Market Capitalization Factors Of The Bulgarian Pharmaceutical Sector In Pandemic

Galina Zaharieva and Onnik Tarakchiyan
Additional contact information
Galina Zaharieva: D. A. Tsenov Academy of Economics
Onnik Tarakchiyan: D. A. Tsenov Academy of Economics

Business Management, 2022, issue 4 Year 2022, 35-51

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.

Keywords: market capitalization; pharmaceutical sector; COVID-19 (search for similar items in EconPapers)
JEL-codes: G20 G30 I18 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10610/4736

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dat:bmngmt:y:2022:i:4:p:35-51

Access Statistics for this article

Business Management is currently edited by Krasimir Shishmanov

More articles in Business Management from D. A. Tsenov Academy of Economics, Svishtov, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Kostadin Bashev ().