A Study of the level of disclosure practices of Green Accounting of the
Corporate Sector of Sri Lanka
ABSTRACT
Today
many companies in the world show their corporate social responsibility by their
duty to the environment. This can be identified as a positive measure towards a
better place to live as during the past few decades the earth has been severely
damaged by the rapid industrialization of the world. This study will analyze
the amount of disclosure of Green Accounting practices in the corporate sector
of Sri Lanka.
Green
Accounting although an emerging trend in the worldwide arena of Accounting, is
still a very novel concept in the infancy stage to the Sri Lankan Public. Only
a handful of organizations can be identified as organizations which disclose
green accounting data.
The
disclosure of practices of Green Accounting practices will be tested against
appropriate variables to incur an understanding about organization demographics
relating to better disclosure of Green Accounting practices
Relevant
research to Sri Lankan context haven’t been heard of, therefore this study will
be a significant study for the government as well as corporate organizations
1. OVERVIEW OF THE STUDY
1.1 Introduction to the study
Environmental
protection is one of the most pressing concerns of this millennium and
according to Dillard et al the widespread
industrial growth and expansion through-out the world have resulted in environmental
issues becoming major societal risk factors. As a result Government
intermediaries, and communities in both developed, and developing nations have
recently begun paying greater attention to environmental issues. Jahamani (2003)
critically argues that developed nations such as the US and UK have greatly
contributed towards its environment both theoretically and practically. However
not all countries are equally environmental friendly and this is depicted
through their environmental policies and regulations. Nevertheless,
Alagan(2010) states that Sri Lanka makes a great effort to safeguard its
environment in comparison to its South Asian neighbors.
Stanojevic, Vranes and Gokalp (2010) mentions that “The
first step towards the widespread use of renewable energy and
preservation of our environment for the people of the future is to adopt the green
accounting standards that translate socially and environmentally responsible
behavior into monetary terms, the only language businesses understand”
“The Institute of Management Accountants in the USA defined environmental
accounting as the identification, measurement, and allocation of environmental
costs, the integration of these environmental costs into business decisions,
and the subsequent communication of the information to a company’s
stakeholders” (Jahamani, 2003). Hossain, Islam and Andrew (2006),
in their study about the level of green accounting disclosures in the corporate
sector in Bangladesh critically argues that corporate environmental disclosure
may not apply universally to all organizations as one organization’s attitude
and awareness towards environmental disclosure practices may differ from another.
Rajapakshe (2003) in his study about the environmental reporting practices
in Sri Lanka concluded that Green Accounting best practices were inconspicuous
in Sri Lanka. However today following the Global Reporting Initiative
guidelines, many top Sri Lankan companies such as Dialog Telecom PLC, Aitken
Spence Holdings, Sri Lanka Telecom PLC, Hatton National Bank, Ceylon Tobacco
Company and NDB Bank disclose environmental information in their Annual Reports
where they disclose their policy and accountability towards the environment.
Their commitment to the area of Green Accounting has been rewarded by the ACCA
Sri Lankan Awards for sustainability reporting since year 2005. However the
biggest challenge in implementing Green Accounting to the corporate sector lies
in fact that there may be several barriers blocking such policies. The tension
between the environmental protection and economic development may give rise to
issues as changes Sri Lankans are believed to be very resistant towards changes
in social attitudes.
“Although Sri Lanka has a good record in environmental education, the Asian
region still lacks the political will and commitment to protect its environment.”(Alagan,
2010) Therefore it is mandatory that necessary measures should be followed to
implement Green Accounting to the corporate sector of Sri Lanka as it may
benefit the sustainable development of the country beyond measures.
1.2 Problem Statement
Green
Accounting is the concept of recognizing the contribution of the environment to
the country’s economic growth. It is considered to be allocation and
identification of the environment costs used in business procedures, and the
integration of these costs into business decisions while communicating such
environmental information to company stakeholders. Although much practiced in
the Western and American worlds, it is a considerably new concept to Sri Lanka.
