IDEAS home Printed from
   My bibliography  Save this article

Organisation and Fund Aspects of Analysis of Processes of Capitalisation of Industrial Enterprises of 5kraine


  • Lototsky Mykola Ya.

    () (The Security Service of Ukraine in the Kiev region)


The goal of the article is to conduct analysis of market capitalisation of individual domestic industrial enterprises. Using such indicators as Eamings Per Share (EPS), relation of market capitalisation of the company to its net earnings (price/earnings, P/E), relation of market capitalisation of the company to its revenues (price/sales, P/S), Market-to-Book Ratio and Tobin's Q-ratio, the article calculates the weighted average cost of capital by sectors of industrial production. In the result of the study it establishes that market capitalisation of domestic industrial enterprises mainly depends on the market cost of shares - assessment of the cost of business by the market. It proves that formation of the market capitalisation is determined today, first of all, by external factors: market situation, demand and supply of shares in the stock market and forecasted expectations of investors with respect to increase of effectiveness of enterprises' activity in future. Solution of the problem of deficit of financial resources for realisation of large-scale investment project by domestic industrial enterprises through making financial resources cheaper and optimising their structure requires further study.

Suggested Citation

  • Lototsky Mykola Ya., 2013. "Organisation and Fund Aspects of Analysis of Processes of Capitalisation of Industrial Enterprises of 5kraine," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 10, pages 179-186.
  • Handle: RePEc:idp:bizinf:y:2013:i:10:p:179_186

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Villalonga, Belen & Amit, Raphael, 2006. "How do family ownership, control and management affect firm value?," Journal of Financial Economics, Elsevier, vol. 80(2), pages 385-417, May.
    2. Fama, Eugene F. & French, Kenneth R., 1997. "Industry costs of equity," Journal of Financial Economics, Elsevier, vol. 43(2), pages 153-193, February.
    3. Bates, Thomas W. & Becher, David A. & Lemmon, Michael L., 2008. "Board classification and managerial entrenchment: Evidence from the market for corporate control," Journal of Financial Economics, Elsevier, vol. 87(3), pages 656-677, March.
    4. Gerald T. Garvey & Gordon Hanka, 1999. "Capital Structure and Corporate Control: The Effect of Antitakeover Statutes on Firm Leverage," Journal of Finance, American Finance Association, vol. 54(2), pages 519-546, April.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idp:bizinf:y:2013:i:10:p:179_186. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexey Rystenko). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.