How Big Business Adapts to Conditions of Increasing Volatility in World Financial Markets

Abstract:

The article analyses the Russian and global trends of business capitalization and revenue growth in the conditions of increasing financial instability. The paper shows the measures for the decrease in losses and damage from the developing situation as well as an effectiveness measure related to a shift in focus of business from production industry to scientific and technological, information as well as innovative activities. The contribution of various components of the economy to the formation of capitalization and revenue among the largest companies in the world, the USA and Russia is revealed. The paper analyses the indicators representing the level of capitalization of business and enterprises in the various sectors of the economy as well as its interrelation with the indicators of GDP, revenue, labor productivity, and profitability. The author reveals the alternative options of development, costs and benefits from the increase in the level of capitalization of business, in general, and of the issuing companies, in particular. I identify the reasons for low capitalization of companies listed on the Moscow Stock Exchange. The author also proposes measures for both the development of capitalization and saturation of the financial market by additional tools. The paper studies the mechanism and tools for stimulating the development of capitalization in the country and various regions of the world analyzing business of 500 largest corporations of the world and the USA as well as 400 largest enterprises of the Russia Federation. The author investigates the internal and external factors influencing the development of capitalization on both the developed and developing markets. I propose the practical measures for the development of the financial market.