Research of the Influence of Fundamental Factors on the Banks’ Market Capitalization

This work is devoted to the study of fundamental factors for the capitalization of banks. Submitted for the study are 11 years for 13 US banks (143 observations) and 8 years for 5 Russian banks (40 observations). The main research method is regression and correlation analysis. When assessing the factors of factors, it was revealed that the influence of factors on the capitalization of US banks is more pronounced than on Russian banks. Domestic banks are influenced by 3 factors - return on equity, inflation and oil price, while US banks are influenced by 5 factors - earnings per share, net profitability, return on equity, GDP growth rate and inflation. Evaluation of news factors showed that the number of negative references to banks in the media does not affect their capitalization. This paper also examined the main methods for calculating the capitalization of a bank, market functions, econometric methods of analysis, and also presented the qualitative and behavioral factors affecting capitalization.