Journal articles: 'Corporate governance Sri Lanka'

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Arachchi, Sachini, Hiranya Dissanayake, Thilini Deshika, and Anuradha Iddagoda. "Digital Corporate Governance Practices: Evidence from Sri Lankan Listed Companies." Economic Insights – Trends and Challenges 2022, no. 2 (2022): 79–92. http://dx.doi.org/10.51865/eitc.2022.02.06.

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"The purpose of the research is to identify digital corporate governance practices in Sri Lankan listed firms. The concept of digital corporate governance has many areas. Digital meetings, cyber security, transparency and board IT (Information Technology) knowledge are some of them. Corporate governance in the 21st century has become the main focus and concern of companies in Sri Lanka of Digital transformation. Digital corporate governance practices are described in this research. With COVID 19 pandemic situation, most of the companies in Sri Lanka started to digitalize their business in every area. Digital corporate governance is one of the main areas in a company. Digital drive has developed steadily and has been integrated into the management system. For a stronger corporate governance system of organizations, the strict cyber security legislation must be developed"

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Nuskiya, M. N. F., Athula Ekanayake, Eshani Beddewela, and Ali Meftah Gerged. "Determinants of corporate environmental disclosures in Sri Lanka: the role of corporate governance." Journal of Accounting in Emerging Economies 11, no. 3 (February 22, 2021): 367–94. http://dx.doi.org/10.1108/jaee-02-2020-0028.

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PurposeThis study explores the levels of and trends in corporate environmental disclosure (CED) among a sample of Sri Lankan listed companies from 2015 to 2019. Furthermore, this article examines the firm-level determinants of CED, including corporate governance (CG) mechanisms, in Sri Lanka from a multi-theoretical perspective.Design/methodology/approachUsing a sample of 205 firm-year observations, this paper distinctively applies a panel quantile regression (PQR) model to examine the determinants of CED in Sri Lanka. This method was supported by estimating a two-step generalized method of moment (GMM) model to tackle any possible existence of endogeneity concerns.FindingsThe authors’ findings indicate an increasing trend in CED practice among the sampled companies (i.e. 41 firms, the only adopters of the GRI framework) in Sri Lanka from 2015 to 2019. However, it is still considered at an early stage compared with other developed counterparts. Furthermore, this study suggests that board size, board independence, board meetings, industry type, profitability and firm size are positively associated with CED level. In contrast, and consistent with our expectation, CEO duality is negatively attributed to the disclosed amount of environmental information in the Sri Lankan context.Research limitations/implicationsThe authors’ empirical evidence reiterates the crucial need to propagate and promote further substantive CG reforms, mandating CED in Sri Lanka.Originality/valueThe authors’ findings provide much-needed insights for indigenous companies, operating across similar emerging economies, to understand how CED can be incorporated into their reporting process based on the GRI framework in order to enhance their firm value, reduce legitimacy gaps and mitigate other operational risks.

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Rooly, M. S. A. Riyad. "The impact of board composition on shareholder wealth creation: evidence from public companies in Sri Lanka." Journal of Enterprise and Development 4, no. 2 (August 9, 2022): 188–209. http://dx.doi.org/10.20414/jed.v4i2.5350.

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Purpose — This research aims to examine the impact of board composition on shareholder wealth in line with the agency and resource dependency theory approach due to the poor corporate governance practices leading to investors' lack of confidence. Method — The study samples included companies listed on the Colombo Stock Exchange in Sri Lanka. The banks and financial institutions were excluded from this study. The study period consists of seven years, and a final sample of 175 companies was selected for the analysis. E-View 9 statistical software was used to test the association between Board composition-related variables and shareholder wealth. Result — The findings revealed that board size, separate leadership structure, and proportion of non-executive directors on the Board positively influence shareholder wealth. At the same time, a separate leadership structure also tends to enhance the shareholder wealth of companies. It is noted that a large board and a higher proportion of non-executive directors on the Board would benefit shareholders, which supports the theoretical prediction of agency and resource dependency theories and the code of best practices on corporate governance in Sri Lanka. The result related to women's representation on the Board does not significantly influence shareholder wealth since the gender balance was not prioritized in Sri Lankan listed companies. Recommendation — The findings provide valuable information to professionals and policymakers to develop a framework for corporate governance systems. It is also advisable to consider the gender balance on board affairs. Corporate governance mechanisms are considered important factors in protecting shareholder interests at large. Contribution — There were few studies in Sri Lanka that specifically examined corporate governance best practices and their impact on firm performance, but no single study directly addresses the shareholder wealth of listed companies in Sri Lanka. This study is intended to fill in this gap.

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Gunetilleke, Halpege Walter. "Modern corporate sector and corporate governance experience in Sri Lanka." International Journal of Business Environment 4, no. 1 (2011): 22. http://dx.doi.org/10.1504/ijbe.2011.039383.

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Balagobei‬, ‪Saseela, and Keerthana Keerthana, G. "Corporate Governance and Financial Distress: Empirical Evidence from listed Consumer Services Firms in Sri Lanka." GATR Accounting and Finance Review 7, no. 1 (June 29, 2022): 39–50. http://dx.doi.org/10.35609/afr.2022.7.1(1).

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Objective - COVID – 19 has created unique and very profound challenges for almost all listed firms in Sri Lanka. The purpose of the study is to examine the influence of corporate governance practices on the financial distress status of listed companies in the consumer services sector in Sri Lanka. Methodology/Technique – To assess the level of corporate governance, the current study constructs six dimensions of corporate governance, such as board size, board composition, CEO duality, board meeting, director ownership, and audit committee size. The Altman Z-score is used as a proxy for financial distress and measures it inversely. The bigger the Z-score indicates the smaller the risk of financial distress. Using 108 individual observations of consumer services firms listed on the Colombo Stock Exchange for the period of 2019 to 2021 and employing the fixed effects model, the effect of corporate governance practices on financial distress is evaluated. Findings - The results from panel data regression analysis reveal that firms having a large number of directors on the board have a low likelihood of financial distress of listed consumer services companies in Sri Lanka. Furthermore, when a chief executive officer serves as the chairman of the board at a company, the more likely it is that the company will experience financial distress. The current study also provides evidence that firm-specific characteristics, such as firm size, leverage, and profitability, could be useful in determining the likelihood of financial distress. Novelty - This study extends the existing literature by investigating the association between corporate governance practices and financial distress in listed companies in the emerging markets during the period of the COVID 19 pandemic. Type of Paper: Empirical. JEL Classification: G30, G34 Keywords: Board size, CEO duality, corporate governance, financial distress Reference to this paper should be referred to as follows: Balagobei, S; Keerthana, G. (2022). Corporate Governance and Financial Distress: Empirical Evidence from listed Consumer Services Firms in Sri Lanka, Acc. Fin. Review, 7(1), 39 – 50. https://doi.org/10.35609/afr.2022.7.1(1)

