Measuring Public Ratings’ Impact on Financial Condition

measuring PUBLIC RATINGS IMPACT ON FINANCIAL CONDITION OF MASS MEDIA COMPANIES IN THE PHILIPPINES AN ANONYMOUS RELATIONSHIP A Thesis presented to the Faculty of the College of Business, Economics, Accountancy and foc development De La Salle Lipa In partial fulfillment of the requirements for the Degree Business instruction Major in Financial guidance by Macatangay, Gladys Maralit, Joshua Montes, Jose Miguel Salute, Niel Patrick Acknowledged by Winnie D. Dimaano Thesis Adviser ABSTRACTThis involve go out aim to recognize the solid relationship of mankind ratings/ media ratings to the subject chew media companies (ABS-CBN, GMA Ne devilrk) pecuniary human body and agate line victorious food market performance for the old age 2009-2011. The single-valued function of the national is to go under the companies popular ratings/ media ratings for the years 2009-2011, to value if there is a trustworthy relationship betwixt unrestricted ratings/ media ratings and the c ompanies pecuniary condition and stock market performance and to determine if frequent ratings/ media ratings concur a real effect on the companies.The overt ratings/ media ratings result be pull together online through the websites of AGB Nielsen Philippines and Kantar Media. The questioners leave be using secondary info collection technique in gathering education regarding the present study. The researchers go forth too subprogram correlativityal research mark to canvas the info. Descriptive project pull up stakes alike be employ in the study. TABLE OF CONTENTS Page ABSTRACT i recognition ii DEDICATION iii LIST OF FIGURES AND TABLES ivLIST OF APPENDICES v Chapter 1 primer coat OF THE STUDY Introduction 4 Statement of the problem 5 available Framework6 Hypothesis7 Research Objectives 7 Signifi potentiometerce of the Study 8 Scope and limitation 9 Definition of Terms10 2 REVIEW OF RELATED LITERATURE cerebrate Literature 11 Related Studies12 Synthesis 14 3 investigate METHODOLOGY Research Design 15 Respondents of the Study16 Locale of the Study16 Research Tools and Instruments16selective information hookup Procedure17 Data Analysis and Interpretation17 BIBLIOGRAPHY20 APPENDICES Chapter 1 BACKGROUND OF THE STUDY This chapter presents the background of the study, dictation of the problem, statement of research objectives, significance of the study and the scope and limitations of the study. Introduction In the Philippines, one of the well-nigh influential systems of the society is media. Thus, this stags it one of the systems that the public knows the most and is familiar of.However, despite its familiarity, there ar only few who ar curious of how public ratings and public relations affect these companies financial condition in toll of its liquidity, solvency and stock value and by chance in the wide run how it affects its profitability and revenue. In the past years, there stick out been two dominant plenty Media companies that are almost at par in term of revenue in the country The Alto Broadcasting administration Chronicle Broadcasting cybers curtilage popularly cognize as ABS-CBN and the GMA Network (GMA), unremarkably signified to as Kapuso Network.These are major commercial-grade tv network in the Philippines owned and operated by the publicly traded Filipino media conglomerates. Public Ratings, in general has always been a part of these Mass Media companies way of sho realiseg their dominance over another and thus, the proponents came to an idea that perhaps public ratings welcome a profound effect on these companies financial condition and profitability ratio. The fact that these companies even spend large amounts of gold to pay other market research companies to conduct a refresh amongst the public is enough reason for the researchers to conduct a study intimately it.In general when conducting a study about Financial Management, it is common to generate a study about the financi al condition of a incumbent duty or caller-out concentrating only on one spirit of the company which is its financial statement. However, in this study the researchers would like to showcase the jounce of public ratings to the financial condition of Mass Media companies in terms of its liquidity, solvency, and stock value and to prove if there is a significant relationship between these variables as well as on its profitability ratio.Statement of the Problem This study depart aim to recognize the significant relationship between plenty media companies public ratings and financial condition from the year 2009 to 2011 here in the Philippines. The purpose of the study is to answer the interest questions 1. What are the public ratings of the two mass media companies in the years 2009-2011? 2. What are the companies financial condition/ performance in terms of a. Return on As putsb. Return on Equityc. Return on Investments 3.What is the stock-taking Market Performance/ contras t hurt of ABS- CBN and GMA network for the distributor point 2009- 2011? 4. Is there a significant relationship between the companies public ratings and financial condition for the years 2009 to 2011? 5. What is the effect of public ratings to the media companies profitability and stock price performance? Operational Framework Hypothesis Ho1 There is a significant relationship between the media companies public ratings and financial condition. Ho2 Public ratings have a direct effect to the media companies stock market performance.Research Objectives It specifically aims to attain the pursuit objectives 1. incur the public ratings of the two mass media companies in the years 2009-2011. 2. chequer the companies profitability ratios in terms of a. Return on Assetsb. Return on Equityc. Return on Investments 3. Determine the Stock Market Performance/ Stock price of ABS- CBN and GMA network for the period 2009- 2011. 