Symposia & Conferences
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Item The Impact of Capital Structure on Firm Performance: A Comprehensive Analysis of the Sri Lankan Plantation Companies Before and During the Crisis Evidence From Selected Listed Plantation Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Vitharamage, V. N. R.; Gunasekara, H. M. A. L.Introduction: The purpose of this study is to determine the impact of capital structure on firm performance. This study provides a comprehensive analysis of the Sri Lankan plantation companies before and during the crisis as this sector remains an unexplored area which plays an important role in their economies. Methodology: This research uses positivism research philosophy and the quantitative research approach and uses the convenience sampling method. This study is primarily based on secondary data that were extracted from the annual reports of companies listed in Colombo Stock Exchange (CSE) over the past eight-year period from 2016 to 2023. Balanced Panel Data (BPD) of 15 plantation companies were analyzed using STATA software, which included statistical tests such as normality, multicollinearity, heteroscedasticity, autocorrelation, cross sectional dependance, and panel regression analysis. Further this study uses a comparison test to identify the statistical difference in the periods. Findings: According to the findings of the study, the results confirm that there is a statistically significant difference in terms of ROE and ROA before and during the crisis. All the independent variables, excluding TDTE, also show a statistically significant difference between the periods. According to the regression analysis, it shows a negative and statistically significant relationship between TDTE and ROE and positive and statistically significant relationship between ICR and ROE. TDTA negatively impacts ROA, and the effect is statistically significant. As well as there is a statistically significant causal relationship between ROA and Interest Coverage Ratio. Finally, the overall models are statistically significant. Conclusion: The findings indicate that the crisis had a notable effect on plantation companies' financial performance and suggest that debt is not a primary strategy to cope with the crisis. Therefore, this study is advisable for firms to consider their funding strategies and manage their total debt wisely to sustain the overall performance by adapting to the market conditions.Item Influence of Company-Specific Factors on Profitability in Life Insurance Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Wijesinghe, S. R. S.; Sudasinghe, S. L.Introduction: The purpose of this study is to look into how company-specific factors influence the profitability of Sri Lankan life insurance businesses. It specifically looks at the influence of company-specific factors such as premium income, claim costs, underwriting results, and risk-based capital on profitability. The life insurance market in Sri Lanka confronts considerable hurdles in maintaining profitability, which is critical to the industry's stability and expansion. Methodology: This study uses a quantitative research design using empirical methods built under a positivist paradigm and a deductive methodology. The study uses panel data from ten life insurance companies from 2016 to 2022, using financial data derived from annual reports and IRCSL reports. The research employs a panel data regression model to determine the influence of the stated factors on profitability. Findings: The investigation, which is supported by descriptive statistics, demonstrates substantial correlations between profitability and company-specific factors. Profitability is positively influenced by premium income and risk-based capital, but claim costs have a negative influence. However, underwriting results have little influence on profitability. Conclusion: The research gives critical insights into the financial dynamics of the life insurance industry, highlighting significant factors influencing profitability. It provides stakeholders with direction on how to improve premium income strategies, optimize claims management, and strengthen risk-based capital management in order to improve financial performance and strategic decision-making.Item Assessing Profitability of Sri Lankan Commercial Banks Amidst Crisis(Faculty of Commerce and Management Studies University of Kelaniya., 2024-11-01) Gunasekara, H.M.A.L.; Ranasinghe, R.A.P.M.; Jayasinghe, G.D.C.T.This study aims to examine whether the Covid 19 pandemic and the post pandemic economic crisis have damaged the primary profitability of commercial banks. This study uses annual data from 2011 to 2023 for ten leading public and private domestic commercial banks in Sri Lanka. The results have been obtained using panel regression models and mean comparison tests. This study identified that the primary profitability measured by ROA is lower during health crisis and economic crisis periods and it achieves statistical support under comparison tests. The negative impact on ROA is dominant in the first Covid 19 year (2020) and the first economic crisis year (2022) than other periods. Further, comparison tests show that the impacts of any crisis are not superior to one another. However, when controlled for the bank-specific and macroeconomic factors, the negative differential effect of both crises fails to achieve statistical significance, indicating that Covid 19 and post- pandemic economic crisis have impacted domestic