The impact of accounting methods on earnings quality of publicly listed banks in the Philippines
Date of Publication
2014
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Accountancy
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Adviser
Rodie C. Ferrer
Defense Panel Member
Nimpha M. Aquino
Herminigilda E. Salendrez
Abstract/Summary
To have a competitive advantage in the midst of the increasing competitive business environment, there must also exist a means for the investors to measure and assess carefully the performance and condition of companies in which they attempt to invest in. Hence, the relationship between the quality of the firms reported earnings and the investors ability to predict the future earnings of a firm has been thoroughly studied in a number of research papers. Martin (2002) concluded that conservative firms yield high quality earnings and consequently could be a good predictor of future earnings. This research was conducted using Feltham & Ohlson valuation model, as used in numerous studies, to determine the link and impact of the variables BVMV Ratio, Total Assets, Earnings Growth and Debt Ratio, to the quality of a firms earnings and the BVMV Ratio to the Return on Equity of the publicly listed banks in the Philippines.
The results of the research suggested that the BVMV Ratio, Total Assets, Earnings Growth and Debt Ratio were all significant to the quality of a firms earnings while there is no significant relationship that exists between BVMV Ratio and the Return on Equity of a firm. These results propose that investors could rely and use to their advantage the variables such as BVMV Ratio, Total Assets, Earnings Growth and Debt Ratio to predict a firms future earnings.
Abstract Format
html
Language
English
Format
Accession Number
TU18852
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
v, 122 leaves : illustrations (some colored) ; 28 cm. + ; 1 computer optical disc.
Recommended Citation
Anol, M. C., Rances, M. S., San Sebastian, R. C., & Sena, A. U. (2014). The impact of accounting methods on earnings quality of publicly listed banks in the Philippines. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/10929