Analysis of Corporate Governance Compliance of Philippine GOCC: A Case Study on GSIS and ECC

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Angeles O. Catelo

Committee Member

Ma. Nova R. Nguyen, Gideon P. Carnaje

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Abstract

This study examined the corporate governance compliance and performance outcomes of two major Philippine Government-Owned and Controlled Corporations (GOCCs): the Government Service Insurance System (GSIS) and the Employees’ Compensation Commission (ECC). Grounded in Principal-Agent Theory and Stakeholder Theory, the research investigates how adherence to the governance frameworks mandated by the Governance Commission for GOCCs (GCG)—specifically the Corporate Governance Scorecard (CGS) and the Performance Evaluation System (PES)—influences financial and institutional performance. Using a historical trend analysis, the study analyzed secondary data from validated GCG reports, COA financial statements, and relevant governance literature from 2002 to 2023. Key performance indicators examined include Return on Assets (ROA), revenue trends, and the implementation of Corporate Social Responsibility (CSR) programs. Findings reveal that GSIS consistently demonstrated high compliance and performance ratings, particularly in CGS and PES indicators. This suggests that strong governance structures, when aligned with strategic objectives and stakeholder engagement, can enhance institutional outcomes. Conversely, ECC showed uneven PES ratings and fluctuating financial performance, highlighting challenges in translating governance compliance into measurable returns, especially amid limited resources and operational constraints. The study contributes to the literature by clarifying how governance mechanisms function in varying GOCC contexts and by identifying the conditions under which good governance may—or may not—lead to good performance. Recommendations are offered to refine indicator consistency and expand theoretical frameworks in future GOCC governance studies.

Language

English

LC Subject

Corporate governance—Philippines, Affiliated corporations

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 G38

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Document Type

Thesis

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