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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.


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Journal ArticleDOI
TL;DR: This article examined the daily abnormal stock price returns of a sample of 154 publicly-traded hospitality firms from 23 different countries representing over $400 billion in combined market capitalization around the time that COVID-19 was first viewed by stock market participants as a major threat.

30 citations

Journal ArticleDOI
TL;DR: In this paper, the authors used the stock data of Tehran Stock Exchange from March 21, 2014, to March 21 2017, to construct its stock correlation network using the threshold method, and the results of the analysis of stock centrality suggest that stocks with a higher market capitalization, a greater risk, a higher volume of transactions and a lower debt ratio are more central.
Abstract: A big data set can often be illustrated by the nodes and edges of a big network. A large volume of data is generally produced by the stock market, and complex networks can be used to reflect the stock market behavior. The correlation of stock prices can be examined by analyzing the stock market based on complex networks. This paper uses the stock data of Tehran Stock Exchange from March 21, 2014, to March 21, 2017, to construct its stock correlation network using the threshold method. With an emphasis on centrality in complex networks, this article addresses key economic and financial implications that can be derived from stock market centrality. Central industries and stocks are thus identified. The results of the analysis of stock centrality suggest that stocks with a higher market capitalization, a greater risk, a higher volume of transactions and a lower debt ratio (i.e. greater liquidity) are more central. These stocks attract more customers due to their attractive investment features and thus have a greater market influence. The review of the relationship between centrality and the growth of industries shows that an industry or a sector with greater economic growth has a higher centrality value and is positioned more centrally in the stock market network.

30 citations

Journal ArticleDOI
TL;DR: This article found that the occurrence of offshore RMB trading is determined by the economy's GDP, stage of financial development, equity market capitalization and free trade agreement with China, and the bilateral link with China through FDI flows.

29 citations

Posted Content
TL;DR: In this article, the authors present annual stock market capitalization data for 17 advanced economies from 1870 to today and reveal a striking new time series pattern: over the long run, the evolution of stock market size resembles a hockey stick.
Abstract: This paper presents annual stock market capitalization data for 17 advanced economies from 1870 to today. Extending our knowledge beyond individual benchmark years in the seminal work of Rajan and Zingales (2003) reveals a striking new time series pattern: over the long run, the evolution of stock market size resembles a hockey stick. The stock market cap to GDP ratio was stable for more than a century, then tripled in the 1980s and 1990s and remains high to this day. This trend is common across countries and mirrors increases in other financial and price indicators, but happens at a much faster pace. We term this sudden structural shift “the big bang” and use novel data on equity returns, prices and cashflows to explore its underlying drivers. Our first key finding is that the big bang is driven almost entirely by rising equity prices, rather than quantities. Net equity issuance is sizeable but relatively constant over time, and plays very little role in the short, medium and long run swings in stock market cap. Second, much of this price increase cannot be explained by more favourable fundamentals such as profits and taxes. Rather, it is driven by lower equity risk premia – a factor that is linked to subjective beliefs and can be quite fickle, and easily reversible. Third, consistent with this risk premium view of stock market size, the market cap to GDP ratio is a reliable indicator of booms and busts in the equity market. High stock market capitalization – the “Buffet indicator” – forecasts low subsequent equity returns, and low – rather than high – cashflow growth, outperforming standard predictors such as the dividend-price ratio.

29 citations

Journal ArticleDOI
TL;DR: In this paper, the performance of three asset pricing models, the Capital Asset Pricing Model, the three factor model of Fama and French (1993), and the five factor model (2015) on Indian stock market (an emerging economy) is compared.
Abstract: Asset pricing models are attempts to define the relationship between returns and risks. In this study, we test and compare the performance of three asset pricing models – the Capital Asset Pricing Model, the three factor model of Fama and French (1993) , and the five factor model of Fama and French (2015) – on Indian stock market (an emerging economy). The study is based on the constituent companies of CNX 500, and covers a period of fifteen years – from October 1999 to September 2014. The models are tested on portfolios formed on four firm characteristics – market capitalization, ratio of book-to-market equity, profitability, and investment. We find that the three factor model performs better than the Capital Asset Pricing Model in all the cases. For portfolios formed on investment, the five factor model performs better than the other models. However, except for cases in which portfolios are formed on investment, the four factor model (without an investment factor) is a more parsimonious model.

29 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
2023151
2022279
2021154
2020187
2019196
2018186