The Financial Risk Management on Stocks Investment of Brokerage Firms

Abstract

This study aimed to assess the level of effectiveness of the financial risk management on stocks investment of brokerage firms. The researcher used the descriptive research method to interpret the implications of the findings. The researcher utilized a survey questionnaire to get the relevant data needed. The statistical tools employed were frequency, percentage distribution, weighted mean, one-way analysis of variance, t-test, and ranking. The respondents of this study were the stock investors who were using the online platform of the Brokerage Firms in stocks investing. Given the indefinite population,the sample size was set to 385-400 since it is the highest number that can be obtained for a population greater than 10,000. Hence, with the approval of the adviser, the researcher had 395 stock investors of Brokerage Firms as respondents. The result revealed that most of the respondents were between 18 and 25 years old, male, single, college degree holders, have an average monthly income of P 40,000 and above, have 3-year experience in stock investing, and invest in blue-chip and non-blue chip stocks. The dominant perceptions of the respondents on the level of effectiveness of the financial risk management on stocks investment of Brokerage Firms in the aspects “price risk,” “market risk,” “economic risk,” and “business risk” were all “effective.” Among different respondent profiles, there was a significant difference in the respondents’ perceptions on the level of effectiveness of the financial risk management on stocks investment of brokerage firms.