Revista de Economía y Negocios

Compliance to Corporate Governance among Publicly-listed Companies in the Philippines

Abstract

Joel B Tan*

In the present corporate world, code of governance plays a major role in assessing a company's strengths and weaknesses. A company which implements a sound corporate code of governance tends to maximize the quality of its assets and enterprise value with respect to its shareholders. Such company also gives the impression of transparency and fairness in dealing to all stakeholders. The study randomly selected and downloaded thirty publicly-listed companies with annual reports in 2012 in the Philippine Stock Exchange (PSE) to answer the research instruments specially developed for the study. The paper used descriptive-quantitative design. Frequency and percentage method and ANOVA were used to determine the significant difference between the independent and dependent variables. The results revealed that companies’ characteristics have no significant difference and did not influence the level of compliance to corporate governance among the respondents. Nevertheless, most businesses that are publicly-listed have high compliance to the requirements of the Securities of Exchange and Commission (SEC) particularly to the compliance, communication and reportorial processes in order to operate efficiently, to attract potential investors and to disclose information about security risks and associated events to protect the interest of the shareholders.