ROA- This is measured as a ratio of Earnings before interest and taxes over Total Assets.

Leverage- This control variable is measured as total liabilities divided by total

assets. This is used because performance is influenced by the monitoring of creditors
(Mashayekhi & Bazaz, 2008).

Firm Size- This control variable is measured as the log10 of the company’s total
assets. This is extensively used as a controlling measure (Mashayekhi & Bazaz, 2008) to control
the variability in the peso value of assets that may potentially affect the estimation process.

Firm Age -This control variable is the length of time that an entity’s shares have been
traded in the PSE up to December 31, 2009. It is used to minimize specification bias in the model
(Abor & Biekpe, 2007) because firm performance may have been affected by the length of time
the shares are traded

Board Independence-This variable is measured as the percentage of independent

directors over the total number of directors in the board.

Board Size- This is measured as the number of directors in the company.

Board Competence-
Board Ownership-