Evaluating an industry's financial performance: A study on the impact of profitability, liquidity, solvency, efficiency, and market ratios on the stock prices of three publicly listed Philippine telecommunication companies for the years 1997-2010

• Main Authors: Ang, Charmaine Mikaela U., Garcia, Monica Amy C., Garcia, Patrick Marvin V.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Telecommunication > Philippines; Stocks > Prices > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18403
• Institution: De La Salle University

This study aimed to investigate the influence of a firm's internal factors to changes in stock prices. Internal factors used were return on equity (ROE), operating profit margin (OPM), book value per share (BVPS), earning per share (EPS), return on investments (ROI), current ratio (CR), debt to equity (D/E), receivables turnover (RTO), and price to earnings (P/E). Research conducted on three publicly listed Philippine telecommunication companies, which are the Digital Telecommunications Phils., Inc. (DGTL), Globe Telecom, Inc. (GLO), and Philippine Long Distance Telephone Company (TEL), from years 1997-2010. The research method used is the causal or exploratory type of research. The statistical methods used to test the hypothesis is the multiple linear regression, t test and p value test at a significance level of 5%. The research results show that the three companies vary in terms of the financial ratios that appeared to have a significant effect on stock prices. The significant ratios for each of the telecommunication companies were OPM, BVPS, EPS, and CR for DGTL OPM and RTO for GLO OPM and RTO for TEL and OPM, BVPS, ROI and D/E for the whole Philippine telecommunication industry.