Corporate Governance and Cash Conversion Cycle: Evidence from Listed Companies in Sri Lanka

Abstract

The purpose of this study is to examine the impact of corporate governance on cash conversion cycle of Sri Lankan listed companies. This study adopted a co-relational research design. A sample of 90 Sri Lankan companies listed on the Colombo Stock Exchange for a period of five years (from 2011/12-2015/16) was used. The findings show that large number of directors and independent directors on the board and more number of meetings in a year shorten the cash conversion cycle (CCC) of Sri Lankan listed companies. The study adds to the literature on the factors that shorten the CCC of the listed company and it may be useful for financial managers, business analyst, financial controller, operations managers, investors, financial management consultants and other stakeholders.Contribution/ Originality: This study contributes in the existing literature of how the corporate governance mechanisms influence the efficiency of working capital management in developing economies like Sri Lanka. And also beneficial to the financial managers, investors, financial management consultant and other stakeholders to make different types of decisions.

The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia

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Corporate governance and dividend payout ratio in non-financial firms listed in Indonesian Stock Exchange

“…Corporate governance has emerged as a significant determinant of dividend payout ratio. The decision with regard to dividend payout policy is often made by companies' management and can be influenced by its board of directors (Abdullah, Ahmad, & Roslan, 2012;Ajanthan & Kumara, 2017). The board of directors has fiduciary powers to make decisions with regard to how to finance the company operations and expansion, how to make an investment for the company, and distribute dividends to shareholders.…”

The Effect of Corporate Governance Characteristics and Gender Diversity on Dividends Decision: Does ESG Matter?

“…Furthermore, another study that has been conducted on Chinese listed firms from 2001-2007 showed a significant positive association between board size and cash dividend payments (Litai et al, 2011). On the contrary, other study have shown insignificant association between board size and dividends that was held on a sample of 17 companies listed on Colombo Stock Exchange during the period from 2008-2012 (Ajanthan, 2013). However, another study that has been done on Malaysian firms has divulged an insignificant and negative impact of board size and dividends (Bolbol, 2012).…”

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