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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 paper found no robust post-declaration long-term abnormal stock returns, even in sub-samples defined by the special dividend yield, the bang-for-the-buck, the declaration-period abnormal return, the sub-sampling period or the stock market condition at declaration.

12 citations

Posted Content
TL;DR: In this article, the determinants of firm value creation were investigated empirically for 16 companies of four sectors namely Metal, Fast Moving Consumer Goods (FMCG), Information Technology (IT) and Automobile industry listed on Bombay Stock Exchange (BSE) from 2002 to 2011.
Abstract: This paper investigates empirically the determinants of firm value creation For this, 16 companies of four sectors namely Metal, Fast Moving Consumer Goods (FMCG), Information Technology (IT) and Automobile industry listed on Bombay Stock Exchange (BSE) from 2002 to 2011 were identified on the basis of market capitalization in their industry Taking evidence from numerous literatures, various factors have been identified namely Net sales, Profit, Fixed Assets, dividend pay-out ratio and capital structure as the financial variables affecting firm's value Data from 2002 to 2011 were collected for all these companies from Money-Control, Business-Line and companies websites Hence, data under considerations are all secondary data Correlation tool was applied to identify multiple correlations among variables, if any Augmented Dickey Fuller (ADF) test was applied to check stationarity of data and thereafter Pooled Regression Model (PRM) was applied to identify the significant factors Our finding goes along with the proposition of Modigliani and Miller ie Capital structure doesn't influence value of a firm But at the same time, this research outcome suggests that WACC has a significant impact on the value of the firm Other significant factors identified through proposed model are fixed assets, net sales and profit The research will help managers and policy makers to take rational decisions while evaluating different financial parameters in-order to increase the value of the firm

12 citations

Journal ArticleDOI
TL;DR: In this article, a negative impact of foreign-investor participation on the capitalization rate of the Helsinki CBD office market in Finland was investigated. And the results showed that a 10% point growth in the share of foreign buyers of the total transaction volume decreases the cap rate by approximately 30 basis points.
Abstract: This article adds to the scarce literature on the influence of international investment flows on local real estate values. We hypothesize that a greater foreign-investor presence in a real estate market results in a lower capitalization rate and examine whether this holds true in the Helsinki CBD office market in Finland. This market provides an interesting case study by being part of a small open economy, in which the presence of foreign investors has substantially varied over time. The Dynamic OLS estimations using data for the period 1990–2015 provide support for the hypothesis. The baseline results show a highly statistically significant negative impact of foreign-investor participation on the capitalization rate, the point estimates indicating that a 10% point growth in the share of foreign buyers of the total transaction volume decreases the cap rate by approximately 30 basis points.

12 citations

Journal ArticleDOI
TL;DR: In this paper, the authors employ a registry of legal insider trading for Dutch listed firms to investigate the information content of trades by corporate insiders and find that purchases are followed by economically large abnormal returns.
Abstract: In this paper, we employ a registry of legal insider trading for Dutch listed firms to investigate the information content of trades by corporate insiders. Using a standard event-study methodology, we examine short-term stock price behavior around trades. We find that purchases are followed by economically large abnormal returns. This result is strongest for purchases by top executives and for small market capitalization firms, which is consistent with the hypothesis that legal insider trading is an important channel through which information flows to the market. We analyze also the impact of the implementation of the Market Abuse Directive (European Union Directive 2003/6/EC), which strengthens the existing regulation in the Netherlands. We show that the new regulation reduced the information content of sales by top executives.

12 citations

Journal Article
TL;DR: In this article, the authors investigated the causes of Nigeria's stock market crash and found that the crash was caused mainly by fears of contagion effects of the then rampaging global financial crisis.
Abstract: As a result of the economic reforms that began in 2003 in Nigeria, earning Nigeria a BB- credit rating, which led to US$18bn debt write-off and created pension funds which have several billions of Naira to be invested in Nigerian securities, investors confidence was ignited and lifted in Nigeria Stock Market. The banking sector reforms which necessitated recapitalization also fuelled a boom in the equity market. Most Nigerian bank stocks increased in value many folds, despite billions of Naira of new shares being issued, with some stocks more than quadrupling in value in less than a year between 2004 and 2007. Companies kept the free float of offers which were greatly matched by demand. The capital market thus became the haven for profit taking. From an all time high of N13.5 trillion market capitalization in March 2008 the stock prices experienced a free-for-all downward movement to generate less than N4.6 trillion market capitalization by the second week of January 2009 and N6.53 trillion as at last trading day of 2011. With this downward movement regime, more than 60% of slightly above 300 quoted securities were on constant offer (supply exceeding demand) on a continuous basis. Consequently many of the quoted stocks lack liquidity as their holders are trapped, not being able to convert them to cash to meet their domestic and other investment needs. Fresh investors became cautious of jumping into a vehicle that does not seem to have a brake should they wish to disembark. With exploratory research, the study discovered that the downturn was caused mainly by fears of contagion effects of the then rampaging global financial crisis. The consequences were legion as many investors lost heavily in terms of capital employed, confidence in the market and the capacity of pension funds to meet their obligations as they become due. The panacea lies in restructuring the toxic assets generated by the downturn into marketable instruments, to give a fresh start to the affected firms.

12 citations


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