The real sector of Ukrainian economy capitalization: trends and consequences
Анотація
Introduction. The main trends in the corporate finance of Ukraine hardly could be explained with the traditional corporate finance frameworks which the trading-off or pecking order approaches included. In the beginning of 2017, the whole corporate sector indebtedness (calculated as total unconsolidated debt to book value based equity ratio) was substantially higher than a proper level for emerging markets countries. The restoring of the real sector equity capital sufficiency is crucial for the whole financial system stabilization and investments fostering.
Purpose. The investigation of the book value decapitalization in real sector of Ukrainian economy scale and its potential impact on the financial system stability and economic growth assessment.
Methods. International comparisons of the total book value capital to GDP ratios, the real book value capital (denominated by GDP deflator) trends and structural changes investigation.
Results. The volume and the dynamics of the book value capitalization in Ukrainian economy’s real sector are investigated. The overall level of capital losses is determined (18% decline with 5 years) and significant structural imbalances are revealed. The trends of real sector book value equity changes analyzed comparing with the nominal GDP changes trends in Ukraine and foreign countries. A comparative analysis trends of real sector capital return in Ukraine and some European countries is conducted. The total book value capital to GDP ratio in Ukraine does not differ significantly from other countries. We explain these results capital by the low level of GDP in Ukraine and not by the book value capital sufficiency. The low level of legal productivity the real sector aggregate equity capital in Ukraine is determined. The share of accumulated capital in real sector book value equity in Ukraine was closed to 0 and fall negative in 2017. We explain this by the low level of legal productivity of equity capital in Ukraine.
Conclusion. The capital accumulation in the real sector of Ukrainian economy is structurally deteriorated and generates significant risks for the stability of ountry financial system. The lack of capital in real sector hardly can be compensated by the financial sector and government investments. Thus, we can conclude that deficiency of equity in real sector is a strong barrier for the economic growth.
Ключові слова
Повний текст:
>PDF
Посилання
Mykhailiv, H. V. (2014). Rol kapitalizatsii pidpryiemstva dlia zabezpechennia aktyvizatsii innovatsiinoi diialnosti [The role of enterprise capitalization in provision of innovation activity]. Aktualni problemy rozvytku ekonomiky rehionu – Actual problems of regional economic development, 10, 88–94 [in Ukrainian].
Buleev, Y. P. & Bryuhovetskaia, N. E. (Ed.) (2011). Kapitalizatsiya predpriyatiy: teoriya i praktika [Capitalisation of enterprise: theory and practice]. Donetsk [in Russian].
Danylenko, A. I., Zymovets, V. V. & Sheludko, N. M. (2015). Dekapitalizatsiia finansovoho sektory ekonomiky Ukrayiny: prychyny i naslidky [Decapitalization of Ukraine’s financial sector: causes and consequences]. Ekonomika i prohnozuvannia – Economy and forecasting, 4, 7–28 [in Ukrainian].
Hovorushko, T. A. & Bagatska, K. V.(2013). Tendentsii ta perspektyvy kapitalizatsii pidpryiemstv kharchovoi promyslovosti Ukrainy [Tendencies
and prospects of capitalisation of enterprises of the food industry of Ukraine]. Biznes-inform – Business-Inform, 11, 165–169 [in Ukrainian].
Shevchuk, N. V. (2012). Rynkova kapitalizatsiia promyslovykh pidpryiemstv u konteksti rozvytku natsionalnoi ekonomiky [Market capitalization of industry enterprises in the context of national economy development]. Stratehia ekonomichnoho rozvytku Ukrainy – Strategy of economic development of Ukraine, 30, 9–16 [in Ukrainian].
Horiachuk, V. F. (2010). Systemnyi analiz protsesu kapitalizatsii ekonomiky krainy ta vyznachennia yoho yak systemy [System analysis of
the capitalization process of the country’s economy and its definition as a system] Teoriia ta praktyka derzhavnoho upravlinnia – Theory and practice of
the state management, 1, 270–278 [in Ukrainian].
Kozoriz, M. A. (2007). Teoretychni zasady doslidzhennia kapitalizatsii yak ekonomichnoi katehorii [Theoretical foundations of the study of
capitalization as an economic category]. Materialy kruhloho stolu – The roundtable materials, 6–10 [in Ukrainian].
Turylo, A. A. (2013). Teoretyko-metodolohichni zasady vyznachennya sutnosti i otsinky kapitalizatsii pidpryiemstva [Theoretical and methodological principles for determining the essence and assessment of enterprise capitalization]. Teoretychni i praktychni aspekty ekonomiky ta intelektualnoyi vlasnosti – Theoretical and practical aspects of economics and intellectual property, 1(2), 159–162 [in Ukrainian].
Nitzan J. and Bichler Sh. (2009). Capital is a power. A study of order and creorder, Routledge,Taylor and Francis Group, London and
New York.
Piketti, T. (2016). Kapital u XXI stolitti [Capital in the XXI century]. Kyiv : Nash format [in Ukrainian].
Official site of World Bank. Databases. Available at : http://data.worldbank.org/.
Chang, Yu Sang and Pak, Do Hyun, Warren Buffett Value Indicator vs. GDP Size – Is the Relationship Superlinear? (January 11, 2017).
Forthcoming, International Journal of Economics and Business Research, GCCR Working Paper Series 2017-01. Available at : URL: https://ssrn.com/
abstract=2897317 or http://dx.doi.org/10.2139/ssrn.2897317.
Official site of the State Government Statistics Department of Ukraine. Available at : www.ukrstat.gov.ua.
Official site of OESD. Statistics. Available at : http://stats.oecd.org.
Spygotska, N. (2015). Efect vytisnennia ta yogo vplyv na mashtaby kredytuvannia economiky bankivskoiu systemoiu [Effect of displacement and
its influence on the scale of lending to the economy by the banking system of Ukraine]. Svit finansiv – Fіnance world, 2 (43), 61–71. Available at : http://nbuv.gov.ua/UJRN/svitfin_2015_2_7.
Official site of the State government statistics department of Turkey. Available at : http://www.tcmb.gov.tr/wps/wcm/connect/ TCMB+EN/TCMB+EN/Main+Menu/STATISTICS/Real+Sector+Statistics/Company+Accounts/Company+Accounts+Data.
Official site of the State Government Statistics Department of Poland. Available a t: http://stat.gov.pl/en/topics/economic-activities-finances/
activity-of-enterprises-activity-of-companies.
Yahoo Finance. Available at: https://finance.yahoo.com/.
DOI: https://doi.org/10.35774/sf2018.01.007
Посилання
- Поки немає зовнішніх посилань.
West Ukrainian National University