Papers by Nadeesha Priyadarshanie
Journal of Accountancy and Finance , 2014
The study aimed to investigate the value relevance of SLFRS adoption for the Sri Lankan listed co... more The study aimed to investigate the value relevance of SLFRS adoption for the Sri Lankan listed companies. 50 listed companies were selected as the sample and the period from 2010 to 2011 was taken as the pre-adoption period and the period from year 2012 to 2013 was considered as the post adoption period. Value relevance was measured using Olshon Price Regression model. Value relevance was considered as changes of market price of shares. Market value of the shares were compared between pre and post adoption period to identify the effect of SLFRS adoption on value relevance. In this study, the impact of earnings per share and equity per share on market value were considered. By comparing the explanatory power of the models of pre and post adoption periods, findings of the study revealed that SLFRS adoption cause to increase the market value of the listed companies. It is concluded that SLFRS adoption is value relevant and it encourage companies to prepare financial statements complying with SLFRS.
Proceeding - ARSYM , 2024
SACFIRE Proceedings , 2024
The main objective of the research is to identify the relationship between access to finance and ... more The main objective of the research is to identify the relationship between access to finance and a firm’s
productivity and growth of SMEs in Sri Lanka, with financial literacy as a moderator. The study employs a
structured questionnaire to obtain data. This study focused on small and medium enterprises in Kegalle
District. According to Morgan's Table, 370 enterprises are purposively selected to the sample, and 120
enterprises were responded. The findings of the study indicate that there is a significant positive impact
of Access to finance to a Firm’s Growth and Access to finance and Firm's productivity. Moreover, the
R² values for both the firm’s growth and the firm’s productivity demonstrate that the model has substantial and
moderate predictive accuracy, respectively.
International Journal of Applied Economics, Finance and Accounting
The principle objective of this study was to employ political economy theory in order to examine ... more The principle objective of this study was to employ political economy theory in order to examine the determinants that impact the corporate disclosure of listed companies in Sri Lanka. Data was gathered from 122 companies over a period of eight years, from 2012 to 2019. Corporate disclosures of Sri Lankan listed corporations were analysed using Partial Least Square Structural Equation Modelling (PLS-SEM). Determinants of corporate disclosures have been examined in light of political economy theory, namely legitimacy, isomorphic effects, and stakeholder power. The amount of corporate disclosure was quantified using an unweighted index in this research. This study found that legitimacy, isomorphic influences, and stakeholder power are positively associated with the level of corporate disclosure. Findings suggest that managers use corporate disclosures as a strategy to legitimize themselves, manage stakeholder power, and cope with isomorphic influences. This is the first research so fa...
Factors Affecting the Sustainability Reporting with Special Reference to Consumer Services Sector Listed Companies in Sri Lanka
Proceedings of the International Conference on Bussiness Management, Jun 12, 2022
Funding: This study received no specific financial support. Institutional Review Board Statement:... more Funding: This study received no specific financial support. Institutional Review Board Statement: Not applicable. Transparency: The authors confirm that the manuscript is an honest, accurate, and transparent account of the study; that no vital features of the study have been omitted; and that any discrepancies from the study as planned have been explained. This study followed all ethical practices during writing. Data Availability Statement: The corresponding author may provide study data upon reasonable request.
The objective of this paper is to give a comprehensive overview of the academic literature focusi... more The objective of this paper is to give a comprehensive overview of the academic literature focusing on a rapidly emerging field of Integrated Reporting (IR) practice in Sri Lanka. The paper reviews the existing literature and gives insights on the integrated reporting practice which is at the embryonic phase in the Sri Lankan context. Semisystematic approach of literature review was utilized for this study. The level of IR adopted, motives behind IR adoption, benefit of adopting IR and barriers and limitations of adopting IR in the Sri Lankan context have been mainly identified in this paper. This analysis revealed that the degree of compliance with the content elements prescribed in the International Integrated Reporting Framework (IIRF) by Sri Lankan listed companies is rapidly increasing. However, it is discovered that the disclosures under the content elements of "risk and opportunity," "strategy & resource allocation," performance," and "forecast" need to be improved. Awarding schemes, programs and workshops on IR which is conducted by professional accounting bodies, pressure from auditors, pressures from competition, global trend, corporate image and code of best practice in corporate governance have affected more in achieving a high degree of IR adoption among the Sri Lankan listed companies. The study's key limitation is that it relies on literature that is still in its early stages of development. Academics, regulators, and reporting organizations may benefit from this research, which raises awareness of areas of integrated reporting that require further development and much more evidence to enhance policy and practice improvements. This study identified some areas where more academic research is needed. As an evolving phenomenon, limited empirical studies are exploring IR practice and this paper provides some contribution to the understanding of IR practice in the Sri Lankan context as a voluntary regime.
