The impact of corporate governance compliance to the operating performance of selected listed companies in the Philippines for the period 2007-2010

• Main Authors: Bernardo, Melanie H., Dy, Adrian John G., Edralin, Plinky Mae A., Gatmaitan, Timothy Raymond M.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Corporate governance > Philippines; Financial institutions > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18410
• Institution: De La Salle University

The study examines the impact of corporate governance compliance to operating performance of selected listed companies in the Philippines for the period 2007-2010, as represented by the corporate governance ratings released by the Institute of Corporate Directors (ICD) and the financial ratios, return on assets (ROA), return on equity (ROE), and net profit margin (NPM) of the selected companies. The relation between the variables through a cross-sectional basis and a year-by-year analysis was examined. Based on the results, we were able to determine an insignificant relation between corporate governance compliance and operating performance due to externalities or external factors and industry behaviors. It was also noted that since a company's target market is more sensitive to the firm's product pricing and quality rather than the corporate governance mechanisms, corporate governance is a weak variable to assess performance.