The primary objective of this research
is to examine the relationship between board characteristics and the financial performance of listed
companies 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 characteristics
and has examined their impact on the financial performance of listed companies
in Sri Lanka.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now


Significance of


governance is one of the world’s most important concepts. The extent of this
study is limited. This is important for further understanding of corporate
governance in Sri Lanka. It also helps them to achieve goals what they want to maximize their profits. This study
is important for an accurate understanding of the size of the directors and the
board composition of directors to achieve the company’s goals. Although the
company owns a shareholder’s rights, its governing authority is in the
director’s office. The board of directors is responsible for maximizing the
profits of the shareholders. By choosing an effective board of directors,
companies can grow their profits. It can increase gratitude and establish the identity
of the people. Also companies can increase their profits by having a right director
board, thereby increasing employees’
salaries. Therefore, employees’ satisfaction increases, and they are more
productive in their work experience. Besides, this is important for investors
to identify best companies and to make good returns on their investments and to
make high returns.


from that this study would be important to the community. The growth of
companies with the growth of its products increases the way consumers can make
good products. Their quality of life is superior. Similarly, the main income of
the government is tax revenue. Since the increase in profits of the corporates
due to the effective board of directors, then government could collect more
taxes. Ultimately the Government could maximize their revenue. Not only that
but also the amount of research done in Sri Lanka has decreased with regard to
corporate governance. But today this is a very important concept. Hence, it is
important for knowledge seekers to understand about the corporate governance.




This section would describe regarding the methodology
used to test the hypotheses, the dependent variables, and independent
variables. The Multiple linear regression analysis would be performed to
recognize the effect of board characteristics on the financial performance of
the listed companies in Sri Lanka. Mainly this methodology section would focus
research design, population and sample, data collection and data analysis

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.

data collection methods would be used to collect data. In the secondary data
collecting, researchers use the data which have been collected by earlier
researches for their analyzing purposes or the statistical data obtained from
the records, accounts and other data stores. When using secondary data
previously used for a research or a study, it should be considered that the
previous research could answer the research question. Today, there are so many
facilities are available for secondary data collections. Those include
information in the annual reports, Corporate Governance Code 2013 and the
Colombo Stock Exchange (CSE) web site. The data would be collected in year

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.    

 Limitation of the study

research does not use all listed companies in Sri Lanka and studies only 167
selected listed companies.

§  This study only the based on the year 2015/16.



Chapter one – Introduction

In the first chapter, research background, problem
statement, research questions, objectives of the research, questionnaire,
research methodology and limits are included.


Chapter two –
Literature Review

A literature review is a search and evaluation
of the available knowledge in a given research area. There could be various
objectives of the literature review. Normally it investigates the literature in the selected
area of study and critically analyzes the hypothesis. In literature review it could be identified the things
previous researchers have been established in their research period and what
are the methodologies have been used in their studies. Under the theoretical
literature it would be described the Theories, key concepts and regarding the
research area. On the other hand, under the empirical literature it would be
identified the discoveries, and arguments related to the study.


Chapter three – Research Methodology

section would describe regarding the methodology used to test the hypotheses, the
dependent variable and independent variable. In other words research
methodology could systematically solve the research questions.


four – Analyzing and discussion

This chapter discusses the data analysis and the
results obtained.


Five –Recommendations and conclusion

This chapter explains how to arrive at conclusions and
suggestions through the results of the analysis.