Determinants of Ukrainian Agro-Industrial Companies’ Stock Price Movements

Abstract

Economic activity in the sphere of agriculture generated from 7.5% to 12.4% of Ukrainian GDP during 2010–2020. The financial health and stability of system-forming agro-industrial companies strongly influence socio-economic outcomes at the current stage of Ukrainian de- development. The market capitalization of agro-industrial enterprises, as well as the evolution of their stock prices, reflects the efficiency of economic activity and management decisions. The constant evaluation of Ukrainian agro-industrial companies’ stock price movements, along with the determinants that cause their change, allows a clear understanding to be obtained for strategic management of the current market position of the company as well as when forming a vision for the next steps of development. Consequently, the aim of this article is to review the evolution of the largest Ukrainian agro-industrial companies’ stock prices, to empirically evaluate the interconnection of selected determinants with stock price changes, and to formulate conclusions based on the analysis conducted. To achieve the research aims, statistical methods such as correlation and multiple regression analysis were used, as well as comparative economic analysis. Based on the study results, it is possible to conclude that during 2010–2020 the stock prices of selected agro-industrial companies had uneven paths of evolution, but there was an overall downward shift in 2014 during the economic crisis in Ukraine. With selected multiple regression independent variables, it is possible to explain more than 70% of stock price variation and to closely capture the general trend of 2010–2020 stock price movements. The study results can be used by the management of agro-industrial companies to make data-based strategic decisions.