Wickramasinghe, U.A.1 and Vidanage, K.R.2
12Department of Accountancy and Finance, Rajarata University of Sri Lanka,
Consideration of existing research gap in this area, this research attempts to identify the impact of level of the International Financial Reporting Standards (IFRS) application on stock return in listed manufacturing companies on the Colombo Stock Exchange. Not only this problem, also the past researchers have not paid enough attention to the financial leverage, firm size and government ownership when studying the impact of the stock return. The main objective of this research is to examine the impact of the level of application of IFRS on stock return in Sri Lankan-listed manufacturing companies. In addition to that this study focuses on examining the impact of government ownership, financial leverage and firm size on stock return in Sri Lankan listed manufacturing companies. Population of the investigation is all manufacturing companies in Colombo Stock Exchange during the period of 2017-2021. Entire population is concerned as the sample for the study. Both descriptive and inferential analyses are used to analyze the collected data. According to the findings R square of the regression analysis is 0.22. It is indicating 22% influence on the Level of IFRS Application on Stock Return. Furthermore, it can be concluded that there is a significant impact of level of IFRS on the Stock Return on listed manufacturing companies in Sri Lanka.
Keywords: Government Ownership, Financial Leverage, Firm Size, Level of IFRS Application, Listed Manufacturing Companies