THE OPEN PLACEMENT OF SHARES IN THE CONTEXT OF THE ORGANIZATION’S LIFE CYCLE


Kandrashina E.A.

A very important segment of the national financial market is the market of profit participation rights. Its capacity is determined by the volume of conducted public offerings of shares - primary and secondary. Since the open placement of shares - both belonging to the original owners and additionally issued shares - spills capital, it is necessary to focus on placement mechanisms that cause different changes in the corporate management system, on the one hand, and the financial potential of the corporation, on the other. The concept of the organization`s life cycle, proposed by I. Adizes and interpreted by S.R. Filonovich, G.N. Konstantinov and I.V. Ivashkovskaya. Within the framework of the concept, a comparative analysis of changes in the system of corporate relations and in the ownership structure was carried out under different arrangements for the placement of shares owned by existing shareholders and additionally issued. On this basis, conclusions are drawn that various arrangements for the placement of shares are ways to resolve key organizational problems, identified as dilemmas of the owner and investor. The conclusions are illustrated using examples of Russian public companies established in the post-Soviet economic period - the retail network "Magnit" and the Internet company "Yandex". Keywords: agency relations, organization`s life cycle, initial public offering, secondary public offering, corporate management. Highlights: as a result of the placement of shares - and owned by the original owners, and additionally issued, the capital is dispersed: the owners of the company share their entrepreneurial risk with other investors, but at the same time, their corporate rights are fragmented and the level of control over the business is reduced; the fragmented ownership structure, on the one hand, allows the corporation to attract significant amounts of financial resources, but, on the other hand, requires the owners to transfer the function of current control over assets to professional managers, which leads to the development of agency relations in the corporation, and transfers them to a higher level; important stages in the development of corporate management and the development of agency relations are the consistent resolution of key organizational problems identified as dilemmas within the framework of the concept of the organization`s life cycle proposed by I. Adizes; the placement of additional issued shares, being an instrument for attracting financial resources for its further development, acts as a means of resolving the owner`s dilemma; the placement of shares owned by existing shareholders, being an instrument for fixing profits on invested capital, acts as a solution to the investor`s dilemma.

Elena A. Kandrashina, Doctor of Economics, Professor, Samara State University of Economics.


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