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Fernando, D. Ruwan Lakjeewa. "Impact of Corporate Governance Best Practice Code on Financial Performance of Companies Listed on the Colombo Stock Exchange." International Journal of Advanced Engineering and Management Research 07, no. 02 (2022): 86–115. http://dx.doi.org/10.51505/ijaemr.2022.7208.

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Corporate governance is considered to have significant implications for the growth prospects of an economy. Good corporate governance practices are regarded as important in improving the performance of companies. The purpose of this study is to investigate the impact of corporate governance on financial performance of Sri Lankan listed firms. A number of aspects related to corporate governance, including board of directors, chairman and chief executive officer, board balance and appraisal of performance, disclosure of remuneration of directors, shareholders, accountability and audit, institutional investors and other investors and disclosure of sustainability reporting were examined in order to explore their influence on financial and market performance measured in terms of Return on Assets, Return on Equity, Tobin’s Q and Market to Book Ratio. Correlation analysis and panel regression analysis is used to analyze the data gathered from a sample of 96 publicly listed firms in 19 industries in the Colombo Stock Exchange in Sri Lanka. The findings of the correlation analysis results revealed that, there is no significant relationship between the overall governance scores and Return on Assets. In the case of Return on Equity, there is no significant relationship with the level of compliance of Corporate Governance. Further, there is no significant relationship between the overall governance scores and Tobin’s Q. Market to Book Ratio shows insignificant relationship with the overall corporate governance scores. Panel regression analysis results indicated that there is no systematic relationship of governance scores and Return on Assets. Further, overall governance score has revealed a significant positive coefficient with Return on Equity. The overall governance score has not systematically related with Tobin’s Q. Further results show that, there is no systematic relationship of overall governance score and the Market to Book Ratio. The results will assist regulators and policy-makers to better understand the impact of corporate governance on the financial performance of different types listed firms in Sri Lanka.

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Kengatharan, Lingesiya. "Impact of Corporate Governance Practices on Firm's Cash Holdings in an Emerging Market: A Panel Data Analysis." International Journal of Accounting and Financial Reporting 7, no. 2 (December 10, 2017): 210. http://dx.doi.org/10.5296/ijafr.v7i2.12118.

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The aim of the study was to examine the impact of corporate governance practices on firm's cash holdings of listed manufacturing companies in Sri Lanka, using panel data extracted from the financial statements of the companies listed on Colombo Stock Exchange. Corporate governance practices of Sri Lankan listed manufacturing companies were measured by board independence, board size, CEO duality, audit committee meetings and audit committee members, cash holdings were measured by percentage of cash and cash equivalents on total assets and also leverage and firm size were considered as control variables. Data were collected from 26 listed manufacturing companies over a five years period of 2011-2015. Pooled Ordinary Least Square, Fixed Effect and Random Effect models were performed using STATA to explore the best model for the impact of corporate governance practices on firm's cash holdings. Results of the study revealed that fixed effect model was the best model with the evidence of Hausman specification test. According to the fixed effect model, CEO-duality and leverage had significant negative impact on cash holdings while audit committee meetings and firm size had positive impact on cash holdings of the listed manufacturing companies in Sri Lanka. Board independence, board size and audit committee members did not show any significant impact on cash holdings. Findings of the study may be useful to practitioners to identify the effects of corporate governance practices on firm's cash holdings.

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Samarakoon, SMRK, and KLW Perera. "Short-run price performance of IPOs and corporate governance practices: Evidence from a frontier market." Corporate Governance and Sustainability Review 2, no. 1 (2018): 34–42. http://dx.doi.org/10.22495/cgsrv2i1p3.

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The short-run price performance of Initial Public Offerings (IPOs) indicates that the prices are often underpriced which is widely documented as a universal phenomenon. Corporate governance refers to the set of systems, principles and processes by which a company is governed. Establishing good corporate governance system in an IPO company makes good decisions which attract more outside investors. Therefore, this study examines whether there is any impact of corporate governance practices on short-run price performance of Sri Lankan IPOs. Study examined 44 fixed price IPOs which were listed on the Colombo Stock Exchange (CSE) during the period of 2003 – January to 2015- December. The study found that Sri Lankan IPOs underprice by 30% on AR, which is statistically significant at 5% level. Further, it found that block holder ownership (ownership concentration), CEO duality and existence of the non-executive directors in the board are positively related to the short-run underpricing, which are statistically significant at 5%. But, the board size has a significant negative impact on underpricing. These relationships are in line with the international literature which confirms that the corporate governance practices have significant impact on short-run price performance of IPOs in Sri Lanka. These findings also support the agency and signaling theories.

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Rooly, M. S. A. Riyad. "Impact of Board Diversity on Agency Costs in the Context of Agency Theory Approach: Evidence From Listed Companies in Sri Lanka." Indian Journal of Corporate Governance 14, no. 2 (October 6, 2021): 133–53. http://dx.doi.org/10.1177/09746862211045758.

