The effect of advertising on stock returns: Evidence from selected public companies in the Philippines

Date of Publication

2015

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major 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

Joseph Vincent David

Defense Panel Member

Alfredo Santoyo
Denmark Alarcon
Krisitne Lagdameo

Abstract/Summary

The study aims to identify the effect of advertising on stock returns in the Philippines, using data from 32 publicly listed companies in the Philippines. Along with advertising expense, the researchers used total assets, sales, and capital expenditures as independent variables. Control variables such as market capitalization, firm age, and book-to-market ratio were also used in the study. The data used by the researchers were gathered from the annual reports of the companies from 2004-2012 via the Philippine Stock Exchange (PSE) Library and Osiris. The researchers used Fama-Macbeth regression to examine the effect of the independent variables on stock returns. Additional research was done on the short-term effect of advertising expense by regressing quarterly data.

Results show that the independent variables used in the study had no significant relationship with stock returns, even when the control variables were included in the model.

Chapter 1 contains the background of the study, statement of the problem, objectives, statement of the hypotheses and the limitations of the study. Chapter 2 contains the related literature which the researchers will use throughout the study as well as the literature map and the research gap. Chapter 3 contains the frameworks used to provide a sound base for the study. Chapter 4 contains the research and sampling design, method of data collection, description of the variables used, data analysis method, and the methodological limitations. Chapter 5 contains the results of the regression as well as data interpretation. Chapter 6 contains the conclusion and recommendations.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21711

Shelf Location

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

Physical Description

74 leaves : illustrations

Keywords

Stock exchanges--Philippines; Advertising, Industrial--Philippines

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