Now that the research framework was already presented which helps us structure and

plan our research study, its time present to you the right approach and methods that will
be used and applied in this research proposal
The researcher’s overall strategy is to integrate the different components of this study in
a coherent and logical way; thus, this study is quantitative and explanatory in nature as
it is designed to concentrate on the impact of the TRAIN law which is our independent
variable to the financial performance of the three leading petroleum companies in the
Philippines which is the Petron, Shell and Phoenix which is on the other hand our
dependent variable. It is also non-experimental in nature as it will be conducted without
manipulating the independent variable. Lastly the timeframe employed in this study is
cross sectional design as it will analyze financial data over a particular four-year period
from 2016-2019.
As we go through the methods identifying our participants and choosing the right
sampling method will help us gather the essential data needed in this research. For this
study, sampling method is not applicable since the data that we will be gathering is
limited to the secondary sources online. Our chosen participants are Petron, Shell, and
Phoenix which in fact the top performing and leading petroleum companies in the
Philippines for the years 2016-2019.
Next for the research instruments, the study will be using secondary data coming from
the PSE Edge and companies’ official websites in order for us to gather the audited
financial statements such as the balance sheet and statement of comprehensive
income to determine the financial performance of the petroleum companies using a
certain measure that will be discuss in the data analysis.
For the data collection, as I said the researchers are limited only to the secondary
sources online so it will be crucial for us to gather the necessary audited financial
statement which will be our input on the data collection procedure, it will undergo to the
process of horizontal and financial ratio analysis and the output will result in determining
the impact of TRAIN law to the financial performance of the leading petroleum
companies in the Philippines.
Now that we gathered all the necessary data, its time to discuss the method in
analyzing them. For our data analysis we will be using horizontal and financial ratio
analysis. In case you are wondering why we just choose only horizontal instead of
including the vertical analysis, the reason for that is vertical focuses on the numbers in a
single reporting period while horizontal on the other hand focuses on the numbers on a
multiple reporting period.
Lastly, for the ethical considerations, the data gathered were treated with full
confidentiality, the conclusions were drawn based on statistical analysis which have
been discussed early on and of course the research paper is properly cited and plag
scanned.
And that would be all for our research methods which will wrap up our whole study
entitled, A COMPARATIVE ANALYSIS ON THE IMPOSITION OF TRAIN LAW (RA
10963) TO THE FINANCIAL PERFORMANCE OF LEADING PETROELUM
COMPANIES FROM 2016-2019
Explanatory research is a research method that explores why something occurs when
limited information is available. It can help you increase your understanding of a given
topic, ascertain how or why a particular phenomenon is occurring, and predict future
occurrences.
DOE Fiscal Year Reports – choosing participants
Horizontal Analysis
Net Profit Margin – profitability ratio / expresses the profit of a business based on nets
sales
Operating Profit Margin – profitability / how companies operations affect profit
Return on Investment – profitability / profitability of a stock investment
Investing in stocks means buying shares of ownership in a public company
Return on SHE – profitability / amount of money returned to the shareholders in
proportion of their capital
Earnings per share – profitability / this was use by the investors to determine if the
company is a good investment

The RA 10963 TRAIN aims to make the Philippine Tax System simpler, fairer, and more
efficient to promote investments, create jobs and reduce poverty.
EXCISE TAX
ALCOHOL PRODUCTS. PARTICULARS. ...
B. TOBACCO PRODUCTS. PARTICULARS. ...
C. PETROLEUM PRODUCTS. PRODUCT TYPE. ...
D. MINERALS AND MINERAL PRODUCTS. PRODUCT TYPE. ...
E. AUTOMOBILES AND OTHER MOTOR VEHICLES. ...
G. SWEETENED BEVERAGES (RA 10963-TRAIN Law) ...
H. INVASIVE COSMETIC PROCEDURES - (RA 10963-TRAIN Law) ...
A. ALCOHOLPRODUCTS.
WHY PETROLEUM? As we all know excise tax is a tax on the production sale or
consumption of the commodity and it Is required on specific goods such as alcohol,
tobacco, automobiles and lastly the petroleum products. We choose petroleum
companies because petroleum runs the lives of the people and the economy. It
generates electricity and provide transportation. If the price on the fuel is high, the
prices of the basic commodities will increase to as there is a domino effect between
them.
WHY THESE FINANCIAL RATIOS? In business, there are what so called Financial
Key Performance Indicators these are used to track measure and analyze the financial
performance of the company. These performance indicators fall on a variety of category
and one of them is the profitability.
We choose net profit margin over gross profit margin for the reason that gross profit
does not include operating expenses, interest or taxes. So it wouldn’t be relevant
in our study since this is study is focus on the RA 10963 or the TRAIN law which
imposes additional excise tax on petroleum products.
FACTORS As a researcher we are aware on such factors that would affect our
research proposal given that we are talking about petroleum company and its
financial performance, the factor such as global oil price and inflation are
inevitable and they already have the measure to control such but given in this
kind of Tax Reform which is one of the biggest amendments on the tax on the
Philippines we believe that it’s impact to the financial performance of the
petroleum companies in the Philippine would be worth it.
2.5 per liter 2018 //// 2 pesos 2019
2016-2017 4.35 liter per excise tax
YEARS We chose this year to create a balance in analyzing our gathered data
as the years 2016 and 2017 is the year before train law took effect and the latter
years are the time where train law progress. We want to see the difference in
numbers that’s why we use certain financial ratios and horizontal analysis in
analyzing them.
CONTINUITY. We would like to continue our research proposal by generating
the results from our data analysis and create a recommendation and conclusion
in this study on how train law affected the financial performance of the three
leading petroleum companies using certain key performance measures such as
the financial ratio and horizontal analysis
This study invests to examine up to what extent does the imposition of higher excise
taxes could affect the financial operations of leading provider companies. Consequently,
having knowledge to such will create a wide array of awareness to consumers for them
to take necessary actions in response to these changes
As described in Kenton (2021), financial performance is a subjective measure of how
well a firm can use assets from its primary mode of business and generate revenues. It
is a complete evaluation of a company’s overall standing in categories such as assets,
liabilities, equity, expenses, revenue, and overall profitability.