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Item Restricted Industry concentration and liquidity correlation in the Philippine stock market(2003-03-19) Alabado, Kristina L.; Mediante, Claire B.; Reside, Renato E.The study conducted, aimed to determine the relationship between Industry Concentration and Liquidity. The objective is to find truth in the hypothesis that a highly concentrated industry would be less liquid or will have a lower turnover ratio. Data is obtained from the Philippine Stock Market on Market Capitalization, Volume and Outstanding shares of the firms involved in trading of Common Stocks. An eleven month period which is from January to November of 2001 was chosen as the time frame for the study. The Herfindahl -Hirschman Index is used to measure industry concentration while the shares turnover ratio measured the liquidity of each industry. Results do not support the hypothesis that there is a negative relationship between industry concentration and liquidity. There is no clear trend observed from the data indicating that industry concentration does affect liquidity. Concentration does not necessarily imply negative effects but can be a positive factor behind industry efficiency.