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Effective corporate governance leads the way towards aligning the interest between managers and shareholders. Effectiveness of practicing the corporate governance of companies in Sri Lanka is debatable topic due to the variation between standard and actual practices. This study aims to examine the influence of board diversity on agency costs of companies listed in Sri Lanka as proposed by agency theory. The sample of this research consists of all companies listed in Sri Lanka, exclusive of bank and financial institutions which are practicing unique governance practices issued by Central Bank of Sri Lanka. The final sample consists of 180 companies during the period from 2013 to 2019. This study deployed panel regression analysis to test the relationship formulated in the hypotheses by using the EViews 9 software. The results showed that the board diversity-related variables such as separate leadership structure and presence of non-executive director on companies’ board are appeared to have significant influence on agency costs. Meanwhile, board size does not have direct impact on agency costs. The findings of this study regarding board diversity and agency costs have important managerial implications, that these findings are unlikely to the prediction of agency theory and best practices. Agency theory is not applicable to these companies, since the exiting corporate governance practices increase agency costs. The potential benefits of this study led to re-think the board of directors of the companies, managers, shareholder and the policymakers to re-organise the implementation of best practices.

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Rajeevan, Shanmugavel, and Roshan Ajward. "Board characteristics and earnings management in Sri Lanka." Journal of Asian Business and Economic Studies 27, no. 1 (September 4, 2019): 2–18. http://dx.doi.org/10.1108/jabes-03-2019-0027.

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Purpose The purpose of this paper is to examine the association between designated corporate governance attributes and the degree of earnings management in selected quoted companies in Sri Lanka. Design/methodology/approach In total, 70 listed companies in Colombo Stock Exchange (CSE) were selected based on the highest market capitalisation for the period covering from 2015 to 2017 and representing beverage, food and tobacco, diversified, hotel and travel, manufacturing, oil palms and health care sectors, which accounted for 59.9 per cent of the total market capitalisation of CSE. Findings This study found a positive relationship between CEO-Chair duality and earnings management. Practical implications The insights may also provide investors, economic analysts and regulators with early caution indicators of potential problems in a corporation regarding corporate governance failures and aid stakeholders in assessing the effectiveness and efficiency of the board and corporate governance structure and earnings management methods. Originality/value This study extends the extant research on board characteristics and real earnings management by adopting prominent research design and modernised data. This study offers evidence on how selected audit and board committee’s characteristics influence real earnings management practices.

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Anandasayanan, S., and H. Thavarasasingam. "Corporate Governance and Corporate Profitability: Empirical Study of Listed Land and Property Companies in Sri Lanka." International Journal of Trend in Scientific Research and Development Volume-3, Issue-2 (February 28, 2019): 274–80. http://dx.doi.org/10.31142/ijtsrd20309.

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Manawaduge, Athula, Anura De Zoysa, and Kathy Rudkin. "Corporate governance and postcolonialism: the experience of Sri Lanka." International Journal of Corporate Governance 9, no. 2 (2018): 127. http://dx.doi.org/10.1504/ijcg.2018.091272.

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Manawaduge, Athula, Anura De Zoysa, and Kathy Rudkin. "Corporate governance and postcolonialism: the experience of Sri Lanka." International Journal of Corporate Governance 9, no. 2 (2018): 127. http://dx.doi.org/10.1504/ijcg.2018.10011963.

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Puwanenthiren, Pratheepkanth, Balaputhiran Sathasivam, and Velnampy Thirunavukarasu. "Corporate governance, ownership structure and agency costs: evidence from Sri Lanka." Indonesian Management and Accounting Research 19, no. 2 (January 7, 2021): 121–34. http://dx.doi.org/10.25105/imar.v19i2.7265.

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The purpose of this paper is to examine the link between corporate governance, ownership structure and agency cost in Sri Lanka. The present study uses the regression model to analyse data for a sample of 150 firms listed in the Colombo Stock Exchange (CSE) for the financial years 2014 to 2018. The empirical results show statistically significant and positive associations between board size, CEO duality, managerial ownership and agency cost proxies (i.e., asset turnover and expense ratio). The results also show a positive and significant relationship between the independent directors and asset turnover (though statistically insignificant with expense ratio), suggesting that, entrenched independent directors employ lower conflict of interest in order to reduce the agency cost. Nonetheless, ownership concentration, was statistically insignificantly associated with agency costs, this paper provides support for such a view in Sri Lankan context. This study contributes to the literature on the on the association between corporate governance, ownership structure and agency costs. The findings may be useful for financial managers, investors, financial management consultants, and other stakeholders.

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Abdul-Rahim, Ruzita, Mohamed Cassim Abdul Nazar, and Mohd Hasimi Yaacob Abdul-Rahim. "Dynamic effect of corporate governance on financing decisions: Evidence from Sri Lanka." Asian Academy of Management Journal of Accounting and Finance 17, no. 2 (December 10, 2021): 133–59. http://dx.doi.org/10.21315/aamjaf2021.17.2.6.

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This study investigates the role of corporate governance in influencing the debt financing decision of 198 non-financial listed companies in Sri Lanka from 2009 to 2016. Sri Lanka’s corporate governance (CG) code promotes dispersed ownerships, larger board size and balance of power and authority through various means, such as exclusivity between the Chief Executive Officer and Chairperson and the independent Board composition. This study tests the role of CG through four indicators while controlling for other firm-specific variables. Results of the two-step system Generalized Method of Moments on a balance panel data shows that the effect of CG indicators on financing decision depends on the financing terms. In general, the influence of CG indicators is significant on the two debt financing measurements, except for managerial ownership when investments in assets are involved. This influence appears eminent in predicting the debt ratio, although the effect is not necessarily consistent with the hypotheses. The latest revision on CG codes of best practices has also improved firms’ access to debt financing, except for raising long-term debt to acquire assets. Results imply that the Sri Lankan firms adopting the CG best practices would need to rely on other factors to access long-term debt financing or on other external financing sources.

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Ajanthan, Alagathurai, and KGA Udhaya Kumara. "Corporate Governance and Cash Holdings: Empirical Evidence from an Emerging Country, Sri Lanka." International Journal of Accounting and Financial Reporting 7, no. 2 (October 10, 2017): 112. http://dx.doi.org/10.5296/ijafr.v7i2.12137.

