Journal of Accountancy & Finance最新文献

{"title":"DISTRIBUTIONAL INCIDENCE OF INDIRECT TAXATION: AN EMPIRICAL REVIEW","authors":"None Kuruppuarachchi, None Ajward, None Kumara","doi":"10.57075/jaf922210","DOIUrl":"https://doi.org/10.57075/jaf922210","url":null,"abstract":"In this article, we reviewed the published Research works on indirect tax incidence, which describes the way of distributing indirect tax burden among households, and the purpose of this review is to identify the distributional impact of the burden of indirect tax on different groups, such as income groups, expenditure groups, commodity groups, and demographic groups, etc. The process of systematic review has been implemented in order to search, select, appraise, synthesize, and report the findings of previous studies. A government's revenue depends on several sources. Among them, indirect taxes are used as a major form of collecting government revenue, especially in developing countries. We observed major findings that there is a regressive type picture of the overall indirect tax system, which mainly impacts the vulnerable groups in a country. Indirect taxes will be paid by every household irrespective of income level. Even though the incidence theory of taxation describes the burden of indirect tax distributed among producers and consumers as per the elasticity of demand and supply, that would not happen practically. The imposition of indirect taxes leads to an increase in raw materials, then increase the cost of production and ultimately increases the price level of the country, which creates cost-push inflation. The entire portion of the indirect tax will be shifted to the end consumer. The increase in indirect taxes will be led to a rise in the tax burden on households. The burden of indirect taxation highly damages the living standards of the low-income groups in a country, especially due to the consumption tax. Households that are earning low incomes will be paid a relatively higher portion of indirect taxes than the households that have higher incomes. Past researchers have emphasized the importance of eliminating the consumption taxes on essential and most sensitive commodities, which are mostly consumed by the poor income groups.","PeriodicalId":474397,"journal":{"name":"Journal of Accountancy & Finance","volume":"400 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135270562","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"THE EFFECT OF NON-PERFORMING LOANS ON THE PROFITABILITY OF COMMERCIAL BANKS IN SRI LANKA","authors":"None Kapilarathne, None Weligamage","doi":"10.57075/jaf922208","DOIUrl":"https://doi.org/10.57075/jaf922208","url":null,"abstract":"Sri Lanka commercial banks have remained with persistent challenges in managing non-performing loans that are considered to have effects on banks’ profitability and the government has developed different ways of reducing non-performing loans. The purpose of this study was to find out the effects of nonperforming loans on the profitability of commercial banks in Sri Lanka. The study used commercial banks registered and operational in Sri Lanka at Central Bank Sri Lanka in the year 2018. Profitability calculated by the return on assets is used as a dependent variable and as an independent variable, non-performing loans measured by non-performing loans ratio are used. Capital adequacy, operational efficiency, and liquidity are used as control variables to enhance the validity and accuracy of the tests. The control variables used are part of the CAMEL factors that also influence commercial banks' profitability. The study selected 11 commercial banks covering the period of 2014 to 2018. To analyze and draw conclusions and recommendations, the analysis also used secondary data. Descriptive Statistics, Multiple Linear Regression, and Pearson Correlation were used for data analysis and Stata has been used as statistical software to analyze the collected data. Findings indicated that there is a negative effect of the nonperforming loans ratio on return on assets, confirming that non-performing loans negatively affect the profitability of commercial banks in Sri Lanka. There is a positive and significant relationship between Return on Assets and Capital Adequacy. When considering the relationship between Return on Assets and Liquidity there is a positive insignificant relationship and there is a negative relationship between Return on Assets and Operational Cost Efficiency. This study concluded that the managers of Commercial banks in Sri Lanka have to work hard to enhance the profitability of commercial banks and reduce occurrences of nonperforming loans. This paper, therefore, provides insight to commercial banks, the central bank, and other stakeholders on the effect of nonperforming loans on the profitability of commercial banks in Sri Lanka and provides a basis for further research.","PeriodicalId":474397,"journal":{"name":"Journal of Accountancy & Finance","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135270559","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}