SMN Digest December 2022

1. Factors Affecting the Decision of Accounting Students to Pursue a Career as a Professional Accountant

Ashley M. Otanes and Jenny Joy Q. Verdejo

According to the World Bank Group (2017), the Philippines’ growth outlook remains positive and the country is expected to remain one of East Asia’s top growth performers. Despite the growing economy which could lead to growth in the demand for professional accountancy services and promising number of prospective professional accountants in 2017, still many among them do not pursue a career as professional accountants. In line with this, the Philippines has one of the highest gap ratios between the number of professional accountants and the total population in the ASEAN. This study investigated the contributing factors that influence the decision of accounting students to pursue a career as a professional accountant, based on the Theory of Planned Behavior. The study focused on third year and fourth year accounting students from two universities offering accountancy courses in the Philippines.

Upon survey of 165 accounting students, it was found out that the independent variables namely career prospect, financial rewards, interest in the job, and subjective norm do not affect the decision of accounting students to pursue a career as a professional accountant. Furthermore, the control variable, gender, was also statistically insignificant, which implies that gender does not determine an accounting student’s intention to pursue a career as a professional accountant. The quantitative data was further substantiated through related literature, interviews, and focus group discussions. Lastly, recommendations were given to the Board of Accountancy (BOA), to universities, to families of accounting students, and to future researchers. 

2. Effects of Korean Celebrity Endorser Credibility on Brand Credibility, Consumer-Based Brand Equity, and Purchase Intention Among Skincare Brands

Elisha Christianne B. Barcelon

The prevalence of using celebrity endorsements as a marketing tool for companies and the increasing influences of the Hallyu wave on Filipinos, coupled with the rising trend on K-beauty and the skincare industry has allowed Korean celebrities to be endorsers of skincare brands. Since their effectiveness as endorsers has not been investigated, this led this study to determine the effects of Korean celebrity endorser credibility on brand credibility, consumer-based brand equity, and purchase intention among skincare brands. The selected population consisted of skincare consumers residing in Metro Manila, ages 15 and up using non-probability sampling techniques. The study was able to gather a sample (n = 413) through a survey questionnaire for its quantitative data. Descriptive statistics, one-way ANOVA tests, confirmatory factor analysis, and covariance-based structural equation modeling were used to analyze the quantitative data gathered for the study. Focus group discussions and interviews were also conducted to gather qualitative data to further substantiate the results of the survey. The findings of the study showed that endorser credibility has a direct effect on brand credibility and purchase intention but has an indirect effect on consumer-based brand equity through the mediation of brand credibility. Overall, it was seen that celebrity endorsers also play a role in influencing brand perception and evaluation as well as the purchase behavior of skincare consumers. The findings of the study provided recommendations for skincare companies or brands and future researchers. 

3. Financial Literacy and Retirement Planning Among Employees of a Higher Educational Institution in the Philippines

Dr. Anna Maria Mendoza, Nogin Bunda, Kyra Audrey Pulohanan, Sofia Flor, Andrea Pamela Ong, Melanie Rose Tan

The study sought to determine the level of financial literacy of a higher educational institution’s employees and their level of retirement planning as well as the effect of the employees’ level of financial literacy on their retirement planning. The measures used for financial literacy and retirement planning were patterned after the 2011 study by Lusardi and Mitchell, 2015 study by Boisclair, Lusardi, and Michaud, 2016 study by Moure and 2017 study by Kalmi and Ruuskanen i.e., knowledge of inflation, simple interest, and compound interest.

Frequency distribution was used to determine the demographic profile distribution. Independent T-tests and One-way Analysis of Variance (ANOVA) were used to determine significant differences among the major variables in relation to the different groups of the demographic profile of respondents. On the other hand, binary logistic regression was used to create models that were used to determine the effects of financial literacy on the respondents’ aspects of retirement planning.

The results showed that the employees of the higher educational institution (HEI) have a high level of financial literacy. 61.40% of the employees have a plan for retirement while 64.10% have a separate plan for retirement savings aside from the mandatory contributions. However, for various reasons, only 13.40% were able to stick to this separate plan. 

Financial literacy has a negative significant effect on retirement planning. Respondents are less likely to have a retirement plan considering their educational attainment. Those who are graduates of a doctorate degree are less likely to have a retirement plan. The demographic factors have no effect on the level of financial literacy of the respondents. In terms of retirement planning, the respondents with the following characteristics have higher likelihood of doing retirement planning: females (52.8%); within the age group of 30 to 41 (22.5%); college graduates (31.70%); married (31.70%); belonging in a household with 3 to 5 persons (32.39%); and are earning between P20,000 to P70,000 per month (46.5%). The research will help the university design interventions to address the financial education and retirement needs of its employees. 

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