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This study examines the influence of corporate governance practices on cash holdings of Sri Lankan listed companies. It develops hypotheses about the relationship between cash holding and corporate governance practices such as size, frequency of meetings, independence, independent chair and gender diversity. Using multiple regression analysis on data collected from the corporate annual reports of 90 listed companies, the study finds that corporate governance practices such as board size and gender diversity have a significant negative influence on cash holdings as well as independent chair has a significant positive influence on cash holdings. However, there is no evidence that board meetings affect cash holding in Sri Lankan companies. The study contributes to the literature on the factors that make variation in the amount of cash holding of the listed company and it may be useful for financial managers, business analyst, financial controller, operations managers, investors, financial management consultants and other stakeholders.

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Anandasayanan, S., and T. Velnampy. "Corporate Governance and Corporate Profitability of Listed Diversified Holding Companies in Sri Lanka." International Journal of Accounting and Financial Reporting 8, no. 1 (March 15, 2018): 294. http://dx.doi.org/10.5296/ijafr.v8i1.12486.

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Corporate Governance is basically concerned with ways in which all parties interested in the well-being of the firm (the stakeholders) attempt to ensure that managers and other insiders are always taking appropriate measures and adopting mechanisms that safeguard the interests of the stakeholders. The purpose of the study is to find out the impact of corporate governance on corporate profitability of Diversified Holding companies listed in Colombo Stock Exchange. Secondary data were used for the study.17 companies out of 20 were selected based on the availability of the data during the study period. In this study board size and board composition and CEO duality were considered as independent variables and Return on Assets (ROA) was used as profitability measurement. Further debt to equity ratio and firm size were considered as control variables. Hypotheses were tested using panel Least Square regression analysis. Descriptive statistics were computed for the Diversified Holding companies to represent the main characteristics of the study variables. The findings revealed that the influence of corporate governance on corporate profitability was statistically significant while debt to equity ratio and firm size have insignificant impact on corporate profitability.

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Fernando, A. T., D. H. S. W. Dissanayake, and N. P. T. Deshika. "Employees' Perceptions on Corporate Governance: Empirical Evidence from Sri Lanka." International Journal of Accountancy 1, no. 2 (December 30, 2021): 46. http://dx.doi.org/10.4038/ija.v1i2.31.

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Randunu, M. P. M. P., H. M. M. N. Herath, and W. M. H. N. Wijekoon. "Corporate Governance and Carbon Emission Disclosures: Evidence from Sri Lanka." International Journal of Accounting and Business Finance 8, no. 2 (December 31, 2022): 181. http://dx.doi.org/10.4038/ijabf.v8i2.130.

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Thrikawala, Sujani, Stuart Locke, and Krishna Reddy. "An empirical analysis of corporate governance impact on outreach of microfinance institutions (MFIs)." Corporate Ownership and Control 13, no. 1 (2015): 8–14. http://dx.doi.org/10.22495/cocv13i1p1.

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This study examines the impact of corporate governance practices of microfinance institutions (MFIs) on outreach to the poor people in Sri Lanka by using three outreach variables: Breadth of outreach, percentage of women borrowers and depth of outreach. Data for 54 MFIs are analysed using regression analysis of unbalanced panel data from 2007 to 2012. The findings of this study revealed several significant relationships: Breadth of outreach in Sri Lankan MFIs improve when they have a female chair on the board but decreases when they have more female directors and client representation on the board, and female borrowers get more loans when the firm has women representation and international/donor directors on the board, but less loans if they have a female chair. This study provides a direction for future researchers to explore more, and recommend good corporate governance practices for MFIs to reach more poor clients.

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Sameera, T. K. G. "Corporate Governance Practices and Their Impacts on Corporate Risk: Evidence from Sri Lanka." Kelaniya Journal of Management 9, no. 2 (December 8, 2020): 21. http://dx.doi.org/10.4038/kjm.v9i2.7642.

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Balagobei, Saseela, and Thirunavukkarasu Velnampy. "Impact of Audit Committee on Organizational Performance of Listed Hotels and Travels in Sri Lanka." International Journal of Accounting and Financial Reporting 8, no. 4 (October 11, 2018): 352. http://dx.doi.org/10.5296/ijafr.v8i4.13467.

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The audit committee is one of the key elements in the corporate governance structure that helps to control and monitor management in the organization. The aim of this study is to investigate the impact of audit committee on organizational performance of listed hotels and travels in Sri Lanka. The sample consists of 15 listed hotels and travels in Sri Lanka. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson’s correlation and multiple regression analysis (Eviews). The results reveal that audit committee attributes such as AC independence, AC experts and AC meetings have a significant impact on organizational performance of listed hotels and travels in Sri Lanka. Further audit committee size is not found to have a significant impact on the organizational performance. The findings could be useful to regulators in other jurisdiction who are looking at ways to enhance the effectiveness of AC, overall firm governance and enhance the organizational performance.

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Andreadakis, Stelios. "Editorial: New trends in corporate law and governance — Future expectations." Corporate Law and Governance Review 4, no. 1 (2022): 4–6. http://dx.doi.org/10.22495/clgrv4i1editorial.

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This new issue contains five contributions that deal with both theoretical and practical aspects related to corporate law and corporate governance. The authors have put together five extremely interesting pieces of work, using a variety of doctrinal and empirical research methodologies and adopting an interdisciplinary perspective. The topics range from corporate governance regulation to due diligence and from corporate entrepreneurship to foreign direct investment, with case studies focusing on Greece, Finland, Sri Lanka, and the Philippines. The research findings confirm the richness that characterises the international corporate landscape and the contemporary character of such intellectual inquiries.

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Guo, Zhaoyang, and Udaya Kumara Kga. "Corporate Governance and Firm Performance of Listed Firms in Sri Lanka." Procedia - Social and Behavioral Sciences 40 (2012): 664–67. http://dx.doi.org/10.1016/j.sbspro.2012.03.246.

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Baker, H. Kent, N. Jayantha Dewasiri, Weerakoon Banda Yatiwelle Koralalage, and Athambawa Abdul Azeez. "Dividend policy determinants of Sri Lankan firms: a triangulation approach." Managerial Finance 45, no. 1 (January 14, 2019): 2–20. http://dx.doi.org/10.1108/mf-03-2018-0096.

