Eastern Regional Organization for Public Administration
  • Home
  • About
    • Our Story
    • Constitution
    • EROPA Centers
    • EROPA Secretariat >
      • Sec-Gen's Corner
    • EROPA Chairperson
  • Membership
    • Members' Corner
    • Join EROPA >
      • Individual Membership Form
      • Group Membership Form
      • State Membership
    • State Members
  • Public Administration News
  • Conferences
    • 2021 EROPA Conference
    • List of Past Conferences
    • Database for Past Conferences >
      • 2019 EROPA CONFERENCE
      • EROPA 2018 Conference
      • EROPA 2017 Conference
      • EROPA 2016 Conference
      • 2012-2015 Conferences
    • Carlos P. Ramos Award for Best Conference Paper
    • Asian Leadership Forum
    • Stories to Share
  • Activities
    • EROPA ExP >
      • Find an Expert
      • JOIN ExP DATABASE
    • OYPA >
      • FAQs/Guidelines
      • OYP Nomination Form
  • #TAG Dialogue
    • About #TAG Dialogue
  • ARPA
    • ARPA Editorial Board
    • ARPA Call for Papers
    • Publication Ethics and Malpractice Statement
    • Notes for Contributors
    • Abstracts >
      • 2019, Volume 30, Nos. 1-2
      • 2018, Volume 29, Nos. 1-2
      • 2017 Volume 28, Nos. 1 & 2
      • 2016 Volume 27, Nos. 1 & 2
      • 2015 Volume 26, Nos. 1 & 2
      • 2014 Volume 25, No. 2
      • 2014 Volume 25, No. 1
      • 2013 Volume 24, Nos. 1 & 2
      • 2012 Volume 23, Nos. 1 & 2
      • 2011 Volume 22, No. 2
  • EROPA Bulletin
    • Call for Inputs
  • Downloads
    • EROPA Brochure & Forms
  • Contact Us
  • 2021 EROPA Conference

Multiple Corporate Objectives and Performance Contracts: The case of Philippine Government Financial Institutions

14/9/2017

0 Comments

 
Al-Habbyel Yusoph (University of the Philippines)

This paper explores how Philippine government financial institutions (GFIs) balance their multiple and conflicting objectives by examining their performance contracts with the government. GFIs and other state-owned enterprises (SOEs) are often mandated to pursue other goals aside from profit maximization. In 2011, the government institutionalized reforms in the corporate governance of its SOEs and, in 2014, implemented performance contract agreements which required GFIs to develop balanced scorecards following Kaplan and Norton (1992).  Using various corporate governance and goal-setting theories, this paper reviews the performance contracting process and twenty-three (23) actual balanced scorecards. The review finds that GFIs have different priorities, with social and financial goals having the highest weights. With the use of balanced scorecards, GFIs were able to solve their multiple objective problems by specifying the tradeoffs and developing a single annual objective score. First-year results of the performance contracts indicate that GFIs might be gaming the goal-setting process and exhibiting “ratchet effects”. Finally, this paper recommends that (1) the government review GFI objectives, especially with regard to the primacy of financial goals over non-financial goals, and that (2) control and quality measures be added to ensure that performance contracts are effective.

PowerPoint Presentation
0 Comments



Leave a Reply.

    Theme A: Public Sector Transformations

    Institutional and Policy Innovations and Reforms towards Sustainable Development

    The authors retain copyright of papers presented at the annual EROPA Conferences. Unless indicated otherwise, the papers and presentations posted in the database may not be suitable for citation as published material.

    Categories

    All
    Session 1A
    Session 2A
    Session 3A
    Session 4A
    Session 5A
    Session 6A
    Session 7A

    RSS Feed

Flag Counter
EASTERN REGIONAL ORGANIZATION FOR PUBLIC ADMINISTRATION
National College of Public Administration and Governance
University of the Philippines, Diliman 1101 Quezon City
Philippines
Telefax: (+632) 8 929 7789
  • Home
  • About
    • Our Story
    • Constitution
    • EROPA Centers
    • EROPA Secretariat >
      • Sec-Gen's Corner
    • EROPA Chairperson
  • Membership
    • Members' Corner
    • Join EROPA >
      • Individual Membership Form
      • Group Membership Form
      • State Membership
    • State Members
  • Public Administration News
  • Conferences
    • 2021 EROPA Conference
    • List of Past Conferences
    • Database for Past Conferences >
      • 2019 EROPA CONFERENCE
      • EROPA 2018 Conference
      • EROPA 2017 Conference
      • EROPA 2016 Conference
      • 2012-2015 Conferences
    • Carlos P. Ramos Award for Best Conference Paper
    • Asian Leadership Forum
    • Stories to Share
  • Activities
    • EROPA ExP >
      • Find an Expert
      • JOIN ExP DATABASE
    • OYPA >
      • FAQs/Guidelines
      • OYP Nomination Form
  • #TAG Dialogue
    • About #TAG Dialogue
  • ARPA
    • ARPA Editorial Board
    • ARPA Call for Papers
    • Publication Ethics and Malpractice Statement
    • Notes for Contributors
    • Abstracts >
      • 2019, Volume 30, Nos. 1-2
      • 2018, Volume 29, Nos. 1-2
      • 2017 Volume 28, Nos. 1 & 2
      • 2016 Volume 27, Nos. 1 & 2
      • 2015 Volume 26, Nos. 1 & 2
      • 2014 Volume 25, No. 2
      • 2014 Volume 25, No. 1
      • 2013 Volume 24, Nos. 1 & 2
      • 2012 Volume 23, Nos. 1 & 2
      • 2011 Volume 22, No. 2
  • EROPA Bulletin
    • Call for Inputs
  • Downloads
    • EROPA Brochure & Forms
  • Contact Us
  • 2021 EROPA Conference