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.

Prediction of Stock Performance in the Indian Stock Market Using Logistic Regression

Abstract: The authors use logistic regression (LR) and various financial ratios as independent variables to investigate indicators that significantly affect the performance of stocks actively traded on the Indian stock market. The study sample consists of the ratios of 30 large market capitalization companies over a four-year period. The study identifies and examines eight financial ratios that can classify the companies up to a 74.6% level of accuracy into two categories – “good” or “poor” – based on their rate of return. The paper asserts that the model developed can enhance an investor's stock price forecasting ability. Macroecomonic variables, which also can influence the share price, were not taken into account, however. The paper dicusses the practical implications of using the LR method to predict the probability of good stock performance. The authors state that the model can be used by investors, fund managers, and investment companies to enhance their abilty to select out-performing stocks.

Modeling growth stocks via birth-death processes

Abstract: The inability to predict the future growth rates and earnings of growth stocks (such as biotechnology and internet stocks) leads to the high volatility of share prices and difficulty in applying the traditional valuation methods. This paper attempts to demonstrate that the high volatility of share prices can nevertheless be used in building a model that leads to a particular cross-sectional size distribution. The model focuses on both transient and steady-state behavior of the market capitalization of the stock, which in turn is modeled as a birth–death process. Numerical illustrations of the cross-sectional size distribution are also presented.

Stock Market Performance and Macroeconomic Factors: The Study of Indian Equity Market:

Abstract: There has been an extensive debate on the relationship between real economy and stock market performance especially in the context of emerging markets. This article examines the causal relationships between the stock market performance and select macroeconomic variables in India, using monthly data from July 1997 to June 2011. We use factor analysis, ADF and PP Unit root tests, Regression, ARCH model, Granger causality and Johansen Co-integration test for data analysis. Impulse Response analysis has also been performed to check the response of stock market to shocks created in the real economy.We find a significant correlation among stock market indicators and macroeconomic factors. We identified three principal factors through Factor analysis viz Inflation, Interest rate and Exchange rate. The overall explanatory power of the regression model is 23.8%, 23.3% and 16.9% respectively for Sensex, Market capitalization and Market Turnover. There is uni directional causality from stock market to real economy. ...