An empirical study on the impact of the global financial crisis on the relationship of economic value added and return on equity to stock returns: Evidence from selected publicly listed industrial firms

• Main Authors: Cabaliza, Colene P., Pe, Mark Joseph M., Samonte, Kathleen R., Caraos, Ronald E.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Global Financial Crisis, 2008-2009; Stocks > Prices > Economic aspects; Rate of return > Economic aspects; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11489
• Institution: De La Salle University

The financial crisis that began in the United States during 2008 has direly affected the global economy and has caused the downfall of the conditions of numerous countries all over the world. But despite the fact that various other countries have harshly felt the terrible effect of the global financial crisis, the Philippines has been considered to have not as sharply experienced its impact. This can be somehow attributed to the reason that the Philippines have little exposure to the structured financial instruments that caused the crisis. Although this is the case, the Philippines was not spared and still experienced the effect of this widespread financial catastrophe. For this study, the researchers aimed to determine the impact of the recent global financial crisis on the stock and financial performance of the companies listed in the Philippine Stock Exchange under the industrial sector. Chiefly, the relationship between these two was evaluated and assessed whether it significantly changed subsequent to the global adversity. The performance measures used specifically were Economic Value Added, Return on Equity and Stock Returns for the accounting financial performance, value-based management and stock performance measures respectively. These provided linkage between the companies accounting and economic profits with the performance they exhibit in the stock exchange market.