International journal of accountancy, Dec 30, 2021
Abstract This study aims to determine the Impact of Board Structure on the Performance of listed ... more Abstract This study aims to determine the Impact of Board Structure on the Performance of listed Commercial Banks on the Colombo Stock Exchange. This study examines the relationship between Board Structure and Corporate Financial Performance of listed commercial banks using a sample of 12 banks listed on the Colombo Stock Exchange, based on data from 2015 to 2019. Descriptive, correlation and regression analyses were performed to achieve the study objectives. This study uses the company's performance based on the following financial performance measures: return on assets (ROA) and return on equity (ROE) and board structure consisting of board size, female board members, non-executive directors, and frequency of board meetings. Bank capital is used as the control variable in this study. The study's findings suggest that the frequency of board meetings and non-executive directors have a negative and substantial influence on ROE, while the frequency of board meetings has a significant and negative impact on ROA. Additionally, bank capital has a positive and significant impact on ROA. However, the board size, female board members, and bank capital have no significant impact on ROE while board size, non-executive directors, and female board members have no significant impact on ROA of CSE-listed commercial banks. This study contributes to the literature on corporate governance and firm performance by providing the framework that affects the relationship between board structure and firm performance in the context of listed commercial banks. The findings of the study are important for policymakers, investors, regulators, and other bankers of the country. Commercial banks listed in Colombo Stock Exchange would put more attention on the structure and quality of the board to improve their performance. Concerning the study's scope, the present study only included CSE-listed commercial banks. Thus, additional research is needed to study the entire Sri Lankan banking system and 20 business sectors. Further, this study only looked at accounting-based measures such as ROA and ROE. Tobin's Q, for example, can be employed as a dependent variable. Future studies should be done by including cross-border analysis of developing and developed countries. Keywords: Bank Capital, Board Size, Female Board Members, Frequency of Board Meetings, Non-Executive Directors ROA, ROE
Abstract Globalization has resulted in complex business procedures and activities as a result of ... more Abstract Globalization has resulted in complex business procedures and activities as a result of global organizations. In the case of banking sector procedures, complicated banking transactions and an increase in banking activity fraud have prompted a focus on the Banking Sector's Internal Control System. Every organization relies on an effective Internal Control System. Accordingly, the purpose of this research is to examine and compare the level of effective internal control systems of state-owned and private domestic commercial banks in the Anuradhapura district. The level of effectiveness of the Internal Control System was assessed using the five components of the Committee of Sponsoring Organizations (COSO) framework (Control Environment, Risk Assessment, Information and Communication System, Control Activities, and Monitoring Activities). Structured questionnaires were used to collect data from fifty respondents from state-owned and thirty respondents from private domestic commercial banks, respectively. Managers (76.25 percent response rate) and secondary officers were the most common respondents (response rate was 23.75 percent). Descriptive analysis with one-sample t-test and independent sample t-test were used to analyze the data. The results of the study indicated that the level of the effective control environment, information and communication systems, and control activities are different between StateOwned and Private Domestic Commercial Banks in Anuradhapura district, whereas the level of effective risk assessment and monitoring activities are not different between State-Owned and Private Domestic Commercial Banks in Anuradhapura district. The findings of this study will help practitioners as a guideline to get the maximum benefit of their Internal Control System. Keywords: COSO Framework, Internal Control System, Level of Effective Internal Control System, Private Domestic Commercial Banks, State-Owned Commercial Banks
International Journal of Accountancy (IJA) ISSN 2738-2249, 2021
Abstract
Globalization has resulted in complex business procedures and activities as a result of ... more Abstract Globalization has resulted in complex business procedures and activities as a result of global organizations. In the case of banking sector procedures, complicated banking transactions and an increase in banking activity fraud have prompted a focus on the Banking Sector's Internal Control System. Every organization relies on an effective Internal Control System. Accordingly, the purpose of this research is to examine and compare the level of effective internal control systems of state-owned and private domestic commercial banks in the Anuradhapura district. The level of effectiveness of the Internal Control System was assessed using the five components of the Committee of Sponsoring Organizations (COSO) framework (Control Environment, Risk Assessment, Information and Communication System, Control Activities, and