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PurposeThe purpose of this paper is to identify the dividend policy determinants of Sri Lankan firms and why they pay dividends.Design/methodology/approachThe study uses several quantitative approaches to investigate dividend determinants using market (secondary) data of 190 Sri Lankan firms and 1,330 firm-year observations. Dividend determinants are also identified using survey (primary) data from 141 of the 190 firms. Triangulation is then used to facilitate validation of the data through cross-verification from two data sources.FindingsAnalysis of the market data reveals that firm size, industry impact, corporate governance, free cash flow, earnings, past dividends, profitability, investment opportunities, net working capital, concentrated ownership structure and investor preference represent the most important dividend determinants. Survey data confirm these findings. The evidence supports the pecking order, signaling, free cash flow, catering and outcome theories using both secondary and primary data and the bird-in-the-hand theory using survey data.Research limitations/implicationsThe findings are useful not only for corporate decision makers in establishing an appropriate dividend policy but also for shareholders in making investment decisions. Because the current study is limited to Sri Lanka, future researchers should study the same phenomenon in other countries using the triangulation approach.Originality/valueThis study provides a hybrid approach to dividend policy research by using both primary and secondary data in a single study. It is the first dividend study in Sri Lanka to use a triangulation approach.

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M. Farwis, M.M Siyam, MCA. Nazar, and MACF. Aroosiya. "The Nexus Between Corporate Governance and Firm Performance During COVID-19 Pandemic in Sri Lanka." Journal of Economics, Finance and Accounting Studies 3, no. 1 (May 31, 2021): 81–88. http://dx.doi.org/10.32996/jefas.2021.3.1.8.

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The COVID-19 has redefined the world operation. Specially COVID-19 pandemic shows a higher impact on the business field. Accordingly, this study aims to find the impact of corporate governance on firm performance during the Covid-19 pandemic in Sri Lanka. The quantitative methodology deployed and secondary data was collected from 27 companies listed in Colombo Stock Exchange (CSE) for 209 and 2020. The results depicted that pandemic has affected the Corporate Governance (CG) measures unfavorably. Further, board size and qualification of director’s show a positive association between firm performance meantime, NED proportion, Gender diversity, Board meeting, Audit committee size and Audit committee meeting show a negative association between firm performance. It clearly reveals that COVID-19 severely impact the corporate governance attributes and firm performance. The corporate management, regulators, and investors must consider the board’s board size and qualification to recover the corporate sector in any crisis. This study provides a unique contribution to the literature of COVID-19 and firm performance in emerging economies.

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Ratnayake, D. A. W. M. S. P., and N. Rajakulanajagam. "Corporate Governance and Corporate Transparency: A Sri Lankan Case." International Journal of Accountancy 2, no. 2 (December 29, 2022): 1. http://dx.doi.org/10.4038/ija.v2i2.42.

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Pratheepkanth, Puwanenthiren, Samanthala Hettihewa, and Christopher Wright. "Corporate Governance and Financial Performance: The Case of Australia and Sri Lanka." Global Review of Accounting and Finance 7, no. 1 (March 2016): 1–12. http://dx.doi.org/10.21102/graf.2016.03.71.01.

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Kengatharan, Lingesiya, and W. S. Sanoli Tissera. "Do Corporate Governance Practices Influence Working Capital Management Efficiency? Evidence From Listed Manufacturing Companies in Sri Lanka." Research in World Economy 10, no. 3 (July 25, 2019): 205. http://dx.doi.org/10.5430/rwe.v10n3p205.

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The purpose of the study is to investigate the influence of corporate governance practices on working capital management efficiency in the listed companies of the manufacturing sector in Sri Lanka. Board meeting, board size, CEO tenure and size of the audit committee are used as corporate governance practices and the cash conversion cycle is calculated to measure the working capital management efficiency. Sales growth and firm size are considered as control variables to evaluate the influence of corporate governance practices on working capital management efficiency. Relevant data are extracted from the annual reports of 30 listed manufacturing companies for the period from 2013 to 2017. Finally, 150 observations are used for the data analysis. Pearson correlations are executed to determine the relationship between corporate governance practices and working capital management efficiency. OLS regression analysis is performed to determine the explanatory power of the combination of corporate governance practices on the efficiency of working capital management. The correlation analysis shows that board meeting, CEO tenure and firm size have a significant positive relationship with cash conversion cycle. The regression results suggest that board meetings and CEO tenure have a significant positive influence on cash conversion cycle. Generally, the shorter the cash conversion cycle is better for the business, therefore, according to this result the increase in a board meeting and CEO tenure have the considerable decreasing in liquidity position in an organization. Therefore, the outcome of the study may be useful to the top management of the firms and practitioners when they are implementing governance mechanisms in order to enhance the working capital efficiency.

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Thrikawala, Sujani, Stuart Locke, and Krishna Reddy. "Board structure-performance relationship in microfinance institutions (MFIs) in an emerging economy." Corporate Governance: The International Journal of Business in Society 16, no. 5 (October 3, 2016): 815–30. http://dx.doi.org/10.1108/cg-12-2015-0166.

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Purpose The purpose of this paper is to investigate the relationship between board structure, financial performance and outreach of microfinance institutions (MFIs) in Sri Lanka, using unbalanced panel data for 300 MFI-year observations for the period 2007 to 2012. Design/methodology/approach Empirical research relating to governance practices in MFIs is still in its infancy, and further studies are needed to determine how improved governance practices may enhance sustainability and outreach of MFIs, especially in emerging economies. The authors use regression techniques to examine whether board structure has an influence on MFI performance. Findings After controlling for internal corporate governance variables, regulatory status, size, age, leverage and year effects, the authors report that board structure does contribute to the financial performance and outreach of MFIs in Sri Lanka. Research limitations/implications The availability of data in the public domain captures the major MFIs but does constrain the generalisability of findings. Practical implications This study enables individual MFIs to evaluate potential restructuring of their boards to promote a dual mission and achieve a more accelerated economic development. Social implications The findings may encourage policy makers to promulgate policy guidelines to deepen MFI outreach to the poorest people. Originality/value Inconsistent findings in prior studies and a general lack of empirical results for the microfinance industry have led to an unclear message regarding corporate governance and MFI performance. This study fills the research gap, contributing to the existing corporate governance literature in the microfinance sector and providing evidence from an emerging economy.

