Effects of macroeconomic, microeconomic and financial ratios on stock price and credit rating of publicly listed companies in the Philippines (2009-2013): Using a time series econometrics and panel data regression model analysis

• Main Authors: Cipriano, Marrion Luis A., Leveriza, Joshua Danel N., Napo, Joshua Gerard G., Paras, Lawrence Mark R.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Panel analysis; Analysis of variance; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11276
• Institution: De La Salle University

Pinpointing the optimal source of capital continues to be a concern for both companies and investors and more importantly properly identifying significant factors that influence investment performance. In line with these aforementioned premises, the study conducted made use of country-specific, market-specific and company-specific variables, exploring the possible significant effects of macroeconomic variables (GDP, Foreign Direct Investment, Inflation, Interest Rates, & Exchange Rates) to the Philippine Stocks Exchange Index (PSEi) and microeconomic variable ((Market Capitalization) and market financial ratios (Dividends per share, Earnings per share, Book Value per share, Price Earnings Ratio, Dividend Payout Ratio, Current Ratio, Solvency Ratio, Return on Assets, and Profit Margi) to company-specific performance indicators such as the stock prices and credit ratings. In accomplishing the study, two models were used namely, Time-Series Econometrics which indicated that only GDP and exchange rate have significant effect on PSEi and Panel Data Regression which showed that earnings per share and book value per share significantly affect stock prices whereas, no significant variable was observed in relation to the credit ratings of companies.