The effects of the exchange rate and change in world market prices of oil on market capitalization of selected oil companies in Philippines and China for the years 2008-2015

Date of Publication

2016

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

Tyrone Chan Pao

Defense Panel Member

Mar Andrieli Umali

Nilo Pacheco, Jr.

Abstract/Summary

This study compared the impact of oil prices and exchange rate on the market capitalization of Philippine and Chinese oil firms recognizing the vast disparity between the countries regarding the size the said companies are domiciled in. The researchers mainly employed vector autoagression (VAR), vector error correction model, forecast Error variance decomposition (FEVD), and impulse response function (IRF) to obtain the results. Interestingly, the researchers found out that the impact of oil prices and exchange rate highly depended on the sector the firm is engaged in namely: upstream, midstream, downstream, or integrated due to the sectors' different perceptions regarding the tested variables. Furthermore, how dependent on energy a country is plays a role in vulnerability come oil fluctuations with China's economy showing an impact of oil prices on the exchange rate. In the Philippines' situation, there was no relationship between exchange rates and oil prices.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU19481

Shelf Location

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

Physical Description

195 leaves : illustrations (some color) ; 28 cm. + 1 computer disc ; 4 3/4 in.

Keywords

Stock exchanges--Philippines; Petroleum products --Prices--Philippines

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