The big bang: stock market capitalization in the long run
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- dc.contributor.author Kuvshinov, Dmitry
- dc.contributor.author Zimmermann, Kaspar
- dc.date.accessioned 2022-05-18T09:26:03Z
- dc.date.available 2022-05-18T09:26:03Z
- dc.date.issued 2022
- dc.description Supplemental material file: online appendix
- dc.description.abstract We study trends and drivers of long-run stock market growth in 17 advanced economies. Between 1870 and the 1980s, stock market capitalization grew in line with GDP. But over subsequent decades, an unprecedented expansion saw market cap to GDP ratios triple and remain persistently high. While most historical stock market growth was driven by issuances, this recent expansion was fueled by rising equity prices. We show that the key driver of this structural break was a profit shift towards listed firms, with listed firm profit shares in both GDP and capital income doubling to reach their highest levels in 146 years.
- dc.description.sponsorship This work was supported by the German Federal Research Ministry (BMBF) grant number 01UF1505.
- dc.format.mimetype application/pdf
- dc.identifier.citation Kuvshinov D, Zimmermann K. The big bang: stock market capitalization in the long run. Journal of Financial Economics. 2022 Aug;145(2 Pt B):527-52. DOI: 10.1016/j.jfineco.2021.09.008
- dc.identifier.doi http://dx.doi.org/10.1016/j.jfineco.2021.09.008
- dc.identifier.issn 0304-405X
- dc.identifier.uri http://hdl.handle.net/10230/53136
- dc.language.iso eng
- dc.publisher Elsevier
- dc.relation.ispartof Journal of Financial Economics. 2022 Aug;145(2 Pt B):527-52
- dc.rights © 2021 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/4.0/
- dc.subject.keyword Stock market capitalization
- dc.subject.keyword Equity issuance
- dc.subject.keyword Corporate profits
- dc.subject.keyword Wealth-to-income ratios
- dc.subject.keyword Long-run trends
- dc.title The big bang: stock market capitalization in the long run
- dc.type info:eu-repo/semantics/article
- dc.type.version info:eu-repo/semantics/publishedVersion