Banquito, Georgette I. et.al. 4 0
Correlation between profitability and changes in stock price of selected holding firms / 6 6 Banquito, Georgette I.; Galvan, Trisha Bless S.; Solis, Diane Mae L.; Camposano, Eureka N.; Labing-isa, Jenina Mae I.; Mabilangan, Michelle; Masilang, Marwin S.; Ozaeta, Gian Lourielle U.; Reyes, Kirby Jurell G. - - - 96 pp. 28 cm. - - - - - . - . - 0 . - . - 0 .
Financial Plan : (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2016.
5
ABSTRACT: This study is conducted to determine the correlation between profitability and changes in stock price of selected holding firms. The researchers aim to determine the following; the profile of the firm; the performance of the holding firms profitability; the performance of the holding firms in the market; how holding firms handle their cash flow from the stock market, capital and earnings; and the relationship of the profitability of holding firms to its changes in stock price. The researchers used descriptive method to find relevant information about the study. Profitability ratios such as ROA, ROE, GPM and NIM were used to measure firms ability to generate an adequate return composed to its expenses. Additionally, P/E, dividend. EBITDA and CIP were also used to determine the market value of the firm. In line with this, weighted arithmetic mean is also used to indicate the relevance of the cash flow from the stock market, utilization of capital and earnings to the profitability and the stock price movement of the firms. In line with this, regression was used to determine and evaluate the demographic profile on the firm, cash flow, the movement of stock prices and utilization of their earnings and capital. This study was able to determine the specific aspect of correlation between profitability and changes in stock price of selected holding firms wherein return on equity is moderately related to EBITDA ratio, gross profit margin is related to change in price and net income margin is also related to EBITDA ratio. This finding implies that the stock price is affected by the earnings of the firm, the higher the stock price (White, 2008). The stock market comprises of essential part on the financial institution of the country. Therefore, understanding the movement of the market and its changes will contribute significant knowledge to the entities and by providing the specific aspect of correlation between the profitability of the firms and their stock market performance, entities should have an efficient management of its daily and basic financial operations. Thus, entities should prioritize improving their earnings that may result to higher value of stock price which may lead to better reputation of the entity both in the line of their industry and performance in the market.
5
2 = =
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/ 2
/ 2
/
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Correlation between profitability and changes in stock price of selected holding firms / 6 6 Banquito, Georgette I.; Galvan, Trisha Bless S.; Solis, Diane Mae L.; Camposano, Eureka N.; Labing-isa, Jenina Mae I.; Mabilangan, Michelle; Masilang, Marwin S.; Ozaeta, Gian Lourielle U.; Reyes, Kirby Jurell G. - - - 96 pp. 28 cm. - - - - - . - . - 0 . - . - 0 .
Financial Plan : (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2016.
5
ABSTRACT: This study is conducted to determine the correlation between profitability and changes in stock price of selected holding firms. The researchers aim to determine the following; the profile of the firm; the performance of the holding firms profitability; the performance of the holding firms in the market; how holding firms handle their cash flow from the stock market, capital and earnings; and the relationship of the profitability of holding firms to its changes in stock price. The researchers used descriptive method to find relevant information about the study. Profitability ratios such as ROA, ROE, GPM and NIM were used to measure firms ability to generate an adequate return composed to its expenses. Additionally, P/E, dividend. EBITDA and CIP were also used to determine the market value of the firm. In line with this, weighted arithmetic mean is also used to indicate the relevance of the cash flow from the stock market, utilization of capital and earnings to the profitability and the stock price movement of the firms. In line with this, regression was used to determine and evaluate the demographic profile on the firm, cash flow, the movement of stock prices and utilization of their earnings and capital. This study was able to determine the specific aspect of correlation between profitability and changes in stock price of selected holding firms wherein return on equity is moderately related to EBITDA ratio, gross profit margin is related to change in price and net income margin is also related to EBITDA ratio. This finding implies that the stock price is affected by the earnings of the firm, the higher the stock price (White, 2008). The stock market comprises of essential part on the financial institution of the country. Therefore, understanding the movement of the market and its changes will contribute significant knowledge to the entities and by providing the specific aspect of correlation between the profitability of the firms and their stock market performance, entities should have an efficient management of its daily and basic financial operations. Thus, entities should prioritize improving their earnings that may result to higher value of stock price which may lead to better reputation of the entity both in the line of their industry and performance in the market.
5
2 = =
2
2 --0------
6 --0-- 2 --------
0 2 --
--20------
--------20--
--------20--
----2
/ 2
/ 2
/
/