scholarly journals Factors affecting the company's capitalization

2021 ◽  
pp. 146-151
Author(s):  
A. O. Volodina
Keyword(s):  
Stock Market ◽  
Electric Power ◽  
Oil And Gas ◽  
Market Value ◽  
Return On Assets ◽  
Factors Affecting ◽  
Dividend Payments ◽  
Net Profit ◽  
Russian Stock Market ◽  
Return On Sales

The article considers the essence of the company's market value, clarifies the concept of enterprise capitalization. The author analyses Russian and foreign studies devoted to the identification of quantitative factors that affect the market value of companies. In the analysis of domestic research, the author pays special attention to the oil and gas and electric power industries of the economy. The analysis of foreign studies includes companies from Italy, Indonesia and Jordan. The paper analysed the structure and dynamics of the Russian stock market, the influence of revenue, net profit, the level of dividend payments, return on assets, the ratio of borrowed and own funds, as well as the return on sales by the amount of the market value of electric power companies whose shares are traded on the Russian stock market. The study identifies the main quantitative factors affecting the capitalization of companies. The author determines the directions of further research. 

A Computation Methods for Analysis on the Effect of Stock Market and its Application

2014 ◽  
Vol 1078 ◽  
pp. 444-447
Author(s):  
Zhan Xin Ma ◽  
En Yang Zhao ◽  
Xi Ming Lv ◽  
Zhi Min Ma
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Turnover Rate ◽  
Market Value ◽  
Chinese Economy ◽  
Data Envelopment ◽  
Chinese Stock Market ◽  
Return On Assets ◽  
Generalized Data Envelopment Analysis ◽  
New Policies

As a barometer of the macroeconomic of a country and an important part of the capital market, stock market has attracted increasing and highlighted attention. As is well-known, Chinese stock market is known as 'policy market', however, the issue about whether the stock market is really influenced by these policies is always an important and hot topic. In this paper, by using generalized data envelopment analysis, an analysis on the effect of the new policies carried out in May 2012 is provided based on closing price, Tobin Q, circulation market value, turnover rate, and return on assets. Based on the above results, it can show the effect of stock market policies on Chinese Economy.

scholarly journals Ownership And Firm Performance: The Experience Of Saudi Arabias Emerging Economy

2011 ◽  
Vol 8 (8) ◽  
Author(s):  
Abuzar M. A. Eljelly
Keyword(s):  
Saudi Arabia ◽  
Firm Performance ◽  
Stock Market ◽  
Market Performance ◽  
Return On Assets ◽  
Private Companies ◽  
Return On Equity ◽  
Net Profit ◽  
The Government ◽  
The Relationship

This study examines the relationship between firm ownership and corporate performance in Saudi Arabia, using a sample of Listed Private Companies (LPCs) and Listed Government Related Companies (LGRCs). The study compares the operating and market performance of the LPCs and LGRCs during the period 2000-2003 and found that, in general, LGRCs outperform or match the performance of LPCs. More specifically, the study finds that LGRCs tend to mostly outperform LPCs in terms of profitability, as measured by Return on equity (ROE) and Net Profit Margin (NPM), operating efficiently, as measured in terms of Return on assets (ROA), and match them in their stock market risk adjusted performance. The study concludes that these results may have implications for the issue of privatization programs which the government has recently started.

THE ENTERPRISE VALUE AS A SUMMARY INDICATOR OF ITS ECONOMIC DEVELOPMENT

2017 ◽  
Author(s):  
Lilia Lesyk ◽  
◽  
Tetyana Petrushka ◽  
Anastasiya Symak ◽  
Olexandr Yemelyanov ◽  
...  
Keyword(s):  
Economic Development ◽  
Market Value ◽  
Optimal Level ◽  
Initial Value ◽  
Return On Assets ◽  
Enterprise Value ◽  
Net Profit ◽  
Basic Approaches ◽  
Technical Measures ◽  
Selection Of

