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.
Papers published on a yearly basis
Papers
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TL;DR: In this article, the authors investigate how and why firms beat these benchmarks (benchmark beaters) and find that a strong motivation for reporting small profits is to delay reporting bad news.
Abstract: Prior research has documented the empirical regularity that more firms than expected (i) report small positive earnings and (ii) have zero forecast errors. It appears that management avoid reporting negative earnings or disappointing analysts. We investigate how and why firms beat these benchmarks (benchmark beaters). We document that benchmark beaters have high accruals and unusual levels of special items relative to other firms. We find that a strong motivation for reporting small profits is to delay reporting bad news. We find that small profit firms show a decline in earnings and exhibit poor stock price performance over the following year. In contrast, we find that firms with zero forecast errors do well in the future. These firms have positive abnormal returns over the following year. We document that zero forecast error firms are high growth, high market capitalization firms. We argue that these firms want to avoid disappointing analysts since they are most likely to suffer from the "torpedo effect": small earnings disappointments lead to large stock price declines.
76 citations
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01 Jan 2013-International Journal of Advanced Research in Electrical, Electronics and Instrumentation Energy
TL;DR: In this article, the stock market's movements are analyzed and predicted in order to retrieve knowledge that could guide investors on when to buy and sell, which will also help the investor to make money through his investment in stock market.
Abstract: Stock markets are affected by many uncertainties and interrelated economic and political factors at both local and global levels. The key to successful stock market forecasting is achieving best results with minimum required input data. To determine the set of relevant factors for making accurate predictions is a complicated task and so regular stock market analysis is very essential. More specifically, the stock market’s movements are analyzed and predicted in order to retrieve knowledge that could guide investors on when to buy and sell. It will also help the investor to make money through his investment in the stock market. This paper surveys large number of resources from research papers, web-sources, company reports and other available sources.
76 citations
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TL;DR: In this article, the relationship between corporate governance and corporate valuation, ownership structure and need of external financing for the Karachi Stock Market is examined for the period 2003 to 2008, and the results confirm the theoretical notion that firms with better investment opportunities and larger in size adopt better corporate governance practice.
Abstract: In this study the relationship between corporate governance
and corporate valuation, ownership structure and need of external
financing for the Karachi Stock Market is examined for the period 2003
to 2008. To measure the firmlevel governance a rating system is used to
evaluate the stringency of a set of governance practices and cover
various governance categories: such as board composition, ownership and
shareholdings and transparency, disclosure and auditing. The sample
consists of 60 non-financial firms listed on Karachi Stock Exchange and
comprises more than 80 percent of market capitalization at Karachi Stock
Market in 2007. The results confirms the theoretical notion that firms
with better investment opportunities and larger in size adopt better
corporate governance practice. The proposition that ownership
concentration is a response to poor legal protection is also validated
by the results. The more investment opportunities lead to more
concentration of ownership and the ownership concentration is
significantly diluted as the firm size expands. The findings are
consistent with theoretical argument claiming that family owners,
foreign owners and bring better governance and monitoring practices
which is consistent with agency theory. The results suggest that firms
which need more equity financing practice good governance. The results
show that firms with high growth and large in size are in more need of
external finance. The relationship between external financing and
ownership concentration is negative. The results reveal that the firms
which practice good governance, with concentrated ownership, need more
external finance which have more profitable investment opportunities and
are larger in size are valued higher. The interaction term of any
variable with law enforcement term are not significant in any model
suggesting that firm performance is not affected by rule of law in
countries where legal environment is weak. These results adds an
important link to the explanation of the consequences weak legal
environment for external financing, corporate valuation and corporate
governance. The results show that Corporate Governance Code 2002
potentially improves the governance and decision making process of firms
listed at KSE.
76 citations
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14 Feb 2011TL;DR: In this article, the authors examined the impact of stock market development on economic growth in Mauritius and found that the stock market is an indicator of an economy financial health, and as such it indicates the mood of investors in a country.
Abstract: Stock market is an indicator of an economy financial health. It indicates the mood of investors in a country. As such, stock market development is an important ingredient for growth. The stock exchange of Mauritius is fairly new compared to many countries. This paper examines the impact of stock market development on growth in Mauritius. A time series econometric investigation is conducted over the period 1989 -20067. We analyse both the short run and long run relationship by constructing an ECM. Two measures of stock market development namely size and liquidity are used. We define size as the share of market capitalization over GDP and liquidity as volume of share traded over GDP. We found that stock market development positively affect economic growth in Mauritius both in the short run and long run.
76 citations
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TL;DR: Using a vector autoregressive analysis, this article examined the structure of international transmissions in daily returns for six national stock markets (U.S., Japan, Hong Kong, Singapore, Taiwan, and Thailand).
Abstract: Using a vector autoregressive analysis, this paper examines the structure of international transmissions in daily returns for six national stock markets— the U.S., Japan, Hong Kong, Singapore, Taiwan, and Thailand. Our results generally indicate that (1) the degree of interdependence among national stock markets has increased substantially after the 1987 stock market crash, (2) the U.S. market plays a dominant role of influencing the Pacific-Basin markets, (3) Japan and Singapore together have a significant persistent impact on the other Asian markets, and (4) the markets in Taiwan and Thailand are not efficient in processing international news.
75 citations