The impact of stock performance of the publicly listed banks in the Philippines on their financial growth from 2007-2016

Date of Publication

2017

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. Betita

Defense Panel Member

Junette Perez

Ray Anthony L. Almonares

Bobby Baylon, Jr.

Abstract/Summary

The main purpose of this study is to find whether there is a relationship and casual link between stock performance and financial growth of publicly listed banks traded in the Philippine Stock Exchange (PSE). It is important to present the relationship and causality for banks and regulators to formulate better banking strategy and also to decide on major decisions soundly. For this research, quarterly deposits, investments, and loans data for financial growth are considered and quarterly total shareholders retun for stock performance of selected banks from the years 2007 to 2016 are analyzed by looking into both industry and firm level model using panel data method and granger causality. As a result of the analysis, all of the dependent variables (bank deposits, bank investments, and bank loans) are significant with the independent variable (total shareholders return) at 5% significance level. There is a significant relationship between the stock performance as measured by total shareholders return (TSR) with deposits, loans, and investments. However there is no granger cause between the dependent variables and independent variable and vice versa except for total shareholders return (TSR) and investment model. This paper provides predicting ability on the movements of the variables and helps give forecasts to shareholders for them to have a more rational and efficient way in decision making.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21838

Shelf Location

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

Physical Description

vi, 164, 4 leaves ; 28 cm.

Keywords

Banks and banking--Philippines; Stock exchanges-- Philippines

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