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Kalinangan Research Journal

Volume no. 23 | 2017/2
Issue no. 1


Title
CONTENT AND READABILITY OF THE MISSION STATEMENTS OF PUBLICLY-LISTED PHILIPPINE COMPANIES: ITS RELATIONS TO MARKET CAPITALIZATION
Author
Briones, Jesus P., FBE and Cabrera, Doringer P., CPA, AFBE
Views: 729 Cited: 1
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Abstract
This study evaluated the mission statements of publicly-listed Philippine companies relative to their conformance with the nine components of a good mission statement based on Pearce and David’s Strategic Management Model. For evaluation purposes, the Gunning Fog Index scoring system was used to determine the readability aspect of the subject-mission statements. Further, the study classified the companies according to their market capitalization and the business sector to where they belong as part of the analysis of the content and readability of the mission statements. Of the 312 publicly-listed companies from the Philippine Stock Exchange, 76 mission statements obtained from the respective companies’ websites were reviewed and analysed. In general, the study revealed that of the nine components, markets and technology were not given due importance in the process of developing the mission statements while the rest of the components were stated in vague terms. Further, no significant difference was noted in both the market capitalization and business sector groupings as to the conformance of the companies to each of the nine components of the mission statements. However, it was found out that in both groupings, the tests showed high significant difference when their conformance to the nine components are compared. On the aspect of readability, the mission statements were found to be very difficult to read and required revision so they could be better understood by their stakeholders. The study concluded that since the components and the readability of mission statements have no correlation with market capitalization, the former are not predictors of the latter
Keywords
mission statement’s content and readability; publicly-listed companies; Fog index score; market capitalization; business sector
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