The impact of corporate governance on the performance of Philippine government-owned and/or controlled corporations for the period 2018-2021

• Main Authors: Aurello, Alessandra Romana J., Chua, Claire Madison C., Ong, Dana Abigail L.
• Format: text
• Language: English
• Published: Animo Repository 2023
• Subjects: Corporate governance—Philippines; Government corporations—Philipppines; Accounting; Business Administration, Management, and Operations; Business Law, Public Responsibility, and Ethics
• Online Access: https://animorepository.dlsu.edu.ph/etdb_acc/56; https://animorepository.dlsu.edu.ph/context/etdb_acc/article/1139/viewcontent/The_Impact_of_Corporate_Governance_on_the_Performance_of_Philippi.pdf
• Institution: De La Salle University

Government-owned and/or controlled corporations (GOCCs) play a vital role in national and societal development, so maximizing and leveraging their ability to effectively serve the Filipino public is imperative. While existing theoretical and legal frameworks recognize the connection between corporate governance (CG) and GOCC performance, there is a lack of Philippine research on this matter, and comprehensive measures of CG in literature are scarce. Additionally, existing studies have analyzed state-owned enterprises primarily from a financial perspective, disregarding the nuances associated with their social objectives. To address these research gaps, this paper examined the impact of CG and its three components—stakeholder relationships, disclosure and transparency, and responsibilities of the board—on the performance of Philippine GOCCs from 2018 to 2021. The study utilized GCG-validated scorecards to quantify CG and performance, incorporating financial and non-financial indicators for performance assessment. The study also examined the government's approach to using management accounting tools like the balanced scorecard to measure and improve GOCC performance and how corporate governance practices could have enhanced these tools. A causal research design was implemented, encompassing 44 GOCCs across six industries in the sample. Upon application of panel data analysis, the findings indicated that corporate governance and its components do not significantly impact the performance of GOCCs. The paper recommends strengthening the links between the CG scorecard and the performance scorecard as intended by the benchmarked frameworks and other improvements to benefit stakeholders.