This paper aims to develop a conceptual framework based on the most commonly used theories in cor... more This paper aims to develop a conceptual framework based on the most commonly used theories in corporate disclosure literature to explain firms' motives for disclosure decisions. System-oriented theories namely, institutional theory, stakeholder theory and institutional theory are integrated into one model to explain the determinants of corporate disclosures. Thereby, variables were identified under each theory and indicators which can be used as the proxy for the variables were also recognized. Disclosure literature confirms that political economy theory is the most commonly used theory in explaining determinants of corporate disclosure level. Accordingly, Profitability, company age, firm size and media exposure can be used as the measures of corporate legitimacy. Shareholder power, creditor power and lobby group power were taken as the variables of stakeholder theory. Isomorphism which is the practice of adopting similar practices is considered under the institutional theory. Coercive isomorphism, mimetic isomorphism, and normative isomorphism are three separate isomorphic processes and indicators were recognized for each isomorphism. The main limitation of this study is that this conceptual framework has included only the political economy theory. Other important theories such as agency theory, signaling theory, resource dependency theory, media agenda-setting theory may be used to explain corporate disclosure practices. This conceptual framework can be employed in empirical studies on the motivations for corporate disclosure behaviors in a variety of settings. The predicted disclosure motivates can be compared to empirical evidence of those studies. Findings obtained by utilizing this conceptual framework will help to evaluate which companies report? Under which context, in which sectors and of which size? And it answered whether there is uniform reporting across industries. Those findings will help regulators to establish a code of practice for disclosing information which leads to a better practice of reporting. This paper has presented a conceptual model for determinants of corporate disclosures which is not discussed elsewhere in the literature.
Journal of ARSYM, 2023
The paper aims to examine the influence of the Voluntary Disclosure Level (VDL) on the value rele... more The paper aims to examine the influence of the Voluntary Disclosure Level (VDL) on the value relevance of accounting information. Earnings per Share (EPS), Book Value per Share (BVPS), and Operating Cash Flow per Share (OCFPS) were considered as the accounting variables relative to Market value per share (MVPS) for 3 years following the financial year-end for Sri Lankan companies. Panel Regression was employed to examine the influence of VDL on the value relevance of three accounting variables. Market price per share was considered as the proxy for value relevance. Data were collected from 102 companies listed on the Colombo Stock Exchange for the period of 2019-2021. There were 306 firm-year observations. According to the results of the study, BVPS significantly and positively influences the MVPS indicating that BVPS has value implications for investors. Further interaction effect of EPS and INDEX shows a significant positive impact on the MVPS, indicating VDL exhibits substantial influence on the value relevance of earnings which will ultimately help investors make better investment decisions. Regulatory bodies and standard setters may have implications in relation to the laws and regulations governing voluntary disclosures. More importantly, the study highlights implications for policy makers and practitioners on how investors make use of the accounting information and the voluntary information disclosed in annual reports in their decision-making. This study has contributed to the existing literature on voluntary disclosure as it is examined whether voluntary disclosures improve or deteriorate the value relevance of accounting information.
Journal of ARSYM, 2021
The influence of Human Resource Accounting practices on corporate performance was the study's mai... more The influence of Human Resource Accounting practices on corporate performance was the study's main concern. This study is based on secondary data gathered from annual reports of listed businesses on the Colombo Stock Exchange over two financial years, from 2019 to 2020, data was collected from 50 companies listed under 19 different sectors. Independent variable of the study was the human resource accounting practice which was measured through a Human Resource Accounting Disclosure Index (HRADI). Firm's financial performance and market performance were considered under firm performance. Financial performance was measured through Return On Assets (ROA), Return On Equity (ROE) and Earning Per Share (EPS) while the market value was measured through market value of the shares and Tobin's Q ratio. Statistical package E-Views 8 was used to analyses the data. Findings of this research revealed that there is a significant positive relationship between ROA and the Human Recourse Accounting Disclosure Index indicating that human resource accounting practices are positively impact on the firm financial performance. However, there is no relationship between human resource accounting practices and firm market performance. Findings of this study makes a significant contribution while providing empirical evidences to the human resource accounting literature which is limited in the Sri Lankan context.