Monitoring Activities). Structured questionnaires were used to collect data from fifty respondents from state-owned and thirty respondents from private domestic commercial banks, respectively. Managers (76.25 percent response rate) and secondary officers were the most common respondents (response rate was 23.75 percent). Descriptive analysis with one-sample t-test and independent sample t-test were used to analyze the data. The results of the study indicated that the level of the effective control environment, information and communication systems, and control activities are different between StateOwned and Private Domestic Commercial Banks in Anuradhapura district, whereas the level of effective risk assessment and monitoring activities are not different between State-Owned and Private Domestic Commercial Banks in Anuradhapura district. The findings of this study will help practitioners as a guideline to get the maximum benefit of their Internal Control System. Keywords: COSO Framework, Internal Control System, Level of Effective Internal Control System, Private Domestic Commercial Banks, State-Owned Commercial Banks
International Journal of Accountancy (IJA) ISSN 2738-2249, 2021
Abstract
This study aims to determine the Impact of Board Structure on the Performance of listed ... more Abstract This study aims to determine the Impact of Board Structure on the Performance of listed Commercial Banks on the Colombo Stock Exchange. This study examines the relationship between Board Structure and Corporate Financial Performance of listed commercial banks using a sample of 12 banks listed on the Colombo Stock Exchange, based on data from 2015 to 2019. Descriptive, correlation and regression analyses were performed to achieve the study objectives. This study uses the company's performance based on the following financial performance measures: return on assets (ROA) and return on equity (ROE) and board structure consisting of board size, female board members, non-executive directors, and frequency of board meetings. Bank capital is used as the control variable in this study. The study's findings suggest that the frequency of board meetings and non-executive directors have a negative and substantial influence on ROE, while the frequency of board meetings has a significant and negative impact on ROA. Additionally, bank capital has a positive and significant impact on ROA. However, the board size, female board members, and bank capital have no significant impact on ROE while board size, non-executive directors, and female board members have no significant impact on ROA of CSE-listed commercial banks. This study contributes to the literature on corporate governance and firm performance by providing the framework that affects the relationship between board structure and firm performance in the context of listed commercial banks. The findings of the study are important for policymakers, investors, regulators, and other bankers of the country. Commercial banks listed in Colombo Stock Exchange would put more attention on the structure and quality of the board to improve their performance. Concerning the study's scope, the present study only included CSE-listed commercial banks. Thus, additional research is needed to study the entire Sri Lankan banking system and 20 business sectors. Further, this study only looked at accounting-based measures such as ROA and ROE. Tobin's Q, for example, can be employed as a dependent variable. Future studies should be done by including cross-border analysis of developing and developed countries. Keywords: Bank Capital, Board Size, Female Board Members, Frequency of Board Meetings, Non-Executive Directors ROA, ROE
International journal of accountancy, Dec 30, 2021
Abstract This study aims to determine the Impact of Board Structure on the Performance of listed ... more Abstract This study aims to determine the Impact of Board Structure on the Performance of listed Commercial Banks on the Colombo Stock Exchange. This study examines the relationship between Board Structure and Corporate Financial Performance of listed commercial banks using a sample of 12 banks listed on the Colombo Stock Exchange, based on data from 2015 to 2019. Descriptive, correlation and regression analyses were performed to achieve the study objectives. This study uses the company's performance based on the following financial performance measures: return on assets (ROA) and return on equity (ROE) and board structure consisting of board size, female board members, non-executive directors, and frequency of board meetings. Bank capital is used as the control variable in this study. The study's findings suggest that the frequency of board meetings and non-executive directors have a negative and substantial influence on ROE, while the frequency of board meetings has a significant and negative impact on ROA. Additionally, bank capital has a positive and significant impact on ROA. However, the board size, female board members, and bank capital have no significant impact on ROE while board size, non-executive directors, and female board members have no significant impact on ROA of CSE-listed commercial banks. This study contributes to the literature on corporate governance and firm performance by providing the framework that affects the relationship between board structure and firm performance in the context of listed commercial banks. The findings of the study are important for policymakers, investors, regulators, and other bankers of the country. Commercial banks listed in Colombo Stock Exchange would put more attention on the structure and quality of the board to improve their performance. Concerning the study's scope, the present study only included CSE-listed commercial banks. Thus, additional research is needed to study the entire Sri Lankan banking system and 20 business sectors. Further, this study only looked at accounting-based measures such as ROA and ROE. Tobin's Q, for example, can be employed as a dependent variable. Future studies should be done by including cross-border analysis of developing and developed countries. Keywords: Bank Capital, Board Size, Female Board Members, Frequency of Board Meetings, Non-Executive Directors ROA, ROE
