Empirical analysis of the effects of foreign exchange exposure: An evidence from selected publicly-listed firms in the Philippine Stock Exchange
Date of Publication
2010
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
Ricarte Q. Pinlac
Defense Panel Chair
Tomas Tiu
Defense Panel Member
Krista Yu
John Paolo Rivera
Abstract/Summary
The establishment of the relationship of the foreign exchange exposure and stock returns is an on-going review as economies open to trade, transfer of investments and technology become copious, and as information becomes available in the market. There are a vast number of studies that have been conducted in developed economies, and only a few are in the Philippine perspectives. Thus, the proponents of this study are challenged to contribute to the empirical body of knowledge where the researchers performed a case analysis on the effects of foreign exchange exposure on the stock returns of publicly listed companies and also sector returns in the Philippine Stock Exchange.
The primary purpose of this paper is to ascertain effects of foreign exchange exposure on the stock returns of publicly listed companies, which are categorized into four sectors in the Philippine Stock Exchange, namely financial, industrial, mining and oil and property sectors. The research incoporated the foreign currencies: U.S. dollars, Chinese yuan, Singapore dollars and Japanese yen for a period of 10 years from 1999-2008 mainly because these currency denominations are the most transacted with the Philippine peso.
The methodology that is adopted in this paper is a regression analysis wherein the exchange rates and the market return are the controlled variables. In the estimation of the parameters, the proponents further analyzed which currency has the highest exposure vis-a-vis the Philippine peso and why and which sector is the most exposed to the foreign exchange.
Abstract Format
html
Language
English
Format
Accession Number
TU21577
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
104, [13] leaves : illustrations (some color)
Keywords
Foreign exchange rates--Philippines; Stock exchanges--Philippines
Recommended Citation
Almazan, E. C., Caliboso, M. G., Eseque, S. E., & Tigas, M. C. (2010). Empirical analysis of the effects of foreign exchange exposure: An evidence from selected publicly-listed firms in the Philippine Stock Exchange. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18402