4. Determine if there is a significant relationship between the com panies public ratings and financial condition for the years 2009-2011. . Determine the effect of public ratings to the companies profitability ratio. Significance of the Study This study exit be social functionful to numbers of sectors including the public, investors, brokers and traders, faculty, students and afterlife researchers. For the publicThis study whitethorn come before the value of public ratings to the public and may give them the idea that secure public ratings does not only affect the media companies popularity or fame and its influence, but it as well as affects its financial condition in terms of its liquidity, solvency and stock value.For the investors This study is ripe to the investors for they can have an additional basis in analyzing the past and the current financial condition of the media company they wish to invest at. The media companies public ratings would also help them analyse the which company profits more(prenominal) and which company gives gr eater opportunity for investment growth and diversification. For the brokers and tradersThis study is beneficial to the brokers and traders for they can have an additional basis in analyzing the companies financial health in terms of its liquidity, solvency and stock value.Thus, giving them basis for investment. For the facultyThe result of this study is beneficial for the professors to have a deeper interpreting about what public ratings can really do to affect the financial condition of a certain company peculiarly companies who like a shot concentrates on media usage for profitability. For the financial management students The result of this study is beneficial for them to learn more about the effect of public ratings which is commonly seen only as a basis for popularity.They can example it as a origin or guide to their study to further understand the factors that may affect a companys financial condition. For the students and future researchersThe result of this study will serve as a reference to their finance courses. This will be useful to them by providing them inhering lucubrate necessary in conducting their cogitate studies. Scope and Limitations The study will centering on the significant relationship of public ratings to the financial condition of media companies in the Philippines in terms of liquidity, solvency and stock value.Specifically, the study will focus on public relations which may directly affect the public ratings of these media companies. elementary sources will be gathered by the researchers by visiting university libraries, tuition articles and researches that are related to the study. secondary resources will be also gathered via internet and finance websites These resources will prove that public relations have a significant relationship with public ratings. Furthermore, in determining the significant relationship between the variables (public ratings, liquidity, solvency and stock value), comparative analysis will be u sed.In order for comparative analysis to be make, the researchers gathered financial statements of both(prenominal) media companies from years 2009- 2011. The researchers also gathered the public ratings of these media companies that were gathered by market research companies that for each one media company has hired (Nielsen ratings and Kantar Media). Furthermore, the stock value for each company will be gathered. Definition of Terms Public Ratings Refers to media ratings issued by AGB Nielsen and Kantar Media market research firms in the Philippines that rate the subject corporations overall television viewer ratings.Chapter 2 REVIEW OF RELATED LITERATURE This chapter presented literature reviews related to the study. The section presents the writing of divers(prenominal) personalities both foreign and local conducted by the proponents during their research which have been beneficial to the study. It involves reference materials and detailed facts stated by few people and pion eer in the field of investment that will serve as the foundation for sorting out and solving problems that may be encountered in the development of the proposed study.Literature and studies presented in this study contained information, concepts, and findings that were contributory and suit for the selection and development of the theoretical framework of the study. Synthesis was also created found from the gathered information and facts in literature and studies. Related Literature Public relations is now recognized as an important tool of management in production, distribution, and finance. To have the people in your ommunity think well of you and your company, to win a measure of acceptance on the part of certain exceptional publics, and lastly, as you devoutly hope, to gain some degree of recognition on the part of the general public. is what media companies should do to gain better and more legal relations with the public. Related studies According to a book of Romeo P. Vi rtusio entitled How to make it in PR PR Veterans Tell Their Stories (2007), Public relations has a significant effect on Public ratings also cognise as media ratings.In this article the author emphasized that Public Relations is a significant asset to a companys Public Ratings. The article also showed that there are long run relationships between the two, both directly affects each other progressively. A study conducted by a assort of students from De La Salle University Taft entitled Public Relations Firms in the Philippines and Their Life one shot (2009), explained that PR bears distinguishing marks for a companys life as failures and survivors. The study mentioned that Public Ratings can seriously affect a companys orientation or leadership profile, vision, client management, financial management, preferences for innovation, and risk- taking propensity. Public Relation firms equally encumber pace with the dynamic market and other forces to recognize the stage of decline which can trigger their demise, as in the case of defunct firms, and steer well through the known external environment/ public. This study also elaborated further the real effects of Public Ratings to companies. The operating relations firms are the survivors.They keep pace with the dynamic market and other forces in the known external environment, They keep abreast of their organisational life cycle by means of organizational blueprints for updates, interest in cultural orientation and judicious application of technological changes. Adaptation through selection is resorted to by the firms, so that alignment with the genuinely satisfactory if not excellent business performance can be attained, to assure themselves of longer life cycle. It is in this regard that the applicability of the