http://dr.lib.sjp.ac.lk/handle/123456789/10896 2026-01-07T03:54:51Z http://dr.lib.sjp.ac.lk/handle/123456789/12540 IMPACT OF ABNORMAL AUDIT FEES ON EARNINGS MANAGEMENT PRACTICES: EVIDENCE FROM NON-FINANCIAL LISTED COMPANIES IN SRI LANKA Withana, W.A.O.S.; Ajward, A.R. Abnormal audit fees could be claimed to be an incentive to compromise the independence of an external auditor, which impairs the quality of an audit. Alternatively, some have argued that abnormal audit fees reflect the additional effort of the auditors to reduce earnings management practices. Hence, this study aimed to examine the relationship between abnormal audit fees and the degree of earnings management of non-financial listed companies in Sri Lanka. Using a quantitative approach in the positivistic paradigm, descriptive statistics, correlation analyses, regression analyses, and panel regression analyses were performed in assessing the level and identifying the relationship between abnormal audit fees and earnings management. Results indicated that the abnormal audit fees in the Sri Lankan context are comparatively higher than in selected developing and developed countries and that degree of earnings management vary over time. Moreover, none of the analyses performed showed a statistically significant relationship between abnormal audit fees and the degree of earnings management in Sri Lanka. The findings of this study are expected to provide insights to regulatory bodies, audit firms, investors, and other stakeholders. Regulators and policymakers could take steps to discourage excessive audit fees, as well as address the usage of unwarranted earnings management practices. Furthermore, external auditors' efforts to curtail excessive earnings management practices should be further examined. This study is a pioneering effort to identify whether there is a relationship between abnormal audit fees and earnings management in Sri Lanka, and thus it is expected to add to the extant literature, especially in a developing country context. 2022-01-01T00:00:00Z http://dr.lib.sjp.ac.lk/handle/123456789/12539 RELATIONSHIP BETWEEN SELECTED MACROECONOMIC FACTORS AND THE STOCK MARKET PRICES: EVIDENCE FROM COLOMBO STOCK EXCHANGE, SRI LANKA Silva, K.H.G.R.R.; Herath, R. The stock market plays a vital role in all economies. In 2010, the Colombo Stock Exchange became the second-highest performing stock market in the world as many domestic and foreign investors invested in the Sri Lankan stock market with the end of the war. However, it has created a market bubble and no significant improvements reported since mid-2011. Further, the determinants of share market performance remain unclear. It is generally apparent that macroeconomic factors cause a sound impact on stock market performance. Thus, this study attempts to identify the causal relationship between share prices and the four major macroeconomic factors in the Sri Lankan economy. The dependent variable was the All Share Price Index (ASPI). Real gross domestic product (RGDP), Money supply (M2b), Balance of trade (BOT) and Net foreign investment (NFI) were the independent variables. Monthly data was used for 10 years spanning from January 2009 to December 2018 for all variables. Monthly bulletins of the Central Bank of Sri Lanka and the Colombo Stock Exchange data library were used to get data. Stata13, the statistical software was utilized to analyze the data. Descriptive analysis, correlation analysis, regression analysis, Johansen co-integration test and Vector Error Correction Model (VECM) were employed to identify how macroeconomic factors impact share prices. There was a co-integration between the dependent and independent variables. The study revealed that there was a long-run causality between the performance of the capital equity market and macroeconomic variables and the longrun equilibrium could be reached at a speed of 13.90%. Empirical results disclose that M2b and BOT had a positive impact on the ASPI. However, NFI had a negative influence on the ASPI. All variables significantly impacted ASPI except RGDP. The results of the study may help policymakers, investors, and other professionals to make proper decisions. 2022-01-01T00:00:00Z http://dr.lib.sjp.ac.lk/handle/123456789/12538 THE IMPACT OF ENGLISH LANGUAGE PROFICIENCY ON ACADEMIC PERFORMANCE WITH THE MEDIATING EFFECT OF CHOICE OF LEARNING APPROACHES: THE CASE OF A MANAGEMENT FACULTY OF A SRI LANKAN UNIVERSITY Gunasekara, R.M.R.M.; Senaratne, S. The purpose of this paper is to examine the impact of English language proficiency (ELP) on academic performance with the mediating effect of the choice of learning approaches of students. The study is based on the final year students of a management faculty of a Sri Lankan university. In the study, ELP was measured using the grades for both G.C.E. Advanced Level General English Examination and Business Communication Examination of the first year, first semester at degree level. The choice of learning approaches was divided into two as the Surface Learning Approach (SLA) and the Deep Learning Approach (DLA), which were measured by 20 indicators of the revised twofactor study process questionnaire (R-SPQ-2F). The academic performance was measured using the GPA of students. The relationships among these variables were examined using the Partial Least Squares Structural Equation Modelling (PLS-SEM) analysis. The study found that most students prefer SLA than DLA in their academic studies at the university. Further, the study showed a significant positive relationship between the ELP and academic performance with a partial mediation effect of choice of learning approach on this relationship. The findings of the study are useful for university administrators and academics in educational reforms and the undergraduates to understand the impact of ELP on their learning approach and academic performance 2022-01-01T00:00:00Z http://dr.lib.sjp.ac.lk/handle/123456789/12537 DETERMINANTS OF DEBT FINANCING: AN EMPIRICAL ANALYSIS OF NON-FINANCIAL LISTED COMPANIES IN SRI LANKA Godakanda, P.G.G.C.T.; Manawaduge, A.S.P.G. The purpose of this study is to identify the factors which determine the level of debt financing over the equity financing of the non-financial companies in Sri Lanka. The study is conducted on a sample of 30 companies from non-finance companies listed on the Colombo Stock Exchange (CSE). The sample consists of 20 companies that are selected based on the highest market capitalization and 10 companies which have issued debentures in the market. The data are obtained from the annual reports of sample companies for the years 2015 to 2018 for this purpose. A panel data regression analysis is conducted to analyze whether the firm performance, age, size, agency cost of debt, tangibility, sales growth, liquidity, and tax shield have an impact on the debt financing decisions of the firm. The pecking order theory, agency theory, and trade-off theory are used to explain the impact of determinants on debt financing. The findings of the analysis show that the firm performance, size, liquidity, tangibility, sales growth, and agency cost of debt have generated an inverse association with the firm leverage. Age and non-debt tax shield positively correlated with leverage according to the analysis. Findings are in line with the hypotheses developed except for firm size, tangibility, and non-debt tax shield. The size of the firm and tangibility deviate from the hypotheses developed while the nondebt tax shield is found to be insignificant in influencing its decision to apply for financing. This research has provided the basis to explore the determinants of debt financing in the overall capital structure of Sri Lankan firms. The results are useful for the managers and the policymakers to have knowledge about the firm-specific determinants of debt financing, and it should help corporate managers to make optimal capital structure decisions. This study contributes to enhancing the existing literature by analyzing the impact of determinants of debt financing in listed non-financial companies in Sri Lanka. 2022-01-01T00:00:00Z