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№ 6/2017

№ 6/2017

Fìnansi Ukr. 2017 (6): 38–55

PUBLIC FINANCE MANAGEMENT

KORNIEIEVA Iuliia 1

1SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0002-1823-7618


Initial public offering of shares as a tool of privatization of large state-owned enterprises


This article analyses the use of IPO as one of the priority ways of privatization of large state-owned enterprises, carried out in order to attract long-term investment resources and improve the level of corporate governance. The initial public offering of shares of state-owned companies in stock markets is seen as the first step towards full privatization of the facility. It is emphasized that in the context of improving the mechanism of privatization, it is first of all necessary to introduce elements that will ensure planning, publicity and control in this area. Passing the listing procedure on the world stock exchanges means the automatic introduction of advanced world standards for information disclosure and unification of reporting. The public listing helps to reduce information asymmetry and the information gap between investors and recipients and promote effective privatization. Given the low liquidity of the domestic stock market, it seems reasonable to develop a strategy for offering shares of large state-owned companies that are subject to privatization on foreign stock markets. The article also identifies current trends in the development of international financial markets and changes in the market situation and their consequences in connection with the opportunities for state enterprises to enter foreign capital markets. Particular attention is paid to the impact of the recent global crisis on international financial markets and the direction of global financial flows. Despite the world trends of strengthening regulation on financial markets in Ukraine there is a need to implement liberal arrangements for access of investors with the aim of attracting foreign capital. But in that case the prerequisite is the introducing of regulatory system for evaluation and supervision of compliance with the terms of contractual arrangements during corporatization of state-owned enterprises. It is emphasized that the mechanism for the latter to enter international financial markets should be based on the principles of upholding national interests and at the same time combine elements of investor protection to increase the attractiveness of investment objects.

Keywords:state-owned enterprise, privatization, corporatization, stock exchange, listing, share, globalization, the institutional structure of international finance.

JEL: D92, E22, F21, G15, G38, O16.


Kornieieva I. . Initial public offering of shares as a tool of privatization of large state-owned enterprises / I. Kornieieva // Фінанси України. - 2017. - № 6. - C. 38-55.

Article original in Ukrainian (pp. 38 - 55) DownloadDownloads :122
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