Does winning matter?: A study from 2007-2015 of the PBA champion and non-championship teams return on assets, return on equity and profit margin

• Main Authors: Collantes, Joshua Khyle, Laigo, Jerahmeel Isaiah, Sun, Daniel Hamid
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Rate of return > Philippines; Advertising > Rate of return > Philippines; Basketball > Economic aspects > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9876
• Institution: De La Salle University

The study is focused on the impact of the PBA Championship and the semi-final rankings on the involved companies. The years studied was from 2007-2015 as these gave the proponents the most available data which was gathered from the SEC and Bloomberg. The determinants that was used in this study to determine the impact of these rankings on their profitability were the return on assets, return on equity and profit margin since due to the research done by the proponents, these were the the variables that show the most impact on a company's profitability. Furthermore, this study is aimed to help the investors, companies and academe in order to find out whether there is a trend on the PBA rankings with regards to the changes to their profitability. The results showed that only the profit margin gained significant difference all throughout the years examined. The return on assets and return on equity was found to be insignificant. The proponents inferred that this was due to the impact on sales due to the extended advertisements that the PBA teams get whenever they engage in such activities such as joining and winning the PBA. Additionally, amongst the 4 ranks, the champion team showed the most significant change to their profit margin whereas the 1st to 3rd runner up, while it also shows a significant difference remains to have changed very little. In conclusion, the proponents determined that it is indeed important to win the PBA Championship as compared to just placing 2nd to 4th. Finally, the proponents wish the future researchers to conduct a study that examines more variables as the authors believe that winning the PBA Championship has an effect on other aspects of the company.