Kennedy D. Gunawardana

Logistic Regression Model for Business Failures Prediction of Technology Industry in Thailand

Since the large number of parties involved in corporate failure or ‘business failure’, the avoidance of failure has always been an important issue in the field of corporate finance and business management. In this paper, the model was developed to predict business failure in Thailand particular in technology industry by using four variables from Altman’s model and adding one variable to the model. Descriptive statistics, correlation, and independent T-test are used for testing to see the characteristics of each variable on both failed and non-failed companies. The model was developed by using the stepwise logistic regression. Samples were developed by using financial information from private limited companies based on technology industry in Bangkok. The result from this empirical study can conclude that financial ratios are useful analytical techniques for forecasting financial health of companies in technology industry. The result of independent T-test has pointed out sales to total assets ratio is the only significant independent variable indicating significant differences between failed and non-failed group. The Nagelkerke R2 indicated 42.4% of the variation in the outcome variable. The predictability accuracy of the model is 77.8% which is under 95% confidence level.

Quantitative Measurement of Advanced Manufacturing Technology Transfer from Foreign-Based Companies to Local Companies

The literature on foreign direct investment (FDI) has recently analyzed the nature of the firm’s entry mode choice in a foreign market, particularly the choice between a joint venture and a wholly owned subsidiary. Most of these companies use Advanced Manufacturing Technologies (AMT) in manufacturing operations conducted in host country. Therefore this paper aims to measure the contribution of AMTs to a host country. A study of 1026 foreign-based companies was analyzed and results mainly categories under two analytical tool. The present research has used multiple regression (MR) models for determining the factors affecting to the usage of AMT, which are introduced by foreign-based companies. The result indicates some guide to the organization of advanced manufacturing technologies from foreign-based companies. Artificial Neural Networks (ANN) model also guided better than the MR model for prediction of AMT from which variables are better for the developing countries.

Safety Issues in Hazardous Waste Management in Heavy Industries

This paper will examine the existing hazardous waste management systems of the heavy industries in Sri Lanka and safety issues that are influencing those practices. Further of this paper is to identify existing hazardous waste management facilities in Sri Lanka while evaluating the factors which positively and negatively influence the successful execution of those practices. Existing literature regarding the factors which influence Hazardous waste management practices will be conducted. Influential factors that have been identified were Environmental law of Sri Lanka, technological factors, corporate policies of the company, public resistance, economical factors, integration between related institutes and informational factors. Environmental law of Sri Lanka will be considered as independent variable and its relationship with the existing hazardous waste management systems will be considered as the dependent variable. Existing literature regarding the factors which influence Hazardous waste management practices will be conducted. Past literature on this paper area will provide the base for creating relationships between variables for this paper. Influential factors that have been identified were Environmental law of Sri Lanka, technological factors, corporate policies of the company, public resistance, economical factors, integration between related institutes and informational factors. Environmental law of Sri Lanka will be considered as independent variable and its relationship with the existing hazardous waste management systems will be considered as the dependent variable. Fifty five heavy industries of the North Western Province will formulate the population for this paper out of which a sample of 40 industries will be chosen. Environmental officer from each company will be handed over a questionnaire. Interviews will be conducted in order to gather primary data whereas secondary data will be gathered by the use of government publications and empirical studies done on this research area.

Women Participation in Senior Management Positions in Licensed Commercial Banks in Sri Lanka

The following research study has been designed in order to investigate an important issue “The Glass Ceiling effect” which still prevails in many organizations in Sri Lanka. The banking sector which is a very vibrant industry in Sri Lanka has been selected to conduct the analysis. The core objective of this study is to identify the barriers which prevail and have an impact on women participation in senior management positions in licensed commercial banks in relationship with organizational performance. The research has conducted by taking in to account 9 domestic licensed commercial banks in Sri Lanka. Thus both secondary as well as a primary research has conducted in order to critically analyze the “Glass Ceiling Effect” in banking sector in Sri Lanka. Secondary data analyzing has addressed two objectives to identify the challenges in acquiring skills and challenges in women participation in upper management. The research findings showed that there are 9% of females in director board, 16% females in corporate management and 13% females as the management team. In overall perspective the research highlighted that there are 13% of female participants in the managerial positions in banks. According to the primary research which was conducted, the level of women participation was identified in-terms of organizational performance. Thus questionnaire findings showed a moderate level of perception about women participation in the banking sector. Finally a series of quality solutions were recommended in order to eliminate the “Glass Ceiling Effects” in the banking industry.

Adaptation Strategies of the Sustainable Livelihood Considerations for the Internal Displacement Women in Sri Lanka

Intensification of forced population displacements as an onslaught of ethnic conflicts and human rights violation negatively affected the socio-economic status of many South Asian countries. Sri Lankan Internal Displacement (IDP) population escalated at a soaring rate subsequent to the historical military triumph over Tamil Eelam (Civil War) rebellions. Cataclysms of the prolonged insurgence disrupted livelihood activities thus imposing socio-economic impediments amidst thousands of displaced people. Among the affected, women were considered as most vulnerable. Owing to the loss of their counterpart family burdens shifted on their shoulders, in making them the de facto heads of households. These women engaged in numerous entrepreneurial activities in diverse sectors of the economy in order to supplement their families. Unfortunately, the outbreak of Eelam war 3 erupting from Eastern Sri Lanka destroyed many of their livelihoods. Despite such trauma women of North-eastern part of Sri Lanka, the sample under study were recently resettled from IDP camps to their previous villages. The IDP women were depend on government and International nongovernmental organization (INGO) assistance than adapting to the changes of their independent sustainable livelihood pattern. These women entrepreneurs found nothing than war ruins on their return hence, facing immense constraints to continue their livelihood activities as addressed, dependence rate also very high and current initiatives taken by the government/INGOs, were not sufficient and prevailing with some issues of their assistance programmes. There is requirement to make them independent entrepreneurs by providing training, changing mind sets for adaptation of the new livelihood. Further adaptation strategies by using local resources were discussed.

