An evaluation of risk, return and stock price premium of segmented shares listed in the Philippine composite index (PHISIX) for the period 1998-2004
This paper examined the relationship among risk, return and stock price premium induced by ownership restriction in the Philippine stock market. Prior researches in other countries showed that political risk, exchange rate risk, interest rate risk, and liquidity and differential demand risk had impa...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2006
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/14163 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | This paper examined the relationship among risk, return and stock price premium induced by ownership restriction in the Philippine stock market. Prior researches in other countries showed that political risk, exchange rate risk, interest rate risk, and liquidity and differential demand risk had impact on price of segmented shares. Empirical test provided evidence in the Philippine setting to support previous in which only exchange rate risk, interest rate risk, and liquidity and differential demand risk significantly affected stock price premium of Lepanto Consolidated Mining, Manila Electric Company, Philex Mining Corporation and San Miguel Corporation for the period 1998-2004. In addition, our research found that investors of Lepanto, Meralco and San Miguel required higher expected return on B-Share than A-share. However, among four studied companies, the two mining companies generated lower historical return on B-share in comparison to A-share. Several suggestions to portfolio management also have been made for domestic investors to consider buying B-share or not to maximize their wealth. |
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