A study on the impact of fluctuations in macroeconomic factors to movements in prices of real estate stocks

Date of Publication

2010

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Edralin C. Lim

Defense Panel Member

Leonardo Araneta
Maria Concepcion Latoja

Abstract/Summary

This study investigates the relationship of macroeconomics and the real estate industry in the Philippine setting. It focused on the impact of fluctuations in macroeconomic factors, namely short-term and long-term interest rate, inflation rate, exchange rate, and gross domestic product to the performance of real estate sector represented by the stock prices of real estate companies listed in the Philippine Stock Exchange (PSE). In order to achieve this, the researchers established a multiple regression model using OLS method and employed a time-series data spanning 15 years of quarterly reports from 1995-2009. Results revealed that changes in short-term interest rate ad inflation rate have a significant positive relationship, all of which were significant except long-term interest rate. Since changes in real estate stock process proved to be most sensitive with changes in exchange rate and inflation rate, researchers suggest the government to be more careful when trying to influence the economy through these variables. Policy makers as well should be aware of the consequences it would bring to certain industries by means of policy implementations.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21792

Shelf Location

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

Physical Description

86 leaves : illustrations (some color) ; 28 cm.

Keywords

Real estate business--Philippines; Stocks--Prices--Philippines

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