Abstract Globalization has resulted in complex business procedures and activities as a result of ... more Abstract Globalization has resulted in complex business procedures and activities as a result of global organizations. In the case of banking sector procedures, complicated banking transactions and an increase in banking activity fraud have prompted a focus on the Banking Sector's Internal Control System. Every organization relies on an effective Internal Control System. Accordingly, the purpose of this research is to examine and compare the level of effective internal control systems of state-owned and private domestic commercial banks in the Anuradhapura district. The level of effectiveness of the Internal Control System was assessed using the five components of the Committee of Sponsoring Organizations (COSO) framework (Control Environment, Risk Assessment, Information and Communication System, Control Activities, and Monitoring Activities). Structured questionnaires were used to collect data from fifty respondents from state-owned and thirty respondents from private domestic commercial banks, respectively. Managers (76.25 percent response rate) and secondary officers were the most common respondents (response rate was 23.75 percent). Descriptive analysis with one-sample t-test and independent sample t-test were used to analyze the data. The results of the study indicated that the level of the effective control environment, information and communication systems, and control activities are different between StateOwned and Private Domestic Commercial Banks in Anuradhapura district, whereas the level of effective risk assessment and monitoring activities are not different between State-Owned and Private Domestic Commercial Banks in Anuradhapura district. The findings of this study will help practitioners as a guideline to get the maximum benefit of their Internal Control System. Keywords: COSO Framework, Internal Control System, Level of Effective Internal Control System, Private Domestic Commercial Banks, State-Owned Commercial Banks
International Journal of Accountancy (IJA) ISSN 2738-2249, 2021
Abstract
Globalization has resulted in complex business procedures and activities as a result of ... more Abstract Globalization has resulted in complex business procedures and activities as a result of global organizations. In the case of banking sector procedures, complicated banking transactions and an increase in banking activity fraud have prompted a focus on the Banking Sector's Internal Control System. Every organization relies on an effective Internal Control System. Accordingly, the purpose of this research is to examine and compare the level of effective internal control systems of state-owned and private domestic commercial banks in the Anuradhapura district. The level of effectiveness of the Internal Control System was assessed using the five components of the Committee of Sponsoring Organizations (COSO) framework (Control Environment, Risk Assessment, Information and Communication System, Control Activities, and Monitoring Activities). Structured questionnaires were used to collect data from fifty respondents from state-owned and thirty respondents from private domestic commercial banks, respectively. Managers (76.25 percent response rate) and secondary officers were the most common respondents (response rate was 23.75 percent). Descriptive analysis with one-sample t-test and independent sample t-test were used to analyze the data. The results of the study indicated that the level of the effective control environment, information and communication systems, and control activities are different between StateOwned and Private Domestic Commercial Banks in Anuradhapura district, whereas the level of effective risk assessment and monitoring activities are not different between State-Owned and Private Domestic Commercial Banks in Anuradhapura district. The findings of this study will help practitioners as a guideline to get the maximum benefit of their Internal Control System. Keywords: COSO Framework, Internal Control System, Level of Effective Internal Control System, Private Domestic Commercial Banks, State-Owned Commercial Banks
International Journal of Accountancy (IJA) ISSN 2738-2249, 2021
Abstract
