The Impact of Board

Characteristics on the
Capital Returns of Publicly
Listed Entities in the
Food, Beverage, and
Tobacco Industry in the
Philippines for the Year
2014

promote proper corporate

governance
ASEAN Capital Markets Forum
ASEAN Economic Integration 2015
top 50 publicly listed companies in the
ASEAN
Food, Beverage and Tobacco

Subsector of the Industry

sin tax reform
measurecompanies
11 Philippine
largest portion of the subsidies
2015 ASEAN Corporate
2012
Governance
Conference
Increased standards
Php 8 billion
of living

selected publicly-listed entities in

the Food, Beverage and Tobacco
Industry
Statement of the Problem
correlation
of
the
board
a framework for indicators of optimal
characteristics
and
the
capital
board structure that generates
returns profitable returns

Statement of the Hypothesis

good corporate
focus
governance
practices
Board
of
Directors
optimizes
stakeholder value
Significance of the Study
final
responsibility
for
help
promote
good
aid future researches
exercising
oversight
corporate
governance
economic progress
function
over
GDP
practices
management

the system by which

organizations are
directed and controlled

major cause of
failure of many
well-performing
companies

attributes to the low

level

of development
of developing nations

CEO
duality

Stockholding
interest
Board
composition
Presence of an
Board
audit
size
committee

Board Characteristics in relation to Financial

Performance

Conflicting views on
impact of board
characteristics on firm
performance

CEO Duality and Financial

Performance

Conflicting
results..?

Board Size
and
Financial
Performanc

Board
Compositio
n and
Financial

Inside

Or
directors
outside
?

Stockholding
Interest and
Financial
Performance

Audit
Committee
and Financial
Performance

Market Performance
Measures

Non-MarketOriented Measures

Return
on
Equity

Net Income /
Shareholder'
s Equity *
100

Theoretic
al
Framewor
k

Conceptua
l
Framework

RESEARCH
METHODOLOGY

current status of the subjects

Descriptive Research Design
process of collecting data
test hypotheses

Descriptive Research Design

Qualitative

Quantitative

Independent Variables
CEO duality
Board size
Board composition
Presence of an audit committee
Board's stockholding interest

Dependent Variable

Firms
Capital
Returns

Research Environment
2014 Annual Reports

Board Characteristics- Corporate

Governance
Capital Returns- Financial Statements

Minutes of the Meeting

General Information Sheet
Manual of Corporate Governance

Sampling Selection

Board Characteristics
Company website

2014 Annual Reports

Capital Returns
Net Income/ Shareholders Equity
ROE

Correlation Coefficient
Pearsons r or Pearson Product
Moment correlation
Multiple Regression Analysis

ROEt = o + 1CDt + 2BSt +

3BCt + 4ACt + 5BIt +et

scatter plot graph

THE IMPACT OF BOARD

CHARACTERISTICS ON THE CAPITAL
RETURNS OF PUBLICLY LISTED
ENTITIES IN THE FOOD, BEVERAGE,
AND TOBACCO INDUSTRY IN THE
PHILIPPINES FOR THE YEAR 2014

| CAMASURA | ESCALANTE | PANARES |