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Gurkan, Cicek. "Corporate ownership and control: corporate governance and economic development in Sri Lanka by Shalini Perera." Jindal Global Law Review 6, no. 2 (October 2015): 265–73. http://dx.doi.org/10.1007/s41020-015-0011-6.

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Rajakaruna, I. R. H. M. T. P., and R. M. N. C. Swaranapali. "Effect of Corporate Governance on Corporate Performance: Sri Lankan Evidence." Wayamba Journal of Management 12, no. 2 (December 30, 2021): 373. http://dx.doi.org/10.4038/wjm.v12i2.7545.

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Ajanthan, Alagathurai, and KGA Udhaya Kumara. "Corporate Governance and Cash Conversion Cycle: Evidence from Listed Companies in Sri Lanka." Asian Economic and Financial Review 7, no. 12 (2017): 1303–16. http://dx.doi.org/10.18488/journal.aefr.2017.712.1303.1316.

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Panditharathna, K. M. "Corporate Governance And Voluntary Disclosure Level; Evidence From Manufacturing Companies In Sri Lanka." International Journal of Scientific and Research Publications (IJSRP) 9, no. 12 (December 24, 2019): p9691. http://dx.doi.org/10.29322/ijsrp.9.12.2019.p9691.

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Balagobei, Saseela. "Corporate governance and non - performing loans: evidence from listed banks in Sri Lanka." International Journal of Accounting and Business Finance 5, no. 1 (June 30, 2019): 72. http://dx.doi.org/10.4038/ijabf.v5i1.40.

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Widger, Tom. "Visions of philanthronationalism: the (in)equities of corporate good governance in Sri Lanka." Contemporary South Asia 24, no. 4 (August 22, 2016): 400–415. http://dx.doi.org/10.1080/09584935.2016.1203861.

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Wellalage, Nirosha Hewa, and Stuart Locke. "Corporate governance, board diversity and firm financial performance: new evidence from Sri Lanka." International Journal of Business Governance and Ethics 8, no. 2 (2013): 116. http://dx.doi.org/10.1504/ijbge.2013.054416.

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Kengatharan, Lingesiya, and Thangarasa Sivakaran. "Impact of Corporate Governance Practices on Corporate Social Responsibility: Evidence from Listed Banks, Finance and Insurance Companies in Sri Lanka." Asia-Pacific Management Accounting Journal 14, no. 2 (August 31, 2019): 115–38. http://dx.doi.org/10.24191/apmaj.v14i2-06.

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The objective of this study is to examine the impact of corporate governance practices on corporate social responsibility of the listed banks, finance and insurance companies in Sri Lanka over the period of 2013 to 2017. A sample of 20 firms out of 72 banks, finance and insurance firms listed on the Colombo Stock Exchange was considered for this study. The study utilized secondary data which were collected from annual reports of the sampled firm. Corporate social responsibility was measured by a 40-item disclose index. Corporate governance practices were measured by board size, board independence, women on board and size of audit committee. Return on assets and firm size were considered as control variables. Results of the study revealed that independent directors, return on assets and firm size have significantly positively influenced corporate social responsibility. Board size, women on the board and size of audit committee have not shown any significant impact on corporate social responsibility. The result of this study is deemed to benefit external investors and shareholders who will be able to know that how the firm committed their Corporate Social Responsible activities rather than profit maximization. Further the finding is useful for interested people such as public, government, and other financial institutions. Moreover, it will help to future researchers for further investigation related to this topic. Keywords: corporate social responsibility, corporate governance practices, stakeholder theory

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Nanayakkara, W. Indira. "The Application of Corporate Governance Principles in the Banking Sector in Sri Lanka – An Overview." SDMIMD Journal of Management 12, no. 2 (October 1, 2021): 33. http://dx.doi.org/10.18311/sdmimd/2021/26768.

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All economies in the world are propelled by banks and the banking industry. Since the end of the war, Sri Lanka’s development has been accelerated and banks play a prominent role in the economy as they finance growth and development. Corporate Governance (CG) is seen as a particularly important regime for banks, due to their engagement with public funds, the public’s confidence and trust is of paramount importance to a bank’s stability. It is crucial that laws and regulations provide a versatile framework for good governance of the banking sector. This study critically examined the state of CG development and its underlying implications in the banking sector. Primarily, the relevant provisions of the Companies Act, Banking Act and the Monetary Law in Sri Lanka were evaluated, in addition to the other relevant laws, in order to ascertain whether they provide an adequate framework to ensure proper CG of banks. The Central Bank of Sri Lanka (CBSL) has improved its capacity over the years to supervise, enforce and maintain financial stability. It ensures the safety and stability of banks at all times and has taken steps to implement risk management, BASEL II, for tight CG of banking. A mandatory code of CG has been issued by the CBSL, requiring all banks to fully comply with the rules on or before the 31st of January 2009. This study also explores the scope, extent, impact and the effectiveness of the supervisory and regulatory role of the CBSL and identifies the challenges faced by it when addressing the CG issues in the banking industry.

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Nanayakkara, W. Indira. "The Application of Corporate Governance Principles in the Banking Sector in Sri Lanka – An Overview." SDMIMD Journal of Management 12, no. 2 (October 1, 2021): 33. http://dx.doi.org/10.18311/sdmimd/2021/26768.

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All economies in the world are propelled by banks and the banking industry. Since the end of the war, Sri Lanka’s development has been accelerated and banks play a prominent role in the economy as they finance growth and development. Corporate Governance (CG) is seen as a particularly important regime for banks, due to their engagement with public funds, the public’s confidence and trust is of paramount importance to a bank’s stability. It is crucial that laws and regulations provide a versatile framework for good governance of the banking sector. This study critically examined the state of CG development and its underlying implications in the banking sector. Primarily, the relevant provisions of the Companies Act, Banking Act and the Monetary Law in Sri Lanka were evaluated, in addition to the other relevant laws, in order to ascertain whether they provide an adequate framework to ensure proper CG of banks. The Central Bank of Sri Lanka (CBSL) has improved its capacity over the years to supervise, enforce and maintain financial stability. It ensures the safety and stability of banks at all times and has taken steps to implement risk management, BASEL II, for tight CG of banking. A mandatory code of CG has been issued by the CBSL, requiring all banks to fully comply with the rules on or before the 31st of January 2009. This study also explores the scope, extent, impact and the effectiveness of the supervisory and regulatory role of the CBSL and identifies the challenges faced by it when addressing the CG issues in the banking industry.

