Background of the Study

Megaworld Corporation is top three (3) in the real estate companies in the Philippines.
The corporation, together with subsidiaries, they develop, markets, and leases real
estate properties in the Philippines. They develop community townships that integrate
residential, commercial, educational /training, leisure and entertainment components.
The real estate includes of residential condominium units, subdivision lots, and
townhouses, as well as office projects and retail spaces. They also leases office and
retail offices, manages hotel operations and provides project design, construction, and
property management services as well as engages in cinema, business process
outsourcing, educational, facilities provider, and maintenance activities. The company
was founded in 1989 and their main office is in Makati City, the Philippines. Megaworld
Corporation is a subsidiary of Alliance Global Group, Inc. (Bloomberg Business).
In annual report of Megaworld last 2013 they mentioned that during 2008, the
companys board of directors approved the repurchase of shares of up to two (2) billion
pesos worth of common shares in the open market at prevailing market prices. The
funds used for the repurchases were taken from internally-generated funds. It was also
stated in their annual report that their treasury shares are indicated at the cost of reacquiring such shares and are deducted from equity attributable to the companys
equity holders until the shares are cancelled, reissued or disposed of.