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.

Warnings from the Enron Message Board

Abstract: As Enron collapsed in the Summer and Fall of 2001, most Wall Street analysts maintained either buy or strong buy recommendations for Enron common stock. The largest bankruptcy in U.S. history was often described as coming without warning, as $60 billion in market capitalization vanished. We searched postings on the Yahoo! Enron Message Board between 1997 and 2001 for warnings of a crash to come. We found a compelling four-year history of Enron as told by apparent insiders through anonymous posts. Excerpts of 129 posts from Enron's Yahoo! message board, describing a disturbing corporate culture at Enron, include repeated warnings to investors to get out while they can.

Does Cross-Listing Lead to Functional Convergence? Empirical Evidence

Abstract: The author examines the effect of legal bonding on ownership and control structures of foreign firms cross-listing in the United States. Contrary to the predictions of corporate governance convergence theories, there is little evidence of convergence-related migration to a dispersed ownership structure on cross-listing. She finds that rather than as a means to change their governance structure, foreign firms use American Depository Receipts as a vehicle to sell control blocks, often to a new foreign owner. Firms that cross-list and sell stakes to domestic owners are from large economies with high stock market liquidity. In contrast, firm-level characteristics are more important predictors of a control change to a foreign owner. Cross-listing firms that sell control blocks to foreigners tend to be smaller, have low levels of debt, and have a high foreign income growth rate. The post cross-listing performance of firms that undergo a control change is also different from firms that do not experience a control change.

Foreign ownership, capital structure and firm performance : empirical evidence from Vietnamese listed firms

Abstract: (ProQuest: ... denotes formulae omitted.)IntroductionIn Vietnam, ownership structure is a major issue of most firms. In the past, most firms were state-owned enterprises that relied on the government for sources of finance. However, with the mid-1980's economic reform, a number of firms were privatized and there has been a dramatic growth in new firms with diverse ownership structures, including private, foreign and joint-stock companies. In addition, the establishment of Ho Chi Minh Stock Exchange in 2000 is also an important part of economic development in Vietnam. Particularly, market capitalization value increased significantly, from only US$154 mn in 2003 to US$20.385 bn in 2010. With the growth of the stock exchange, there was a change in the ownership structure of corporations in Vietnam.1 Foreign ownership gradually became an essential part of ownership structure in both non-listed and listed firms due to the boom in foreign investment inflow. However, there is no research using a detailed dataset to examine the link among foreign ownership, capital structure and firm performance in Vietnam.Research till date has focused on diversified aspects of ownership structure. In recent literature, ownership structure appears as an important factor that affects the firm performance and capital structure as well. However, theoretical arguments still cannot indicate explicitly these relations and empirical evidence shows mixed results (Morck et al., 1988; and Margaritis and Psillaki, 2010). Studies on the relationship between ownership structure and firm performance often consider the managerial ownership, large shareholders' ownership, and the concentration (or dispersion) of ownership structure. However, there is not much empirical evidence about the influence of foreign ownership on capital structure and firm performance. Meanwhile, foreign ownership has become common and plays an important role in emerging economies due to the sharp increase in foreign investment. With regard to relationship between ownership structure and capital structure, there are few studies that examine the relationship between ownership structure and capital structure (Margaritis and Psillaki, 2010; and Ruan et ai, 2011). In detail, studies that link ownership structure to capital structure only attempt to identify the determinants of capital structure. It is necessary to deeply investigate the connections between ownership structure and capital structure, especially in emerging economies.Besides, after the economic reforms in 1986, Vietnam became an emerging market and occupies a considerable position in emerging countries as well as in the world economy. Indeed, Vietnam is one of the nations that has a high economic growth rate among the developing Asian countries (IMF, 2010).2 Moreover, compared to other transitional markets such as the Eastern European countries, Vietnam's economy has performed successfully (Donor, 2011). According to the Emerging Markets Opportunity Index 2010 of Grant Thornton (2010), Vietnam occupies the 16th position. Therefore, a study examining these relationships in Vietnam is essential. Against this backdrop, the purpose of this study is to investigate: (1) the effect of foreign ownership on capital structure; and (2) the impact of foreign ownership on firm performance.The rest of the paper is organized as follows: it reviews the related literature and develops the hypotheses, followed by a description of the methodology used and specification of the empirical models. Subsequently, it discusses the results, and finally, offers the conclusion.Literature Review and Hypotheses DevelopmentAgency theory introduced by Jensen and Meckling (1976) and Jensen (1986) is mostly used to interpret the relationships between ownership structure, capital structure andfirm performance. Agency theory suggests that a separation of management and ownership creates agency cost since managers may not align their own interest with those of the shareholders. …

Achieving Financial Sustainability through Revenue Diversification: A Green Pathway for Financial Institutions in Asia

Abstract: Establishing balanced and sustainable development is critical for improving banks’ capability and performance. Financial development has enormous significance in an environment of increasingly contestable international markets, and can be achieved by enhancing banking efficiency and performance. The bank efficiency is estimated through data envelopment analysis (DEA). By applying the quantile regression technique, this research examines the impact of revenue diversification (RD) on the bank efficiency (BE) of seven Asian emerging economies over 2008–2019. In this regard, non-performing loans (NPLs), non-interest income, capitalization, and gross domestic product (GDP) are taken as control variables. The empirical findings indicate that RD, market capitalization, non-interest income, and GDP have a significant positive impact on BE, whereas NPLs have a significant negative relationship with BE. These results have significant strategic implications for managers, regulators, and policymakers, who share a common interest in boosting financial sustainability and performance.