Stock market indices in the market capitalization management of corporate agricultural enterprises

Abstract

In globalization and production intensification, corporate agricultural enterprises increasingly seek investment resources for their development. Given the lack of sufficient funds from domestic investors and the transnational nature of economic activity, agricultural corporations are entering international capital markets. On the other hand, implementing corporate strategies for market capitalization management also involves optimizing or constantly increasing the market value of the business, which makes issuers of securities dependent on the stock market, financial risks, and psychological moods of investors. Since general trends determine the market conditions on the stock exchange, the financial management of corporate agricultural enterprises should consider the dynamics of share prices of both the leading issuers on the stock exchange and their industry representatives. Therefore, stock exchange indices are generalized indicators of this. The article aims to study stock market indices in the market capitalization management of corporate agricultural enterprises. It has been shown that stock indices are an essential financial market instrument, allowing investors to analyze market dynamics, assess risks, and formulate investment strategies. With the development of technology and the informatization of securities trading, the role of indices is only growing, and they reflect the dynamics of the economy and the latest investment demands. In corporate market capitalization management, stock indices play a crucial role by providing information to financial analysts, underwriters, and top management about general stock market trends and industry investment expectations. We have provided a brief genesis of stock market indices and defined their primary functions and principles of construction. The methodology for calculating stock exchange indices of corporate agricultural enterprises has been proposed. The trends in the development of Ukrainian agro-corporations for 2012-2022 have been identified, and the prominent trends for 2023 have been forecast. It has been defined that in order to prevent the deepening of the crisis in the corporate agrarian sector in 2023, along with state strategies and targeted programs, strategies for managing the market capitalization of corporate agricultural enterprises should be developed and/or refined based on strategic risk management, crisis management, international investment management, and behavioral finance, taking into account stock exchange indices as one of the strategic indicators of development in a globalized turbulent world. Keywords: stock indices, stock market, market capitalization, corporate agricultural enterprises, financial management