The effect of corporate governance and ownership structure variables on the return on assets of selected publicly listed firms in the Philippines for the period 2005-2008
Date of Publication
2010
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Commerce Major in Management of Financial Institutions
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Edralin C. Lim
Defense Panel Chair
Junette A. Perez
Defense Panel Member
Ruben Carlo O. Asuncion
Madeleine V. Balane
Abstract/Summary
The study determined the degree of the effect of corporate governance and ownership structure on the profitability of publicly listed firms in the Philippines for the period 2005-2008. To measure corporate governance, the researchers used board size, board composition and CEO duality. For the ownership structure variables, foreign ownership and family ownership were used. The data were collected from the annual reports of the Philippine Stock Exchange, as well as the website of the Securities and Exchange Commission. The researchers found that none of the corporate governance variables had a significant relationship with ROA. Likewise, foreign ownership had a significant and positive effect on ROA, while family ownership had a negative but insignificant relationship with ROA. This can be attributed to firms with foreign owners having more access to international standards of good business practice. For this control variables, size and debt both had a negative and significant relationship with ROA. The inverse relationship between size and ROA can be explained by the tendency of larger firms to understate their earnings for tax purposes, the higher profit rate of smaller firms, and the greater costs and difficulty in managing larger firms. Likewise, firms with higher debt-to-equity ratios are more prone to financial downfalls, since these firms are less likely to pay financial obligations on time.
Abstract Format
html
Language
English
Format
Accession Number
TU21653
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
91 leaves : illustrations
Keywords
Corporate governance--Philippines; Business enterprises--Philippines
Recommended Citation
Afable, J. M., Chan, K. S., De Galicia, M., & Mirandilla, J. M. (2010). The effect of corporate governance and ownership structure variables on the return on assets of selected publicly listed firms in the Philippines for the period 2005-2008. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18460
