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Determinants of the Share Prices on the Bucharest Stock Exchange During the COVID-19 Pandemic

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Management, Innovation and Entrepreneurship in Challenging Global Times

Part of the book series: Lecture Notes in Management and Industrial Engineering ((LNMIE))

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Abstract

The research offers explanations on the dynamics of the stock exchange shares listed on the Bucharest Stock Exchange during the pandemic. The paper studies the influence of several variables on the market price of companies admitted to trading on all segments of Bucharest Stock Exchange. The variables considered were percentage of significant shareholders, free-float, capitalization level, and specific market indicators (PER, P/BV, EPS, DIVY, and DIV). The data processing was done statistically, the dependent variable being the difference between the maximum and minimum exchange rate recorded for each share between 31.03.2020 and 31.03.2021. The results confirm that the reduction in the stock price during COVID-19 is not the result of the stock market performance of the listed companies. Another interesting conclusion is that the free-float variable had a significant positive correlation with the dependent variable. A higher level of capitalization of companies has led to a lower percentage reduction in the stock market price, but the correlation is not significant.

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Notes

  1. 1.

    https://www.who.int/csr/don/05-january-2020-pneumonia-of-unkown-cause-china. Accessed on 10.04.2021.

  2. 2.

    https://www.nyse.com/index. Accessed on 10.04.2021.

  3. 3.

    https://www.londonstockexchange.com/. Accessed on 10.04.2021.

  4. 4.

    https://www.boerse-frankfurt.de/. Accessed on 10.04.2021.

  5. 5.

    https://www.jpx.co.jp/. Accessed on 10.04.2021.

  6. 6.

    https://www.bvb.ro/. Accessed on 11.04.2021.

  7. 7.

    See Footnote 6.

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Authors and Affiliations

  1. Department of Engineering and Industrial Management, Transilvania University of Brasov, University Street 1, Brasov, Romania

    Catalin Gheorghe & Oana Panazan

Authors
  1. Catalin Gheorghe
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  2. Oana Panazan
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Correspondence to Catalin Gheorghe .

Editor information

Editors and Affiliations

  1. Department of Management, Polytechnic University of Timisoara, Timisoara, Romania

    Gabriela I. Prostean

  2. Department of Industrial Engineering, Universidad de Burgos, Burgos, Spain

    Juan J. Lavios

  3. Department of Management, West University of Timisoara, Timisoara, Romania

    Laura Brancu

  4. Department of International Trade and Logistics, Muğla Sıtkı Koçman University, Fethiye, Türkiye

    Faruk Şahin

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Gheorghe, C., Panazan, O. (2024). Determinants of the Share Prices on the Bucharest Stock Exchange During the COVID-19 Pandemic. In: Prostean, G.I., Lavios, J.J., Brancu, L., Şahin, F. (eds) Management, Innovation and Entrepreneurship in Challenging Global Times. Lecture Notes in Management and Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-031-47164-3_34

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  • DOI: https://doi.org/10.1007/978-3-031-47164-3_34

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  • Print ISBN: 978-3-031-47163-6

  • Online ISBN: 978-3-031-47164-3

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