Philippine E-Journals

Determinants on the Movement of Stock Price among the Selected Companies Listed in the Philippine Stock Exchange Index

Jenah Kyla Alcones | Kiela Jen Manalo | Crissable Villanueva | Bernadette Baran

Discipline: management studies

 

Abstract:

The revolution in the stock market had become more aggressive and experienced significant change throughout the years as it captured the interest of many investors. Nevertheless, this study investigates the predictors of the stock price through multiple regression using secondary data. Predictors identified by the researchers were categorized as financial indicators. Moreover, financial indicators consist of book value per share, dividend per share, earnings per share, return on equity, and price-to-earnings ratio that falls under market share and profitability ratios. Macroeconomic indicators, on the other hand, such as interest rates, unemployment rate, inflation rate, foreign exchange rate, and gross domestic product that comprises the Philippines’ selected economic indicators, were also assessed as it affects the company’s performance. The research subject were the selected companies listed in the Philippine stock exchange composing the PSEi indices composition that comes from various respective sectors like financials, holding firms, property, industrial, services sectors. The period covered was from January 2016 to December 2020, a 5-year data that merely supports the entire study. The data were regressed and showed one among the five was a significant predictor and that is, earnings per share. EPS is an important metric for investors to gauge the profitability of the company. Contrastingly, book value per share, dividends per share, return on equity, and price-to-earnings ratio showed a non-significance manner towards the movement of stock price. In line with this, a regression model was concluded that highlights the coefficients of the given predictors.