Document study of patterns and trends of company closures in the Philippines 1992-2001

• Main Authors: Aquino, Frances Trina, Palis, George, Soliman, Jose Paulo
• Format: text
• Language: English
• Published: Animo Repository 2002
• Subjects: Other Social and Behavioral Sciences
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17882
• Institution: De La Salle University

This study aimed to find out the extent to which companies closed from 1992-2001. Primarily this study identified the different socio-economic, socio-political conditions and labor issues prevailing during the years of 1992-2001 in relation to frequency of company closure. The data gathered came from different government agencies. Such agencies include Department of Labor and Employment (DOLE). Bureau of Labor Employment Statistics (BLES) and Department of Trade and Industry (DTI). Data that were gathered were that of extent of company closures. Closures regarding company size, sectors and reasons of closure were analyzed using the T-test. Other data were those of the Gross Domestic Product for the years 1992 to 2001 for the socio-economic condition of the country, historical documents and writings for the socio-political conditions, and finally statistics regarding labor related issues present during those years. There was an indirect relationship between company closures and the GDP of the country, as found by this study, during the times that the GDP was increasing, there was also an observed increase in terms of closures, while during the years there was a decrease in the GDP, the frequency of company closure was also decreasing. In terms of socio-political conditions, the study found that there was also an indirect relation for during those times when there was political stability in the country, the frequency of company closure was increasing and the times of political turmoil showed a decrease in the closures of companies. In terms of labor related issues, there was a direct relationship observed, the more labor issues present observed, the more companies were closing down, there were similarities in the increase and decrease of both the frequency of labor related issues and company closures. From 1992 to 2001 company closures totaled to 13,153 business organizations. With regards to the extent of company closures, the study found that there were differences in terms of the observed frequencies of company closures when it comes to differences with company size, and sector. Between company sizes, the study found that Small-Medium Enterprises comprised most of the total company closures, and in terms of sector it was the Industrial sector and the Service sector that posted the most frequencies of closures.