Vector autoregression analysis: Management efficiency, liquidity, profitability ratios and accounting numbers versus stock prices of industrial companies in the ASEAN region

• Main Authors: Estrellado, Jose Maria A., Keng, Michelle T., So, Kristine Camille H., Vermug, Angelica Anne A.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Ratio analysis; Stocks > Prices > Southeast Asia
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9878
• Institution: De La Salle University

Industrial companies consider managing current assets such as inventories, receivables, and all other accounts connected to those to be one of the critical factors in the overall condition of the company. This study aims to determine whether financial ratios, such as management efficiency, liquidity, profitability ratios and accounting numbers affect stock price movement for industrial companies in the ASEAN region using the periods 2011-2015. It aims to supplement the stakeholders in their investment decisions and be beneficial for the internal management of the company since numerous indicators can be used to have an estimate on how their stocks will be valued in the market. Since the integration of ASEAN nations is currently in process, it is timely to study whether the variables of this research would affect the valuation of the companies in the said region. Using vector auto regression analysis, the findings of the study on the aggregate level showed no significant impact and relationship. On the per industry basis, however, the telecommunication industry showed significant impact and relationship while other industries had some variables that are insignificant in impact and relationship with the stock price movement.