Corporate governance: Block ownerships' identity and its effect on the performance of publicly listed companies in the Philippines

• Main Authors: Ignacio, Luigi Francisco P., Matsuda, Takashi Michael M., Naraval, Justine Marrion S., Villanueva, Carl Francis
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Corporate governance > Philippines; Financial institutions > Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7152
• Institution: De La Salle University

The proponents of the paper investigate the relationship between block ownerships' identity and the performance of publicly listed companies in the Philippines. The main research question addressed is, whether the internal mechanism of corporate governance, as represented by the identity of the shareholder, has a relationship with the economic performance of the publicly listed companies in the Philippines, as represented by the ROA and ROE. The categories of identities include corporate, individual, director, institutional, foreign, state, and others. Through a convenience sampling design, the study utilized a sample of 30 companies constituting the Philippine Stock Exchange Composite index (2015) for a period of 5 years from 2010 to 2014. In order to analyze the data, the paper employed an explanatory, descriptive, and correlational research design to the study of ownership structure in the Philippines. With the application of statistical tools, namely, descriptive statistics, Pearson's product-moment correlation coefficient, and multiple regression analysis, it was found that, in the Philippines, the identities that influence firm performance positively are corporate, institutional, and foreign ownership. The results also found a highly significant inverse correlation between director ownership and firm performance. The main contribution of this paper is the establishment of an existing relationship between the identity of block ownership and firm performance of publicly listed companies in an emerging market.