whole number of listed corporations in Sri Lanka is 295. These firms have registered below 20
business sectors. Of these, in the
2016 the top ten are ahead of the top ten by john keells holding, commercial bank, mas holding, Dialog
Axiata, Harleys, Aitken spence, Uniliever, Cargills, Hemas and Sampath bank.
Even though these corporations are best companies, even in the 14th year of
comparison, some companies have shown returns compared to the previous year,
while other corporations have lost their losses.
Although the rights
of a firm are owned by stockholders, its governance is done through a panel of
directors. The duty of the directors is to certify that the shareholders’ value
the profits. There was a question that these firms were influenced by the
nature of the panel or the nature of the directors of the companies to profit
and loss. This research is a solution to the problem of the nature of the panel
or the characteristics of the directors as having a direct effect on the monetary
If a business
continues to lose, it is not respectable for the corporation. As a result,
customers decrease the consumption of goods and services to the brand,
resulting in a decrease in the superiority of goods and services produced by
the firm. They lose confidence in those brands.
And if corporations continue to suffer losses, employees cannot pay their wages
on time. Therefore, there will be clutter of staffs. These issues have arisen.
The economy also has an unfavorable situation.
Therefore, it is significant for the institutions to avoid losses.
According to the
agency theory, the forthcoming directors will not performance for the good of
the bondholders. Therefore, corporations have to deal with a variety of complications.
This leads to disagreements between holders and administrations. It also causes
the firm to misplace its reputation. It is vital to study how this affects the features
of the director to maximize the return margin of a corporate.Also, the basic explanation of corporate
governance attentions on the responsibilities and duties of the Panel of directors
to achieve the corporation’s purposes. The main intention of any corporation is
to extremes returns. It is significant to know how the panel contributes to
Furthermore the number of research assignments in Sri Lanka correlated to panel characteristics and monetary performance is low. It is intended to do this research as a solution.
Also, still there is no clear relationship between the panel characteristics and the monetary performance.
Some of the studies
have pointed out that an optimistic relationship exists between the panel
characteristics and monetary performance. For an instant the positive
relationship intervening number of women in the panel, independent managements and
monetary performance. ( K & B, 2013). Besides, several studies found a
negative relationship between panel characteristics and the monetary
performance. There is a negative relationship between panel independence and
the monetary performance of Sri Lankan listed corporations (Nazar, 2014).
Apart from that, in some of the researches it could be
recognized that there is no significant association between audit committee size,
audit committee arrangement, panel size and monetary performance (Ghabayen,