Estimation of the pace and scale of economic development of enterprises requires the selection of indicators of this development. These indicators include the indicator of the market value of the enterprise, which characterizes all the main current and predictive characteristics of both the enterprise itself and its external environment in a generalizing form. In addition, the criterion for maximizing the market value of the enterprise can be applied in the process of developing measures aimed at ensuring the further economic development of the enterprise. Taking into account the aforementioned, the purpose of this article is to study the possibilities of using the enterprise value as a summary indicator of its economic development. The peculiarities of application of three basic approaches to the assessment of enterprise value (cost, comparative and profitable approaches) are analyzed. It is shown in the article that the main difference between the above-mentioned approaches is a different array of information used in their application. The main factors that influence the market value of the enterprise according to the income approach are determined. The authors paid particular attention to the issue of harmonization of the results obtained using different approaches to assessing the enterprise value. It is possible to combine certain aspects of cost, comparative and income approaches to assess the enterprise value as an indicator of its economic development. For this purpose, the authors proposed to use the following indicators: coefficient of adjustment of net profit of enterprises taking into account its possible future changes, indicator of the maximum profitability of assets of enterprises in the industry and the indicator of the total initial value of the available assets of the enterprise under assessment. The article presents the method of choosing the best option for increasing the market value of the enterprise in the process of its economic development. This method is based on the application of the indicator of optimal level of return on assets, which corresponds to the best option for the implementation of measures aimed at increasing the market value of the enterprise. In turn, the value of this indicator is determined by the optimal amounts of income, expenses and investments in the development of the enterprise. Using in the practice of enterprises of the proposed approaches to assess their value will increase the degree of justification of organizational and technical measures, the implementation of which involves ensuring the economic development of enterprises.

scholarly journals Factors Affecting Service Share Prices at Amman Stock Exchange

2019 ◽  
Vol 14 (7) ◽  
pp. 149
Author(s):  
Abdul Aziz Farid Saymeh ◽  
Rashed Mohamad Salameh
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Market Value ◽  
Cash Flows ◽  
Return On Assets ◽  
Factors Affecting ◽  
Share Prices ◽  
Service Companies ◽  
Study Results ◽  
Amman Stock Exchange

The research objective was to identify the determinants of services stock prices. Research community was represented by the service companies listed in Jordan’s Amman Stock Exchange (ASE). The companies were selected to whose shares continued trading during the study period (2010-2015). The study sample was composed of (27) shareholding companies which were listed on the Amman Stock Exchange (ASE) during the afore mentioned period. The study results revealed that there was a significant impact of the factors selected such as: profits (distributed profits, return on assets and net cash flows from operations) on the market value of service companies share prices listed on ASE. The study recommended that further studies ought to be conducted to specify the factors that might affect the market value of listed companies’ shares.

scholarly journals THE EXAMINATION OF CERTAIN PECULIARITIES OF DISTRIBUTION OF AN ENTERPRISE PROFITS DURING CONDUCTION OF FORENSIC FINANCIAL AND ECONOMIC EXAMINATION

2019 ◽  
pp. 738-747
Author(s):  
K. Mamikonyan
Keyword(s):  
Corporate Governance ◽  
Key Words ◽  
Economic Activity ◽  
Dividend Policy ◽  
Statistical Data ◽  
Market Value ◽  
Point Of View ◽  
Dividend Payments ◽  
Current Period ◽  
Net Profit

The article is devoted to the study of issues arising during the conduction of forensic financial and economic examinations concerning situations that arise in the context of non-compliance with the principles of corporate governance in the distribution of net profit. In particular, it is noted that the presence of opacity of the processes can lead to the provision of financial misinformation to the owner-participants of the company and that this fact is unacceptable from the point of view of the principles of corporate governance, especially in the light of ensuring the interests of investors. In this context, a number of scientific approaches are considered in the work, which basically substantiate the unrealistic uniform dividend policy for the current period. It was established that at different stages of development and formation of the company, as well as depending on different situations in the market, the company’s activity is directed either towards accumulation or growth of dividend payments to shareholders, which contributes more to increasing the investment attractiveness and financial and economic activity of the company than to an increase of the growth of its market value. As a result of the research, the article states that theories which, in the framework of analyzing statistical data fully represent the preferred policy of paying dividends in a particular country (region), when choosing a preferred version for specific companies, cannot be reliable. Taking into account this conclusion, the article proposes a return to the idea that the dividend policy of various companies has certain specificity, and the underlying factors causing it differ from each other. Thus, in this context, it is mandatory for each company to adopt its own unique dividend policy, which should take into account the balanced interests of investors and companies. Key words: distribution of enterprise profits, financial and economic expertise.

scholarly journals THE EFFICIENCY OF THE OIL AND GAS COMPLEX OF THE RUSSIA

2019 ◽  
Vol 2 (5) ◽  
pp. 138-146
Author(s):  
Irina Filimonova
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Operating Costs ◽  
Capital Investments ◽  
Gas Industry ◽  
Hydrocarbon Production ◽  
Net Profit ◽  
Tax Payments ◽  
Return On Sales ◽  
Comprehensive Study

The article carried out a comprehensive study and analyzed a set of indicators reflecting the performance of companies in the oil and gas industry in Russia, namely, the return on sales by net profit, the ratio of operating expenses (including tax payments), the tax burden, the ratio of revenue to hydrocarbon production, the ratio operating costs to production, the ratio of net profit to production, the coefficient of economic efficiency of capital investments. Thus, the purpose of this research was to assess the effectiveness of the oil and gas industry in Russia. The article based on the works of domestic and foreign scientists in the field of forecasting the world and Russian energy, general theoretical, macroeconomic, regional issues, including those related to the energy supply of the economy, the study of energy economics, energy efficiency, etc.