Few
top corporate organizations in Sri Lanka already practice Green Accounting to a
very minor extent but on the other hand Green Accounting is still a novel
concept which illustrates a sluggish nature. The Institute of Chartered
Accountants in Sri Lanka hasn’t declared any Green Accounting Standards as yet;
hence Green Accounting practices will take many years to establish as a daily
practice in the corporate world Therefore this report will identify the existing
level of disclosure of green accounting practices in the corporate sector and
will determine its impact on organizational performance.
Company
annual reports derived from the conventional accounting framework don’t
disclose any environmental information and gives prominence solely to the
financial position of the organization. They do not at any point convey how the
corporate wishes to serve the environment. But a good green accounting
framework will reduce unnecessary pollution and provide better protection and
preservation to the environment from the negative effects of urban and
industrial development. Therefore it’s evident that Green Accounting is a must
for the corporate sector as their daily activities such as manufacturing,
transportation etc have made a great negative impact on the environment over
the years and they should take every possible step to preserve the environment.
1.3 Problem
Justification
According
to the Guardian (2009), American President Barack Obama’s Green Economy concept
paved the way for the development of a Green Economy to become on top of
America’s agenda.
With
the introduction of these reforms there has been an emerging trend of going
green all over the world. “With the growing green consumer awareness, companies
are more than ever expected to align its business strategies with environmental
initiatives. Environmentally conscious companies have already discovered that
they can generate business strategies to help them reduce their carbon
footprint, minimize their environmental impact, make the best use of natural
resources, become more energy efficient, reduce costs, and exhibit social
responsibility – all at the same time.” (Jhonson, 2009) The concept of Green
Accounting is based on the principle of using environmental information to
derive environmentally friendly decisions and business practices.
Nowadays
companies seem to be very much concerned about the environment however the real
challenge lies in applying these ideals in their day to day activities. However
“in Sri Lanka there is neither a professional standard nor legal framework
addressing the issue of environmental reporting”. (Pramanik et al, 2008)
Consequently although some of the top corporate sector organizations reveal
green accounting information in their annual reports, it is quite questionable
whether environmental information is taken into consideration for their day to
day activities and decision making. Hence before the implementation of such
theories, it is viable to identify the barriers to execute such policies and
how to overcome them to in order to boost the image of a corporate as well as
the overall image of the country.
1.4 Objectives of the study
1. To
find out the existing level of disclosure practices of green accounting among corporate sectors
2. To
determine the relationship of Green Accounting disclosure practices and organizational
performance
3. To
evaluate the barriers of implementing green accounting practices to the
corporate sectors
4. To
find out the relationship between demographic factors of the corporate sectors
and Green Accounting Disclosure Practices
5. To
identify the managers’ perception of the degree of Green Accounting involvement
in the corporate sector
6. To
find out the future investment capacity to implement the Green Accounting
practices in Sri Lankan Corporate Sectors
1.5 Significance of the Study
This study will bring about the perception that natural resources such as
water, soil, air and forests need to be treated explicitly at both the Micro
and Macro planning levels of the society. With the findings of this study the
corporate sector will find the existing level disclosure practices of green
accounting among the corporate sectors and the feasibility of introducing such
concepts to their workplace which will help them to develop a better corporate
image which will consequently lead to larger profits and stability in the long
run.
The findings of this study will affect the listed companies at a bigger
proportion as the sample for the study is based upon them and the success of
such implementation will be determined by the vision and mission of a
particular company.
When
considering the Government point of view, they will be able to examine the role
of natural resources in the sustainable development in the country and making
the most of the natural resources while harming the nature as less as possible.
Finally
when it comes to the community/society, they will be able to realize the impact
of development on the environment and the earth that we live in and they will
try to protect the environment with their maximum will.
1.6 Scope and limitations of the
study
Scope of the study
This study is a comparative analysis based on the concept of Green
Accounting. The proposed study will be conducted for a population derived from
the Colombo Stock Exchange listed companies in Sri Lanka.
