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Effectiveness of the Sri Lankan corporate governance system: a stakeholder perspective

Conference Paper


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Abstract


  • Poor corporate governance is often viewed as one of the main factors contributing to

    the weak company performances and failures in emerging markets (Johnson, 2000).

    Most of studies which have examined various aspects of corporate governance systems

    in emerging markets have assessed such practices from the point of view of companies

    and have paid little attention to examine how such practices are viewed by various

    stakeholders of the companies in these markets. To fill the gap in accounting literature,

    this study aims to examine the perceptions of various stakeholder groups in relation

    to the current status, issues, strategies and practices of corporate governance system

    in Sri Lanka—an emerging market in Asia. Using data collected from 277 responses on

    a questionnaire survey covering seven stakeholder groups, these study analyses

    stakeholder perceptions on eight aspects of the corporate governance system in Sri

    Lanka. Kruskal-Wallis test is used to examine whether there are significant differences

    between opinions of stakeholder groups. The findings of this study reveal that while

    the majority of stakeholders consider governance codes, the financial reporting

    framework, the regulatory framework, and codes of conduct and ethics as the important

    components of the corporate governance system, they have not considered some

    important aspects such as judiciary system, corporate ownership structure, and culture

    and value systems of the society as important components of the system. Also,

    although there have been wider agreement on the fact that better corporate governance

    improves corporate performance and company’s ability to access new capital,

    stakeholders views varied considerably in relation to issues such as the impact of

    corporate governance on reducing share price volatility, political intervention and

    cost of capital. The study also identified a number of aspects of corporate governance

    system in Sri Lanka that are perceived to be poorly designed and enforced and provides

    suggestions for improvements.

UOW Authors


  •   Manawaduge, Athula S. (external author)
  •   De Zoysa, Anura
  •   Rudkin, Kathy M. (external author)

Publication Date


  • 2014

Citation


  • Manawaduge, A., De Zoysa, A. & Rudkin, K. (2014). Effectiveness of the Sri Lankan corporate governance system: a stakeholder perspective. 10th International Conference on Business and Finance (pp. 39-39). India: IBS Hyderabad & Spears School of Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1483&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/481

Start Page


  • 39

End Page


  • 39

Place Of Publication


  • http://10times.com/icbf-hyderabad

Abstract


  • Poor corporate governance is often viewed as one of the main factors contributing to

    the weak company performances and failures in emerging markets (Johnson, 2000).

    Most of studies which have examined various aspects of corporate governance systems

    in emerging markets have assessed such practices from the point of view of companies

    and have paid little attention to examine how such practices are viewed by various

    stakeholders of the companies in these markets. To fill the gap in accounting literature,

    this study aims to examine the perceptions of various stakeholder groups in relation

    to the current status, issues, strategies and practices of corporate governance system

    in Sri Lanka—an emerging market in Asia. Using data collected from 277 responses on

    a questionnaire survey covering seven stakeholder groups, these study analyses

    stakeholder perceptions on eight aspects of the corporate governance system in Sri

    Lanka. Kruskal-Wallis test is used to examine whether there are significant differences

    between opinions of stakeholder groups. The findings of this study reveal that while

    the majority of stakeholders consider governance codes, the financial reporting

    framework, the regulatory framework, and codes of conduct and ethics as the important

    components of the corporate governance system, they have not considered some

    important aspects such as judiciary system, corporate ownership structure, and culture

    and value systems of the society as important components of the system. Also,

    although there have been wider agreement on the fact that better corporate governance

    improves corporate performance and company’s ability to access new capital,

    stakeholders views varied considerably in relation to issues such as the impact of

    corporate governance on reducing share price volatility, political intervention and

    cost of capital. The study also identified a number of aspects of corporate governance

    system in Sri Lanka that are perceived to be poorly designed and enforced and provides

    suggestions for improvements.

UOW Authors


  •   Manawaduge, Athula S. (external author)
  •   De Zoysa, Anura
  •   Rudkin, Kathy M. (external author)

Publication Date


  • 2014

Citation


  • Manawaduge, A., De Zoysa, A. & Rudkin, K. (2014). Effectiveness of the Sri Lankan corporate governance system: a stakeholder perspective. 10th International Conference on Business and Finance (pp. 39-39). India: IBS Hyderabad & Spears School of Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1483&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/481

Start Page


  • 39

End Page


  • 39

Place Of Publication


  • http://10times.com/icbf-hyderabad