Title

Analysis on the correlation between stock return and accounting performance measures to predict the most valuable-relevant metric in all publicly-listed companies in the Philippines

Date of Publication

2015

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Defense Panel Member

Cynthia P. Cudia
Merlinda Bucad
Joylyn Legaspi

Abstract/Summary

The purpose of this study is to determine the most value-relevant metric that reflects stock return by analyzing the relationship between the two types of financial performance measures, specifically market performance and accounting performance measures, using all publicly-listed companies in the Philippines as sample population. In this connection, all available data of publicly-listed companies in the Philippines from Osiris were used in this study. The researchers performed descriptive analysis, Pearson correlation analysis, and hierarchical multiple regression in order to achieve the objects of the study. It was concluded that return on sales (ROS), return on equity (ROE) and net profit margin (NPM) were the significant predictors of stock return. Furthermore, researchers revealed that ROS and ROE had both positive significant relationships with stock returns, while NPM had a negative significant relationships with stock returns. Among the top three value-relevant predictors of stock returns, the researchers came to the conclusion that NPM was the most value-relevant metric. However, it had inverse relationship with stock returns such that whenever NPM increases, stock return decreases. In summary, the research contains vital information which both management and investors can use in making proper business decision. Thus, it is recommended that management should consider the most value-relevant metrics to assess and improve their performance in order to attract investors.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU19266

Shelf Location

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

Physical Description

viii, 128 leaves ; 28 cm. + 1 computer disc ; 4 3/4 in.

Keywords

Price-earnings ratio--Philippines

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