The Relationship between the level of conformity with control objective for information and related technology (COBiT) and the traditional measures of shareholder value: A study on selected life insurance companies in the Philippines

Added Title

COBiT and shareholder value.

Date of Publication

2009

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

Florenz C. Tugas

Defense Panel Member

Cynhtia P. Cudia
Arnel Onesimo O. Uy

Abstract/Summary

Information technology (I.T.) plays a vital role in facilitating organizations towards achieving and extending its organizational goals. It is imperative to ensure that the performance of these I.T. is in accordance with the standards to obtain proper service and acquire full advantage of its potential benefits. The primary goal of this paper is to assess the level of conformity with Control Objectives for Information and Related Technology (COBiT) in governing information technology practices of selected life insurance companies in the Philippines and to determine its relationship with the traditional measures of shareholder value.

The researchers employed a two-stage research design. A survey research design was used to assess the level of conformity of the selected life insurance companies with the COBiT framework. Questionnaires were given to the insurance companies in a form of a checklist. After the survey research design, an exploratory research design was used. A 31-company industry was the population of the study. However, not all these companies participated and some did not qualify for inclusion. Convenience sampling resulted to 11 respondents for the first research design and 9 for the second research design after eliminating the outliers. A weighted average approach was used in computing the level of maturity of the companies. Pearson Product Moment Correlation (PPMC) Analyses were performed to analyze the relationship between three sets of variables. Scatter diagrams were made and regression lines were drawn.

The average level of maturity of the selected insurance companies was computed to be 2.70. The life insurance companies, on average, were not complying strictly with the COBiT framework. Some companies obtained scores way above the mean but there are also companies with scores way below the mean thus, dragging the average level down. The level of maturity per generic process was likewise computed as well as the level of maturity per domain. Scores were particularly high in the Acquire and Implement Domain. The PPMC Analyses showed weak relationships among the three sets of variables. Its level of maturity did not affect the shareholder value of a company.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU15988

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

162 leaves : ill. ; 28 cm.

Keywords

Information technology--Philippines; Auditing--Philippines; Corporations--Valuation--Philippines; Insurance companies--Philippines

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