Analyzing stock categorization in Southeast Asian equities: Integrating discriminant function and factor analysis

• Main Author: Antonio, Rosemarie M.
• Format: text
• Language: English
• Published: Animo Repository 2024
• Subjects: Stocks—Southeast Asia; Finance—Southeast Asia; Business; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etdm_finman/12; https://animorepository.dlsu.edu.ph/context/etdm_finman/article/1015/viewcontent/Analyzing_stock_categorization_in_Southeast_Asian_equities__Integ__1_.pdf
• Institution: De La Salle University

This study explores stock categorization in Southeast Asian equities markets, focusing on the industrial and services sectors. Employing Discriminant Function Analysis (DFA) and Factor Analysis, the influence of financial variables on stock categorization is examined, utilizing quarterly data sourced from the Refinitiv database. The analysis involves model-based imputations, structural break analysis, and logistic regression, conducted in the R programming language. Descriptive statistics highlight significant variations in financial metrics across countries, with distinct patterns observed in factors influencing stock categorization. Logistic regression models reveal the collective impact of financial variables on sector differentiation, supporting tailored approaches for each country. The integration of DFA and Factor Analysis enhances prediction accuracy, emphasizing the importance of country-specific factors in financial analysis. The study underscores the significance of geopolitical events and data quality in understanding market dynamics and informs recommendations for stakeholders and policymakers in navigating dynamic financial landscapes.