Browsing by Author "Jayasundara, K.P.D.C.M."

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    Impact of Corporate Social Responsibility On Corporate Financial Performance (WITH SPECIAL REFERENCE TO THE CSE ENLISTED MANUFACTURING COMPANIES IN SRI LANKA)
    (Uva Wellassa University of Sri Lanka, 2015) Jayasundara, K.P.D.C.M.
    CSR is approach that lead to the sustainable development by delivering economic, social and environmental benefits for all stakeholders. However, there is no consensus in the literature on the relationship between CSR and financial performance of corporations. Hence this study endeavored to explore the impact of CSR on corporate financial performance referring to the manufacturing companies listed in Colombo Stock Exchange in Sri Lanka. Moreover, this study attempt to identify relationship between CSR and corporate financial performance of listed manufacturing companies in Sri Lanka. The Stakeholder Perspective Theory was used to measure the CSR while ROA and ROE were used as the proxies for the financial performance of corporations. Risk was considered as control variable and it measured through debt to equity ratio. The sample of this study consists of ten manufacturing companies listed in the Colombo Stock Exchange and sample period spans for five years from 2011- 2018. This study is used 50 firm year observations for the analysis and this study is based on secondary data. Descriptive statistics, correlation coefficient and panel data regression analysis techniques were used for the statistical analysis. The results revealed that CSR has significant positive impact on corporate fmancial performance in listed manufacturing companies in Sri Lanka. Further it revealed that there is a significant and positive relationship between CSR and corporate financial performance. Moreover, it revealed that the control variable of risk has a significant negative relationship with ROA while insignificant relationship with ROE. This study recommended the companies to undertake CSR activities for all stakeholders as it leads to improve the financial performance. Keywords: Corporate Social Responsibility, Corporate Financial Performance, Return on Assets, Return on Equity, Colombo Stock Exchange
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    Impact of Corporate Social Responsibility on Corporate Financial Performance: Evidence from CSE Enlisted Manufacturing Companies in Sri Lanka
    (Uva Wellassa University of Sri Lanka, 2020) Jayasundara, K.P.D.C.M.; Gunaratne, Y.M.C.; De Silva, P.O.
    Corporate Social Responsibility (CSR) is considered as an approach that contributes to sustainable development by delivering economic, social, and environmental benefits to all stakeholders. However, there is no consensus in the literature on the relationship between CSR and financial performance of corporations. Hence this study endeavored to explore the impact of CSR on corporate financial performance referring to the manufacturing companies listed in the Colombo Stock Exchange in Sri Lanka. The Stakeholder Perspective Theory provides valid insights to develop a CSR scale and it was used to measure CSR whereas the Return on Assets and Return on Equity were used as the proxies for the Financial Performance of corporations. Further, the risk ascertained through the Debt-to-Equity ratio considered as the control variable. The sample of this study consisted of ten manufacturing companies listed in the Colombo Stock Exchange and the sample period spaned for five years from 2011 – 2018. Accordingly, the study used 50 firm-year observations for the analysis and this study was based on secondary data and quantitative approach. Descriptive statistics, correlation coefficient, and panel data regression analysis techniques were used to accomplish the objectives of the study. The results revealed that CSR had a significant positive impact on the corporate financial performance of listed manufacturing companies in Sri Lanka. Moreover, it revealed that the control variable of risk had a significant negative relationship with Return on Assets while an insignificant relationship with Return on Equity. This study recommends the companies to maintain CSR activities at optimum level for all stakeholders as it leads to improve financial performance. . Keywords: Corporate financial performance, Corporate social responsibility, Colombo Stock Exchange, Return on assets, Return on equity