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Yapa, Prem W. S., Sarath L. Ukwatte Jalathge, and Pavithra Siriwardhane. "The professionalisation of auditing in less developed countries: the case of Sri Lanka." Managerial Auditing Journal 32, no. 4/5 (April 4, 2017): 500–523. http://dx.doi.org/10.1108/maj-02-2016-1318.

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Purpose This paper aims to examine the tensions amongst the audit firms operating in Sri Lanka with the introduction of open economic policies in early 1980s and its impact to the auditing profession. Design/methodology/approach Using a qualitative approach, this study consists of in-depth interviews, documentary review and critical interpretation supported by the perspectives of globalisation, digitalisation and neo-liberalism. Findings The findings indicate that the main reasons for the tension between audit firms (local and international) have been the conflict of interests on the market share. While global pressures on International Standards of Auditing created more opportunities for international audit firms to capture a wider market with the support of the state, the local audit firms apparently lost their market and experienced tension created by staff. Evidence shows the negative impact of globalisation on the open economic policies and the local audit market. Research limitations/implications The findings of this research will be useful for policymakers in revising auditing practices to ensure healthy corporate governance. Only 25 interviews were conducted; hence, the results may not be a holistic representation of the audit environment in Sri Lanka. Originality/value This study is significant, as the business capital has surged into Sri Lankan market as a result of the ongoing international agencies-led economic reforms. Such reforms have emphasised the transparency and accountability.

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Nagalingam, Nagendrakumar, and Chathura Malinga. "Corporate governance and firm integrated performance: Issues, challenges, and opportunities faced by nation in crisis." Corporate Board: Role, Duties and Composition 18, no. 2 (2022): 27–34. http://dx.doi.org/10.22495/cbv18i2art3.

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Literature on corporate governance (CG) and firm integrated performance (FIP) — accounting and finance performance (AFP), marketing performance (MP), logistics and supply chain performance (LSCP) — of organizations are rarely seen in addition to the empirical evidence on issues, challenges, and opportunities since of adhering to CG and FIP principles which is also hard to find. Besides, Sri Lanka declared itself bankrupt during mid part of 2022. It raised the question of whether the corporate sector really encountered unbearable risk and is nothing left as opportunities in sailing the nation without announcing its bankruptcy. Thus, the present study aims to set the light on the issues, challenges, and opportunities (a priori constructs) of the CG and FIP through structured qualitative study. The study adopted the secondary data and used the annual reports of S&P SL20 companies listed on the Colombo Stock Exchange (CSE) as the theoretical sample from the financial years 2019–2021. Researchers used content analysis and theoretical thematic analysis in identifying the key units of analysis in the annual reports and connecting them systematically to the a priori constructs. The study found that the risk level and the opportunity level were moderate the years right before the announcement of bankruptcy. Accordingly, it is concluded that Sri Lanka had a chance of avoiding the bankruptcy if the moderate level of risk and the opportunities were well managed.

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Hewage, Y. M., and N. T. Amarasekara. "Does Corporate Governance Affect Financial Reporting Quality? Evidence from Listed Entities in Sri Lanka." South Asian Journal of Business Insights 2, no. 1 (August 10, 2022): 97. http://dx.doi.org/10.4038/sajbi.v2i1.35.

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Cooray, Thilini, A. D. Nuwan Gunarathne, and Samanthi Senaratne. "Does Corporate Governance Affect the Quality of Integrated Reporting?" Sustainability 12, no. 10 (May 22, 2020): 4262. http://dx.doi.org/10.3390/su12104262.

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This study examines how governance mechanisms affect the quality of integrated reporting (IR), which is fast emerging both as a tool to help firms understand their value creation process and to communicate effectively with external stakeholders. This study first developed an index to assess the quality of integrated reports. Subsequently, 132 integrated reports of Sri Lankan public listed companies selected over a three-year period were content analysed. The hypotheses formulated on the relationship between corporate governance and the quality of IR based on the agency theory were analysed using multivariate linear regression and panel regression. The results show that there is limited support from the corporate governance system for providing quality information to stakeholders on the value creation process through IR, except for board size and the availability of a separate risk management committee. This is the result of the heavy emphasis of corporate governance requirements and the resulting mechanisms of Sri Lankan companies on mandatory corporate reporting requirements compared to a voluntary reporting model such as IR. Since many corporate governance aspects are meant to fulfill mandatory reporting requirements, the results imply that the directors have given limited attention to providing quality information through voluntary disclosure practices such as IR, although they use resources to prepare integrated reports.

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Bulathsinhalage, Siromi, and Chandrapala Pathirawasam. "The Effect of Corporate Governance on Firms’ Capital Structure of Listed Companies in Sri Lanka." Journal of Competitiveness 9, no. 2 (June 30, 2017): 19–33. http://dx.doi.org/10.7441/joc.2017.02.02.

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Baker, H. Kent, Narayanage Jayantha Dewasiri, Sandaram P. Premaratne, and Weerakoon Yatiwelle Koralalage. "Corporate governance and dividend policy in Sri Lankan firms: a data triangulation approach." Qualitative Research in Financial Markets 12, no. 4 (June 19, 2020): 543–60. http://dx.doi.org/10.1108/qrfm-11-2019-0134.

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Purpose This paper aims to investigate the relation between corporate governance and dividend policy in Sri Lankan firms. Design/methodology/approach The data set consists of market data using 1,608 firm-year observations from 201 firms listed on the Colombo Stock Exchange and survey-based data from 151 respondents from the same 201 firms. The authors use data triangulation to examine the two approaches. Findings The analysis of the market data reveals that a significantly positive relation between corporate governance on both the propensity to pay dividends and dividend payout. Survey analysis confirms these findings. Triangulated evidence supports the outcome model of dividends, free cash flow and agency cost theories. Practical implications The findings are useful not only for management in developing suitable corporate governance practices and dividend policies for their firms but also for shareholders in evaluating both existing and new investments. Future researchers should investigate the same phenomenon in other contexts using triangulation approaches to confirm their findings. Originality/value This study is the first to use governance indices both in terms of survey and market-based data to examine the relation between corporate governance and dividend policy.

