RETROSPECTIVE ANALYSIS OF THE CONCEPT “ENTERPRISE CAPITALIZATION”: GLOBAL AND DOMESTIC EXPERIENCE COMPARISON
Abstract
The article provides an in-depth analysis of the essence of the concept of “enterprise capitalization”. The main stages of the formation of the capitalization of the enterprise as an economic category are summarized within four main periods. It has been established that the first the most systematic research on the interpretation of the essence of the analyzed concept is presented in Marxist theory, where its direct connection with capital accumulation is illustrated. A new perspective on defining the essence of enterprise capitalization was realized within the neoclassical theory, where the analyzed concept acquired an inseparable connection with a value-based nature from the standpoint of creating and accumulating value. The modern period is characterized by increasing interest and intensification in the study of enterprise capitalization following a period of slowdown at the end of the 20th century. To conduct a detailed study of the differences in the interpretation of the target concept, a chronological analysis of the approaches of foreign and domestic scientists was carried out. The given analysis made it possible to reveal the presence of a focal direction of the foreign scientists’ views, which is explained by the identification of enterprise capitalization with the concept of market capitalization and the definition of the last one from the perspective of the market value of the company’s shares. The given analysis made it possible to reveal the presence of a focus direction of the foreign scientists' views, which is explained by the identification of enterprise capitalization with the concept of market capitalization and the definition of the last one from the perspective of the market value of the company’s shares. Domestic works are characterized by various interpretations of the analyzed concept, based on the nature of a complex of actions, the nature of a process, or an indicator. It has been established that the essence of the last two is closely intertwined with the value component of enterprise capitalization, which is outlined by the management or the possibilities of increasing the value of the enterprise (within the process nature), and the determination of the integral valuation of the enterprise or its assets placed on the market (in the context of the indicator nature). With the help of the developed map of the comparison of approaches of foreign and domestic scientists to the interpretation of the concept of “enterprise capitalization”, the parallel nature of the approaches to the interpretation of the essence of the analyzed concept was revealed, the main sector of the intersection of which is its value component.
References
Kumar M.P., Kumara N.M. Market capitalization: Pre and post COVID-19 analysis. Materials Today: Proceedings. 2021. Vol. 37. P. 2553-2557.
Hermawan S., Nurasik E., Rahayu,D., Rahmawati I. (2020). Intellectual Capital Disclosure and Company Financial Performance: Market Capitalization. International Journal of Innovation, Creativity and Change. 2020. Vol. 13(7). URL: https://www.ijicc.net/images/vol_13/Iss_7/13700v_Hermawan_2020_E_R1.pdf
Chourasiya A., Kambli A., Satoskar K., Bhaisare R. (2018). On the cross-market linkages in global financial markets. Economic and Social Development: Book of Proceedings. 2018. P. 575-583.
Wimmer H., Rada R. Applying information technology to financial statement analysis for market capitalization prediction. UMBC Faculty Collection. 2013. URL: https://mdsoar.org/bitstream/handle/11603/20047/OJAcct_2013012911480362.pdf?sequence=1&isAllowed=y
Jeroh E. Interest rate variations and stock market capitalization in Nigeria: an empirical analysis. Acta Universitatis Danubius. Œconomica. 2012. Vol. 8(5). P. 5-14.
Subeniotis D.N., Papadopoulos D.L., Tampakoudis I.A., Tampakoudi A. How inflation, market capitalization, industrial production and the economic sentiment indicator affect the EU-12 stock markets. European Research Studies Journal. 2011. Vol. 14(1). P. 103-118.
Violeta A.M., Adrian A.S., Sorin B.N., Mirela P. Financial analysis of companies on the capital market. Tom XVII 2008, Vol. 3. P. 25-30.
Fox B., Zadecky L., Corsi,T.M. (2006). Market Capitalization of the Trucking Industry Sector 2005. URL: https://rosap.ntl.bts.gov/view/dot/17078
Bontis N. National intellectual capital index: a United Nations initiative for the Arab region. Journal of intellectual capital. 2004. Vol. 5(1). P. 13-39.