commercial banks weakly. This is the first kind of study to uncover that the domestic commercial banks have managed to maintain their primary profitability without a large injury to ROA during the health crisis and economic crisis years, helping them remain resilient during the crisis period.Item Relationship between CSR Activities and Financial Performance of the 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) Priyankara, S.D.K.; Gunasekara, U.L.T.P.The corporate business organizations tend to have more CSR activities, as a strategy for future benefits. But it is still unclear that whether these CSR activities add value to the firm performance on which this study mainly focused. The purpose of this study is to give both companies and investors a better insight into CSR efforts and show how these efforts may add value to the business. Hence, the results are valuable for both companies and investors, as well as for other stakeholders who are benefited from companies’ CSR efforts. This study gives an opinion about relationship between corporate social responsibility activities and financial performance of listed manufacturing companies in Sri Lanka. Data was collected from secondary sources such as annual reports, sustainability report and other related publications. Sample size of the study is all listed manufacturing companies in Colombo Stock Exchange and period covered from this study is from 2012-2017. Independent variable was measurement based on CSR checklist issued by Ceylon Chamber of Commerce. It includes measures of management involvement, market place, workplace CSR Practices, governance and legal issues, employee welfare, human resource practices, social and community. To measure the firm financial performance Return on Assets (ROA) was used. In describing the relationship between company CSR and performance descriptive analysis, correlation and Regression analysis are employed as statistical tools to analyze the data. The results show that there is a significant positive relationship between CSR activities and financial performance of listed manufacturing companies in Sri Lanka indicating that CSR acting as a tool for increasing company performanceItem 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 Accounting Based Performance Measures and Shareholder Value Creation: Evidence from Listed Companies in Colombo Stock Exchange(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Iroshani, M.B.M.; Rajapakse, R.M.A.D.P.Rapid growth of investments in the market has led the “Shareholder Value Creation” being one of the most important and popular concept all over the world. Since the companies were highly attracted for creating shareholder value, the concept has become a critical component. Traditional Accounting Based Performance Measures were critiqued for reporting a low level correlation with shareholder value creation. Thus this study examines the relationship between Accounting Based Performance Measures and Shareholder Value Creation for selected Beverage, Food and Tobacco companies listed in Colombo Stock Exchange. Nineteen companies from the sector were selected as the sample for the study. Audited annual reports for 6 years from 2010 to 2015 were analyzed to collect data needed for the study. Market Value Added (MVA) was used as the proxy to Shareholder Value Creation Measures and Return on Equity (ROE), Earnings per Share (EPS) and Return on Assets were used as the Accounting Based Performance Measures. Simple Regression and Multiple Regressions were used to test specified four research objectives. Other than those methods Descriptive Statistics and Correlation analysis have been done. The research findings suggested that there was no strong significant relationship between Accounting Based Performance Measures and Shareholder Value Creation. In conclusion it is recommended to consider contemporary economic measures when making an investment rather than only considering the Accounting Based Performance Measures.Item The Relationship between Board Structure and Firm Performance of Listed Plantation Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Weerakkodi, W.A.S.L.; Sujeewa, G.M.M.This study investigates the relationship between board structure and firm performance in listed plantation companies in Sri Lanka. The main objective of this study is to find out the relationship between board structure and firm performance. This research discusses the role and the importance of boards and how boards affect firm performance and internal corporate governance mechanisms such as board size, board gender diversity, CEO Duality and proportion of independent non-executive directors. Eighteen listed plantation firms were selected as the sample size in the Colombo Stock Exchange for the periods 2011, 2012, 2013, 2014 and 2015. Multiple regression analysis has been employed to analyze the relationship between board structure and firm performance. It indicates that the board size is positively associated with Return on Assets and Return on Equity. However, the results reveal that the separation of the two posts of CEO and chairman has a positive relationship with the firm performance. It means when separate CEO Duality is existed firm performance will increase. The obtained results report that the board gender diversity has no significant relationship with firm performance and proportion of independent non-executive directors show a positive relationship with firm performanceItem Impact of Bank-Specific and Macroeconomic Determinants on