An analysis of the effect of money supply and net asset value per share to common stock prices in the Philippines

• Main Authors: De Leon, Alvin Gerald, Nylander, Bengt Joseph, Songcal, Skylar, Velayo, Rexmond Gerard
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Stocks > Prices > Philippines; Stocks > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18454
• Institution: De La Salle University

This study aims to determine the effect of M1 and percentage change in NAVPS on percentage change in PHISIX/PSEi. The scope of the study is from February 1995 to July 2007. The model has been tested for structural breaks to take into account the effects of external shocks. Results indicate that the independent variable percentage change in NAVPS has an effect on dependent variable but there was no causality. A casual relationship between M1 and percentage change in PHISIX/PSEi has been established when tested with 6 lags, however, the regression results indicate that M1 is insignificant. In this study, it was concluded that the behavior of stocks is random which is consistent with the findings of previous studies and the efficient markets theory.