PhD in Economics, Associate Professor of the Finance Department of VINNYTSIA INSTITUTE OF TRADE AND ECONOMICS of Kyiv National University of Trade and Economics
INFORMATION SUPPORT OF THE STOCK MARKET OF UKRAINE
Background. Characteristic properties of the SSMNC data used in the course of research by scientists and practices are limited, and in some cases, from the standpoint of reliability, are questionable. Thus, it is necessary to improve the system of information support of the stock market of Ukraine to form the high-quality information base, establishing benchmarks of the stock market of Ukraine, organising control over it.
Analysis of recent research and publications has showed that the indicators used to analyse development of national stock markets were mostly in the interests of foreign researchers and analysts, the current national information base does not meet the requirements of the researchers and doesn’t consider the evolution of indicators.
The aim of the article is to substantiate proposals for improving the quality of information support of the stock market of Ukraine by introducing indicators proven by international financial institutions and improve the performance of national methods of analysis of market processes.
Materials and methods. The study is based on analysis of annual reports by SSMNC, timely information by the Commission, databases of international organizations and other sources of information. The following methods were used in preparing the material: analysis, comparison, induction, synthesis, formalization, as well as learning and generalization.
Results. In the article the characteristic indicators of the stock market that are not used in official statements of SSMNC or are "problematic" from the perspective of method of calculation in domestic practice have been identified. It has been offered to account and record in the SSMNC reporting the indicators of market liquidity and volatility of the stock index, to improve the method of calculating the capitalization, and attention is focused on other issues of information support of the stock market functioning.
Conclusion. It has been suggested that data on the number of listed securities should be supplemented with the information on the number of home listed companies in the SSMNC reports to improve information support for the listing process. It is advisable to distinguish between market capitalization and stock-market capitalization in the capitalization indicators. Method of calculating free-float and to oblige issuers to declare its value must be adopted for the calculation of stock exchange. Capitalization ratios (listed companies) and GDP, annual volume of share trade and GDP and shares turnover must be incorporated into NSSMC reporting. Control of volatility should be introduced for a comprehensive understanding of the state of the stock market. By summing up information on a scale of activities in the over-the-counter market and the market for derivatives one should avoid duplications in accounting transaction values. Special attention must be paid to the structure of annual NSSMC reports, which is to be supplemented with a paragraph containing commentaries on methodology which reveals information basis and method of calculation parameters.
Keywords: listing, capitalisation, free-float ratio, turnover ratio, market liquidity, volatility.
FREE FULL TEXT (PDF)