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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TL;DR: In this article, the authors use a price measure, the premium on voting stock, related to the control premium, to measure investor protection, and report supporting evidence for a few countries.
Abstract: When minority investors’ rights are poorly protected, the ability of firms to raise equity capital is impaired, leading to less finance for new ventures. Fewer firms will be financed with outside equity, resulting in a low market capitalization relative to GNP. External funding requires easily enforceable claims such as debt or requires long-term relationships with institutions. Provision of funding shifts from risk capital to debt, and to a predominance of intermediated over market finance. We report supporting evidence for a few countries. To measure investor protection, we use a price measure, the premium on voting stock, related to the control premium. In countries where the voting premium is large, corporate financing is dominated by bank lending and equity markets are much smaller.
120 citations
TL;DR: This article used variance ratio tests, robust to heteroskedasticity and employing a recently developed bootstrap technique to customize percentiles for inference purposes, found that Class A shares for Chinese stock exchanges and the Hong Kong equity markets are weak form efficient.
Abstract: This study tests the random walk hypothesis for China, Hong Kong and Singapore. Using variance ratio tests, robust to heteroskedasticity and employing a recently developed bootstrap technique to customize percentiles for inference purposes it is found that Class A shares for Chinese stock exchanges and the Hong Kong equity markets are weak form efficient. However, Singapore and Class B shares for Chinese stock exchanges do not follow the random walk hypothesis, which suggests that liquidity and market capitalization may play a role in explaining results of weak form efficiency tests.
120 citations
TL;DR: In this paper, a method relying on the AIC is proposed to quickly react to market changes and therefore enable to create an index, referred to as CRIX, for the cryptocurrency market.
120 citations
TL;DR: The authors showed that firms with higher market-to-book ratios face lower debt financing costs and borrow more than firms with lower MBS ratios and showed that the relation between the MBS ratio and leverage ratio is not monotonic and is positive for most firms.
119 citations
TL;DR: In this paper, the authors examined the characteristics of the returns realised by 'ethical' trusts, using a comprehensive unit trust price database, and found that these trusts had returns which were, in general, at least as highly correlated with a small-company index as with a comprehensive market index.
Abstract: In recent years a growing emphasis has been given to the moral dimension of financial investment. This has been evidenced by the growth in 'socially responsible' managed funds. This paper addresses the question of the appropriate benchmark against which to measure the performance of ethical trusts. In a previous paper (Luther et al., 1992) the authors show that 'ethical' unit trusts in the UK have investment portfolios concentrated in low market capitalisation companies. This paper examines the characteristics of the returns realised by 'ethical' trusts, using a comprehensive unit trust price database. In particular, empirical results show that over the period studied 'ethical' trusts: i) had returns which were, in general, at least as highly correlated with a small-company index as with a comprehensive market index; ii) are more appropriately evaluated, in terms of financial performance, by reference to a model which recognises that their returns are influenced both by general market movements and by factors specific to smaller companies; iii) points out that because of high correlation between indices, estimation of separate small company and market sensitivities is unstable.
118 citations