ABOUT SOME APPROACHES TO THE DETERMINATION OF MARKET CAPITALIZATION COST OF A COMPANY WHILE PERFORMING FINANCIAL AND ECONOMIC EXAMINATION

Abstract

The article is devoted to the economic analysis of the so-called "existence of actual insolvency" in case of deliberate and false company bankruptcy. Approaches to value determination of market capitalization of an economic entity are considered, capital structure analysis and capitalization mechanisms are presented. It is emphasized that interest in this issue is justified taking into account the generation of corporate capital of emerging markets and development of capital market mechanisms. Following basic mechanisms influencing change capitalization are considered: speculative, brand, marketing, environmental, regional, as well as informative. It is demonstrated that, in practice, the forecasting of cash flows is carried out taking into account existing investment projects or company business plans by extrapolation of future cash flows for previous periods, while the indicator of used cash flows is important, and not the indicator of actual profit. Specifics of financial and economic examinations carried out in the context of both criminal cases on crimes directed against economic activity and those appointed by courts that relate to determination the amount of damage caused to a debtor or creditors as a result of the economic activities of the subjects are highlighted. The solution of the problem debated in the article can be realized only if as a result of the economic analysis the so-called concept of "existence of actual insolvency" the main causal factors affecting the market value of a company and the magnitudes of their influence will be considered separately. Thus, the approach proposed by the author will allow competent authorities initiating performing of expert researche to have a body of evidence regarding of caused damage in a large amount to a debtor or creditors as a result of deliberate or false bankruptcy.