STRATEGIC MANAGEMENT OF THE ACTIVITIES OF CORPORATE AGRICULTURAL ENTERPRISES ON THE STOCK MARKET
Abstract
The article discusses the theoretical aspects of strategic management of a public corporate enterprise on the stock market. The strategic goals and tasks of corporate management are disclosed. It is shown that the main strategic goal of an enterprise whose shares are listed on the stock exchange is the growth of market capitalization. It is noted that the achievement of the strategic goal requires the formation and implementation of a system of financial and non-financial goals with a reorientation of corporate management on the growth of business value. Article systematizes market and corporate performance indicators of the corporate agricultural enterprise based on the value based management. Market indicators reflect the level of investment attractiveness of the company for potential investors. The financial indicators of a public company are based on data from the financial statements and reflect the effectiveness of financial management. Non-financial indicators characterize the level of corporate social responsibility and reputation, which indirectly affects the demand for shares on the stock market. A mechanism of strategic management of the activities of a corporate agricultural enterprise on the stock market has been developed. It includes the formation of information and analytical basis for decision-making, the formation of strategic goals and tools of their achievement, the implementation of corporate management, monitoring and control of the implementation of strategic and tactical decisions. Strategic goals and tools involve management of the company's market capitalization, economic efficiency, and reputation. Market capitalization management involves value based management, share price management, management of the number of shares in circulation. Management of economic efficiency is aimed at increasing liquidity, profitability of assets and equity, financial stability, improvement of business activity. Reputation management covers corporate social responsibility, principles of sustainable development, public relations and other activities aimed at improving the image of the company. It is shown that the implementation of the developed mechanism will ensure a comprehensive increase in the value of the agricultural enterprise and increase investment attractiveness and long-term development.
References
Brigham E.F., Ehrhardt M.C. Financial management : theory & practice. Australia : Cengage Learning, 2020. 1161 p.
Chari L., Mohanty R.P. Understanding value creation: the shareholder value perspective. LBS Journal of Management & Research. 2009. P. 12¬26.
Copeland Т., Koller Т., Murrin J. Valuation: measuring and managing the value of companies. Third edition. McKinsey&Company Inc. John Wiley & Sons, Inc. 2000. 492 р.
Mills R., Rowbotham S., Robertson J. Using economic profit in assessing business performance. Management Accounting. 1988. P. 34¬38.
Morin R., Jarrell S. Driving shareholder value: value-building techniques for creating shareholder wealth. N.Y.: McGraw-Hill, 2001. 404 p.
Peterson D.R., Peterson P.P. A further understanding of stock distributions: the case of reverse stock splits. The Journal of Financial Research. 1992. Vol. 15. Issue 3. P. 189¬205.
Shamimul H., Norman B.O. The impact of firm's level corporate governance on market capitalization. The Journal Of Investment Management. 2015. P. 119-131.
Дєєва Н.Е. Вартісні моделі стратегічного управління корпораціями. Агросвіт. 2015. № 19. С. 9–15.
Калетнік Г.М. Стратегіко-інституційні засади ефективності використання потенціалу аграрного сектору економіки. Економіка. Фінанси. Менеджмент: актуальні питання науки і практики. 2015. № 1. С. 3¬15.
Кривов’язюк І.В., Бурбан О.В. Формування механізму управління ринковою капіталізацією підприємства для досягнення цілей стратегії його інвестиційної діяльності. Інтелект ХХІ. 2021. № 4. С. 50¬54.
Ліщинський М.П. Формування стратегії корпоративного управління в суб’єктах корпоративного підприємництва аграрного сектору економіки України. Формування ринкових відносин в Україні. 2018. № 1 (200). С. 115–122.
Малік М.Й., Минка А.П., Шпикуляк О.Г.Структура та розвиток аграрних формувань. Агропромисловий комплекс України: стан, тенденції та перспективи розвитку / За ред. П.К. Канінського. К.: ННЦ УАЄ, 2005. 292 с.
Момот Т.В. Вартісно-орієнтоване корпоративне управління: від теорії до практичного впровадження: Монографія. Харків: ХНАМГ. 2006. 380 с.
