Family control and financial reporting quality in the Philippines: An empirical analysis

• Main Authors: Del Mundo, Daniel Jan E., Flordeliza, Henry C., Kho, Evann Sanders F., Limlingan, Ricky F.
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Corporations > Accounting; Corporation reports > Philippines; Financial statements > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_honors/283
• Institution: De La Salle University

Family-run corporations dominate the stock market and several industries in terms of performance and financial viability. These family corporate groups also maintain diverse portfolios of companies that bring together the largest contributors to value. Interestingly, previous studies concluded that some firms of these business groups do not possess high quality disclosures relevant to users of financial information. In the case of the Philippines, there is still no established relationship between family groups affiliation and disclosure quality. Employing univariate and multivariate regression analysis on data from 142 listed firms in the Philippines Stock Exchan (PSE) from 2005 to 2007, the proponents found out, that there is a positive nonlinear effect between family ownership and disclosure quality. This suggests the need for further intervention from management, external auditors and regulatory bodies in order to improve disclosure quality.