This study aims to determine the Impact of Board Structure on the Performance of listed ... more Abstract This study aims to determine the Impact of Board Structure on the Performance of listed Commercial Banks on the Colombo Stock Exchange. This study examines the relationship between Board Structure and Corporate Financial Performance of listed commercial banks using a sample of 12 banks listed on the Colombo Stock Exchange, based on data from 2015 to 2019. Descriptive, correlation and regression analyses were performed to achieve the study objectives. This study uses the company's performance based on the following financial performance measures: return on assets (ROA) and return on equity (ROE) and board structure consisting of board size, female board members, non-executive directors, and frequency of board meetings. Bank capital is used as the control variable in this study. The study's findings suggest that the frequency of board meetings and non-executive directors have a negative and substantial influence on ROE, while the frequency of board meetings has a significant and negative impact on ROA. Additionally, bank capital has a positive and significant impact on ROA. However, the board size, female board members, and bank capital have no significant impact on ROE while board size, non-executive directors, and female board members have no significant impact on ROA of CSE-listed commercial banks. This study contributes to the literature on corporate governance and firm performance by providing the framework that affects the relationship between board structure and firm performance in the context of listed commercial banks. The findings of the study are important for policymakers, investors, regulators, and other bankers of the country. Commercial banks listed in Colombo Stock Exchange would put more attention on the structure and quality of the board to improve their performance. Concerning the study's scope, the present study only included CSE-listed commercial banks. Thus, additional research is needed to study the entire Sri Lankan banking system and 20 business sectors. Further, this study only looked at accounting-based measures such as ROA and ROE. Tobin's Q, for example, can be employed as a dependent variable. Future studies should be done by including cross-border analysis of developing and developed countries. Keywords: Bank Capital, Board Size, Female Board Members, Frequency of Board Meetings, Non-Executive Directors ROA, ROE
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Globalization has resulted in complex business procedures and activities as a result of global
organizations. In the case of banking sector procedures, complicated banking transactions and
an increase in banking activity fraud have prompted a focus on the Banking Sector's Internal
Control System. Every organization relies on an effective Internal Control System.
Accordingly, the purpose of this research is to examine and compare the level of effective
internal control systems of state-owned and private domestic commercial banks in the
Anuradhapura district. The level of effectiveness of the Internal Control System was assessed
using the five components of the Committee of Sponsoring Organizations (COSO) framework
(Control Environment, Risk Assessment, Information and Communication System, Control
Activities, and Monitoring Activities). Structured questionnaires were used to collect data
from fifty respondents from state-owned and thirty respondents from private domestic
commercial banks, respectively. Managers (76.25 percent response rate) and secondary
officers were the most common respondents (response rate was 23.75 percent). Descriptive
analysis with one-sample t-test and independent sample t-test were used to analyze the data.
The results of the study indicated that the level of the effective control environment,
information and communication systems, and control activities are different between StateOwned and Private Domestic Commercial Banks in Anuradhapura district, whereas the level
of effective risk assessment and monitoring activities are not different between State-Owned
and Private Domestic Commercial Banks in Anuradhapura district. The findings of this study
will help practitioners as a guideline to get the maximum benefit of their Internal Control
System.
Keywords: COSO Framework, Internal Control System, Level of Effective Internal Control
System, Private Domestic Commercial Banks, State-Owned Commercial Banks
This study aims to determine the Impact of Board Structure on the Performance of listed Commercial
Banks on the Colombo Stock Exchange. This study examines the relationship between Board
Structure and Corporate Financial Performance of listed commercial banks using a sample of 12
banks listed on the Colombo Stock Exchange, based on data from 2015 to 2019. Descriptive,
correlation and regression analyses were performed to achieve the study objectives. This study uses
the company's performance based on the following financial performance measures: return on assets
(ROA) and return on equity (ROE) and board structure consisting of board size, female board
members, non-executive directors, and frequency of board meetings. Bank capital is used as the
control variable in this study. The study's findings suggest that the frequency of board meetings and
non-executive directors have a negative and substantial influence on ROE, while the frequency of
board meetings has a significant and negative impact on ROA. Additionally, bank capital has a
positive and significant impact on ROA. However, the board size, female board members, and bank
capital have no significant impact on ROE while board size, non-executive directors, and female
board members have no significant impact on ROA of CSE-listed commercial banks. This study
contributes to the literature on corporate governance and firm performance by providing the
framework that affects the relationship between board structure and firm performance in the context
of listed commercial banks. The findings of the study are important for policymakers, investors,
regulators, and other bankers of the country. Commercial banks listed in Colombo Stock Exchange
would put more attention on the structure and quality of the board to improve their performance.
