HYPOTHESES OF KAZAKHSTAN COMPANIES ASSESSMENT AND THEIR IMPACT ON MANAGERIAL DECISION MAKING
Abstract
The purpose of this study is to examine under and overvaluation in top public companies in Kazakhstan and affect on behavioral approach to corporate finance, in the case incorrect valuation.
Methodology. We choosed of six listed companies between the years 2015-2018. We test the three hypotheses via a statistica analysis; all quantitative data were collected from audited financial annual reports.
Originality / value of the research. This study is the first to investigate the relationship between incorrect valuation and corporate decision in emerging markets such as Kazakhstan.
Findings. The analysis reveal that equity issuance and total financing by firms increase with equity overvaluation. Literature review part covers the theories regarding the relationship between over/undervaluation equity and financing decisions. Based on the theory three hypotheses are created. Our evidence supports the hypothesis that over valuation and under valuation equity affects financing decisions.
Conclusion. This research paper showed that firms raise more capital and especially issue more equity, when their shares are overvalued.
About the Authors
A. A. Adambekova
Narxoz University
Kazakhstan
Kazakhstan
Almaty
A. Turekhanova
Narxoz University
Kazakhstan
Kazakhstan
Almaty
Zh. Bekbolatova
Burkitbaev Institute of Industrial Automation and Digitalization, Satpaev University
Kazakhstan
Kazakhstan
Almaty
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Review
For citations:
Adambekova A.A., Turekhanova A., Bekbolatova Zh. HYPOTHESES OF KAZAKHSTAN COMPANIES ASSESSMENT AND THEIR IMPACT ON MANAGERIAL DECISION MAKING. Central Asian Economic Review. 2020;(2):66-82.
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