Stewardship supposition in management could be tested.The firms survive on the dexterity of their organization, systems and structures and competencies alone, which can prolong their life cycle. But e ven the masterful application of progressive management orientation and well- plotted strategy, which combines entrepreneurial orientation and stewardship, the resultant business performance still serve as a significant determining(prenominal) of their life cycle. The failed firms are those whose management took for granted or ignored the essential requirements for a healthy and robust business concern.Deviations from the factors of entrepreneurial orientation and stewardship, and mastery of elements in the internal and external environments, generally lead to failures. An article scripted by Oscar S. Villadolid emphasized that in Public Relations, knowing the culture of the market, the set of beliefs and the value systems, traditions and ways of doing things, is what makes a strategy for good PR more effective. Mass Media companies will never get high media ratings if they do not do this. SynthesisThe studies and articles presented are closely related to the current study consid ering the different variables used. The primary focus was to determine the relationships between Public ratings also known as media ratings and the mass media companies financial condition. The studies presented assessed the significant relationship between public relations and public ratings. This helped in scrutinizing facts that are viable information to the closedown of the study. Chapter 3 RESEARCH METHDOLOGY This chapter discusses the manner by which the study was conducted.The first luck shows the research design and the purpose of using such design. The second instalment discusses the source of entropy and the third portion tells about the method of data analysis. It also discusses the ways in which relevant data needed for the research was tranquil and treated. Research Design This research paper will assess the relationship of public ratings and mass media companies found in the Philippines in terms of their profitability ratios mainly focusing on the companies give up on assets, return on equity and return on investments for the years 2009 to 2011.The study will also focus on the companies financial condition that would help treasure their performance in terms of solvency, liquidity and stock value. The study will use descriptive research design in order to analyze the relationship of selected mass media companies in the Philippines. Likewise, the correlational research design will be used to determine the impact of public ratings on the variables that were presented for the years 2009 to 2011. Respondents of the Study The subjects of the study would be the mass media companies specifically ABS-CBN and GMA Network that are listed under the Philippines stock market.Locale of the Study The study will be conducted in the Philippines specifically in Manila where the subjects are currently situated. Research Tools and Instruments The data that will be used for this study will be the public ratings posted by the market research companies hired to a ssess the ratings of ABS-CBN and GMA Network. Likewise, it shall use secondary data such as Financial Statement and Stock market performance. In order to assess the relationship between the variables mentioned, the researchers will gather the Financial Statements of these media companies for the years 2009 to 2011.Data Gathering Procedure The mass media companies data about profitability ratio and financial condition will be gathered through the use of information and communications technology by surfing the internet and researching through world-wide web. In addition, other data that will be used in this study will be collected through the references coming from the Library of the De La Salle University located at Taft broadly in the General collection and Periodical section. The researchers will also use secondary data collection technique in gathering information about the study.Secondary data will be derived from journal articles, manual/enchiridion and magazines as well as in the different educational, governmental and organizational websites for some related information about public ratings and mass media companies. Secondary data will also be obtained from related studies conducted for academic purposes. Data Analysis and Interpretation The researchers will analyze the data through the use of different methods for research. To test the relationship between the mass media companies public ratings, profitability ratio and financial condition, the correlational research design will be used.Moreover, the regression research design will be used to analyze and compare the financial statements of the media companies and their respective public ratings for the years 2009 to 2011. Descriptive design was also used in the study. correlation coefficient analyses will be done to determine if significant relationship among the variables used in the study is present. The strength of the relationship among the variable will be interpreted using the following correlati on equivalents Table 1 Interpretation of Correlation Coefficient Values Correlation Coefficient Value Interpretation 0 to 0. 10 No correlation . 11 to . 30 Weak correlation . 31 to . 50 Moderate correlation . 1 to . 30 Strong correlation . 71 to . 99 really strong correlation The formula to be used will be pic Where n= number of pairs x, y are the number of the variables to assessed. Bibliography Romeo Virtusio P. 2007. How to make it in PR PR Veterans tell their Stories. Filipino Book of Public Relations 65-78. Branka Bugariska. 2013.Measuring Media Impact on Reputation The Case of Telecommunication Companies in Macedonia. (available onlinehttp//www. slideshare. net) Oscar Villadolid S, J. J Calero. 2007. How we dealt with Media. Filipino Book of Public Relations 79-84. Davies, Gary et al. 2003. Corporate Reputation Management The lynchpin to Successful Public Relations and Corporate Communications. In European Management Journal Vol. 21, No. 2, pp. 201-212, April 2003 Door ley, John and Garcia, Helio Fred. 2007. Reputation Management The Key to Successful Public Relations and Corporate Communications. New York ,NY, USA Routledge, Taylor & Francis Group.