Factors influencing the market value of corporate securities issued by international corporations

Abstract

This article is focused on researching and systematising the factors that influence investor expectations and, ultimately, the share prices of international corporations on global markets. This provides an informational and practical basis for the development of government and corporate policies, the implementation of which will ensure the stability of countries, corporations and the global economy as a whole. The following tasks were accomplished: the levels of formation of factors influencing share prices were determined; the range of factors beyond the influence of the state or corporations, and those factors they can influence, was established; and the areas of influence on such factors were systematised with the aim of ensuring the stable development of the country’s economy and corporations.

The methodological basis of the study is systemic-structural analysis. The research metodsinclude a critical review of the scientific literature, a comparison of performance indicators of leading international corporations, generalisation, and the logic of analysis and synthesis.

The research has revealed that the largest multinational corporations are now present in all strategic sectors that will shape the future development of the global economy: information technology and artificial intelligence, oil and gas, retail, finance and pharmaceuticals. This is forcing national governments to review their policies regarding the participation of international corporations in their economies. At the same time, in addition to creating favourable conditions for the entry of international corporations, policies should be developed and implemented to prevent abuses in the areas of labour, the environment, and the irrational use of national natural resources, etc. Government support for international corporations generally sends positive signals to investors regarding expected macroeconomic stability and reduces the risks of stress and crises in financial markets, thereby strengthening the position of international corporations’ shares in financial markets. The internal and external development strategy of an international company plays a significant role in shaping investors’ expectations regarding future profits and risks. By comprehensively taking into account factors that may affect share prices when making any decision, corporations can identify and minimise potential risks of negative impact on share prices.

Thus, today the well-being of the global economy, the economies of individual countries and international corporations are closely intertwined, influence one another and require mutual support. The implementation of a balanced policy by national governments and the management of international corporations, particularly regarding the introduction of activities aimed at achieving sustainable development goals, will enable the resolution of strategic development issues and the protection of investors’ interests.