Sustainable development of companies as a driver of capitalisation growth in a smart economy

Abstract

Digitalisation processes have a signifcant impact on changing forms of interaction between economic entities; they also contribute to the development of the fnancial market. Thus, the study of the capitalisation of companies as one of the defning indicators of the stock market is becoming increasingly relevant, including the identifcation of factors that have a direct and indirect impact on the volatility of the indicator under consideration and their management capabilities. The purpose of this study is to identify the relationship between the sustainable development of the enterprise, as well as its components and the capitalisation of the company. The methodological basis of the study is the balanced growth model, general scientifc methods – analysis and synthesis, as well as statistical – correlation and regression analysis. The empirical base of the study includes 20 companies whose shares are traded on the stock market of the Russian Federation. The authors conducted a correlation and regression analysis and as a result revealed the relationship between the sustainable development of companies and their capitalisation.

Keywords

• capitalisation
• steady growth
• stock market
• company value
• stock price
• smart economy