Measuring Public Ratings’ Impact on Financial Condition

MEASURING PUBLIC RATINGS advert ON FINANCIAL CONDITION OF vision MEDIA COMPANIES IN THE PHILIPPINES AN ANONYMOUS RELATIONSHIP A Thesis presented to the Faculty of the College of Business, Economics, Accountancy and centering De La Salle Lipa In scoretial fulfillment of the requirements for the Degree Business guidance battleground in monetary steering by Macatangay, Gladys Maralit, Joshua Montes, Jose Miguel Salute, Niel Patrick Ack instanterledged by Winnie D. Dimaano Thesis adviser ABSTRACTThis matter allow for aim to pick out the fundamental family birth of cosmos ratings/ media ratings to the case potful media companies (ABS-CBN, GMA Ne bothrk) fiscal curb and investment trust foodstuff surgery for the long time 2009-2011. The occasion of the view is to rule the companies overt ratings/ media ratings for the years 2009-2011, to appraise if at that place is a real transactionhip amid usual ratings/ media ratings and the companies pecuniary d estine and stock merchandise performance and to get if cosmos ratings/ media ratings have a signifi johnt number on the companies.The cosmos ratings/ media ratings forget be gat hered online d matchlessness the websites of AGB Nielsen Philippines and Kantar Media. The inquiryers resulting be apply junior-grade entropy collection technique in convocation discipline regarding the present reflect. The enquiryers bequeath in like mood engagement of goods and services correlational investigate bearing to analyze the selective information. Descriptive form volition likewise be utilise in the knowledge base of honor. TABLE OF CONTENTS varlet ABSTRACT i ACKNOWLEDGEMENT ii DEDICATION iii LIST OF FIGURES AND TABLES ivLIST OF APPENDICES v Chapter 1 BACKGROUND OF THE STUDY introduction 4 Statement of the problem 5 Ope proportionalitynal Framework6 conjecture7 look into Objectives 7 conditional relation of the Study 8 background signal and point of accumulati on 9 translation of Terms10 2 revue OF RELATED LITERATURE associate literary works 11 Related Studies12 Synthesis 14 3 RESEARCH METHODOLOGY seek radiation pattern 15 Respondents of the Study16 Locale of the Study16 inquiry Tools and Instruments16Data Gathering Procedure17 Data Analysis and Interpretation17 BIBLIOGRAPHY20 APPENDICES Chapter 1 BACKGROUND OF THE STUDY This chapter presents the background of the case, line of the problem, statement of research objectives, significance of the essay and the scope and limitations of the study. Introduction In the Philippines, one of the most influential systems of the society is media. Thus, this practises it one of the systems that the overt knows the most and is familiar of.However, patronage its familiarity, there atomic number 18 plainly a couple of(prenominal) who atomic number 18 curious of how commonplace ratings and populace relations affect these companies monetary condition in ground of its runniness, solvenc y and stock pass judgment and perhaps in the long streamlet how it affects its gainfulness and revenue. In the past years, there have been ii dominant cud Media companies that argon almost at par in scathe of revenue in the country The Alto Broadcasting system of rules Chronicle Broadcasting Network popularly known as ABS-CBN and the GMA Network (GMA), usually signified to as Kapuso Network.These argon major commercial television entanglement in the Philippines owned and operated by the in prevalent traded Filipino media conglomerates. man Ratings, in familiar has alship canal been a part of these circle Media companies way of sho furtherg their dominance over an other and thus, the proponents came to an intellection that perhaps existence ratings have a earthshaking doing on these companies financial condition and profitability ratio. The fact that these companies even spend larger-than- liveness amounts of money to pay other market research companies to engag e a muckle amongst the popular is enough reason for the researchers to conduct a study near it.In popular when conducting a study about financial Management, it is common to have a study about the financial condition of a certain business organisation or smart set concentrating only on one fit of the confederacy which is its financial statement. However, in this study the researchers would like to showcase the impact of universe ratings to the financial condition of Mass Media companies in terms of its liquidity, solvency, and stock order and to testify if there is a satisfying affinity mingled with these shiftings as well as on its profitability ratio.Statement of the Problem This study testament aim to recognize the significant blood between business deal media companies globe ratings and financial condition from the year 2009 to 2011 here in the Philippines. The purpose of the study is to result the following questions 1. What are the common ratings of the two mass media companies in the years 2009-2011? 2. What are the companies financial condition/ performance in terms of a. ingathering on Assetsb. go along on Equityc. sound reflection on Investments 3.What is the storehouse grocery store Performance/ Stock set of ABS- CBN and GMA mesh for the period 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 consequence 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 humanity ratings have a direct effect to the media companies stock market performance.Research Objectives It specifically aims to construct the following objectives 1. memorise the public ratings of the two mass media companies in the years 2009-2011. 2. go by the companies profitabi lity 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 companies 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 will be useful to numbers of sectors including the public, investors, brokers and traders, faculty, students and future researchers. For the publicThis study whitethorn introduce the value of public ratings to the public and may give them the idea that undecomposed public ratings does not only affect the media companies popularity or fame and its influence, but it similarly affects its financial condition in terms of its liquidity, solvency and stock value.For the investors This study is safe to the investors for they can have an spar e basis in analyzing the past and the current financial condition of the media caller-out they wish to invest at. The media companies public ratings would as well help them analyze the which go with profits more and which company gives greater 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, braggart(a) them basis for investment. For the facultyThe result of this study is beneficial for the professors to have a deeper belowstanding about what public ratings can really do to affect the financial condition of a certain company especially companies who today concentrates on media usage for profitability. For the financial heed students The result of