Limitations
of the study
This
study topic calls for a broader sample since The Colombo Stock Exchange is home
to 238 companies. (CSE, 2010) However it isn’t practical to study Green
Accounting practices in-relation to all 238 companies. Therefore the study will
be conducted for the LMD top 50 companies for year 2008/2009 (LMD, 2010); with
more than 3 companies in each sector. However after categorizing the LMD top 50
companies into industry sectors, it is evident that not all 20 sectors are
represented. Hence the sample for the study will be limited to CSE listed companies
in the six sectors of Banking Finance and Insurance, Beverage food and Tobacco,
Diversified Holdings, Hotels and Travels, Manufacturing and Trading. Thereafter
their level of disclosure of Green Accounting Practices will be measured
through a questionnaire distributed among financial mangers as well as by
analyzing the company annual reports.
2. LITERATURE REVIEW
Accepting
this societal need today various companies in the world have already
implemented Green Accounting Practices. Tilt (2000), in her study about
environmental disclosure levels in Australian company’s reveal that The world
famous UK based pharmaceutical company Glaxo has a strong commitment to its
environment. However when it comes to the Asian Region, Yulon Nissan Motors is
one such company which is successfully involved in green accounting. (Hwa-Rong and Mei-Lynn, 2004).
When measuring the
level of disclosure of Green Accounting practices, many studies have considered
the company annual report as a form of disclosure. (Moneva and Lena, 2000;
Freedman and Jaggi, 1986; Staglino and Walden, 1998; Guthrie and Parker,1989;
Roberts, 1992: Hossain, Islam and Andrew,2006). In the next chapter the author
will be critically demonstrating the previous literature covering the topic of
the level of disclosure of green accounting practices in corporate sector.
The relationship
between the Organization size and the disclosure practices of Green Accounting
Andrew et al(1989)
in their study of the disclosure practices in Singapore and Malaysia found out
that a higher number of large and medium sized organizations revealed more
information when compared to smaller sized companies. Consequently Staglino and
Walden (1998) revealed positive association between the organization size and
the quantity of disclosure of green accounting practices. Similarly Cormier and
Magnan (1999), in their study about the determinants of corporate
environmental reporting by Canadian firms
subjected to water pollution regulations during the 1986-1993 era observed that
larger companies with better financial performance were obliged to disclose
environmental information. Additionally Lang and Lundlom, 1993, Nue et al, 1998,
Bewley and Li,2000 have also proved the relationship between the company size
and the level of disclosure of green accounting practices. (Magness, 2006)
Many researchers
have proved a positive relationship between the size of the company and the
amount of environmental disclosure in the annual reports of both developed and
developing nations. (Hossain, Islam and Andrew, 2006)
“However, other
researchers like Roberts (1992), Ng (1985) and Davey (1982) found that the size
of the company did not significantly explain an association with the level of
disclosure practices.” (Hossain, Islam and Andrew, 2006:4). Past studies done
by Glaum and Street (2003), Street and Bryant (2000), Street and Gray (2001)
and Tower et al. (1999) also support the above statement.(Lopes and
Rodrigus,2005)
The independent
variable of size has been measured in different aspects in different studies.
Measures of size used by past researchers were number of employees, total asset
value, total revenue etc. (Tilt, 2000: Hossain, Islam and Andrew, 2006:Lopes
and Rodrigues,2005)
Nevertheless Tilt
(2000) reveals that this doesn’t make a huge impact on the findings as the
particular variable is selected to ensure the non-biasness of data.
The relationship
between the Organization Industry/Sector and the disclosure practices of Green
Accounting
The industry of
the relevant organization is an independent variable which has been very
minutely used in similar studies in the past. It is one of the explanatory
variables for disclosure levels. (Hossain, Islam and Andrew, 2006)
Past researchers
have been able to critically identify both positive relationships between the
above stated variables; the findings have been summarized below.
ACCA (2010), in
its study about environmental reporting in Singaporean companies identified the
manufacturing sector as the main disclosing sector.
There are
significant differences between industries in both the quantity and quality of
environmental information reported (Adams et al., 1995; Gamble et al.,
1995; Jaggi and Zhao, 1996 cited in Moneva and Llena, 2000).
