Impact of Chosen Financial Variables on Share Price of Publicly Listed Firms in the Philippines
Placido M. Menaje, Jr.

Abstract
Share investing is taking a risk and investors seek those financial measures that have significant impact on share price. Past empirical studies used various financial and economic variables to determine their effect on share price but some of the results were not very conclusive and there were some recent results that seemed to contradict previous studies. This paper aims to determine whether earnings per share (EPS) and return on assets (ROA) have significant influence on share price of publicly listed firms in the Philippines. The study used the 2009 financial reports of 50 publicly listed firms taken from the OSIRIS electronic database. Result of the Spearman Rank order Correlation disclosed strong positive correlation of EPS with share price. ROA disclosed a weak negative correlation with share price. Multiple regression results showed that the chosen model was able to explain 73% of the average change in share price.

Full Text: PDF