Beck T., & Levine R. Industry growth and capital allocation: does having a market-or bank-based system matter? Journal of financial economics. 2002. Vol. 64(2). P. 147-180.
Aang R. (1997). Buku Pintar Pasar Modal Indonesia (The Intelligent Guide To Indonesian Capital Market). URL: https://www.semanticscholar.org/paper/Buku-Pintar-Pasar-Modal-Indonesia-(The-Intelligent-Ang/d89dd1be6f15662d69637096a9f41990f82d0ab5
Кукса І.М., Родченко С.С., Лелюк Н.Є., Бабій Л.І. Управлінські механізми фінансово-облікової системи капіталізації інноваційного бізнесу в умовах сучасних безпекових викликів. Формування ринкових відносин в Україні. 2022. Вип. 5 (252). С. 52-58.
Нестерова С.В., Обіцький А.А. Особливості ринкової капіталізації промислових підприємств в національній економіці. Міжнародний науковий журнал «ОСВІТА І НАУКА». 2019. Вип. 2(27). С. 191-194
Давиденко Н. Концептуальні підходи до капіталізації підприємств. Економічний часопис Східноєвропейського національного університету імені Лесі Українки. 2016. Вип. 1. С. 62-67.
Турило А.А. Теоретико-методологічні засади визначення сутності і оцінки капіталізації підприємства. Теоретичні і практичні аспекти економіки та інтелектуальної власності. 2013. Вип. 1(2). С. 159-162.
Пронько Л.М., Березок С.В. (2011). Вартість і капіталізація підприємств та методи їх оцінки. Економічні науки. Cерія: Облік і фінанси. 2011. Вип. 8. С. 384-391.
Шевченко Н.В. Особливості дослідження сутності капіталізації промислових підприємств. Регіональна економіка. 2008. Вип. 3. С. 175-181.
Корнєєв В.В. (2005). Номінальна та ринкова капіталізація: інструментарій оцінки вартості фінансових активів. Економіка і прогнозування. 2005. Вип. 3. С. 32-40.
Побурко О.Я. Організація управління капіталізацією господарського комплексу: автореф. дис. на здобуття наук. ступеня канд. екон. наук: 08.06.04. Львів, 2001. 15 с.
Stoliarchuk Ya.М., Liutak О.М., Baula О.V., Lisovska L.S., Voitovych S.J. European integration development platform of innovative entrepreneurship of Ukraine. Financial and credit activity problems of theory and practice. 2022. Volume 4 (45). P. 396-404. DOI: https://doi.org/10.55643/fcaptp.4.45.2022.3669
Kumar M.P., Kumara N.M. (2021) Market capitalization: Pre and post COVID-19 analysis. Materials Today: Proceedings, vol. 37, pp. 2553-2557.
Hermawan S., Nurasik E., Rahayu D., Rahmawati I. (2020) Intellectual Capital Disclosure and Company Financial Performance: Market Capitalization. International Journal of Innovation, Creativity and Change, vol. 13(7). Available at: https://www.ijicc.net/images/vol_13/Iss_7/13700v_Hermawan_2020_E_R1.pdf
Chourasiya A., Kambli A., Satoska K., Bhaisare R. (2018) On the cross-market linkages in global financial markets. Economic and Social Development: Book of Proceedings, pp. 575-583.
Wimmer H., Rada R. (2013) Applying information technology to financial statement analysis for market capitalization prediction. UMBC Faculty Collection. Available at: https://mdsoar.org/bitstream/handle/11603/20047/OJAcct_2013012911480362.pdf?sequence=1&isAllowed=y
Jeroh E. (2012) Interest rate variations and stock market capitalization in Nigeria: an empirical analysis. Acta Universitatis Danubius. Œconomica, vol. 8(5), pp. 5-14.
Subeniotis D.N., Papadopoulos D.L., Tampakoudis I.A., Tampakoudi A. (2011) How inflation, market capitalization, industrial production and the economic sentiment indicator affect the EU-12 stock markets. European Research Studies Journal, vol. 14(1), pp. 103-118.
