This paper aims to investigate the impact of credit risk on the profitability of the banking sector in Sri Lanka. The profitability is measured with and Return on Assets. At the same time, credit risk is quantified with four indicators: Non-performing loan Ratio (NPLR), Loan to Deposit Ratio (LDR), Net Charge off Ratio (NCOR), and Capital Adequacy Ratio (CAR). Data from thirteen banks over eight years from 2010 to 2017 was analyzed using panel data regression analysis. The finding shows that the Profitability of the Banking Sector in Sri Lanka has been determined by important determinants such as credit risk. The study further finds that non-performing loans have negative and significant return on assets. However, the net charge-off ratio and the loan to deposit ratio are not important variables for expanding the bank's profitability. On the other hand, the CAR positively impacts returns on assets. The study suggested the need to strengthen the management of credit risk in order to preserve Sri Lankan banks' current profitability.
Organizations needs knowledge creation capability and organizational forgetting to enrich their innovative performance in ever-changing business setting.The purpose of this article is to explore the influence of knowledge creation capability, organizational forgetting and absorptive capacity on Firm’s innovative performance. We test the model using Partial least squares structural equation modeling (PLS-SEM) to analyze empirical data collected from 194SMEs listed in Sri Lanka inventors’ commission.The findings of the study show that in addition to their individually positive impact of knowledge creation capability and organizational forgetting on firm’s innovative performance, the absorptive capacity mediates the relationship between knowledge creation capability, organizational forgetting and innovation performance. As one of the first studies to integrate the capabilities of creating internal new knowledge and unlearning outdated knowledge for advancing firm innovativenessthrough the mediating effect of absorptive capacity. A major implication of this finding is that absorptive capacity enhances the effect of knowledge creation capability and organizational forgetting on firm's innovativeness and affects the types of innovation strategies adopted by firms.
This study's main objective is to examine the mediating effect of accounting practices between AIS in ERP environment and firm performance of listed companies in Sri Lanka. AIS has two main dimensions, such as ERP System Quality and Accounting information Quality(ACIQ). The total population of the study consist of 295 companies. A random sampling method was applied, and 217 companies were used as a sample for this study. Amos 23 version was used as an instrument to analyze the data, and the structural equation model was applied to test the path relationship of the constructs. The study shows that ERP system quality and ACIQ have a statistically significant influence with Accounting practices and firm performance, while accounting practices have a significant influence with firm performance. In addition to this, accounting practices have a significant mediating effect between AIS and firm performance. IS managers and accounting professionals can use the finding and also should pay more attention to improve ERP System Quality and ACIQ in order to enhance Accounting Practices which subsequently having implication on firm performance. AIS quality and organizational performance will also be enhanced when new AIS applications and capabilities are brought in, as per the resource-based view.
The importance of the application of AIS is crucial for any organizations as they face tough competition due to volatile changes in technology. The important issue is whether ERP implementation increases the Accounting Practices (APs), consequently to achieve the goals of firms. Thus, the main purpose of this study was to examine the effect of ERP System Quality (ERPSQ) and Accounting Information Quality (ACIQ) on APs moderated by User Competency (UC) in an ERP environment. The primary data were collected for this study using self-administered structured questionnaire from 217 accounting practitioners of public listed companies in Sri Lanka. Moreover, structural equation modelling techniques (SEM) were used to construct the model and it showed the good model fit with the identified constructs. The study developed the hypothesis based on the conceptual model that there was a significant relationship between ERPSQ and APs and there was a significant relationship between ACIQ and APs. The study revealed that both ERPSQ and ACIQ were significantly influenced on APs in public listed firms in Sri Lanka. Moreover, the ACIQ had mediating effect between ERPSQ and APs. In addition, it was proved that UC provides a moderating effect between AIS and APs. Moreover, The novelty of this paper was the contribution of both theoretically and empirically to the information system success model through AIS in ERP system. Further, it also contributed to ACIQ to APs.
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