Abstract:
The objective of this study is to examine the impact of the financial plrformance of
corporate governance in the banking and financial sector of Sri Lanka. For this study,
the researcher selected 20 listed banks, finance and insurance companies in Sri Lanka.
This research is based on secondary data. Data will be obtained from the CSE's financial
reports and websites for the period 2014-2018. STATA, a regression analysis method
used to analyze the impact of variables on data analysis. Return on Assets (ROA) was
considered as proxies for financial performance.
This section of the study literature clarifies the relationship between the independent
variables, the dependent variable, and the variables defined using previous literature
reviews. The conceptual model is developed based on existing literature. Using the
Random Impact Model, the Financial and Insurance sections of the Bank of Sri Lanka's
data study sets were used to investigate the impact of corporate governance on the
financial performance of listed companies in Sri Lanka. The random effect model was
selected using the Hausman test results. Stakeholders and managers will be able to use
the results of the study and find out the results of this study so they can make more
reliable and effective decisions.
The hndings of this research show that the size of the Board of Directors of the Bank
of Sri Lanka, Finance and Insurance, the Board Meeting and the Board Committee have
a positive impact on the return on assets and the duality of the CEO has a negative
impact on the return on assets. The findings of this study help decision makers to
understand the importance of corporate governance as a key factor that can increase the
ability of firms to maintain their competitive edge.
