Social and Behavioral Sciences Commons^™

The Estimation Of Production Functions With Monetary Values, Jesus Felipe, John Mccombie, Aashish Mehta

Angelo King Institute for Economic and Business Studies (AKI)

For decades, the literature on the estimation of production functions has focused on the elimination of endogeneity biases through different estimation procedures to obtain the correct factor elasticities and other relevant parameters. Theoretical discussions of the problem correctly assume that production functions are relationships among physical inputs and output. However, in practice, they are most often estimated using deflated monetary values for output (value added or gross output) and capital. This introduces two additional problems—an errors-invariables problem, and a tendency to recover the factor shares in value added instead of their elasticities. The latter problem derives from the fact that …

The Relationship Of Esg Component Scores And Creditworthiness On Publicly Listed Firms In The Asean-5 Countries, Shayne Jefferson Alvarez, Charlene Ashley C. Cu, Lance L. Lamberte, Patrick Henry G. Yap, Paulynne J. Castillo, Roberto B. Raymundo, Joel Q. Tanchuco

Angelo King Institute for Economic and Business Studies (AKI)

ESG ratings are crucial for ASEAN-5 businesses' creditworthiness. While existing studies often concentrate on ESG's impact on financial performance or general pillars, a detailed exploration of the 10 specific ESG components in the ASEAN-5 is lacking. This study addresses this gap, examining how ESG ratings affect a company's creditworthiness (probability of default) in publicly traded companies across the ASEAN-5 countries while considering potential heterogeneity. Utilizing annual data from 2013-2022 for 10 ESG components and Eikon Refinitiv's probability of default via the Starmine Combined Credit Risk Model across ASEAN-5, the study employs a panel OLS regression model with White's Robust Standard …

Analysis On The Credit Accessibility And Growth Of Manufacturing Firms In The Cases Of Indonesia, Philippines, And Vietnam, Sophia Angela Jimenez, Kamille Daquinag, Maria Regina Victoria Sagrit, Brian Irvin Chan, Albert Lamberte, Maria Zunally Rapada, Krista Danielle Yu

Angelo King Institute for Economic and Business Studies (AKI)

Micro, small, and medium enterprises (MSMEs) contribute to income and employment generation, poverty reduction, and industry growth in the ASEAN region (Mendoza, 2015). Their significant contributions to economies have led countries to emphasize the importance of firm growth, which is influenced by credit accessibility. Majority of existing enterprises in Indonesia, the Philippines, and Vietnam are composed of MSMEs with limited financial resources to foster growth (Paratama, 2019). This hinders the potential of manufacturing MSMEs to have sufficient funding. However, existing literature suggests that credit access significantly provides a positive impact on firm growth only until a certain threshold point (Nizam …

An Analysis On The Efficiency Of Philippine Microfinance Institutions: A Stochastic Frontier Approach, Ryan Lou Dio, Elijah Jacob Mendoza, Lunette Clarisse Nunez, Ma. Ellory Villanueva, Myrna S. Austria, Tereso S. Tullao Jr

Angelo King Institute for Economic and Business Studies (AKI)

Microfinance institutions (MFIs) were created to provide loans and financial services for the poor as commercial banks have requirements that are not accessible to them. The Philippines government soon started using MFIs as a poverty alleviation tool to answer the market failure created by the commercial banking industry since it cannot accommodate the needs of low-income earners due to the high costs attached to it. However, recent studies have shown that MFIs are “mission drifting,” which means that they are deviating from their original social purpose and becoming more financially driven. As a result, this paper estimates the financial and …

A Data Envelopment Analysis Approach To Portfolio Selection: An Application To The Blue Chip Stocks In The Philippine Stock Exchange (2010-2019), Vishal Bhagia, Colleen Monica K. Chiu, Paulynne J. Castillo, Roberto B. Raymundo, Joel Q. Tanchuco

Angelo King Institute for Economic and Business Studies (AKI)

