Investors seek financial measures that have significant impact on share price. Past studies used various accounting and economic variables to determine their effect on share price but some of the results were not very conclusive. A number of these studies came out with results that contradicted previous studies. This paper aims to determine whether the accounting variables Earnings per Share (EPS), Cash Flows per Share (CFPS), Cash Dividend per Share (CDPS) and the macroeconomic variables Inflation Rate (IR) and 3-month T-bill rate (BSP) have significant impact on share price of publicly listed banks in the Philippines. The study used the financial reports of 10 publicly listed commercial banks taken from the database of the Philippine Stock Exchange, Inc. through their website. The financial statements covered seven years from 2002 to 2008. The multiple regression results disclosed that of the five independent variables, only the 3-month Treasury bill (BSP) had a negative significant impact on share price. All other variables did not have significant effect on share price. Nine dummy variables were included in the final model to capture whatever unique qualitative factors a particular bank has over the rest.
ISSN 0116-7111 (Print)
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