The effect of disclosure on stock prices of Philippine Stock Exchange industrial sector firms

• Main Authors: Blanco, Ma. Carmela J., Disuanco, John Gabriel S., Kim, Miji, Wu, Sean Fulbert Timothy C.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Stock exchanges > Philippines; Stocks > Prices > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9008
• Institution: De La Salle University

Information is an important factor in investor trading. Investors base their trading decisions on the available information presented. However, when there is an imbalance in information, there exists information asymmetry. To address the issue of information asymmetry, the Philippines released policies to help enforce the disclosure of information. The Philippine Stock Exchange (PSE) and the Securities of Exchange Commission (SEC) have established regulations regarding information disclosure. With this, the researchers were motivated to find the significance of the disclosure template in relation to the change in stock prices using Anova. This study focused on the PSE industrial sector firms using data from years 2010 to 2014. The researchers found that only the disclosure of financial statements has a significant impact on the stock price for years 2010 and 2014. Results indicated that most of the disclosures do not have a significant impact on the stock price of an industrial firm.