There has been a growing interest in the application of data envelopment analysis (DEA) as a nonparametric approach in portfolio optimization due to its flexibility in overcoming the limitations of the conventional mean-variance portfolio (MVP) model. Therefore, this study aims to validate the allocative efficiency of the DEA cross-efficiency model using blue chip stocks in the Philippine Stock Exchange from 2010 to 2019. This study finds that the proposed model is able to distinguish a unique set of best-performing stocks across each holding period and outperforms the MVP more consistently. The results of this study suggest that the proposed DEA …

Database Formation Of Labor Profiles In Upskilling And Reskilling Programs To Prepare The Philippine Labor Force For The 4ir, Breanna Michaela S. Alaras, Malakai Rei F. Feliciano, Salian Idhanth, Abijah Kathryn B. Sta Ana

Angelo King Institute for Economic and Business Studies (AKI)

The policy focuses on data management of opportunities for upskilling/reskilling and the profile management of individual laborers’ professional information to effectively integrate the influence of technology on day-to-day life (Schwab, 2016). Laborers that register onto the platform will be matched with programs that can help them meet demands that emerged due to the evolution of their job description. The registration is done to make workers capable of integrating new technologies of the Fourth Industrial Revolution (4IR) into their workflow. Reskilling and upskilling can evolve operators of the past into “smart operators” that can work with augmented reality, virtual reality, and …

From Tasks To Riches: A Task-Based Approach To The Determinants Of Wages, Brian Daguman, Samantha Victoria Abordo Baradas, Aileen Abigail D. Co, Martha Louise Delos Santos

Angelo King Institute for Economic and Business Studies (AKI)

In most written literature on labor, wages are determined by labor market supply and demand factors. With this, what a person can control to increase their wages is to focus on their skill endowments, particularly honing skills. These skills this paper will be focusing on are those occupational-specific, which pertains to the tasks and activities that a worker does in their job. That being said, it is important for an average worker to improve their skills through human capital (i.e., internships and on-the-job training) identified in this study as cognitive-interactive, Information and Communications Technology (ICT), and computational skills are found …

Hedging Season: The Effect Of Hedging Using Financial Derivatives On Firm Value Of Publicly-Listed Non-Financial Firms In The Philippines, Julio Alfonso D. Arrastia, Christina Angela N. Balagot, Joseph Anthony Go, Dominique Ann Philomena V. Lacuna

Angelo King Institute for Economic and Business Studies (AKI)

Firms use financial derivatives as a way to hedge risky transactions to avoid financial risks. Studies have focused on firms’ use of financial derivatives in developed countries. However, there is limited research done on emerging markets like the Philippines because these economies have only recently adapted advanced reporting standards that obligate the disclosure of the nature and extent of risks resulting from the use of financial instruments. We used Tobin’s Q ratio to proxy for firm value and to determine the presence of a hedging premium. Because derivatives are used by firms to hedge against currency risks, interest rate risks, …

An Asean Digital Single Market: Boosting The Aspiration For A Single Market In The Digital Era, Paul John M. Pena

Angelo King Institute for Economic and Business Studies (AKI)

Advancements in information and communications technologies have changed the way individuals, firms, and nations create and exchange value across borders. Value comes in the form of goods, services, information, and data, but may also include talent, capital, ideas, and even culture. Southeast Asia is a thriving digital economy with the prospect of becoming a US$200B economy by 2025. However, new forms of protectionist measures arise, which may impede the free flow of value within the region. An aspirational digital single market concept and the changing dynamics of digital trade are explored. A digital economic integration framework that is interoperable, inclusive, …

Kontribusyon Ng Mga Pribadong Pamantasan Sa Pilipinas Sa Paglikha Ng Yamang-Kaalaman, Tereso S. Tullao Jr

Angelo King Institute for Economic and Business Studies (AKI)