scholarly journals Impact of the global green factor on the capitalization of oil companies in Russia

2020 ◽  
Vol 11 (2) ◽  
pp. 309-324
Author(s):  
Irina Filimonova ◽  
Anna Komarova ◽  
Mikhail Mishenin
Keyword(s):  
Oil And Gas ◽  
Value Added ◽  
Clean Energy ◽  
Environmental Damage ◽  
Special Focus ◽  
Factors Affecting ◽  
Oil Companies ◽  
Net Profit ◽  
Petroleum Companies ◽  
The Impact

Research background: This paper studies the impact of a new so-called green factor on the capitalization of petroleum companies, which is becoming highly relevant in view of the signing of the Paris agreements in 2015 and the support for clean energy. Although society, international organizations, and government authorities encourage companies to reduce their environmental impact, one of the main reasons for responsible behavior is still economic efficiency. The oil industry, on the one hand, faces one of the most volatile markets and, on the other hand, has one of the largest environmental impacts of any industry. That requires a detailed study of interconnections between market capitalization and the green factor. Purpose of the article: A comprehensive study of factors affecting the level of capitalization of oil and gas companies in Russia and identification of the most significant among them with a special focus on the green factor. Methods: Econometric analysis of panel data for Russian petroleum companies. The database includes indicators for six major Russian oil companies from 2011 to 2018. The following groups of factors are analyzed to explain the change in the companies’ capitalization: macroeconomic (GDP and inflation in Russia), microeconomic (companies’ revenue, net profit, tax payment, return on assets, return on equity, ratio of borrowed capital to equity), industrial (oil export, refining, production and proven reserves of the companies), and the green factor. Findings & Value added: The selection of factors showed that the size of capitalization has been influenced most significantly by the following: the volume of the company's proven reserves, net profit, tax burden, and the green factor based on the policy of minimizing environmental damage. This result shows that investors consider companies with high environmental performance to be more valuable than companies with similar financial results but lower environmental ratings.

scholarly journals Assessing the usefulness of accounting measures for examining profitability of the State Forests’ National Forest Holding

2016 ◽  
Vol 77 (2) ◽  
pp. 158-165
Author(s):  
Anna Ankudo-Jankowska ◽  
Jakub Glura
Keyword(s):  
The State ◽  
Slight Variation ◽  
Return On Assets ◽  
Return On Equity ◽  
Activity Assessment ◽  
Net Profit ◽  
Return On Sales ◽  
High Degree ◽  
Profitability Ratios ◽  
Operating Result

Abstract The purpose of this study was to analyse the profitability of the State Forests by using accounting measures and to determine their practical applicability for evaluating the State Forests’ activities covering the years 2008-2012. In our assessment, we used the ratios: return on assets, return on equity and return on sales, which were calculated for the four following levels of financial result: operating result and economic activity result, gross profit and net profit. The degree of variability of the analysed ratios was determined for the years 2008-2012. On the basis of our survey, the State Forests’ activities were found to be profitable. The ratios return on assets, sales and equity show only slight variation depending on the applied category of financial results. Furthermore, this study confirms that there is a high degree of variation over time. In the years 2008-2012, the profitability ranged from 2% to 13% with the highest profit having been reached in 2011. We conclude that for the State Forests’ activity assessment, the profitability ratios established for the category of operating results will be of great significance.

scholarly journals FACTORS AFFECTING RETURN ON ASSETS OF US TECHNOLOGY AND FINANCIAL CORPORATIONS

2019 ◽  
Vol 21 (2) ◽  
pp. 134-144
Author(s):  
John Francis Diaz ◽  
Rudresh Pandey
Keyword(s):  
Fixed Effects ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Return On Assets ◽  
Return On Equity ◽  
Factors Affecting ◽  
Financial Firms ◽  
Technology Firms ◽  
Return On Sales

The research studies the relationship between eight firm-specific factors on the profitability of U.S. technology and financial firms. The study used multiple linear panel regression models, namely, ordinary least squares (OLS), fixed effects (FE) and random effects (RE) models. Empirical findings show that return on equity ratio is negatively related with return on assets (ROA), while return on sales ratio has positive relationship with profitability for both technology and financial firms. On one hand, current ratio has a positive relationship with the profitability of the financial firms, while there is negative relationship for technology firms. Lastly, size has positive relationship with the profitability for technology firms. This study provides renewed perspectives in creating suitable strategies to controlling factors that maximizes profitability for both US publicly-listed technology and financial companies.

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