A Study on the relationship between intangible assets and stock price volatility of listed firms in the Philippine Stock Exchange: Year 2004 - 2013

• Main Authors: Banawa, Melisha Xyrza E., Malijan, Mary Pauline B., Punzalan, Alexandra Nicole G., Sangalang, Alia Celine A.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Stock exchanges > Philippines; Stocks > Prices > Philippines; Intangible property > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9023
• Institution: De La Salle University

The study was conducted to explore the relationship between the intangible assets and stock price volatility of companies listed in the Philippine Stock Exchange. The study checks if the intensity of intangible assets found in companies annual reports affects the volatility of their stock price. In some cases, it was expected that intangible assets intensity would result to a positive effect on stock price volatility. The study used data from the 58 sampled publicly-listed companies with data 2004 to 2013. These firms were selected from four different industry groups: service, financial, industrial, and property. The data was analyzed using the SAS software to determine if intangible assets have a significant effect on stock price volatility. An OLS regression was run and results from the entire data showed insignificant relationship between intangible assets and stock price volatility. Results from the study suggest that apart from the variables used, there may be other factors that affect the relationship of intangible assets with stock price volatility. Given that the Philippine market is relatively young and still developing as compared to markets of developed countries, the concept and utilization of intangible assets might not be perceived as significant and impactful. Future studies should then focus on how firms account for their intangible assets to understand the effect of book value to the volatility of their stock prices. In addition, future studies should consider the perspective of investors and stakeholders on what role intangibles asset can play in order to maintain their firms value and position in the Philippine market.