Violeta A.M., Adrian A.S., Sorin B.N., Mirela P. (2008) Financial analysis of companies on the capital market. Tom XVII 2008, vol. 3, pp. 25-30.
Fox B., Zadecky L., Corsi T.M. (2006) Market Capitalization of the Trucking Industry Sector 2005. Available at: https://rosap.ntl.bts.gov/view/dot/17078
Bontis N. (2004) National intellectual capital index: a United Nations initiative for the Arab region. Journal of intellectual capital, vol. 5(1), pp. 13-39.
Beck T., Levine R. (2002) Industry growth and capital allocation: does having a market-or bank-based system matter? Journal of financial economics, vol. 64(2), pp. 147-180.
Aang R. (1997) Buku Pintar Pasar Modal Indonesia (The Intelligent Guide To Indonesian Capital Market). Available at: https://www.semanticscholar.org/paper/Buku-Pintar-Pasar-Modal-Indonesia-(The-Intelligent-Ang/d89dd1be6f15662d69637096a9f41990f82d0ab5
Kuksa I.M., Rodchenko S.S., Leliuk N.Ye., Babii, L.I. (2022) Upravlinski mekhanizmy finansovo-oblikovoi systemy kapitalizatsii innovatsiinoho biznesu v umovakh suchasnykh bezpekovykh vyklykiv [Management mechanisms of the financial and accounting system of capitalization of innovative business in the conditions of modern security challenges]. Formuvannia rynkovykh vidnosyn v Ukraini, vol. 5 (252), pp. 52-58.
Nesterova S.V., Obitskyi A.A. (2019) Osoblyvosti rynkovoi kapitalizatsii promyslovykh pidpryiemstv v natsionalnii ekonomitsi [Peculiarities of market capitalization of industrial enterprises in the national economy]. Mizhnarodnyi naukovyi zhurnal «OSVITA I NAUKA», vol. 2(27), pp. 191-194
Davydenko N. (2016) Kontseptualni pidkhody do kapitalizatsii pidpryiemstv [Conceptual approaches to the capitalization of enterprises]. Ekonomichnyi chasopys Skhidnoievropeiskoho natsionalnoho universytetu imeni Lesi Ukrainky, vol. 1, pp. 62-67.
Turylo A.A. (2013) Teoretyko-metodolohichni zasady vyznachennia sutnosti i otsinky kapitalizatsii pidpryiemstva [Theoretical and methodological principles of determining the essence and assessment of enterprise capitalization]. Teoretychni i praktychni aspekty ekonomiky ta intelektualnoi vlasnosti, vol. 1(2), pp. 159-162.
Pronko L.M., Berezo S.V. (2011) Vartist i kapitalizatsiia pidpryiemstv ta metody yikh otsinky [The cost and capitalization of enterprises and methods of their evaluation]. Ekonomichni nauky. Ceriia: Oblik i finansy, vol. 8, pp. 384-391.
Shevchenko N.V. (2008) Osoblyvosti doslidzhennia sutnosti kapitalizatsii promyslovykh pidpryiemstv [Peculiarities of the study of the essence of capitalization of industrial enterprises]. Rehionalna ekonomika, vol. 3, pp. 175-181.
Kornieiev V.V. (2005) Nominalna ta rynkova kapitalizatsiia: instrumentarii otsinky vartosti finansovykh aktyviv [Nominal and market capitalization: tools for assessing the value of financial assets]. Ekonomika i prohnozuvannia, vol. 3, pp. 32-40.
Poburko O.Ya. (2001). Orhanizatsiia upravlinnia kapitalizatsiieiu hospodarskoho kompleksu [Organization of management of the capitalization of the economic complex] (PhD Thesis), Lviv, 15 р.
Stoliarchuk Ya.М., Liutak О.М., Baula О.V., Lisovska L.S., Voitovych S.J. (2022). European integration development platform of innovative entrepreneurship of Ukraine. Financial and credit activity problems of theory and practice, vol. 4(45), pp. 396-404. DOI: https://doi.org/10.55643/fcaptp.4.45.2022.3669
