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Managing the Market Capital Structure as an Instrument of Equity Financing of a Public Company
Abstract.Within the framework of the present research, Tishko examines the market mechanism of the relationship between the company value and approaches to managing the market capital structure in Russia. The researcher defines and explains the grounds for essential trends in the business value as a result of approaches that are used to manage the market capital on the stock market. The author gives recommendations and particular strategies that can be used to increase the transparency of the market pricing of emitter's equities through increasing and maintaining a stable high level of the share of freely negotiable equities as well as recommendations regarding securities portfolio building. Within the framework of this research, the author has carried out the qualitative and quantitative analysis (the latter being carried out using the MS Excel application) that demonstrate the dynamics of the aforesaid indicators for the period since 2008 till 2017. The results of this calculation completed with the further empirical analysis of the results conclusively prove that the methods of managing the market capital structure offered by the author of the article are quite applicable to predict both the investment profitability from the side of potential investors and current stockholders, and benefits an emitter may receive from equity financing in the long-term perspective.
Keywords: MOEX Russia Index, Economic crisis, Expected profitability, Individual Investor, Public company, Market capitalization, Stock market, Corporate finance, Equity financing, Free – float
Article was received:04-04-2018
This article written in Russian. You can find full text of article in Russian here .