Market capitalization

About: Market capitalization is a research topic. Over the lifetime, 3583 publications have been published within this topic receiving 77288 citations. The topic is also known as: market cap & market value.

Law, finance and innovation: the dark side of shareholder protection

Abstract: Proponents of minority shareholder protection state that national legal institutions protecting small investors boost stock markets and, in turn, the long-term performance of countries. In this paper we empirically challenge this argument. We perform three-stage least squares estimation on a sample of 48 countries during 1993–2006 and find that countries with stronger shareholder protection tend to have larger market capitalisation but also lower innovative activity. We cope with stock market endogeneity and industry heterogeneity, and circumvent omitted variables bias, so that this finding is unlikely to be driven by misspecification problems. The estimation results are interpreted, arguing that stronger shareholder protection may depress rather than encourage the most valuable corporate productions, because it enables small and diversified shareholders to play opportunistic actions against undiversified stockholders, after specific investments are undertaken by the company; innovative activity, largely based on specific investing, is particularly exposed to this problem. Copyright , Oxford University Press.

Investment company that invests in fixed income securities and has conventional and ETF share classes with different dividend payment frequencies

Abstract: Methods and apparatus are provided to administer an investment company. The investment company issues one or more classes of shares that are bought from and redeemed with the investment company at a net asset value. The investment company also issues one or more classes of shares that are listed for trading on a securities exchange and that are bought and sold in a secondary market at negotiated market prices. One or more computers maintain information regarding portfolio holdings of the investment company and outstanding shares in the investment company. Dividends are periodically declared at a first time interval for the outstanding shares that are bought from and redeemed with the investment company at a net asset value. The amount of dividends to declare is calculated from the information maintained in the one or more computers. Dividends are periodically declared at a second time interval that is different from the first time interval for the outstanding shares that are exchange-traded. Again, the amount of dividends to declare is calculated from the information maintained in the one or more computers.

The Concept of Financial Sustainability Measurement: A Case of Food Companies from Northern Europe

Abstract: A managerial approach to the financial sustainability of a company derives from the principle of value maximization for shareholders at an acceptable level of risk, using the best combination of investments and available sources of financing. The research presents the concept of financial sustainability measurement in the example of food companies from Northern Europe. We applied fuzzy logic to quantify complex interrelations among various financial factors and classify companies according to the level of their financial sustainability. A unique combination of factors formed a single complex indicator, which measured a relative level of financial sustainability of food companies. Considering the duality of financial sustainability in terms of risk and return, the relationship framework for synthetic evaluation included the vector of value and the vector of continuity that consisted of such variables as profitability, market capitalization, productivity, operating efficiency, debt, liquidity, interest coverage, and retained earnings. We received evidence that the level of financial sustainability of entities changed in 2005–2015 and was statistically different among sample companies. The proposed method can be applied as a practical tool in a decision-making process to evaluate financial sustainability or other aspects of business performance in larger groups of entities on the basis of various financial criteria.

Large Corporations and Concentrations of Capital in Australia: A Geographical Analysis

Abstract: This paper considers the spatial and sectoral implications of the changing pattern of concentration among the 100 largest firms in Australia over the 25-year period from 1953 to 1978. The extent of foreign ownership and control within the Australian economy is explored. Four indices are used to measure these variations -number of firms, size of firm (shareholders' funds and market capitalization), profits, and return on shareholders' funds. The growth of the giant corporation is one of the most often remarked upon economic and social phenomena of recent years [33] and has a number of serious implications for government, not least for the capacity of government to govern. The growth of such corporations has been reflected in at least three processes. One is an increase in the degree of oligopoly in the economy as a whole and in particular industry sectors. This tendency is most clearly revealed by the pro

Size, Value, and Momentum in Developed Country Equity Returns: Macroeconomic and Liquidity Exposures

Abstract: The paper investigates value and momentum factors in 23 developed international stock markets. We find that typically value and momentum premia are smaller and more negatively correlated for large market capitalization stocks relative to small. Momentum factors are more highly correlated internationally relative to value. We provide international evidence on three sets of risk exposures of value and momentum returns: macroeconomic risk, funding liquidity risk, and stock market liquidity risk. We find that value returns are typically lower prior to a recession while momentum returns often exhibit little sensitivity. Value returns are typically lower in times of poor funding liquidity, whereas, with notable exceptions, momentum returns are typically unaffected. Lastly, for almost all countries, value returns are high in poor stock market liquidity conditions. The same result appears to be true for momentum in Asia Pacific, North America, and largely in Europe.