Philippine Management Review

Who Gets a Seat at the Table? The Role of Director Characteristics in Philippine Board Committee Membership

Regina Lizares — 2025-06-30

This study investigates the influence of directors’ characteristics on committee membership in Philippine publicly listed corporations (PLCs). This study analyzes a sample of 2,573 directors from 282 active PLCs as of the end of 2023. The findings reveal that director independence and committee linkage are significant predictors of committee membership. Committee membership patterns vary based on the committee’s role and regulatory recommendations. The audit, corporate governance, risk, and related party transaction committees, as recommended by the Philippines Code of Corporate Governance for PLC,
prioritize non-executive directors with shorter tenure. In contrast, compensation, nomination, and executive committees favor longer tenured executive directors. A novel finding is the curvilinear relationship between committee linkage and committee membership, suggesting that moderate levels of committee involvement are optimal. This study enhances the understanding of factors shaping committee membership in Philippine PLCs, offering valuable insights for policymakers, boards, and investors.

A Conjoint Approach to Analyzing Factors Affecting Motorcycle Taxi Drivers' Company Choice

Chayana Jaishree Alcazar — 2025-06-30

This study examined the factors that affect job satisfaction of employees in the Philippine gig economy, particularly the ride-hailing industry. Factors were identified through a pilot study, which involved in-depth interviews with 15 MC Taxi drivers. The preliminary investigation revealed that Commission Rate, Benefits, and Incentive Scheme are the most influential factors. A conjoint analysis model was utilized to measure the level of satisfaction that each factor
contributes. Sixty (60) motorcycle taxi drivers, employed by a bona fide ride-hailing company in the Philippines, were asked to select their two most preferred job profiles among nine (9) job profiles in a table format through either Structured Digital Questionnaire or Semi-Structured Interview. Conjoint analysis was performed on the job profile ratings, part-worth utility, and relative attribute importance scores were generated. Results of the study supported the claim that among the identified factors, higher compensation in the form of lower deduction rates was the most influential in increasing job satisfaction. The provision of greater benefits was found to be the second most influential factor, while incentives were perceived as the least influential factor.

Sustainability Literacy in Indonesian Higher Education: An Interrelationship Hierarchical Model

Viqi Ardaniah — 2025-06-30

Sustainability literacy motivates higher education institutions to perform sustainable practices; however, improving sustainability literacy through the resilience of the education system and adaptive learning technology has not been sufficiently addressed in previous studies. This study aims to identify the attributes of sustainability literacy in Indonesian higher education. This study offers a valid set of seven aspects and twenty-two criteria implementing a bibliometric analysis and the fuzzy Delphi method. A fuzzy decision-making trial and evaluation (FDEMATEL) is employed to analyze the validated attributes and to determine interrelationships among the attributes. This procedure allows qualitative information to be converted into numerical data and a diagram indicating the attribute interrelationship. The results of this study revealed that adaptive learning technology, resilience of the education system, sustainability-focused courses, and sustainability innovation are the causal attributes of sustainability literacy. Financial literacy, sustainability consciousness, and global citizenship curriculum are the affected attributes of sustainability literacy. Some vital criteria for improving sustainability literacy in HEs include educational innovation, educational
technology, and resilience in HE. Hence, this study provides theoretical and managerial contributions based on the proposed attributes.

Financing Pathways for Entrepreneurs in the Philippines: A Big Data Analysis using DSLOGIT Regression

Liezel Cruz — 2025-06-30

As echoed by many other authors and experts, micro, small, and medium enterprises (MSMEs) are crucial for economic development. This study uses the 2014 Consumer Finance Survey conducted by the Bangko Sentral ng Pilipinas and a double-selection lasso logistic regression model (DSLOGIT) to identify factors influencing the likelihood of starting and operating single proprietorships in the Philippines. The findings highlight the significant role of various financing sources and individual characteristics. Microfinancing is positively correlated with single proprietorship, while loans from commercial banks, cooperatives, and close relatives negatively affect business ownership. These insights can help policymakers design more effective support mechanisms for MSMEs.

The Effects of the Pandemic on the Listed Philippine Banks’ Financials

Arthur Cayanan — 2025-06-30

This study examined the effects of the pandemic on the operating performance and financial position of listed Philippine banks. Their major sources of revenues, interest rates on loans and deposit liabilities, impairment losses, and operating expenses in 2020 and 2021 were evaluated vis-à-vis the five-year data prior to the COVID-19 outbreak. The impact of the pandemic on the banks’ asset mix, loans to deposit ratios (LDR), liquidity coverage ratios (LCR), net stable funding ratios (NSFR), and capital adequacy ratios (CAR) were likewise assessed over the same period. While the banks were adversely affected by the pandemic, the impact
was not as severe as the other industries. Because of the banks’ aversion to lending and borrowers’ higher demand for credit facilities during the period, the LDRs went down, but the average net interest margins went up in 2020. It is also interesting to note that the averages of the banks’ capital adequacy ratios were higher during the pandemic years.

Impact of Changes in the Philippines’ Credit Ratings on Stock Prices of Listed Real Estate Companies in the Philippines

Melissa Carbonell — 2025-06-30

This study utilizes event study methodology to evaluate the impact of the Philippines’ credit rating changes on listed real estate companies. Key rating events and corresponding stock price reactions were analyzed in 34 firms from the 1997 to 2023 dataset. The examination analyzes market reaction by combining cumulative average abnormal returns (CAARs) and t-statistics during 3, 21, 41, and 61-day events. The analysis of multiple event windows demonstrates that stock markets deliver stronger and more enduring negative reactions to downgrades than positive reactions to upgrades. The research result supports the loss aversion theory since investors display greater intensity when processing negative information. Furthermore, the research, through the lens of Efficient Market Hypothesis (EMH) and Signaling Theory, shows that although stock prices should immediately adapt to new information, stocks produce significant CAARs mainly during extended event windows, suggesting that markets take time to incorporate information fully. The market response begins slowly when downgrades occur but becomes increasingly intense. Investor reactions to credit rating changes show the greatest strength when these actions occur during market volatility. The research yields essential knowledge about how investors respond to the news while demonstrating the duration factors active in the Philippine real estate market.