Thus, it is viable
to come to the conclusion that industries that do the most harm to the
environment will engage in more green activities and disclose higher portions
of green accounting practices. (Moneva and Llena, 2000 ; Ahmad, Sulaiman and
Siswantoro,2003)
“Hackston and
Milne(1996) report that disclosures are higher in, what they classify as, high
profile industries. On the other hand, Cowen et al. (1987), Adams et al. (1995
and 1998) and Freedman and Jaggi (1988) find that specific areas of disclosure
are related to industry sector.” (Gray et al, 2001: 330)
However it’s also
vital to outline that there have been instances where studies have been able
tro prove that there wasn’t any relationship between the two variables. Ahmad,
Sulaiman and Siswantoro (2003) upon studying annual reports of listed Malaysian
companies came to the conclusion that the level of disclosures regarding
company CSR activities didn’t vary across industries
The relationship
between the Organization Audit Firm and the disclosure practices of Green
Accounting
Chalmers and
Godfrey (2004), states High profile auditors are bound to demand high level of
environmental disclosure from their respective clients as a method of protecting
their reputation and status.
“Several studies
have examined empirically the relation between the characteristics of the audit
firm (size of audit firm or international link of the auditing firm) and the
extent of social and environmental
disclosure and found positive association between the audit firm size and the
level of disclosure. It is believed to be an important responsibility of
auditors to recommend their clients to practice socially responsible accounting
practices”. (Choi,1998 cited in Hossain, Islam and Andrew, 2006:5).
However
there have been both positive relationships and negative relationships between
the two variables in the past studies. The findings of Hodgdon (2004), Glaum
and Street (2003) and Street and Gray (2001) found a positive significant
Relationship
while Chalmers and Godfrey (2004) and Abd-Elsalam and Weetman (2003) found
mixed results regarding this variable. (Lopes and Rodrigues,2005)
“Fry and Mock
(1976), Belkaoui and Karpik (1989) and Hackston and Milne (1996) find no
relationship whilst Freedman and Ullmann (1986) and Freedman and Jaggi (1988)
find either no relationship or an inverse relationship”. (Gray et al,2001:330)
Bowman (1978,
cited in Gray et al, 2001) finds a positive relationship between environmental disclosure
and financial performance whilst Roberts (1992, cited in Gray et al, 2001)
cautiously concludes that a insulated relationship exists between these two variables.
A positive
association between profitability and the extent of corporate social and
environmental disclosure were empirically proved in work by Trotman and Bradley
(1981), Roberts (1982), Belkaoui and Karpik (1989), Adams et al. (1995 and
1998) and Hackston and Milne (1996). (Hossain, Islam and Andrew, 2006 ; Gray et
al, 2001:330)
The relationship
between the Organization Culture (westernization) and the disclosure practices
of Green Accounting
It is believed that
“the more internationalized a company is the more it has to show its
stakeholders (customers, suppliers, government) that it is a good company.” (Lopes
and Rodrigues,2005: 11)
And when a company
is international or rather has international ties, irrespective of the fact whether
they import, export or have subsidiaries worldwide, it is quite clear that they
have to acquire international standards in their day to day activities.
Therefore they have to adhere to a certain set of standards since western
countries have a very through framework for accounting where the standards are
quite high. Although Green Accounting isn’t a day to day practice in Sri Lanka,
it is an emerging trend in the world. Hence it’s clear that the Organization
culture has an impact on the level of disclosure of green accounting practices.
However Lopes and
Rodrigues (2005) could not pinpoint a clear relationship between the levels of
internationalization and the disclosure of practices in the Portuguese stock
exchange; consistently to the findings of Street and Gray (2001, cited in Lopes
and Rodrigues, 2005)
The relationship
between the Corporate governance and the disclosure practices of Green
Accounting
Lopes and
Rodrigues (2005:12) states that “Both agency and contingency theories conduct
us to think that corporate governance structure of the company may be related
to reporting practices, specifically to disclosure practices.”
However Haniffa
and Cooke (2002, cited in Lopes and Rodrigues, 2005) declares that independent
directors are needed on the boards to monitor and control the actions of the
other executive managers.
