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.

Comprehensiveness of disclosure of non‐financial companies: listed on the amman financial market

Abstract: After the ratification of the peace treaty and the establishment of diplomatic relations with Israel, Jordan was expected to play a major role in the Middle East financial market. As a result of the peace treaty Jordan may attract overseas investors to invest in the Amman Financial Market (AFM). Consequently, the level of information disclosed by companies listed on the AFM will become an important issue for prospective investors. This study empirically examined the effect of specific financial characteristics on the comprehensiveness of disclosure in the annual reports of a sample of 54 companies listed on the AFM. The variables tested in this study were market related: industry, audit firm size and market capitalisation; performance related: profit margin, return on equity and liquidity, and structure related: assets, sales, leverage and ownership. The empirical evidence revealed that company size (measured by assets and market capitalisation), leverage and return on equity were statistically related to the comprehensiveness of disclosure of the sample companies listed on the AFM. Reporting improved after international standards were adopted. Large companies were more involved in long term borrowing which requires detailed reporting. Size was the main predictor in comprehensive reporting.

Foreign Equity Ownership and Information Asymmetry: Evidence from Japan

Abstract: Using a large sample of Japanese firms, we investigate whether the level of foreign ownership in a firm is inversely related to information asymmetry between firm (managers) and market (outside investors). Since information asymmetry is not directly observable and, thus, is difficult to measure empirically, our analysis focuses on the link between foreign shareholding and a measurable consequence of information asymmetry; that is, the timing and magnitude of intertemporal return-earnings associations. The empirical results support our hypothesis, and subsequent tests based on residual foreign ownership show that the relation between foreign ownership and information asymmetry is robust to the addition of various control variables such as market capitalization and cross-corporate holdings. We also show that foreign investors tend to avoid stocks with high cross-corporate holdings. Overall, our results suggest that foreign (institutional) investors are likely to be efficient processors of public information and are attracted to Japanese firms with low information asymmetry.

Stock Markets, Banks, and Growth : Correlation or Causality?

Abstract: The authors investigate the impact of stock markets and banks on economic growth using a panel data set for 1976-98 and applying recent generalized method of moments (GMM) techniques developed for dynamic panels. The authors illustrate econometrically the differences that emerge from different panel procedures. On balance, stock markets and banks positively influence economic growth--and these findings are not a result of biases induced by simulaneity, omitted variables, or inobserved country-specific effects.

Intellectual Capital Disclosure and Market Capitalization

Abstract: The objectives of this paper are to determine the level of the intellectual capital (IC) disclosure among Malaysian Listed Companies and to investigate the effect of IC information on market capitalization (MCAP). A sample of 185 companies listed in Bursa Malaysia was selected consisting of five industries which are Information Technology, Consumer Product, Industrial Product, Trading/Services and Finance. The descriptive statistics, content analysis were performed to analyze the data. The result found that a high percentage, about 69 percent of the companies selected disclosed intellectual capital in their annual reports. The study also found there is positive significant effect of IC information on market capitalization.

Interdependence and Dynamic Linkages between the Emerging Stock Markets of South Asia

Abstract: The present article examines the dynamic linkages between the stock markets of Bangladesh, India, Pakistan and Sri Lanka using a temporal Granger causality approach by binding the relationship among the stock price indices within a multivariate cointegration framework. We also examine the impulse response functions. Our main finding is that in the long run, stock prices in Bangladesh, India and Sri Lanka Granger-cause stock prices in Pakistan. In the short run there is unidirectional Granger causality running from stock prices in Pakistan to India, stock prices in Sri Lanka to India and from stock prices in Pakistan to Sri Lanka. Bangladesh is the most exogenous of the four markets, reflecting its small size and modest market capitalization.