Date of Publication

9-24-2021

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Applied Economics major in Financial Economics

Subject Categories

Economics | Finance and Financial Management

College

School of Economics

Department/Unit

Economics

Thesis Advisor

Paulynne J. Castillo
Roberto B. Raymundo
Joel Q. Tanchuco

Defense Panel Chair

Paulynne J. Castillo

Defense Panel Member

Roberto B. Raymundo
Joel Q. Tanchuco

Abstract/Summary

Financial ratios are one of the means that managers consider in making strategies to increase profitability. Previous studies have used general ratios like debt to equity ratio, return on assets, or return on equity, but little research has been developed to use bank-specific financial ratios in evaluating bank performance. This study shows how these financial ratios can show the performance of banks and their strategies using data from audited financial statements released by publicly listed banks in the Philippine Stock Exchange. The results show that net interest margin, loans to deposits ratio, book value per share, earnings per share, and firm size all have significant impacts on stock prices while tier-1 leverage and efficiency ratio did not. These findings conclude that bank-specific financial ratios should be considered more by managers when setting their stock price and firm value, considering the rapid growth of the banking industry.

Abstract Format

html

Language

English

Format

Electronic

Keywords

Ratio analysis; Stocks—Prices—Philippines

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Embargo Period

10-12-2023

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