Role of Institutional Environment in Increasing Capitalization

Alexander E. Abramov – Head of the Laboratory for Analysis of Institutions and Financial Markets of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Alexander D. Radygin – Chairman of the Scientific Council, Director of Center for Ownership and Corporate Governance of the Gaidar Institute for Economic Policy; Director of Institute of Economics, Mathematics and Information Technology, Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences, Professor (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Maria I. Chernova – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Andrey G. Kosyrev – Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Starting in 2022, the question of restarting the growth of the stock market for Russian companies in the face of sanctions and uncertainties in the global financial market has become of paramount importance. This research article examines the influence of macroeconomic and institutional factors on the capitalization of stock markets in 79 countries from 1982 to 2021. The study provides evidence for the role of institutional factors in the growth strategy of the Russian stock market.

Key words: capitalization, property rights protection, state participation in the economy, Russian stock market.

JEL-codes: G18, G32, G38, P14, P26.