Topic
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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19 Mar 2018
TL;DR: In this article, the authors examined the extent to which macroeconomic factors (including interest rate, inflation rate, exchange rate, and GDP growth rate) have a positive influence on stock price and the level of significance for that influence.
Abstract: This research essentially aims to examine the extent to which macroeconomic factors (including interest rate, inflation rate, exchange rate, and GDP growth rate) have a positive influence on stock price and the level of significance for that influence. The researchers focused more on real estate and property companies that are listed on the Indonesian Stock Exchange, with consideration for the stock price of real estate and property companies listed on the Indonesia Stock Exchange (IDX) as the most volatile stock during those years (and its market capitalization was the largest during 2012). This study finds that interest rate, inflation rate, exchange rate, and GDP growth rate, as composite variables, have a significant influence on stock price. A partial test revealed that interest rate, inflation rate, and exchange rate have significance on stock price, while GDP growth rate is found to be nonsignificant.
17 citations
TL;DR: In this article, a study has been conducted to find out holiday effect and half month effect in Karachi Stock Exchange (KSE), where data pertaining to the daily stock index has been gathered for the period starting from November, 1991 to December, 2007.
Abstract: Calendar anomalies can be defined as any irregularity or consistent pattern that cannot be defined by means of any accepted theory of finance. This study has been conducted to find out holiday effect and half month effect in Karachi Stock Exchange (KSE). Our data for this study has been obtained from KSE 100 index which is a capital weighted index and consists of 100 companies and represent about 86% of the total market capitalization of the Exchange. Index of all listed shares is calculated at the end of trading day at closing prices. Data pertaining to the daily stock index has been gathered for the period starting from November, 1991 to December, 2007. Daily logarithmic market returns are then calculated from this data for testing different calendar effects. Data was further divided into two parts based on change of working days in a week. Our results reveal that the returns in pre-holidays have been found significant than post-holidays. Also, the average returns in the first half of the month are significantly higher than the other half of the month. Thus, we can say that Karachi Stock Market is an inefficient market and has an anomalous behavior towards returns.
Key words: Calendar anomalies, Karachi Stock Exchange (KSE), average returns.
17 citations
TL;DR: In this article, the effect of the sustainability profile of FinTech companies on the firm (market value and book value) as the factors that add value to investors and motivate their evolution in markets are still unknown.
17 citations
Journal Article•
TL;DR: In this paper, the authors investigated the role of corporate governance in mitigating agency cost in a sample of 9 service firms selected on the basis of market capitalization from Nairobi Securities Exchange during the period 2008-2012.
Abstract: The effect of corporate governance on firm performance has long been of great interest to financiers, economists, behavioural scientists, legal practitioners and business operators. Yet there is no consensus over what constitutes an effective corporate governance mechanism that induces agents or managers to consistently act in the interest of share value optimization. The purpose of this study is to investigate the role of corporate governance in mitigating agency cost in a sample of 9 service firms selected on the basis of market capitalization from Nairobi Securities Exchange during the period 2008-2012. We used the proxy asset utilization ratio to measure agency cost. Multivariate fixed effect regression is used to analyze the data. The explanatory variables include director ownership, institutional ownership, external ownership, board size, CEO/Chair duality, remuneration structure and board independence. The results show that higher director and institutional ownership reduces the level of agency cost. Smaller sized boards also results in lowering agency cost. Board independence has positive association with asset utilization ratio. The separation of the post of CEO and chairperson and higher remuneration lower agency cost. Keywords: Corporate governance, Agency cost, Multivariate fixed effect regression
17 citations
TL;DR: In this article, the authors used firm-specific data to measure the resulting bias in market capitalization, market portfolio return, capital structure, and the P/E ratio, and found substantial distortions of market aggregates.
Abstract: Corporate cross-ownership results in double counting of assets in the market's valuation of total equity. This paper is the first to use firm-specific data to measure the resulting bias in market capitalization, market portfolio return, capital structure, and the P/E ratio. Based on the population of firms on the Oslo Stock Exchange, we found substantial distortions of market aggregates: The average size of the equity market was overstated by 20%, financial leverage was underestimated by 7%, and the market portfolio return was underestimated by 31%. Double counted earnings offset the bias in market capitalization, leaving the P/E almost undistorted.
17 citations