Abstract:
Corporate Governance (CG) plays an important role for better decision making to all the stakeholders of the organization. This study examines the effect of CEO duality, board size and board composition on corporate governance disclosure practices in Sri Lanka. Related prior studies have examined the level of corporate governance disclosure in various countries by using the same CG disclosure traits. However, no formal research has so far been conducted to measure the effect of duality, board size and board composition on corporate governance disclosure in Sri Lanka. So there is a need for researchers to focus on the development of more reliable and valid measurements of the corporate governance disclosure model. In accordance with that, it will fulfill the gap between effects of duality, board size, board composition in corporate governance within the Sri Lankan context. Accordingly, the main purpose of this study is to investigate the impact of corporate governance traits such as CEO duality, board size and board composition on the level of corporate governance disclosure practices in listed companies in Sri Lanka. This study employs the Corporate Governance Disclosure Score containing 29 items, which are very similar to the S&P disclosure score. To facilitate the analysis, a Corporate Governance Disclosure Index (CGDI) has been computed. For the reviewing purpose of score items, highest market capitalized 64 listed companies had been selected using market capitalization report as at 31.03.2019 of Colombo Stock Exchange. Annual reports of the fiscal year 2015 to 2019 were considered for data collection and used panel regression technique to estimate the model. The findings of this study will provide useful insights to all stakeholders of the company to investigate the accuracy of their decisions. Further, these practices help developing economies to get sustainable rates of growth and enhance the confidence of a national economy.
