Modelling stock price behavior through financial ratios: A study on the impact of 1997 Asian financial crisis to the commercial & industrial sector in the Philippine stock exchange (January 1996 - June 2000)

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions


Ramon V. Del Rosario College of Business


Financial Management Department


Awarded as best thesis, 2000


This study conducted an in-depth analysis of the selected sub-sectors in the commercial and industrial of the Philippine stock market for the period of January 1996 to June 2000. Its prime concern is to establish and to elucidate the relationship between financial ratios and the movement of stock prices. moreover, by using regression models and some statistical measures -- this study depicted which financial dimension reflects stock price behavior as supported by several explanatory variables. Further, the study examined as to what extent such ratios affect the industry of the company. Lastly, this paper illustrated the impact of the Asian financial crisis to the sector.

Empirical results of this study indicated that financial performance of a company (as dictated by its financial ratios) is a reliable data in determining behavior of stock prices. Thus, one should consider the fundamental analysis as one of the significant tools in determining movement of stock prices. Moreover, at cross-sectional level (that is, sub-sector approach) this study strongly implied that ratios that are deemed to be significant vary from sub-sectors depending on the line of business of the corporation. Findings presented further supported the conclusion of Teppo Martikainen (1991) that profitability and financial leverage ratios are good determinants of stock price behavior. On the contrary, corporate growth is seen to have no significant relationship to stock prices movements.

Abstract Format






Accession Number


Shelf Location

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

Physical Description

95 numb. leaves ; 28 cm.


Stock exchanges; Stocks--Prices

This document is currently not available here.