A study on the relationship between firm performance and mission statement communication of listed non-life insurance companies in Metro Manila as perceived by middle management

• Main Authors: Delos Reyes, Gizelle A., Mayo, Maria Theresa M., Nicolas, Melanie M., Sese, Aira Meriz P.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Insurance companies > Philippines; Mission statements > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18455
• Institution: De La Salle University

Mission statements have always been perceived as an essential element in running a company or organization. However, despite the immense popularity of this concept, there is hardly any empirical study in the literature regarding the impact of communicating the mission statement to the performance of the firm. It is in relation to this that the present study was undertaken to investigate the relationship of the impact of mission statement communication on the performance of non-life insurance firms in the Philippines as perceived by middle management. Structured survey questionnaires were utilized in this study and distributed to operations managers, underwriting managers, or adminsitration & claim managers, representing the middle management of target non-life insurance companies in the Philippines. Mission statement communication was represented by five variables namely: strength of mission statement communication, commitment of leaders in selling the mission statement, satisfaction with mission statement communication efforts, credibility of mission sellers, and adequacy of the mission statement content. In contrast, firm performance was measured by ROA, ROE, and two perceptual items-- premiums and assets. The multiple regression analysis revealed that only the adequacy of mission statement content plays an important role as a good predictor of a firms' performance.