Determining the value relevance of financial instruments on the stock performance of publicly-listed, non-financial companies in the Philippines for the years 2011-2015
Date of Publication
2016
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Accountancy
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Adviser
Aaron Escartin
Defense Panel Member
Mark Vincent Bendo
Herminigilda Salendrez
Juancho Ong
Abstract/Summary
The importance of financial instruments for non-financial companies is usually overlooked given that the said instruments are not as integral in their day-to-day operations, compared to that of financial companies. The aim of this paper is to determine the value relevance of financial instruments on the stock performance of publicly-listed, non-financial companies operating in the Philippines for the years 2011 to 2015. The data collected involving the accounts of financial instruments were tested by a researcher-modified Ohlson model to show its correlation to stock price, and by the earnings response coefficient model to show its correlation with stock returns. Based on the results of the two models, financial instruments, if measured alongside a profit indicator, do not have a significant impact to stock performance. With the use of the ERC model, the researchers found that, in addition to changes in earnings per share, size also has a significant explanatory power with regard to stock returns. The results have positive contributions in business in that these provide information that could be used by top management to improve the quality of their decisions, regulatory bodies in assessing current valuation systems, and for investors and analysts in maximizing their investment choices.
Abstract Format
html
Language
English
Format
Accession Number
TU23405
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
iii, 108 leaves : illustrations (some color) ; 29 cm. + 1 computer disc ; 4 3/4 in.
Keywords
Financial instruments--Philippines; Stocks--Philippines
Recommended Citation
Cortez, A. L., David, K. C., Martinez, J. C., & Origeneza, K. D. (2016). Determining the value relevance of financial instruments on the stock performance of publicly-listed, non-financial companies in the Philippines for the years 2011-2015. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/7690
