The implications of exchange rate control on firm performance: The case of publicly listed companies in the Philippines

• Main Authors: Chua, April Mavis N., Sy, Chrysander Jasper C., Tan, Rainier Ellis O., Uy, Jesley T.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Foreign exchange > Philippines; Foreign exchange administration > Philippines; Business enterprises > Philippines > Finance; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18368
• Institution: De La Salle University

This paper seeks to present the implications of foreign exchange control on firm performance specifically on stock prices of firms listed in the Philippine Stock Exchange. The researchers conducted a study on 84 firms, excluding the financial sector. Using the event study approach, the researchers were able to get a negative impact on the announcement of foreign exchange control. Almost all resources firms' stock prices performed badly days after the announcement of foreign exchange liberalization since they highly depend on importation and exportation of their goods. In addition, the researchers also conducted Chow test that shows there is structural change in parameters.