Фурман І.В., Гонтарук Я.В. Теоретичні основи формування стратегії розвитку аграрних підприємств зернового напряму. Інвестиції: практика та досвід. 2019. № 23. С. 80¬87.
Brigham E.F., Ehrhardt M.C. (2020) Financial management : theory & practice. Australia : Cengage Learning. 1161 p.
Chari L., Mohanty R.P. (2009) Understanding value creation: the shareholder value perspective. LBS Journal of Management & Research, pp. 12¬26.
Copeland Т., Koller Т., Murrin J. (2000) Valuation: measuring and managing the value of companies. Third edition. McKinsey&Company Inc. John Wiley & Sons, Inc. 492 р.
Mills R., Rowbotham S., Robertson J. (1988) Using economic profit in assessing business performance. Management Accounting, p. 34¬38.
Morin R., Jarrell S. (2001) Driving shareholder value: value-building techniques for creating shareholder wealth. N.Y.: McGraw-Hill. 404 p.
Peterson D.R., Peterson P.P. (1992) A further understanding of stock distributions: the case of reverse stock splits. The Journal of Financial Research, vol. 15(3), pp. 189-205.
Shamimul H., Norman B.O. (2015) The impact of firm's level corporate governance on market capitalization. The Journal Of Investment Management, pp. 119¬131.
Dieieva N.E. (2015) Vartisni modeli stratehichnoho upravlinnia korporatsiiamy [Value models of strategic management of corporations]. Ahrosvit – Agroworld, vol. 19, pp. 9¬15. [in Ukrainian]
Kaletnik H.M. (2015) Stratehiko-instytutsiini zasady efektyvnosti vykorystannia potentsialu ahrarnoho sektoru ekonomiky [Strategic and institutional foundations of the efficiency of using the potential of the agrarian sector of the economy]. Ekonomika. Finansy. Menedzhment: aktualni pytannia nauky i praktyky – Economics. Finances. Management: topical issues of science and practice, vol. 1, pp. 3¬15. [in Ukrainian]
Kryvoviaziuk I.V., Burban O.V. (2021) Formuvannia mekhanizmu upravlinnia rynkovoiu kapitalizatsiieiu pidpryiemstva dlia dosiahnennia tsilei stratehii yoho investytsiinoi diialnosti [Formation of a mechanism for managing the market capitalization of the enterprise to achieve the goals of its investment activity strategy]. Intelekt XXI – Intelligence XXI, vol. 4, pp. 50¬54. [in Ukrainian]
Lishchynskyi M.P. (2018) Formuvannia stratehii korporatyvnoho upravlinnia v subiektakh korporatyvnoho pidpryiemnytstva ahrarnoho sektoru ekonomiky Ukrainy [Formation of the strategy of corporate management in subjects of corporate entrepreneurship in the agrarian sector of the economy of Ukraine]. Formuvannia rynkovykh vidnosyn v Ukraini – Formation of market relations in Ukraine, vol. 1(200), pp. 115¬122. [in Ukrainian]
Malik M.Y., Mynka A.P., Shpykuliak O.H. (2005) Struktura ta rozvytok ahrarnykh formuvan. Ahropromyslovyi kompleks Ukrainy: stan, tendentsii ta perspektyvy rozvytku [Structure and development of agrarian formations. Agro-industrial complex of Ukraine: state, trends and prospects of development]. Kyiv: NNTs UAIe. 292 p. [in Ukrainian]
Momot T.V. (2006) Vartisno-oriientovane korporatyvne upravlinnia: vid teorii do praktychnoho vprovadzhennia [Value-oriented corporate management: from theory to practical implementation]. Kharkiv: KhNAMH. 380 p. [in Ukrainian]
Furman I.V., Hontaruk Ya.V. (2019) Teoretychni osnovy formuvannia stratehii rozvytku ahrarnykh pidpryiemstv zernovoho napriamu [Theoretical foundations of the formation of a strategy for the development of agrarian enterprises in the grain sector]. Investytsii: praktyka ta dosvid – Investments: practice and experience, vol. 23, pp. 80¬87. [in Ukrainian]
This work is licensed under a Creative Commons Attribution 4.0 International License.
