Capitalization of a corporate trade enterprise: the genesis of the definition and approaches to management

The paper identifies the genesis of theories of capitalization, which demonstrates the evolution of economic thought from simple ideas of wealth accumulation to complex models that take into account technological innovation, human capital, and institutional factors. It is shown that the development of individual theories reflects a fundamental understanding of the laws of formation, distribution and use of capital to stimulate economic growth and development. It was established that capitalization as an economic category is an important indicator of the financial potential of enterprises and markets, derived from the theories of capital, value, and resources. The main forms of capitalization are defined: financial, market, internal. Management of capitalization processes and results focuses on taking into account internal and external factors. This logic allows enterprises to adapt to post-industrial changes, increase their competitiveness and ensure sustainable growth in the conditions of a globalized economy. It has been proven that the effective management of the capitalization of the enterprise includes a comprehensive approach that covers financial planning, investment management, optimization of working capital, capital attraction, restructuring and implementation of innovations. The use of these methods allows enterprises to grow and increase their competitiveness. It is argued that the increase in capitalization is a strategic task for trade enterprises, which ensures their long-term growth and development based on the activation of investment activities by renewing assets, introducing the latest technologies, expanding the range of goods and improving the efficiency of operations. The concepts of anti-crisis management, category management, and integrated risk management are systematized, within the framework of which the equity of a corporate trading enterprise is considered the main source of capitalization growth. Their practical use requires the formalization of the relationship between the amount and level of equity capital with indicators of financial status, risk assessment, business activity and sales volume.

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Publication Details

Journal
Economics Finances Law
Published
2024-08-30
DOI
https://doi.org/10.37634/efp.2024.8.7
Primary Topic
Economic and Business Development Strategies
Type
article
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article

Capitalization of a corporate trade enterprise: the genesis of the definition and approaches to management

Андрій Дякун
Economics Finances Law
Economic and Business Development Strategies
article

Capitalization of a corporate trade enterprise: the genesis of the definition and approaches to management

Андрій Дякун
article en

Abstract

The paper identifies the genesis of theories of capitalization, which demonstrates the evolution of economic thought from simple ideas of wealth accumulation to complex models that take into account technological innovation, human capital, and institutional factors. It is shown that the development of individual theories reflects a fundamental understanding of the laws of formation, distribution and use of capital to stimulate economic growth and development. It was established that capitalization as an economic category is an important indicator of the financial potential of enterprises and markets, derived from the theories of capital, value, and resources. The main forms of capitalization are defined: financial, market, internal. Management of capitalization processes and results focuses on taking into account internal and external factors. This logic allows enterprises to adapt to post-industrial changes, increase their competitiveness and ensure sustainable growth in the conditions of a globalized economy. It has been proven that the effective management of the capitalization of the enterprise includes a comprehensive approach that covers financial planning, investment management, optimization of working capital, capital attraction, restructuring and implementation of innovations. The use of these methods allows enterprises to grow and increase their competitiveness. It is argued that the increase in capitalization is a strategic task for trade enterprises, which ensures their long-term growth and development based on the activation of investment activities by renewing assets, introducing the latest technologies, expanding the range of goods and improving the efficiency of operations. The concepts of anti-crisis management, category management, and integrated risk management are systematized, within the framework of which the equity of a corporate trading enterprise is considered the main source of capitalization growth. Their practical use requires the formalization of the relationship between the amount and level of equity capital with indicators of financial status, risk assessment, business activity and sales volume.

Economics Finances LawVol. 8/2024(-)
Openalex Percentile: Top 80%
Economic and Business Development Strategies
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Capitalization of a corporate trade enterprise: the genesis of the definition and approaches to management — Андрій Дякун · Economics Finances Law (2024) | TGRS Research Map | TGRS