Data collection Techniques and Procedure
Normally data can be collected from either primary or secondary. To meet the objectives and hypotheses of this study, data were collected from secondary sources mainly from the financial report of the selected companies, which were published by CSE. The companies that had continuously operated over the period from 2015 to 2019. The values were taken through the annual reports, financial statements, and CSE web site used as a secondary data source of each company. In this study, secondary data will consider both the independent and dependent variables of the research. This study used a five-year period as the study period of this research. Secondary data was collected from Annual report of the firm’s and the Colombo Stock Exchange publications (Heenetigala, 2011; Rajakulanajagam & Nimalathasan, 2020).
Data Analysis Techniques
In this study, panel data analysis methodology is used for analysis. It is the main analytical tool used to capture data for corporate governance attributes and financial performance. Panel data is a type of longitudinal data that collects data for different time periods for different variables. This analysis is commonly used among the research individuals in recent days. Because the sample included data from many businesses and throughout time, the study applied panel data methods. Furthermore, panel data sets are superior at identifying and estimating effects that are simply not observable in cross- sectional or time-series data.
In the examination of the first objective of the study, descriptive statistics including measures of central tendencies and dispersions were calculated. In the achievement of the second and third objective, correlation, and panel regression analysis (including the Hausman test for identification of random and fixed effects) were done. Most researchers Regression method were used to analyze the data (Akodo & Moya, n.d.; Sameera, 2020). Regression analysis is a mathematical technique used to measure the influence of independent variables or variables on dependent variables. The data is analyzed using descriptive statistics and panel data regression testing is used to analyze the impact of corporate governance attributes on financial performance:
FP it = β0 +β1 BSize it+β2 BMF it+ β3 ACS it +β4 DO it +β5 OD it+ FSz it +LEV it +FA it
+FG it + e it
β0 = Constant
FP = Financial Performance Bsize = Board Size
BMF = Board Meeting Frequency ACS =Audit Committee Size
DO = Director Ownership OD = Outside Directorship FSz =Firm Size
LEV =Leverage FA = Firm Age
FG = Firm Growth ε = error term
i = Firm
t = Time
Mainly this chapter considers the methodology that has been used to execute the research study and to find the answers to the research questions and achieve the objectives. Research design is vital in the study to flow with the expected outcomes. The deductive method is used in the study because this study is based on predetermined hypotheses and testing those hypotheses with the data collected. This study belongs to the quantitative approach. The cross-sectional time horizon is used because only once the data is gathered from Annual report of the firm’s and the Colombo Stock Exchange publications. All the information about the population and the sampling techniques and the data collection is explained in this chapter. The methods of the data gathered and the data analysis are included and described in this chapter.