“So, board
composition may be an interesting variable to consider because it will reflect
the role of independent directors. It can be expected more disclosure for
companies with higher proportion of independent directors, once they are
outside to the company and will force management to disclose. On the other
hand, if the board has a high proportion of non-independent directors, it can
be expected less disclosure, once they have access to inside information.”
(Lopes and Rodrigues, 2005:12-13)
However the study
conducted by Lopes and Rodriguez couldn’t show evidence on a positive
relationship between corporate governance and disclosure of practices’. (Lopes
and Rodrigues, 2005)
3. RESEARCH METHODOLOGY
3.1 Conceptual
Framework
Independent
Variable Dependent Variable
3.2 List of
Hypothesis formulated
|
|
Hypothesis
|
|
1
|
Ho 1-There is no relationship between
the organization size and the level of disclosure practices of green
accounting
|
|
Ha 1-There is a relationship between the
organization size and the level of disclosure practices of green accounting
|
|
|
2
|
Ho 2-There is no relationship between
the organization culture and the level of disclosure practices of green
accounting
|
|
Ha 2-There is a relationship between the
organization culture and the level of disclosure practices of green
accounting
|
|
|
3
|
Ho 3-There is no relationship between
the organization industry and the level of disclosure practices of green
accounting
|
|
Ha 3-There is a relationship between the
organization industry and the level of disclosure practices of green
accounting
|
|
|
4
|
Ho4-There is no relationship between the
Corporate Governance of the organization and the level of disclosure practices
of green accounting
|
|
Ha 4-There is a relationship between the Corporate
Governance of the organization and the level of disclosure practices in green
accounting
|
|
|
5
|
Ho 5-There is no relationship between
the organization turnover and the level of disclosure practices of green
accounting
|
|
Ha 5-There is a relationship between the
organization turnover and the level of disclosure practices in green
accounting
|
|
|
6
|
Ho 6-There is no relationship between
the audit firm for the organization and the level of disclosure practices of
green accounting
|
|
Ha 6-There is a relationship between the
audit firm for the organization and the level of disclosure practices in
green accounting
|
3.3 Population
This
study will be conducted for 238 CSE listed companies (CSE, 2010) covering 20
sectors. However since the population is broad, it will be further narrowed
down to a target population of Top 50 LMD companies for year 2008/2009 (LMD,
2010).
3.4 Sample
The
sampling method for the study will be stratified systematic simple random
sampling. The top 50 LMD companies will be categorized into groups according to
the relevant sectors. (Based on the CSE companies- list by industry/ sector) (Refer
appendix A)
Furthermore
after categorizing the companies into the relevant sectors, each sector with
three or more companies will be selected for the sample. (Refer appendix B for
the list of the companies) Therefore the sample for the study will consist of
40 organizations covering six sectors.
Selected
number of companies from each sector
|
Sector
|
Number of
Organizations
|
|
Bank, Finance
and Insurance
|
 13 |
|
Beverage, food
and Tobacco
|
07
|
|
Diversified
Holdings
|
07
|
|
Hotels and
Travels
|
03
|
|
Manufacturing
|
06
|
|
Trading
|
04
|
|
Source: Author’s
work
However
in the process of data collection, a questionnaire based on the objectives and
the conceptual framework of the study will be developed to evaluate the
independent and dependent variables and will be distributed among the finance
managers of the 40 companies in the sample. (Refer Appendix C) Parallel to
this, the annual reports of the companies from year 2005-2010 will be analyzed
in order to attain an understanding about their disclosure practices of green
accounting.
Population and Sample
3.5 Operationalization of
Variables
|
Type of the variable
|
Name of the Variable
|
Definition
|
Measurement of data
|
|
Independent Variable
|
Organization size
|
The number of employees working in the company
|
Ratio
|
|
Type of Industry/Sector
|
What sort of operations does the company engage in
|
nominal
|
|
|
Organization culture
|
Behavior patterns of the employees
|
Interval
|
|
|
Corporate Governance
|
Number of Independent Directors
|
ratio
|
|
|
Organization turnover
|
Income generated by the organization
|
ratio
|
|
|
Audit Firm
|
The number of employees working for the Audit Firm
|
ratio
|
|
|
Dependent variable
|
Level of disclosure practices of Green Accounting
|
To what extent do they reveal Green Accounting practices
|
Interval
|
Source-
Author’s work
3.6 Proposed Statistical Method
When
considering the variables used in the conceptual Framework, it can be
identified that ANOVA (analysis of variances) is the best method to analyze the
statistics. Similar studies done by Lopes and Rodrigues (2005), and
Moneva and Llena (2000) have used the same statistical method. Therefore the
author will be using the same method to analyze statistics.
