An inter-industry analysis on the impact of level of compliance with Philippine financial reporting standards for small and medium-sized enterprises on firm's financial ratios

• Main Authors: Joaquin, Ana Teresa B., Manansala, Joyce Maxine P., Patingo, Eirene Joy V., Vicente, Mary Antonette D.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Accounting > Standards > Philippines; Financial statements > Standards > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6121
• Institution: De La Salle University

This study sought to assess and understand the influence of small and medium-sized enterprises (SMEs) level of compliance with the Philippine Financial Reporting Standards (PFRS) for SMEs on their financial ratios, and indirectly, on their level of competitiveness. It utilized financial performance measures, such as financial ratios based from financial statement information to fairly gauge the level of profitability of the SMEs. Additionally, it analyzed the impact of other firm characteristics on the entities performance. This paper observed companies from the retail, accommodation and food services, transportation and semiconductor manufacturing industries in the Philippines. These entities used full PFRS from 2007 to 2009, implemented the PFRS for SMEs starting January 1, 2010 and have complete information for the period 20072012. Using Paired T-tests and panel regression analysis, results showed that degree of compliance has no significant effect on financial performance, except for certain debt management, asset management and profitability ratios of certain industries. Furthermore, years of existence and asset size have significant relationships with some key financial ratios used.