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Turnover And Market Value In Capital Markets In The European Union

Author

Listed:
  • Diana MURESAN

    (PhD Candidate, Faculty of Economics and Business Administration, Babes-Bolyai University)

  • Monica Ioana POP SILAGHI

    (PhD, Associate Professor, Faculty of Economics and Business Administration, Babes- Bolyai University)

Abstract

This paper seeks to see if there is a relationship between market liquidity, proxied by turnover and size, measured by market capitalization and the number of listed companies for European Union countries. We employ a panel data structure with unobserved characteristics for each country modeled as fixed effects for all 27 European Union (EU) countries over the period 2001-2011. Our results prove that market capitalization, as a size variable is significant for capital market liquidity. As policy recommendation, we suggest for these countries to enhance their market capitalization in order to attain a greater liquidity.

Suggested Citation

  • Diana MURESAN & Monica Ioana POP SILAGHI, 2013. "Turnover And Market Value In Capital Markets In The European Union," Romanian Journal of Economics, Institute of National Economy, vol. 37(2(46)), pages 80-90, December.
    • Handle: RePEc:ine:journl:v:2:y:2013:i:44:p:80-90
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    References listed on IDEAS

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    More about this item

    Keywords

    capital market; turnover; market capitalization; EU;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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