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Cormier, D. and Magnan, M. (1999),
“Corporate environmental disclosure strategies:
determinants, costs and benefits”, Journal
of Accounting, Auditing and Finance, pp. 429-51.
Jahamani,Y.F,(2003), Green Accounting in Developing Countries: The
Case of U.A.E. and Jordan, Accounting Journal, Vol.29, No.08, pp. 29-38
Stanojevic,M.Vranes,S and GokalP,
I. (2010), Green accounting for greener energy, Renewable and Sustainable Energy Reviews,pp 30
Hossain,M. Islam,K. and Andrew,J.(2003),
Corportae Social Environmental
Disclosure in Developing Countries:Evidence from Bangaldesh, Faculty of Commerce Papers,
Staglino,A. and Walden,D.(1998), assessing the quality of Environmental
Disclosure Themes.USA
Rajapakse, B. (2003). Environmental
Reporting Expectation Gap: Evidence from Private Sector Organizations in Sri
Lanka. IWE Journal, 3, 99 -199.
Pramanik,A.Shil,N. Das,B., (2008).
Corporate Environmental Reporting:An emerging issue in the corporate. International
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Tilt,C., (1998). Corporate The content and
disclosure of Australian corporate environmental policies: Accounting, Auditing
& Accountability Journal.,PP 90 -120
Lopes,P and Rodrigues,L. (2005). ACCOUNTING FOR FINANCIAL INSTRUMENTS: AN
ANALYSIS OF THE DETERMINANTS OF DISCLOSURE IN THE PORTUGUESE STOCK EXCHANGE.
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"Reputation Costs: The Impetus for Voluntary
Derivative Financial Instrument
Reporting", Accounting, Organizations and Society,
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Javad,M., Power,D and Sinclaire C (2001). Social and Environmental
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A Research Noteand Extension. Journal of Business Finance &"
Accounting, vol 28(3) & (4).pp 327-356
Ahmad,N. Sulaiman,M and
Siswantoro,D. CORPORATE
SOCIAL RESPONSIBILITY DISCLOSUREIN MALAYSIA: AN ANALYSIS OF ANNUAL REPORTS OF
KLSE LISTED COMPANIES. IIUM Journal of Economics and Management.Vol 11,1
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and Llena, F (2000) Environmental disclosures in the
annual reports of large companies in Spain. The
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APPENDICES
APPENDIX A
LMD Top 50
companies categorized into the relevant industry sectors
|
Sector
|
Company
|
|
Bank, Finance and Insurance
|
1.
Commercial
Bank of Ceylon PLC
2.
Hatton
National Bank PLC
3.
Seylan
Bank
4.
Sampath
Bank
5.
Ceylinco
Insurance PLC
6.
Central
Finance Company PLC
7.
Nations
Trust Bank
8.
Lanka
Orix Leasing Company
9.
DFCC
Bank
10.
National
Development Bank PLC
11.
AVIVA
NDB Insurance PLC
(Eagle insurance)
12.
Union
Assuarance PLC
13.
