A study on the application of factor analysis on the financial ratios of selected Philippine stock listed holding firms from 2004-2013

Date of Publication

2014

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

Edralin Lim

Defense Panel Chair

Andriel Umali

Defense Panel Member

James Chan

Abstract/Summary

This study focuses on the relevance of the existing financial ratios and their categorization in assessing the financial performances of the Philippine Stock Exchange's top 15 holding firms as of July 2014. With the performance of exploratory factor analysis and other tests such as the Varimax rotation, Kaiser criterion, and Cattell's scree test in STATA, the proponents were able to identify 26 significant financial ratios and 9 factor groups, with the quick ratio and accounts receivable turnover ratio being insignificant. This shows that while a majority of the financial rattios utilized are significant in assessing the financial performances of the sample selected, their groupings are deemed to be insignificant in doing the said action. According to the financial professionals interviewed for this study, the results generated by this study may be attributed to the unique structure of holding firms, and that these results give a more detailed explanation to the specific aspects of the company, and more concrete insights as to how the management of holdings firms could improve their respective companies, in relation to their deficiencies.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21580

Shelf Location

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

Physical Description

84 leaves ; 28 cm.

Keywords

Stock exchanges--Philippines; Financial institutions--Philippines

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