Ang pagpapahalaga sa yamang-kaalaman ay nakaugat sa pagpasok ng ekonomiya ng kaalaman na ipinakikita sa mga pwersa ng Industriya 4.0 o Ikaapat na Rebolusyong Industriyal. Pananaliksik at inobasyon ang lumilikha ng yamang-kaalaman. Dahil ang pananaliksik ay maituturing na isang pampublikong produkto, may papel ba ang mga pribadong pamantasan sa paglikha ng yamang-kaalaman? Tinatasa sa sanaysay ang ambag ng mga pribadong pamantasan sa Pilipinas sa paglikha ng yamang-kaalaman sa pamamagitan ng kanilang publikasyon sa mga Scopus journal relatibo sa publikasyon ng mga pampublikong pamantasan. Lumalabas na napakalawak ng ambag ng mga pribadong pamantasan kahit na walang tinatanggap na tulong mula sa …

Urban Organic Farming For Diversified Agriculture, Jose Santos Carandang, Robert W. Taylor, Josemari S. Calleja, Edito A. Busayong, Eric Camilio R. Punzalan

Angelo King Institute for Economic and Business Studies (AKI)

Urban organic farming had been shown in previous projects as well as the present one to have the potential of addressing the fundamental requirements of food security by addressing issues of availability since production is just in the vicinity, which also addresses the carbon footprint of food production because food need not be transported to far distances. The use of organic methods also contributed to increased food safety. More importantly, the practice of urban agriculture empowers local residents in the stewardship, specifically of their barangay’s green spaces and more broadly the whole urban environment (see Mogk, Kwiatkowski, &Weindorf, 2010). However, …

Easing Growing Pains: Supporting The Growth Of Small Businesses In The Philippines, Paulynne Castillo

Angelo King Institute for Economic and Business Studies (AKI)

In explaining the 2015 survey findings that the Philippines has the second to the lowest existing business rate in the ASEAN region, the Philippine Entrepreneurship Report, 2015-16 stated that “business operations become more burdensome as they grow due to the more restrictive regulations on large enterprises” (Velasco et al., 2017, p. 40). Established businesses, particularly firms operating in the formal sector, shoulder higher taxes and are subject to social security contributions, minimum wage, and industry-specific regulations (Velasco et al., 2017; Auriol, 2014).

Strengthening early-stage entrepreneurial activities and supporting their quest for expansion, however, require access to financial, legal, and public …

Bringing About Fullness Of Life With Care And Compassion: Learnings From The Social Enterprise Of The Good Shepherd Sisters, Julius B. Lunar

Center for Business Research and Development

One of the principles of the Church’s social teachings is integral human development. In his encyclical, Populorum Progressio, Pope Paul VI stated that “authentic human development is the development of the whole human being and of all human beings.” The importance of individuals as human beings is also rooted in the conviction of St. Mary Euphrasia Pelletier, foundress of the Good Shepherd Sisters, who kept reminding her daughters that “a person is of more value than the whole world.”

The Integral Human Development Approach guides the business model of the Mountain Maid Training Center (MMTC) in Baguio, which is a …

Proposing A Sustainable Tourism Framework For The Philippines, Michael Angelo A. Cortez, John Paolo R. Rivera

Center for Business Research and Development

The travel and tourism (T&T) industry has become a major contributor to growth and development in most economies across the globe (World Travel & Tourism Council [WTTC], 2014). The industry has significantly increased its gross value added (GVA) to the well-being of stakeholders through its direct economic impacts; and indirect and induced impacts to its forward and backward linkages. As such, according to Roe (2001), the T&T evolved into the world’s largest industries, generating approximately 11 percent of the global Gross Domestic Product (GDP), providing 200 million job opportunities, and transporting nearly 700 million international travellers annually.

