food and beverages tobacco sector companies in Sri Lanka was at moderate level. The level of CSR disclosure for last ten years was positive and with incremental trend. CSR subcategories (Social, Environment) also had positive incremental trend except economic categories. Finally study showed that level of corporate social responsibility disclosure was, significantly related with corporate financial performance in food and beverages tobacco sector companies in Sri Lanka. Also level of disclosure of CSR subs categories (social, environmental & economic) and financial performance has a positive relationship with each other