Commercial Bank Profitability: with Reference to Systematically Important Private Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Samarathunga, S.M.D.S.S.; Madurapperuma, M.W.Bank-specific and Macroeconomic factors have substantial repercussions on the performance of commercial banking sector in Sri Lanka, the favorable macroeconomic environment seems to stimulate higher profits. (Weerasainghe V.E.I.W & Perera T.R, 2013).The return on Assets which is a major measure of performance of commercial banks is a function of bankspecific determinants and macroeconomic determinants. A proper functioning of banking system facilitates a rapid economic growth enhancing savings and investments. The performance of the Sri Lankan commercial banks, measured by the Return on Assets (ROA) appeared to be stronger in the recent past without facing any significant fluctuations. This paper examined the impact of bank-specific and macroeconomic determinants on the profitability of licensed commercial banks. The study uses quarterly data from 2010-2015 relating to the bank-specific and macroeconomic indicators of commercial banking profitability by carrying out a multiple panel regression. According to empirical results, Macroeconomic determinants, gross domestic production rate and inflation rate found to be having a significant impact on the bank profitability with a positive relationship between the Return on Assets of a bank. The results further show that bank-specific factors of past period performance, net interest margin, bank size, liquidity risk, credit risk and capital adequacy have contributed significantly to the profitability of the commercial banks. The implication of the study is that efficient management of the bank-specific factors and implementation of favorable economic policies lead to an economic growth can contribute immensely to uplift the performance of the banking industry in Sri Lanka.Item The Impact of Corporate Social Responsibility on Firm Performance: A study of Manufacturing Industry in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Manamperi, N.W.; Arruppala, W.D.N.In Sri Lanka, the Manufacturing sector has a glorious history of getting engaged themselves in different kinds of social activities which is formally known as CSR (Corporate Social Responsibility). There has been an increased and continued expenditure by listed manufacturing Industries on CSR activities over the years globally. It is now expected that a profit-making organization must engage in socially responsive activities. The study sought to examine the influence of expenditure on CSR on financial performance of manufacturing sector in Sri Lanka. The specific objective was to find out the influence of CSR on industries’ profitability, to determine effects of CSR on a firm’s using Return on Assets (ROA), Return on Equity (ROE), and return on Investment (ROI). The study used annual reports of randomly selected company for the period of 2010 to 2015.Correlationanalysis and regression ware analyzed using E-views. To assess the impact as well as test the hypothesis of the study whether there is a relationship and the extent of the relationship between the independent variable (corporate social responsibility expenditure) and the dependent variables. (ROA, ROE, ROI).The hypothesis that was formulated was tested and the result shows that there is significant negative relationship between CSR and ROA, that there is significant negative relationship between CSR and ROE and. There is significant Positive relationship between CSR and ROI in manufacturing industry in Sri Lanka. The study concluded that expenditure on Corporate Social Responsibility had a significant negative influence on the ROA and ROE of an industry as well as that expenditure on Corporate Social Responsibility had a significant negative influence on the ROI in manufacturing industry in Sri Lanka.Item Determinants of Firm Performance; With Special Reference to Commercial Banks in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Senanayaka, S.M.D.J.; Karunarathne, W.V.A.D.Study was to discover the determinants, which affect to the profitability of Commercial banks in Sri Lanka. In the economy that the financial system is, important criteria and commercial banks are playing a key role under the financial system in the economy. The purpose of this study is to identify the determinants of the firms’ performance of commercial banks in Sri Lanka. There are many factors, which affects to the performance of commercial banks. In this study, it pays attention on the internal factors, which affects to commercial banks’ performance. The study has used Return on asset (ROA) and Return on Equity (ROE) alternatively to identify the banks’ performance. Capital Adequacy, Financial Leverage, Number of Branch and Liquidity ratio were considered as independent variables of the study. Secondary data of eight (08) listed commercial banks over 10 years were selected to the sample of the study. Correlation and Regression analysis were performed to analyzed data of the study. Constructed two models were used as alternative models. According to first model, that Capital Adequacy ratio, Debt to Equity ratio, Number of branches and the Liquidity assets ratio significantly affected the Return on Assets (ROA). According to the second model, that Capital Adequacy ratio and the Liquidity Assets ratio were significantly affected on Return on Equity (ROE) and the Debt to Equity ratio and the Number of branches were not affected on ROE significantly.