1.1        Objective The primary objective of this researchis to examine the relationship between board characteristics and the financial performance of listedcompanies in Sri Lanka. Although, board characteristics is a broad concept and can be defined with a varied extent,this research has identified nine components of board characteristicsand has examined their impact on the financial performance of listed companiesin Sri Lanka. 1.

2        Significance ofResearch Corporategovernance is one of the world’s most important concepts. The extent of thisstudy is limited. This is important for further understanding of corporategovernance in Sri Lanka. It also helps them to achieve goals what they want to maximize their profits. This studyis important for an accurate understanding of the size of the directors and theboard composition of directors to achieve the company’s goals. Although thecompany owns a shareholder’s rights, its governing authority is in thedirector’s office. The board of directors is responsible for maximizing theprofits of the shareholders.

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By choosing an effective board of directors,companies can grow their profits. It can increase gratitude and establish the identityof the people. Also companies can increase their profits by having a right directorboard, thereby increasing employees’salaries.

Therefore, employees’ satisfaction increases, and they are moreproductive in their work experience. Besides, this is important for investorsto identify best companies and to make good returns on their investments and tomake high returns. Apartfrom that this study would be important to the community. The growth ofcompanies with the growth of its products increases the way consumers can makegood products. Their quality of life is superior. Similarly, the main income ofthe government is tax revenue.

Since the increase in profits of the corporatesdue to the effective board of directors, then government could collect moretaxes. Ultimately the Government could maximize their revenue. Not only thatbut also the amount of research done in Sri Lanka has decreased with regard tocorporate governance. But today this is a very important concept. Hence, it isimportant for knowledge seekers to understand about the corporate governance. 1.6             Methodology This section would describe regarding the methodologyused to test the hypotheses, the dependent variables, and independentvariables.

The Multiple linear regression analysis would be performed torecognize the effect of board characteristics on the financial performance ofthe listed companies in Sri Lanka. Mainly this methodology section would focusresearch design, population and sample, data collection and data analysistechniques.The population of this study is, public listed companies in Sri Lanka. There are 295 companies registered in the Colombo Stock Exchange (CSE).  These companies have registered under 20 business sectors. This information is as at 30th September, 2016. The sample would be 167 public listed companies. The sample size was 167, using the Morgan Table.

This sample represents 57% of the total population. The simple random sampling method is used to select the sample from the population.Secondarydata collection methods would be used to collect data. In the secondary datacollecting, researchers use the data which have been collected by earlierresearches for their analyzing purposes or the statistical data obtained fromthe records, accounts and other data stores. When using secondary datapreviously used for a research or a study, it should be considered that theprevious research could answer the research question. Today, there are so manyfacilities are available for secondary data collections. Those includeinformation in the annual reports, Corporate Governance Code 2013 and theColombo Stock Exchange (CSE) web site.

The data would be collected in year2015/16. Data tables and graphs are used to represent the data. It examines the relationship between board characteristics and financial performance by using multiple linear regression model in the Statistical Package for the Social Sciences (SPSS).In order to measure the quality of the corporate governance adopted by Public Listed Companies in Sri Lanka, descriptive statistical method would be used.

In addition correlation analysis, & ANOVA test can be identified if there is a significant relationship between board characteristics & financial performance.    1.7              Limitation of the study§ Thisresearch does not use all listed companies in Sri Lanka and studies only 167selected listed companies.§  This study only the based on the year 2015/16. 1.8             ChapterOrganizationChapter one – IntroductionIn the first chapter, research background, problemstatement, research questions, objectives of the research, questionnaire,research methodology and limits are included. Chapter two -Literature ReviewA literature review is a search and evaluationof the available knowledge in a given research area. There could be variousobjectives of the literature review.

Normally it investigates the literature in the selectedarea of study and critically analyzes the hypothesis. In literature review it could be identified the thingsprevious researchers have been established in their research period and whatare the methodologies have been used in their studies. Under the theoreticalliterature it would be described the Theories, key concepts and regarding theresearch area. On the other hand, under the empirical literature it would beidentified the discoveries, and arguments related to the study.

 Chapter three – Research MethodologyThissection would describe regarding the methodology used to test the hypotheses, thedependent variable and independent variable. In other words researchmethodology could systematically solve the research questions. Chapterfour – Analyzing and discussionThis chapter discusses the data analysis and theresults obtained. ChapterFive –Recommendations and conclusionThis chapter explains how to arrive at conclusions andsuggestions through the results of the analysis.