ESSENTIAL SIGNS OF THE ENTERPRISE CAPITALIZATION UNDER THE CONDITIONS OF MARKET FACTORS LIMITATION

Abstract

The article is devoted to the topical issues of clarifying the essential characteristics of the "enterprise capitalization" concept, based on the etymology of this concept, different approaches to its interpretation in foreign and domestic economic discussion. In countries with underdeveloped institutions and mechanisms of capital markets, the essential characteristics of capitalization may be the subject of discussion and require clarification. This weak institutional development leads to a decline in the importance of the market capitalization concept, even with the presence of a large number of joint-stock companies. The dynamics level of the Ukrainian capital markets performance and development are studied, the impact of a full-scale invasion of the market is highlighted, with an emphasis on the dynamics of emission activity and the level of deals on the stock market. In general, Ukraine occupies one of the last places in the world capital markets. Russia's attack caused a catastrophic drop in activity on the national stock market, but emission activity on the stock market began to decline since 2020. On the other hand, during the war period, activity with deals on foreign issuers shares increased. It has been established that the stock market is quite small in terms of volume, which limits the possibility of evaluating Ukrainian companies based on market capitalization indicators. The key essential characteristics of the enterprise's capitalization are highlighted. Generalization of capitalization interpretations leads to the conclusion that in many cases Ukrainian scientists define capitalization as a concept characteristic of the industrial economy period, that is, they mainly focus on the past, while foreign scientists interpret capitalization as a phenomenon of post-industrial society and take a focus on the future. Since capitalization occurs not only in the process of the growth of the share price, but also as a result of the economic activity of the enterprise in the market, it will be appropriate to apply refined approaches to the interpretation of market capitalization. The application of the income approach based on cash flow discounting for the assessment of the market capitalization of those companies that are not participants in the stock market is substantiated.