Financial and Non-Financial Measures for Sustainability in SMEs

The purpose of this study is to ascertain managers’ perception on the introduction of financial and non-financial measures to carbon footprint reduction in the rubber products manufacturing industry as a carbon footprint minimization measure.

An Empirical Investigation of the Computerised Accounting Information Systems Frauds in Licensed Banks in Sri Lanka

The objective of this paper is to investigate the trends in frauds of computerised accounting information systems in Sri Lankan licensed banks. Sri Lankan licensed banking sector which is the most feasible service industry contributing enormously to the growth of the country. Security controls of Computerise accounting information system in the corporate sector is taken into consideration as this is currently a growing trend around the world. The core objective is to identify the frauds in the computerised accounting information systems in licensed banks in Sri Lanka. Critical reviews of past literature indicate a clear cut connection between fraud deductions in CAIS through security control systems. In order to find out the applicability of this relationship Sri Lanka, research will be undertaken in licence banks in Colombo region. The report consists secondary data which facilitate to achieve the aforementioned objectives. Secondary data analysis the existing computerized frauds in licensed banks as well as existing security control systems in licensed bank in Sri Lanka. However in secondary data analysis it clearly illustrate the computerized accounting frauds have been increased drastically. So licensed banks should have to implement the more security control systems to overcome those problems.

Barriers and Challenges of Introducing Environmental Taxation in Nigeria, for Future Sustainability

The paper examines barriers and challenges of introducing environmental taxation in Nigeria which are intensifying pressure on the Federal Government to find ways of reducing environmental impairment through pollution while minimising harmful effect on the economic growth. The absence of any estimation of damage costs and lack of implementing best practices of environmental taxes as done in other countries awareness for the need of public acceptance and support for environmental taxes is felt need. Benefits received and stakeholder theories were used, and data collected through primary and secondary sources. Yaro yamani formula was used to determine the sample size of the population. The results of the study revealed that the industries are making mere promises to the government in their effort to control pollution through regulatory mechanisms without compliance. The researcher recommends that considering the seriousness of this environmental hazards posed by these industries, Federal Government of Nigeria should formulate plans to design a tax process that might encompass environmental tax policies, so that the levy of tax be designed placing its burden on those who are responsible for causing a particular environmental problem, or problems and also make provision for statutory incentives to minimize administrative cost to the government and compliance cost imposed on the tax payers.

Is Luck a Determinant in Achieving Sustainable Entrepreneurial Opportunity?: A Theoretical Perspective

The entrepreneur is the engine of economic growth of a nation. Many individuals aspiring to be entrepreneurs lack the ability to conceive ideas. Although they are motivated and have the financial resources to start-up ventures they are disillusioned as to where and how opportunities are found. The cultural norms of civil society in Sri Lanka being over reliant on astrology, imposing patterns on random data, and luck have an impact on identifying and exploiting entrepreneurial opportunities. There exists a two-world view of the notion of luck that being psychological and philosophical luck, from a psychological perspective this involves the entrepreneurs’ perception of events and people. The philosophical domain focuses on morality and epistemic luck.The purpose of this review is to analyse the importance and role of the phenomenon of luck in identifying entrepreneurial opportunities and its impact on established opportunity identification processes associated with the economic school, cultural cognitive school and the socio-political school. This is achieved by exploring the scope and limitations of the systematic variations in randomness in opportunity identification by adopting a systematic literature review of the established theories of opportunity identification in relation to the psychological and philosophical notion of luck. This study clarifies the misconceptions surrounding the notion of luck in the identification of entrepreneurial opportunities and limitations imposed by the phenomenon of luck in achieving sustainable opportunity identification.

An Empirical Study of Corporate Governance Practices of the Banking Sector of Sri Lanka and the Impact of Firm Specific Characteristics on Disclosure Practices

This research is conducted to analyze the gap between the existing corporate governance disclosure practices and the required practices as published by the Institute of Chartered Accountants of Sri Lanka (ICASL) (2003). The research is based on the published annual reports during a period of 2002 to 2006. A comparison has been carried out between the required disclosure practices and the annual reports and thereafter the index was developed by the researchers. The index was developed utilizing the local corporate governance guidelines along with the corporate governance guidelines of other countries as well. Subsequent to the constructing of this index, it was filled utilizing the published annual reports of Listed Licensed Commercial and Specialized Banks (LLCSB) from the years 2002 to 2006. The chosen LLCSBs were listed on the Colombo Stock Exchange as of December 2007. The total number of LLCSBs being considered for the research was twelve. Consequent to the filling of the index, the analysis of such questionnaires was a paneled data analysis. Paneled data analysis is a cross-section of LLCSBs which were surveyed periodically over a period of five years. Furthermore, the analysis was carried out on twelve LLCSBs, utilizing their five years (2002 to 2006) annual reports. The analysis was carried out utilizing E-Views (Version 5.1) for six out of the eight variables. The overall findings of this research indicate that there is a significant gap between the required and existing disclosure practices and the relationship between the Firm Specific Characteristics with disclosure practices. This is due to the fact that the model gives out a R-squared value of 94% which means that the variability of the disclosure practices is explained by the variables board size, company size, debt, firm age, profit margin and return on equity.