Corporate characteristics and stock prices : evidence from listed companies in the Philippines

• Main Authors: Domingo, Lina Maria D.S., Gonzales, Chester Louie S., Imperial, Glenn Paolo S., Santos, Czarina A.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Corporations > Valuation; Securities > Prices
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10121
• Institution: De La Salle University

A company's stock can be an indicator of how well or bad a company is performing in the market. Because of this, companies plan their actions and movements comprehensively in order to obtain a higher stock price. These would also include determining the factors, which could influence the movements of the stock price. The study explored the effects of corporate governance, disclosure compliance, firm size, and firm tenure on the change in stock price among publicly listed companies in the Philippines during the years 2008 – 2012. To accomplish this, the researchers made use of panel data regression with corporate governance, disclosure compliance, firm size, and firm tenure as independent variables and the change in stock price as the dependent variable to highlight the relationship and impact of the various independent variables on the stock price. The result showed that the disclosure compliance, the number of board of directors and the total assets of the company do not significantly affect the publicly listed companies’ change in stock price. Nonetheless, market capitalization, ratio of outside to total number of board of directors, and firm tenure exhibits significant impact on companies’ change in stock price. By being able to point out which factors would positively affect stock prices, management would be to plan their actions and movements more comprehensively in order to be able to create more opportunities that could increase the company’s stock price.