Concerning the study's scope, the present study only included CSE-listed commercial banks. Thus,
additional research is needed to study the entire Sri Lankan banking system and 20 business
sectors. Further, this study only looked at accounting-based measures such as ROA and ROE. Tobin's
Q, for example, can be employed as a dependent variable. Future studies should be done by including
cross-border analysis of developing and developed countries.
Keywords: Bank Capital, Board Size, Female Board Members, Frequency of Board Meetings, Non-Executive Directors ROA, ROE
Globalization has resulted in complex business procedures and activities as a result of global
organizations. In the case of banking sector procedures, complicated banking transactions and
an increase in banking activity fraud have prompted a focus on the Banking Sector's Internal
Control System. Every organization relies on an effective Internal Control System.
Accordingly, the purpose of this research is to examine and compare the level of effective
internal control systems of state-owned and private domestic commercial banks in the
Anuradhapura district. The level of effectiveness of the Internal Control System was assessed
using the five components of the Committee of Sponsoring Organizations (COSO) framework
(Control Environment, Risk Assessment, Information and Communication System, Control
Activities, and Monitoring Activities). Structured questionnaires were used to collect data
from fifty respondents from state-owned and thirty respondents from private domestic
commercial banks, respectively. Managers (76.25 percent response rate) and secondary
officers were the most common respondents (response rate was 23.75 percent). Descriptive
analysis with one-sample t-test and independent sample t-test were used to analyze the data.
The results of the study indicated that the level of the effective control environment,
information and communication systems, and control activities are different between StateOwned and Private Domestic Commercial Banks in Anuradhapura district, whereas the level
of effective risk assessment and monitoring activities are not different between State-Owned
and Private Domestic Commercial Banks in Anuradhapura district. The findings of this study
will help practitioners as a guideline to get the maximum benefit of their Internal Control
System.
Keywords: COSO Framework, Internal Control System, Level of Effective Internal Control
System, Private Domestic Commercial Banks, State-Owned Commercial Banks
This study aims to determine the Impact of Board Structure on the Performance of listed Commercial
Banks on the Colombo Stock Exchange. This study examines the relationship between Board
Structure and Corporate Financial Performance of listed commercial banks using a sample of 12
banks listed on the Colombo Stock Exchange, based on data from 2015 to 2019. Descriptive,
correlation and regression analyses were performed to achieve the study objectives. This study uses
the company's performance based on the following financial performance measures: return on assets
(ROA) and return on equity (ROE) and board structure consisting of board size, female board
members, non-executive directors, and frequency of board meetings. Bank capital is used as the
control variable in this study. The study's findings suggest that the frequency of board meetings and
non-executive directors have a negative and substantial influence on ROE, while the frequency of
board meetings has a significant and negative impact on ROA. Additionally, bank capital has a
positive and significant impact on ROA. However, the board size, female board members, and bank
capital have no significant impact on ROE while board size, non-executive directors, and female
board members have no significant impact on ROA of CSE-listed commercial banks. This study
contributes to the literature on corporate governance and firm performance by providing the
framework that affects the relationship between board structure and firm performance in the context
of listed commercial banks. The findings of the study are important for policymakers, investors,
regulators, and other bankers of the country. Commercial banks listed in Colombo Stock Exchange
would put more attention on the structure and quality of the board to improve their performance.
Concerning the study's scope, the present study only included CSE-listed commercial banks. Thus,
additional research is needed to study the entire Sri Lankan banking system and 20 business
sectors. Further, this study only looked at accounting-based measures such as ROA and ROE. Tobin's
Q, for example, can be employed as a dependent variable. Future studies should be done by including
cross-border analysis of developing and developed countries.
Keywords: Bank Capital, Board Size, Female Board Members, Frequency of Board Meetings, Non-Executive Directors ROA, ROE