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Market Capitalization Model Analysis

The document presents a formula for calculating Market Capitalization (MCAP) at time t, incorporating variables such as Foreign Direct Investment (FDI), GDP Growth, and the All Share Index. It defines each variable in terms of its monetary or percentage value. The equation includes an error term to account for variability.

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drolaitan.fuoye
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2 views1 page

Market Capitalization Model Analysis

The document presents a formula for calculating Market Capitalization (MCAP) at time t, incorporating variables such as Foreign Direct Investment (FDI), GDP Growth, and the All Share Index. It defines each variable in terms of its monetary or percentage value. The equation includes an error term to account for variability.

Uploaded by

drolaitan.fuoye
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

 MCAPt = Market Capitalization at time t (₦ Billion)

 FDItFDI_tFDIt = Foreign Direct Investment inflows at time t (US$ Million)

 GDPGtGDPG_tGDPGt = GDP Growth (%)

 ASItASI_tASIt = All Share Index (points)

 μt\mu_tμt = error term

MCAPt=β0+β1FDIt+β2GDPGt+β3ASIt+μt

MCAPt = Market Capitalization at time t (₦ Billion)

FDIt = Foreign Direct Investment inflows at time t (US$ Million)

GDPGt = GDP Growth (%)

ASIt = All Share Index (points)

μt = error term

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