Free-float level
and the public joint stock companies in Ukraine
This article investigates an influence of free-float on the size of share capital of joint stock companies which is attracted on the Ukrainian stock exchange. The author find the hypothesis recently wasn’t researched in Ukraine, furthermore this hypothesis even lightly researched in the world – a few researches of Singapore and US authors can be reviewed as science literature. By the author opinion poor research of this problem influences on the overall performance of the national stock exchange. To do this in the beginning of this article author briefly reviews the share capital structure of a public joint stock company to calculate the size and the importance of share capital. After the companies from the «Index basket» of the Ukrainian Stock Exchange are selected for further investigation. It is showed the low level of equity capital in the overall structure among all the selected companies. It is admitted the high level of correlation between the capitalization, the liquidity and the average level of free-float on the stock market. It is proposed to increase the free-float level on the Ukrainian Stock Exchange according to the determined by the author internal and external factors. Factors, that are investigated by the author, are aggregated into four complex factors, which explain the economic nature and the current situation with the current free-float level on the Ukrainian stock exchange. International experience might be a way out for Ukraine. But the author doesn’t follow only European success stories due to the different market possibilities. Therefore, the author tries to find a key for improving in another places, especially he reviews the experience of China. But the author doesn’t ignore best European practices. So, he comes to the conclusion that Ukraine should aggregate the steps – Chinese experience is useful for building the investment environment, European – for reformatting the legal issues on the market.
[Download PDF version]
Keywords: share capital, equity capital, shares issue, free-float, public joint stock company, stock market, financial market. |
CORPORATE FINANCE
Tymur Boiko
postgraduate SHEI «Kyiv National Economic University named after Vadym Hetman»
|
