Symposia & Conferences
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Item Effect of credit rating on capital structure: with reference to the listed companies on Colombo stock exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Chathuranga, R.B.N.D.Aim of this study was to investigate whether the credit rating is an important determinant other than the firm's characteristic to obtain optimal capital structure focusing on the research hypothesis that the firms with higher credit along with the other factors (FTOA, ROA and Size) tend to have more debt in their capital structure of firms rated by Fitch Ratings Lanka Ltd. For this research, sample size of 40 observations (2 years data of 20 firms) was taken on the basis of convenience sampling. Secondary data were used for the research and data were collected from Fitch Rating Lanka, Colombo Stock Exchange and Annual reports of the firms. Results obtained by using regression analysis.Item The effects of corporate governance on firms’ credit ratings(Department of Accountancy, University of Kelaniya, 2015) Karunarathne, R.M.H.L.We investigate whether firms that possess strong corporate governance benefit from higher credit ratings relative to firms with weak governance. A firm’s credit rating reflects a rating agency’s opinion of an entity’s overall creditworthiness and its capacity to satisfy its financial obligations Credit agencies are concerned with governance because weak governance can impair a firm’s financial position and leave debt stakeholders vulnerable to losses To structure our analysis, we adopt a framework developed by Standard & Poor’s for assessing firms’ corporate governance structures and practices. In the case of Sri Lanka that have thoroughly validity because of investors will not be satisfy with the week financial position to invest of the firms. Therefor this has a practical validity to the firm to maintain their financial stability in order to satisfy investor’s preference. So as I develop this to exhibit what kind of validity that the firm has to the corporate governance on firm’s credit ratings. Rather I try to come up with the sensible area of this topic in order to give a clear and feasible view of the topic.