Methods of Assessing the Level of Market Capitalization of Joint-Stock Companies: Economic and Managerial Aspect

Mariia Blikhar; Mariia Vinichuk; Olga Patsula; Nataliia Shevchenko

doi:10.31520/2616-7107/2022.6.4-6

Mariia Blikhar Lviv Polytechnic National University, Lviv, Ukraine http://orcid.org/0000-0003-2974-0419
Mariia Vinichuk Lviv State University of Internal Affairs, Lviv, Ukraine http://orcid.org/0000-0002-6588-1254
Olga Patsula Lviv State University of Internal Affairs, Lviv, Ukraine http://orcid.org/0000-0001-9384-1578
Nataliia Shevchenko Lviv State University of Internal Affairs, Lviv, Ukraine http://orcid.org/0000-0002-1815-7554

DOI: https://doi.org/10.31520/2616-7107/2022.6.4-6

Abstract

Introduction. Effective assessment of the market capitalization of public joint-stock companies is an important strategic aspect that determines the level of corporate governance, competitiveness of manufactured goods or services, investment attractiveness, publicity, and transparency of the company in the stock market. In this regard, there is a need to study the advantages of various methods of market capitalization assessment, which will ensure not only the determination of the effectiveness of the corporate and financial activities of domestic joint-stock companies but also the investment value at the state level, ensuring the strategic necessity of satisfying social needs.

Aim and tasks. It consists in researching current methods of assessing the market capitalization of public joint-stock companies and proposing new ones for the purpose of a more comprehensive analysis of the company's activity at the stock market.

Results. The peculiarity of legal management and regulation of the market capitalization of Ukrainian public joint-stock companies is determined; the methods of assessing the market capitalization of joint-stock companies and the goals set by the entities that apply it in the evaluation are distinguished, namely: the method of the current market value of a public joint-stock company, the method of the average market value of a joint-stock company and the method of the maximum market capitalization of a joint-stock company. Ensuring the legality of market capitalization assessment, was carried out. A factor method of market capitalization assessment and a comparative method have been developed for the purpose of a more thorough assessment. It consists in presenting the author's approach to assessing the level of market capitalization through the use of comparative and factor approaches, which include not only an assessment of the market position of a joint-stock company at the stock market, but also individual balance indicators at the beginning of various reporting periods, establishing transparency and competitiveness.

Conclusions. The proposed research results will be useful for a comprehensive assessment of not only the financial, stock and marketing strategy of a public joint-stock company at the stock market, but to ensure its own competitiveness, liquidity and investment attractiveness, take into account factors affecting the comprehensive business, investment and financial position of a joint-stock company.

Keywords:

management, market capitalization, stock market, share, emission activity.

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