THE TRENDS OF CONCENTRATION OF THE EQUITY CAPITAL AND THE MECHANISMS OF ITS GROWTH IN THE REAL SECTOR OF UKRAINE’S ECONOMY
Keywords:
concentration of the equity capital, coefficient of concentration of the equity capital, coefficient of coverage, invested capital, accumulated capital, mechanisms of growth of the equity capital, subordinated debtAbstract
The dynamics and the structure of an equity capital are studied, and the promising forms of concentration and the mechanisms of increasing of the equity capital of enterprises of the real sector of Ukraine’s economy are determined. It is shown that the volume of the equity capital increased almost twice for 2007–2013, but it sharply decreased in 2014 (as compared with the previous year). It is found that the changes of the volume of the equity capital occurred mainly at the expense of the invested capital (statute and extra).
It is emphasized that the minimum size of an equity capital, which is established by the Law of Ukraine “On the joint stock companies”, is not connected with the size of enterprises, since it is underestimated for large enterprises and is overestimated for small and medium ones.
It is proposed to establish the normative of an extra capital at a level of 15% of the statute capital, which will restrict its use for the coverage of losses and will favor the direction of its part to the replenishment of the statute capital.
It is noted that, in the implementation of the investment activity at the expense of an increase of the invested capital, the investments have mainly the portfolio character. For a modernization of the material-technical production base, the most important financial resource is the accumulated capital (nondistributed income and reserve capital).
It is shown that the real sector economy of Ukraine is characterized by the low (less that the normative one) coefficient of concentration of the equity capital. To assess the degree of influence of the concentration of the equity capital on the financial backing of a structural modernization of the real sector of the economy, the coefficient of coverage (ratio of the equity capital to the fixed and nonmaterial assets) is used. During the analyzed period, the coefficient of coverage for economy’s real sector was more than 1, but had a tendency to decrease. The attention is paid to the fact that, in Ukraine, the possibility to increase the concentration of the equity capital due to the accumulation is limited, and the promising form of its concentration is the change of a distribution of already available functioning capitals by means of the enlargement (consolidation, centralization, integration, or merging).
The expediency to create vertically integrated structures is proved. For those structures, the main purpose of a strategic orientation of their activity is the innovative character of their functioning and development. It is concluded that, on the whole, the concentration of the equity capital in Ukraine is not accompanied by a structural modernization of the economy. To activate the processes of concentration of the equity capital and to increase their influence on the structural modernization of the real sector of Ukraine’s economy, the following mechanisms are proposed: the restructurization of the property of problematic (unprofitable and low-profitable) enterprises; subordinated debt; emission of medium-term corporative bonds for innovative projects; transfer of securities, which belong to enterprises, into the confidential management; application of a paper credit; introduction of new fast financial technologies of mobilization of financial resources.
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