Pagtugon Sa Sari-Saring Panganib: Mga Aral Mula Sa Mga Krisis Pananalapi, Tereso S. Tullao Jr

Angelo King Institute for Economic and Business Studies (AKI)

Nitong nakaraang dalawang dekada, nakaranas ang mga ekonomiya sa iba’t ibang bahagi ng mundo ng tatlong matitinding krisis pananalapi. Ang mga ito ay nagdulot ng malalawak na pinsala sa mga mamamayan, pamahalaan at mahahalagang sektor ng ekonomiya lalo na sa sektor ng pananalapi.

Ang pagkalat ng krisis pananalapi tungo sa isang malawakang krisis ekonomiko ay nakasalalay sa sektor ng pananalapi lalo na ang pagbabangko. Makikita na maraming sa mga sanhi ng krisis ay nakaugat sa di maingat ng pagbabangko. May mga pagkakataon din na ang krisis ay hindi nagmumula sa mga bangko. Ngunit dahil ang mga bangko ay pangunahing sektor …

Industry Career Guide: Manufacturing, Kurt Gerrard T. See, Mitzie Irene P. Conchada

Angelo King Institute for Economic and Business Studies (AKI)

Manufacturing sector in the Philippines has one of the largest contributions to the growth of the economy. Throughout the years, starting from the 1970s, the manufacturing sector has been one of the driving forces behind the country’s growth. It has proven its importance in the economy because of benefits such as employment generation and technological innovation.

Industry Career Guide Ownership Dwellings And Real Estate, Ma. Concepcion G. Latoja, Denise Serrano

Angelo King Institute for Economic and Business Studies (AKI)

This industry career guide on Ownership Dwelling and Real Estate (ODRE) aims to inform readers of the range of career options that are open to those who want to work in the industry. By presenting an array of occupations typically found in this field, the reader is informed of the basic requirements to land a specific job in this industry, the associated job environment and possibilities for job movement either in terms of promotion and/or moving laterally from one type of job to another within the industry. In the context of discussing job prospects, it lays out the issues surrounding …

Taking Back Migrants: A Theoretical Investigation On The Low Propensity Of Entrepreneurship In Ofw-Dependent Households, Carlo Anton G. Arguelles

Angelo King Institute for Economic and Business Studies (AKI)

In light of different Philippine economic issues, it can be said that this country is evolving and is constant at the same time. This evolution and consistency are present in the opportunity-seeking behavior of Filipino households. One aspect of change is the higher engagement of households in entrepreneurship as reported by GEM (2014a). Data on entrepreneurship presents the Philippines with an early-stage entrepreneurship (TEA) rate of 18.4%. GEM (2014b) stated that this rate is higher than the average start up rates of Asia and Oceania (13%); which implies that Filipino households, relative to their counterparts in these regions, are more …

Managing Excessive Entitlement In Support Of Family Business Longevity, Maria Andrea L. Santiago

Angelo King Institute for Economic and Business Studies (AKI)

Family members feel entitled to family wealth because of various reasons. Some claim that they deserve part of the wealth since they are members of the family. Others assert that they earned rights to the wealth through hard work, while still others argue that they deserve part of the family wealth because they are special. When family members do not get what they think they deserve based on their perceptions of entitlement, they declare that it is unfair. This becomes problematic when family members manifest their sense of entitlement in a dysfunctional manner. In a family business, this may result …

Toward Innovative, Liveable, And Prosperous Asian Megacities: The University Of The Philippines - Ayala Land Technology Hub, Dennis B. Hui, Dhesirey Beryl Sio, Emil Adrian Hernandez

Angelo King Institute for Economic and Business Studies (AKI)

A city innovation is a new solution that creates additional value to people in the city by addressing urban challenges. This could be in terms of technological, institutional, organizational, political, economic and social, as long as it creates value to the city’s prosperity, liveability, and social equity. The UP-Ayala Technology Hub fosters a city innovation in the heart of Quezon City. The UP-Ayala Technology Hub is a pioneer on academically-based IT Park in the Philippines that was created to face challenges of competition and economic development. This provides an area in which small-scale businesses could grow their operations through promoting …