MARKET CAPITALIZATION FACTORS OF THE BULGARIAN PHARMACEUTICAL SECTOR IN PANDEMIC ENVIRONMENT

Authors

Keywords
market capitalization, pharmaceutical sector, COVID-19

Abstract
The article is focused on the changes of the market capitalization in the Bulgarian pharmaceutical sector during the COVID-19 pandemic. The aim of the article is to measure and justify the impact of a set of factors that affect the market capitalization of public companies from the Bulgarian pharmaceutical sector in a pandemic environment. The main performance indicator under consideration is the market capitalization of the leading pharmaceutical companies included in the BGBX40 stock exchange index during the two-year pandemic period (from June 2020 until May 2022). For the purpose of the research, a multiple linear regression model (OLS) is employed with the help of GRETL open-source software. Four of the selected eight impact factors are related to the sales of medical products; three are related to COVID-19 statistics and the last is a stock market index. The results from the analyses evidence a strong relationship between the impact factors and the market capitalization of Bulgarian pharmaceutical companies during the pandemic. The coefficient of determination shows that 96% of the change in the market capitalization could be explained by the change in the factors included in the model. The growth of the market capitalization of the studied Bulgarian companies over a period of 2 years is comparable to that of the world leading pharmaceutical companies that offer COVID-19 vaccines.

JEL: G20, G30, I18.
Pages: 17

To view the full text of the article click on the relevant button below.

More titles

  • EXPLAINING THE INTENTION OF SOFTWARE DEVELOPERS TO PERFORM ENTREPRENEURIAL COMPETENCIES

    Recent studies have been promoting entrepreneurial competencies for software developers. However, software developers must have the intention to perform entrepreneurial competencies effectively. Therefore, this study aims to investigate behavioural intention of software developers by extending the Theory of Planned Behaviour with self-efficacy and ...

  • HOUSEHOLD EXPENDITURE DURING A PANDEMIC: COVID-19 AND THE CASE OF BULGARIA

    This article examines the expenditures of Bulgarian households during the COVID-19 pandemic. It specifies the theoretical and methodological features of the concepts of the household total and monetary expenditures and outlines their structure and specific characteristics. It also proves that the amount of total consumer expenditure is greater ...

  • SPILLOVER EFFECTS BETWEEN INDOCHINA METAL FUTURES MARKETS

    India and China have been at the top of the exporter, importer, producer and consumer economies. The two neighbouring countries provide the largest market in the world. They also share a similar history of development of their commodity derivatives markets. This paper aims to examine the direction of causality and spillover effect between the ...