Determinants of firm value investment among publicly listed companies in the Philippines

• Main Authors: Aurelio, Mikaela Armina L., Chua, Merill Pamela Stephanie S., Mamac, Mariel Ernestine M., Ong, Keshia R.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10987
• Institution: De La Salle University

With the adoption of more stringent auditing regulations through the Sarbanes-Oxley act (SOX), publicly listed companies have been subjected to more restrictions and strict compliance in line with establishing their financial statements. Thus, higher audit fees have been incurred and this has affected the way investors perceive the companies, in which case it could gradually affect of debt and equity pricing. This research paper aims to bridge the gap between the effect governance fees, comprising of total audit and non-audit fees, together with other control variables, to debt and equity pricing of publicly listed firms in the Philippines. Furthermore, the Arellano-Bond dynamic panel regression model was employed in order to investigate the effects of governance fees to the behavior of debt and equity pricing, represented by market capitalization and yield spread, respectively. Results indicated that governance fees present positive indicator of market capitalization, while it has a weak predictability with yield spread.