A study on the effects of capital adequacy requirements, ownership structure and franchise value on the risk preferences of selected banks listed in the Philippine Stock Exchange for the period 1996-2005

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

Annegirl G. Berin

Defense Panel Member


Rozanne V. Delos Reyes
Steven Lim
John Richard B. Sotelo

Abstract/Summary

The study examine the relationship of specific risk such as Total risk, Firm-specific risk, Systematic risk, and Insolvency risk between Capital Adequacy requirement, Ownership Structure and Franchise Value. This study determines the level of risk affected by the independent variables and identifies which of these factors affect the four types of risk. Using the sample of ten universal and commercial banks listed in Philippine Stock Exchange, the group uses the banks' stock returns. PSEi weekly stock return and changes on yield of ten-year government bond to determine total risk, firm-specific risk and systematic risk. Regression was used as a statistical tool in order to determine the relationship of the risks mentioned to capital adequacy requirement, ownership structure and franchise value. This study gives researchers a clear understanding of factors that affect risk which may be helpful to the related study they try to pursue.

The result shows an inverse relationship between Total risk and Franchise value as well as Firm-specific risk. On the other hand, Insolvency risk is positively affected by Capital Adequacy Requirement. None of the independent variables show an effect on systematic risk. Ownership Structure has no significant relationship on any of the four types of risk mentioned. The relationship between independent variables and other types of risk aside from those used in this study have yet to be examined.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU13504

Shelf Location

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

Physical Description

1 v. (various foliations) : ill. ; 28 cm.

Keywords

Banks and banking; Finance--Philippines

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