Factors affecting the internal controls of family owned businesses in Binondo

• Main Authors: Kim, Myeong Hyeon, Lu, Lingyan, Naguit, Ana Gianelli S., Sebollena, Bianca Joy S.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Family-owned business enterprises > Philippines > Binondo (Manila)
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7579
• Institution: De La Salle University

All the businesses nowadays have their respective visions and missions set out for their organization. With these, all of them have set goals and objectives in order to achieve these mission and vision. And for them to be successful, one must have an effective and efficient control over their business, more especially on the employees working for the company. Because of this, internal control implementation is very crucial to every organization and conducting this study would be very beneficial to a lot of stakeholders, especially the businessmen engaged and prospective entrepreneurs. The scope of the study encompasses the business establishments in Binondo, Manila that are managed and established by families. The researchers seek to identify the relationship of the independent factors, which are categorized into three: organizational structure, employee involvement and family involvement, with the effectiveness of internal control of family owned businesses. The research procedure conducted was in the form of survey questionnaires. There would be a separate set of survey questionnaires for the management and for the employees. For the management, most of the questions focus on their traditions, the family involvement in their firm, the performance, status and information about their business, their implemented internal control and any matters related to these topics. The second set of survey questions answered by the employees focuses on the relationship of the employees to the business, and the management. Since the study uses the causal design to address the problem of this research paper, the researchers first used the Cronbachs alpha to measure the consistency and relation a set of items are in a group in the survey before using the binary logistic regression to run the data gathered, and the results thereof were analyzed and interpreted accordingly to the objective of the study.