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Analyzing The Market Concentration Of The Romanian Capital Market

Author

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  • Daniel Stefan ARMEANU
  • Sorin-Iulian CIOACA
  • Mihail BUSU

Abstract

Designing and using measures for assessing the market concentration, these are the central elements of competition and sectoral authorities’s strategies, whose main objective is guarding a ballanced competition environment. In this article, we use monthly data from January, 2007-August, 2015, in order to analyse the market concentration of the Romanian capital market. By computing the concentration ratios for the first 4 and 8 largest intermediaries and the Herfindahl-Hirschmann index (HHI), we find that the Romanian capital market is not (yet) concentrated. But the recent trends show early phases of concentration, fact determined by the decrease of the number of intermediaries and the increased concentration of the trading activity at the level of the first 8 brokerage houses.

Suggested Citation

  • Daniel Stefan ARMEANU & Sorin-Iulian CIOACA & Mihail BUSU, 2015. "Analyzing The Market Concentration Of The Romanian Capital Market," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 548-554, November.
    • Handle: RePEc:rom:mancon:v:9:y:2015:i:1:p:548-554
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    References listed on IDEAS

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    2. Nicola Cetorelli & Beverly Hirtle & Donald P. Morgan & Stavros Peristiani & João A. C. Santos, 2007. "Trends in financial market concentration and their implications for market stability," Economic Policy Review, Federal Reserve Bank of New York, vol. 13(Mar), pages 33-51.
    3. Alex Jacquemin, 1975. "Une mesure entropique de la diversification des entreprises," Revue Économique, Programme National Persée, vol. 26(5), pages 834-838.
    4. Thorsten Beck & Asli Demirgüç-Kunt & Ross Levine, 2010. "Financial Institutions and Markets across Countries and over Time: The Updated Financial Development and Structure Database," The World Bank Economic Review, World Bank, vol. 24(1), pages 77-92, January.
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