The relationship between economic indicators and stock exchange index of ASEAN-4 countries: Indonesia, Malaysia, Philippines, and Thailand

Date of Publication

8-8-2023

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Economics

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management Department

Thesis Advisor

Junette A. Perez

Defense Panel Chair

Edralin Lim

Defense Panel Member

Tyrone Panzer Chan Pao
John Paul Tanyag

Abstract/Summary

The rise of many uncertainties and risks are affecting a lot of people and companies around the world. This research aims to identify some of these economic indicators and how they affect the performance of the stock market. Unlike other research, this paper includes the countries of ASEAN-4 namely: Philippines, Indonesia, Malaysia, and Thailand. The object of this paper is to find the correlation between dependent variables, the Stock Market Index Price, to its independent variables, which are interest rate, unemployment rate, GDP growth rate, and producer prices, using the Multiple Linear Regression model. After fulfilling all assumptions for the dataset, this research found several findings. For all ASEAN-4 countries, Interest rate is significant and is negatively correlated with Stock Market Index Price. On the other hand, GDP growth rate and Producer Prices is not significant in affecting Stock Market Index Prices. Moreover, unemployment is significant and is negatively correlated for the countries Indonesia and Malaysia but is not significant for the countries Philippines and Thailand. Also, another implication is that interest rate is a significant element affecting the Stock Market Index Prices of most countries.

Abstract Format

html

Language

English

Format

Electronic

Keywords

Stock exchanges—Southeast Asia; Economic indicators—Southeast Asia

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Embargo Period

8-9-2033

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