The Six Decades of the Capital Asset Pricing Model: A Research Agenda

Abstract

This paper re-examines the presence of the Sharpe–Treynor–Lintner–Mossin capital asset pricing model (CAPM) in the finance literature and is accompanied by a bibliometric summary analysis. The popular model is in its sixth decade; we summarized the relevance of the CAPM using publication and citation trends, as well as identifying its most prolific and impactful contributors. This paper is based on a systematic review of the literature and was completed with the help of various bibliometric techniques. During the study process, we presented a map of various themes and areas of the CAPM and its evolution. Our findings indicate that the extant literature on this topic (the cost of capital, asset pricing, portfolio, risk management, beta, systematic risk, and value premium) is based on the principles and assumptions of the CAPM. We are considering suggestions on the future use, trend, and direction of the CAPM, based on our summary of thematically developed clusters.