An evaluation of risk, return and stock price premium of segmented shares listed in the Philippine composite index (PHISIX) for the period 1998-2004

Date of Publication

2006

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Rene B. Hapitan

Defense Panel Member

Ma. Esperanza F. Joven

Ericson James D. Pacaba

John Paul T. Aguinaldo

Abstract/Summary

This paper examined the relationship among risk, return and stock price premium induced by ownership restriction in the Philippine stock market. Prior researches in other countries showed that political risk, exchange rate risk, interest rate risk, and liquidity and differential demand risk had impact on price of segmented shares. Empirical test provided evidence in the Philippine setting to support previous in which only exchange rate risk, interest rate risk, and liquidity and differential demand risk significantly affected stock price premium of Lepanto Consolidated Mining, Manila Electric Company, Philex Mining Corporation and San Miguel Corporation for the period 1998-2004. In addition, our research found that investors of Lepanto, Meralco and San Miguel required higher expected return on B-Share than A-share. However, among four studied companies, the two mining companies generated lower historical return on B-share in comparison to A-share. Several suggestions to portfolio management also have been made for domestic investors to consider buying B-share or not to maximize their wealth.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU13500

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

11, 76, [100] leaves : ill. 28 cm. + 2 computer optical disc

Keywords

Stock exchanges--Philippines; Investments-- Philippines

This document is currently not available here.

Share

COinS