This paper explores if controlling shareholders' influence on the board structure allows entrenchment or alignment effects to prevail. Informed primarily by the principal–principal theory and supported by the stewardship and resource dependence theories, this study samples 235 publicly listed Philippine firms from 2015 to 2019 and employs instrumental variable fixed effect panel and probit regression analyses. Results show ownership concentration is positively associated with the proportion of nonindependent, nonexecutive directors on the board and the likelihood of CEO duality, indicating that boards are not completely independent and are likely to generate entrenchment effects.

Occurrences of financial distress (FD) are not readily obvious yet can span several periods. This paper examines episodes of FD using industry‐relative (IR) firm‐/ accounting‐, market‐ and macro‐level information. Mixed logit regressions reveal that firm‐ and market‐based measures, as well as macro‐level variables explain the likelihood of FD in 263 publicly listed non‐banking firms in the Philippines during the period 1995 to 2018. Rates of identification of firms in financial distressed states of close to 69 percent are obtained at a cutoff probability of 0.30 in the model with time‐varying intercept and slope. This study shows the importance of recognizing heterogeneous firm behavior. The ability to more accurately predict the probability of FD and to determine the financial health of firms can help financial institutions in allocating funds and policy makers in predicting crises episodes.

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This study explores the mission statement–performance relationship of 247 Philippine-listed firms by employing the practical component and theoretical stakeholder approaches to studying mission statements. Using content and regression analyses, results indicate that: (1) the existence of a mission statement and the inclusion of customer in the statement are positively and significantly associated with performance; and (2) the inclusion of society and public image is negatively and significantly associated with performance. Aside from contributing to the growing body of theory-based, quantitative research on mission statements, this study offers another view within an emerging market context. Furthermore, it reinforces the value of having a mission statement and the importance of acknowledging salient and dominant stakeholders in the statement.