The effect of performance measures on the achievement of goals of selected Philippine companies

• Main Authors: Castillo, Mikaela Marie D., Iguchi, Masako L., Ilmedo, Stephanie Jes M., Ng, Brent Matthew O.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Corporations > Philippines > Finance; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6818
• Institution: De La Salle University

This purpose of this study is to determine the effect of the different financial and non-financial performance measures in achieving company goals. Performance measures were used as independent variables, while dependent variables consisted of the different company goals: profitability, efficiency, growth, liquidity, and operational. Meanwhile, the control variables used were (1) system maturity, (2) organizational size, and (3) economy. Fifteen (15) Philippine companies coming from the information and communication sector were used as respondents. Interviews and surveys were conducted, together with a six-year financial statement analysis. After which, two statistical methods were employed: factor analysis and multiple regression. The objective of factor analysis is to group together variables which are similar in nature and to limit the number of variables to be further examined. From this, multiple regression was performed in order to ascertain the degree in which the performance measures have a significant effect on the achievement of company goals. Based on the results of the study, it was found that the selected financial and non-financial performance measures have a significant effect on all of the five company goals. It is, therefore, important for businesses to realize the value of how the use of these performance measures would potentially help them in managing their operations, thus resulting in more effective and efficient execution of strategies that will, in turn, provide competitive advantage among other firms. It is recommended for future researchers to delve into further studies with the involvement of a wider sample size or a different set of respondent companies coming from another type of industry with the inclusion of more types of performance measures, most especially those which are non-financial in nature.