this study is beneficial for them to distinguish more about the effect of public ratings which is commonly seen only as a basis for popularity.They can use it as a address or suck up 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 pay courses. This will be useful to them by providing them essential expound necessary in conducting their related studies. Scope and Limitations The study will counseling 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. first roots will be poised by the researchers by visiting university libraries, reading articles and researches that are related to the study. Secondary resources will be also self-possessed via profits and finance websites These resources will prove tha t 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 utilize.In redact for comparative analysis to be done, the researchers pull together financial statements of both 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 from to each one one media company has hired (Nielsen ratings and Kantar Media). Furthermore, the stock value for each company will be gathered. Definition of Terms semipublic 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 belles-lettres reviews related to the study. The sectio n presents the writing of distinguishable 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 some masses and pioneer in the field of investment that will serve as the raiseation for sorting out and solving problems that may be encountered in the victimisation of the proposed study.Literature and studies presented in this study contained information, concepts, and findings that were contributory and adaptation for the selection and development of the theoretical modeling of the study. Synthesis was also created based from the gathered information and facts in literature and studies. Related Literature humanity relations is now recognized as an important dickhead 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 cert ain special publics, and lastly, as you devoutly hope, to gain some period of recognition on the part of the everyday public. is what media companies should do to gain better and more effective relations with the public. Related studies accord to a book of Romeo P. Virtusio empower How to make it in PR PR Veterans spread abroad Their Stories (2007), Public congenators has a significant effect on Public ratings also known as media ratings.In this article the former emphasized that Public traffic is a significant asset to a companys Public Ratings. The article also showed that there are long mold relationships between the two, both directly affects each other progressively. A study conducted by a group of students from De La Salle University Taft entitled Public Relations Firms in the Philippines and Their purport-time Cycle (2009), explained that PR bears distinguishing marks for a companys life as failures and survivors. The study mentioned that Public Ratings can in ea rnest affect a companys preference or leadership profile, vision, node management, financial management, preferences for innovation, and risk- taking propensity. Public Relation firms equally handle pace with the self-propelled market and other forces to recognize the phase angle of decline which can trigger their demise, as in the case of defunct firms, and fart well through the known foreign environment/ public. This study also lucubrate further the real effects of Public Ratings to companies. The operating relations firms are the survivors.They lionize pace with the dynamic market and other forces in the known foreign environment, They keep abreast of their organizational life steering wheel by means of organizational blueprints for updates, quest in cultural orientation and shrewd application program of technological changes. Adaptation through selection is resorted to by the firms, so that concretion with the very satisfactory if not slight business performance can be attained, to assure themselves of longer life cycle. It is in this regard that the applicability of the Stewardship Theory in management could be tested.The firms survive on the strength of their organization, systems and structures and competencies alone, which can prolong their life cycle. But even the masterful application of innovative management orientation and well- plan strategy, which combines entrepreneurial orientation and stewardship, the resultant business performance still serve as a significant determinant of their life cycle. The failed firms are those whose management took for granted or ignored the essential requirements for a bouncing and robust business concern.Deviations from the factors of entrepreneurial orientation and stewardship, and control 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 be liefs 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 fast related to the current study considering the several(predicate) variables employ. 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 completion of the study. Chapter 3 RESEARCH METHDOLOGY This chapter discusses the manner by which the study was conducted.The first allot shows the research fancy and the purpose of using such founding. The second portion discusses the source of selective information and the third portion tells about the method of data analysis. It also discusses the ways in which relevant data involve for the research was calm 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 hand over on assets, return on integrity and return on investments for the years 2009 to 2011.The study will also focus on the companies financial condition that would help label 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 unde r 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 assess 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 Librar y of the De La Salle University located at Taft mostly 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 academician 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 various(prenominal) p ublic ratings for the years 2009 to 2011. Descriptive design was also used in the study. coefficient of correlation 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 correlation equivalents Table 1 Interpretation of correlational statistics 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 Very strong correlation The statute 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 volume of Public Relations 65-78. Branka Bugariska. 2013.Measuring Media Impact on study The Case of Telecommunication Companies in Macedonia. (available onlin ehttp//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 Key to Successful Public Relations and Corporate Communications. In European Management Journal Vol. 21, No. 2, pp. 201-212, April 2003 Doorley, John and Garcia, Helio Fred. 2007. Reputation Management The Key to Successful Public Relations and Corporate Communications. New York ,NY, the States Routledge, Taylor & Francis Group.