The main objective of this study was to identify the impact of environmental disclosure practices... more The main objective of this study was to identify the impact of environmental disclosure practices on firm performance which is an emerging issue around the globe. This research relies on secondary data which was collected from published annual reports of listed companies in the Colombo Stock Exchange (CSE). Data was collected from a sample of 50 companies listed under 5 sectors over consecutive four financial years from 2015 to 2018. The technique of content analysis was occupied when measuring the level of environmental disclosures. Environmental Disclosure Index (EDI) was prepared based on the Global Reporting Initiative (GRI) Standards 2019. This study employed a regression analysis for the data analysis. The findings of this study revealed that there is a significant positive relationship between environmental disclosures and firm financial performance. However, there is no significant relationship between environmental disclosures and firm market performance. The findings of this study will accommodate annual report preparers and regulators of highly environmentally sensitive industries in creating the grounds of environmental disclosures practice to achieve higher performance.
Future of Business and Finance, 2021
1. Is there any relationship between CSP and firm performance? 2. Is there any moderating effect ... more 1. Is there any relationship between CSP and firm performance? 2. Is there any moderating effect of ownership structure on the relationship between CSP and financial performance? 2.2.2 Research Hypotheses H1-There is a significant relationship between CSP and firm performance. H2-Ownership concentration has a significant influence on the relationship between CSP and financial performance. 2.3 Methodology 2.3.1 Data Collection Method Secondary data were obtained from the annual reports. Data was collected from 30 companies which are listed under chemical and pharmaceutical; beverage, food, and tobacco; hotel and travel;
SSRN Electronic Journal, 2015
The impact resulted from the dividend policy of a firm on the volatility of the market value of s... more The impact resulted from the dividend policy of a firm on the volatility of the market value of stocks is the major concern of this study, which is an issue bearing an utmost significance, when considering the objectives of a corporate. The focus of an entity should be aligned on the maximization of stock holders' wealth and this necessitates the selection of an optimum dividend policy. The present study, thus, attempts to shed a light on the above fact within the Sri Lankan context. Data was collected from a sample of companies listed under the manufacturing sector of the Colombo Stock Exchange from year 2006 to 2014. The study occupied panel data regression model for analysis. The outcome revealed that the dividend yield of the current year has a negative impact on the share price volatility, while the dividend payout ratio of both the current and previous years has a positive impact. In addition, the impact of dividend yield is negative on the market value of the firm, where the dividend payout ratio of the current year is also depicts the same impact. The findings of the study reassure the findings of the previous researchers within the Sri Lankan context in case of the market value of the firm while being contrary in case of the share price volatility. Accordingly, the firms' ability of utilizing the dividend policy as a mechanism of controlling the volatility of share prices is established. However, it will not be effective in altering the market value of the firm.
Impact of Managerial and Entrepreneurial Skills on the Success of Small and Medium Enterprises in North Western Province, Sri Lanka
Small and medium enterprises (SMEs) act as a useful vehicle for economic growth because they have... more Small and medium enterprises (SMEs) act as a useful vehicle for economic growth because they have the capacity to achieve rapid economic growth while generating considerable employment opportunities. However, SMEs are heavily criticized due to their high failure rate. It is important to study the factors that contribute to the success of entrepreneurs, so they can be emulated. As highlighted in many studies, lack of managerial knowledge and skills hamper the rapid growth of the SME sector. This research attempts to investigate the impact of managerial and entrepreneurial skills on the success of SMEs in the North Western Province in Sri Lanka. Simple random sampling was employed to select 129 SMEs as the sample. A questionnaire was distributed among owner–managers of these businesses to collect data. Conceptual, human and technical skills were considered as managerial skills, and entrepreneurial skills were also analyzed. Owners’ satisfaction with the financial and non-financial suc...
Primary objective of financial reporting is to provide information to the stakeholders for their ... more Primary objective of financial reporting is to provide information to the stakeholders for their decision making purpose. Disclosures given in annual reports are one valuable source of information for that purpose. Even though every company present mandatory disclosures as per the accounting standards voluntary disclosures are also play major role in communicating relevant policies, providing clarity about significant transactions and providing meaningful company specific information. This study attempts to assess the impact of firm characteristics on the extent of voluntary disclosures. A disclosure check list consisting of 20 voluntary items was used to assess the level of disclosure in the annual reports presented in 2015. 78 non-financial companies listed in Colombo Stock Exchange have been selected as the sample for data collection. Multiple regression analysis was used for the purpose of data analysis. The results revealed that the firm size and ownership dispersion affect significantly for the level of voluntary disclosure indicating that the larger firms reveal more voluntary disclosures and the companies those who are having more individual shareholders provide more voluntary disclosures. The findings of the study will help to make better decisions to financial managers, investors and other stakeholders.
