Corporate governance : SMEs experience in Metro Cebu, Philippines / Challoner A. Matero and Marie Jane J. Matero

Matero, Challoner A. and Matero, Marie Jane J. (2011) Corporate governance : SMEs experience in Metro Cebu, Philippines / Challoner A. Matero and Marie Jane J. Matero. Journal of Administrative Science, 8 (2). pp. 69-82. ISSN 1675-1302

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Abstract

The paper is based on the study on the perception and practices of SMEs in Metro Cebu on corporate governance, and tested a theory that size, company specifics, and corporate governance practices influenced compliance with the Code of Corporate Governance. The problem was answered with a descriptive research and inferential
design utilizing convenience sampling of 30 SMEs-board members using questionnaire, interview, and analysis of audited financial statements. Perception on corporate governance of SMEs in Metro Cebu highly complied with the Code of Corporate Governance. However, practices on corporate governance disclosed gaps such as no independent board, no formalized written code of conduct,
pre-audit task of internal auditor, and high debt ratio. Code emphasis on board governance, supply of information, accountability and audit, stockholders’ rights and protection of minority stockholders, evaluation systems, disclosure and transparency, and commitment to corporate governance differ significantly between SMEs. The theory was confirmed that size, company specifics, and corporate
governance practices influenced compliance with the Code of Corporate Governance. Recommendations were offered to help SMEs champion corporate governance. A Code of Corporate Governance for SMEs must be developed; setting-up corporate governance structure should consider the size of assets of SMEs as well as the costs and benefits; Securities and Exchange Commission, in coordination with industry associations, shall initiate orientation requirement of new BODs, continuing education of current BODs,

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Item Type: Article
Creators:
Creators
Email
Matero, Challoner A.
camatero@usc.edu.ph
Matero, Marie Jane J.
mjanejmatero@yahoo.com
Subjects: H Social Sciences > HB Economic Theory. Demography > Business cycles. Economic fluctuations. Economic indicators
H Social Sciences > HB Economic Theory. Demography > Business cycles. Economic fluctuations. Economic indicators > Economic forecasting
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Administrative Science and Policy Studies
Journal or Publication Title: Journal of Administrative Science
UiTM Journal Collections: UiTM Journal > Journal of Administrative Science (JAS)
ISSN: 1675-1302
Volume: 8
Number: 2
Page Range: pp. 69-82
Official URL: https://jas.uitm.edu.my/index.php/14-archieve-2015...
Item ID: 43781
Uncontrolled Keywords: corporate governance; SME; stockholder; practices; Phillippines.
URI: https://ir.uitm.edu.my/id/eprint/43781

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43781

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