Janashakthi
Insurance Company PLC
|
|
Beverage, food and Tobacco
|
1. Cargills Ceylon PLC
2. Distilleries Company of Sri Lanka PLC
3. Nestle Lanka
4. Ceylon Cold Stores PLC
5. Ceylon Tobacco Company PLC
6. Ceylon Brewery PLC
7. Ceylon Tea Services PLC
|
|
Sector
|
Company
|
|
Chemicals and Pharmaceuticals
|
1. Chemical Industries Colombo PLC (CIC)
|
|
Construction and Engineering
|
1. Colombo Dockyard PLC
|
|
Diversified Holdings
|
1. John Keels Holdings PLC
2. Ceylon Theatres PLC
3. Hayleys PLC
4. Aitken Spence PLC
5. Richard Pieris and Company PLC
6. Hemas Holdings PLC
7. Sunshine Holdings PLC
|
|
Footware and Textile
|
1. Hayleys MGT Knitting Mills PLC
2. Kuruwita Textile Mills PLC
|
|
Hotels and Travels
|
1. Aitken Spence Hotel Holdings PLC
2. John Keels Hotels PLC
3. Asian Hotels and Properties PLC
|
|
Manufacturing
|
1. Tokyo Cement Company PLC
2. Dipped Products PLC
3. Chevron Lubricants Lanka PLC
4. ACL Cables PLC
5. Ceylon Grain Elevators PLC
6. Lanka Ceramic PLC
|
|
Motors
|
1. Diesel and Motor Engineering PLC (DIMO)
2. United Motors Lanka PLC
|
|
Sector
|
Company
|
|
Oil Palms
|
1. Bukit Darah PLC
|
|
Power and Energy
|
1. Lanka IOC
PLC
|
|
Telecommunication
|
1.
Sri
Lanka Telecom PLC
2.
Dialog
Axiata PLC
|
|
Trading
|
1.
Singer
Sri Lanka PLC
2.
Brown
and Company PLC
3.
C.W.Mackie
PLC
4.
Haycarb
PLC
|
Source: Author’s work based on LMD (2010) and CSE
(2010)
APPENDIX B
Selected sample of 40 companies based on the LMD
top 50 ratings
This sample includes every sector with more than
three organizations in the LMD top 50 list.
|
Sector
|
LMD Top 50 companies belonging to the selected sectors
(turnover is in descending order)
|
|
Bank, Finance and Insurance
|
1.
Commercial
Bank of Ceylon PLC
2.
Hatton
National Bank PLC
3.
Seylan
Bank
4.
Sampath
Bank
5.
Ceylinco
Insurance PLC
6.
Central
Finance Company PLC
7.
Nations
Trust Bank
8.
Lanka
Orix Leasing Company
9.
DFCC
Bank
10.
National
Development Bank PLC
11.
AVIVA
NDB Insurance PLC
(Eagle insurance)
12.
Union
Assuarance PLC
13.
Janashakthi
Insurance Company PLC
|
|
Beverage, food and Tobacco
|
1.
Cargills
Ceylon PLC
2.
Distilleries
Company of Sri Lanka PLC
3.
Nestle
Lanka
4.
Ceylon
Cold Stores PLC
5.
Ceylon
Tobacco Company PLC
6.
Ceylon
Brewery PLC
7.
Ceylon
Tea Services PLC
|
|
Diversified Holdings
|
1.
John
Keels Holdings PLC
2.
Ceylon
Theatres PLC
3.
Hayleys
PLC
4.
Aitken
Spence PLC
5.
Richard
Pieris and Company PLC
6.
Hemas
Holdings PLC
7.
Sunshine
Holdings PLC
|
|
Hotels and Travels
|
1.
Aitken
Spence Hotel Holdings PLC
2.
John
Keels Hotels PLC
3.
Asian
Hotels and Properties PLC
|
|
Manufacturing
|
1.
Tokyo
Cement Company PLC
2.
Dipped
Products PLC
3.
Chevron
Lubricants Lanka PLC
4.
ACL
Cables PLC
5.
Ceylon
Grain Elevators PLC
6.
Lanka
Ceramic PLC
|
|
Trading
|
1.
Singer
Sri Lanka PLC
2.
Brown
and Company PLC
3.
C.W.Mackie
PLC
4.
Haycarb
PLC
|
Source: Author’s work based on CSE (2010)
APPENDIX
C
Questionnaire to be distributed among the financial
managers of the selected 40 organizations
1. Name of the Organization-
2. Name of the Respondent-
3. Position Held-
4. Relevant Industry-
5. Number of employees in your division/department
6. Number of employees in the organization-
7. The turnover for the past year
8. Name of the company audit firm
9. For how long has the company been using this
auditor