Reporting dimensions in Accounting and Finance arena have been gradually evolved and it is still ... more Reporting dimensions in Accounting and Finance arena have been gradually evolved and it is still transforming for new aspects which gives superior disclosures. Recently most of the companies around the world have adopted Integrated Reporting (IR) concept which some far beyond the sustainability reporting in their financial statements. Since this is newly emerged concept and unavailability of considerable amount of research studies, most companies have not adopted IR for their reporting. Therefore, the objective of this study is to identify the firm characteristics that affect towards the adoption of IR which are listed in Colombo Stock Exchange (CSE). For this study, 50 companies which have adopted IR for their reporting are randomly selected out of 61 IR adopted companies and 50 non IR adopted companies as the sample. Data was collected from the annual reports of selected companies for the year 2016. Adoption of IR was used as the dependent variable while structure related, performance related and market-related firms' characteristics of a firm were selected as independent variables. Structure related variables are firm's listed age, leverage and ownership dispersion. As the performance related variables, profitability, assets and total sales were considered. Market value, audit firm size and industry type were selected as market related variables. Logistic Regression was employed to analyze data as the model has dichotomous categorical outcome. Findings revealed that there is a significant impact of firm's total assets on adoption of IR. Findings of this study provide information to capital market regulators and government considering the policy to mandate IR and promote IR.
Primary objective of financial reporting is to provide information to the stakeholders for their ... more Primary objective of financial reporting is to provide information to the stakeholders for their decision making purpose. Disclosures given in annual reports are one valuable source of information for that purpose. Even though every company present mandatory disclosures as per the accounting standards voluntary disclosures are also play major role in communicating relevant policies, providing clarity about significant transactions and providing meaningful company specific information. This study attempts to assess the impact of firm characteristics on the extent of voluntary disclosures. A disclosure check list consisting of 20 voluntary items was used to assess the level of disclosure in the annual reports presented in 2015. 78 non-financial companies listed in Colombo Stock Exchange have been selected as the sample for data collection. Multiple regression analysis was used for the purpose of data analysis. The results revealed that the firm size and ownership dispersion affect significantly for the level of voluntary disclosure indicating that the larger firms reveal more voluntary disclosures and the companies those who are having more individual shareholders provide more voluntary disclosures. The findings of the study will help to make better decisions to financial managers, investors and other stakeholders.
Corporate Social Performance (CSP) is a relatively new area of study which refers to businesses' ... more Corporate Social Performance (CSP) is a relatively new area of study which refers to businesses' relationship with people, organizations, communities and the earth. The main objective of the present study is to identify the impact of CSP on firm financial performance of listed companies on the Colombo Stock Exchange. The study investigated the moderating effect of ownership structure on the relationship above. Data were collected from 30 companies (Chemicals & Pharmaceuticals, Beverage Foods and Tobacco, Hotel and Manufacturing) for 2013-2018. Return on Equity and Return on Assets were used to measure firm financial performance. If firms invested in pollution control methods, it is considered they have satisfied corporate social performance. The sum of ownership percentage of the five largest investors was used to measure ownership concentration. Data were analyzed employing regression analysis. Results revealed that there is a significant positive impact of CSP on financial performance of listed companies. Ownership concentration negatively moderates the relationship between CSP and a firm's financial performance. Findings help policy makers and regulators better identify how ownership concentration is associated with firm incentives to engage in social performance, which leads towards better financial performance.
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Papers by Nadeesha Priyadarshanie
productivity and growth of SMEs in Sri Lanka, with financial literacy as a moderator. The study employs a
structured questionnaire to obtain data. This study focused on small and medium enterprises in Kegalle
District. According to Morgan's Table, 370 enterprises are purposively selected to the sample, and 120
enterprises were responded. The findings of the study indicate that there is a significant positive impact
of Access to finance to a Firm’s Growth and Access to finance and Firm's productivity. Moreover, the
R² values for both the firm’s growth and the firm’s productivity demonstrate that the model has substantial and
moderate predictive accuracy, respectively.
productivity and growth of SMEs in Sri Lanka, with financial literacy as a moderator. The study employs a
structured questionnaire to obtain data. This study focused on small and medium enterprises in Kegalle
District. According to Morgan's Table, 370 enterprises are purposively selected to the sample, and 120
enterprises were responded. The findings of the study indicate that there is a significant positive impact
of Access to finance to a Firm’s Growth and Access to finance and Firm's productivity. Moreover, the
R² values for both the firm’s growth and the firm’s productivity demonstrate that the model has substantial and
moderate predictive accuracy, respectively.