Abstract:
Today corporate governance has become a global issue and the development
of corporate governance practices is considered to be a prominent theme
all over the world. This study aims to investigate the impact of corporate
governance on the value relevance of accounting information of listed
hotels and travels in the Colombo Stock Exchange. Twenty listed companies
were analyzed for a period of five years from 2012 to 2016. Corporate
governance is measured by board size, board independence and ownership
structure whereas EPS and net assets value per share were considered as the
variables of value relevance of accounting information. Data was collected
from the annual reports of the listed companies, magazines and scholarly
articles from academic journals. Correlation and multiple regressions were
used to analyze and evaluate the collected data. The results reveal that
board independence and ownership structure have a significantly negative
influence on value relevance of accounting information of listed hotels and
travels in Sri lanka while firm leverage has a negative influence on value
relevance of accounting information. Therefore, firms with strong corporate
governance practices exhibit a higher value- relevance of accounting
information.