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Balagobei, Saseela. "Audit Committee and Value Relevance of Accounting Information of Listed Hotels and Travels in Sri Lanka." Asian Journal of Finance & Accounting 9, no. 2 (January 17, 2018): 387. http://dx.doi.org/10.5296/ajfa.v9i2.12290.

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The audit committee (AC) is the potential mechanism that reduces the agency problems in organizations and investigating this mechanism separate from alternate corporate governance mechanisms may have led to different results in the literature. The aim of this study is to examine the impact of audit committee on value relevance of accounting information of listed hotels and travels in Sri Lanka. Value relevance of accounting information is measured by earning per share (EPS) and book value per share (BVPS) while Audit committee consists of AC size, AC independence, AC experts and AC meetings. The sample consists of 15 hotels and travels listed in Colombo Stock Exchange. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson’s correlation and regression analysis. The results reveal that audit committee attributes such as AC size, AC experts and AC meetings have a significant impact on book value per share of listed hotels and travels in Sri Lanka. Further only AC experts influence earnings per share. AC independence is not found to have a significant impact on the value relevance of accounting information. The findings could be useful to regulators in other jurisdiction who are looking at ways to enhance the effectiveness of audit committee, overall firm governance.

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Wijethilake, Chaminda, Athula Ekanayake, and Sujatha Perera. "Board involvement in corporate performance: evidence from a developing country." Journal of Accounting in Emerging Economies 5, no. 3 (August 10, 2015): 250–68. http://dx.doi.org/10.1108/jaee-12-2012-0050.

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Purpose – The purpose of this paper is to provide insights into the understanding of the relationship between board involvement and corporate performance within the context of developing countries. Design/methodology/approach – A number of aspects related to board involvement, including board’s shareholdings, frequency of board meetings, availability of independent board committees, board size, CEO duality, and CEO is being a promoter, were examined in order to explore their influence on corporate performance measured in terms of earnings per share. The study mainly draws on agency theory, and is supplemented by resource dependence and stewardship theories. Multiple regression analysis is utilized to analyze the data gathered from a sample of 212 publicly listed companies in 20 industries in the Colombo Stock Exchange in Sri Lanka. Findings – Among the aspects of board involvement considered, board’s shareholdings, board meetings frequency, independent committees, and CEO duality showed a positive influence on corporate performance. However, two other aspects, namely CEO being a promoter, and the size of corporate boards showed a negative effect. The findings also suggest that the use of multiple theories, rather than depending on a single theory, is more effective in understanding the relationships examined in this study. Further, the study highlights the need to be cautious in utilizing the theories that are more applicable to matured western economies when analyzing issues relating to developing countries. Originality/value – This study makes an original contribution to corporate governance literature by examining the relationship between board involvement and corporate performance in a developing country, namely Sri Lanka. The study also adds to the existing literature by utilizing multiple theories to examine the issue under investigation.

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Wellalage, Nirosha Hewa, and Stuart Locke. "Does CEO duality is really matter? Evidence from an emerging market." Corporate Ownership and Control 8, no. 4 (2011): 112–22. http://dx.doi.org/10.22495/cocv8i4p7.

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The relationship between board leadership, firm financial performance and agency costs is examined on behalf of a sample of multinational company subsidiaries (MNCs) and local public companies (LPCs) in Sri Lanka. Five years of data for 86 MNC subsidiaries and 113 LPCs, are collected and observations are analysed using a dynamic panel GMM estimation. This study provides empirical support for stewardship theory and contingency theory when firms are multinational subsidiaries. Moreover, findings support agency theory when firms are local public companies. Finally, this study indicates that there is no optimal board leadership structure. Hence, when companies commence their exploration of corporate governance practices, firms need to recognize that firm characteristics and contingency perspective boost the impact of board leadership structure on corporate financial performance.

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NT, Amarasekara, and Hewage YM. "AN EMPIRICAL STUDY ON CORPORATE GOVERNANCE AND FINANCIAL REPORTING QUALITY? EVIDENCE FROM LISTED ENTITIES IN SRI LANKA." JOURNAL OF RISK AND FINANCIAL STUDIES 3, no. 1 (2022): 55–79. http://dx.doi.org/10.47509/jrfs.2022.v03i01.03.

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The concept of Corporate Governance (CG) has become a contemporary focus in both accounting and finance arenas .This plays a vital role, especially in the process of assuring financial reporting quality (FRQ). The purpose of this paper is to investigate the relationship between selected CG characteristics and the level of FRQ in Sri Lanka. The study was carried out using secondary data obtained through published annual reports from 209 companies listed in the Colombo Stock Exchange (CSE) during 2017 to 2020 including 836 firm year observations. Six selected CG characteristics (Board Size, Board Independence, CEO Duality, Audit Committee Size, Audit Committee Independence, and Audit Committee Accounting Expertise) and the level of FRQ has been evaluated by absolute value of discretionary accruals (ADA) using Panel linear regression analysis. It was found that, a significant positive relationship between the audit committee accounting expertise and FRQ, while a significant negative relationship was found between Board Size and FRQ. However the other remaining CG characteristics were not significantly influenced on the level of FRQ. Overall, this analysis highlights the importance of having a comparatively smaller board size and composition the members in the audit committee with financial and accounting background to enhance FRQ and transparency. The findings of this study expect to have a significant policy implication for policy makers and regulators in terms of formulating strategies and policies on CG best practices in Sri Lanka. Similarly, the entities should promote smaller board size and recruiting, especially majority of independent nonexecutive directors with sufficient accounting skills and financial experience with the aim of curtailing the adverse earnings management practices to improve FRQ.

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Journal articles on the topic 'Corporate governance Sri Lanka'

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