Digitalization of the Capital Market and Investment Activity: Empirical Assessment for Ukraine (Financial and credit activity problems of theory and practice)

Summary

• Empirical evaluation of Ukraine's capital market shows that electronic transactions explain 75.8% of the variation in trading volume in a single-factor regression model.p.1
• The number of active securities accounts demonstrates a statistically significant positive relationship with trading volume in a univariate model (R² = 0.294; p = 0.0136).p.1
• Combining electronic transactions and active securities accounts into a multivariate regression model yields an explanatory power of R² = 0.815.p.1
• In 2025, Ukraine ranked 46th in the Network Readiness Index with an overall score of 54.30.p.6

Key insights

1. Electronic transactions exhibit a correlation coefficient of 0.871 with trading volume on the Ukrainian capital market.p.8
2. The single-factor regression model for electronic transactions yields an R² of 0.758 with an F-statistic of 56.494.p.8
3. In the single-factor model for active securities accounts, an increase of 1 thousand accounts is associated with an increase in trading volume of UAH 6.98 billion.p.8
4. In the multivariate model, the regression coefficient for active securities accounts turns negative at -4.989 due to strong inter-variable correlation.p.9