Features of Industrial Enterprises Market Capitalization in the National Economy

Abstract

The growth of capitalization of companies is an essential prerequisite for attracting investments, as market capitalization in modern conditions becomes one of the main indicators of the level of creditworthiness, opens access to investment resources. The aim of the article is to study the peculiarities of the formation of market capitalization of national industrial enterprises in the conditions of the national economy. It has been considered, that capitalization − is system of economic relations on accumulation of capital based on direction of a part of profit on increase of volumes of used capital. This, in turn, leads to an increase in the cost of the national economy. The main factor in the growth of savings is the increase in the newly created value, which is directly dependant on the volume and marginal productivity of factors of production, and the capitalization of profits in this system is the dominant basis of accumulation. As the market economy develops, capitalization as a system of economic relations becomes more complicated, new subjects of this process appear, the object becomes more complicated. In the market economy, the capitalization process is considered as a two-fold phenomenon: On the one hand − it is a process of accumulation of real capital, on the other hand − it is a rise in the market value in the stock market. The analysis of the impact of the structure of the national economy on the capitalization processes of national industrial enterprises is complicated by the fact that there is no official statistical information on the market value of economic entities, it is impossible to obtain empirical data on the capitalization of the main sectors of the national economy in accordance with the adopted division of the national economy by sectors in the system of national accounts, there are no applied developments, to justify the peculiarities of the capitalization process in an economy dominated by the export-raw materials complex and there are structural imbalances. It has been shown that the current trends of market capitalization of national industrial enterprises correlate with the dynamics of the intensification of this process in the world economic system, but in terms of the rate and volume of capitalization, industrial enterprises of Ukraine are outsiders. Capital accumulation is constrained by the low level of stock market development, the high risk of capital accumulation and its use in the real economy. The low level of capitalization of national enterprises reduces their investment attractiveness, credit rating, image in the market, limits competitive potential, leads to a decrease in financial results of activity. This requires comprehensive approaches to introduce market mechanisms for increasing capitalization at national enterprises

Keywords

• capitalization
• national economy
• stock market
• industrial enterprises