overcapitalisation

[US]/ˌəʊvəˌkæpɪtəlaɪˈzeɪʃən/
[UK]/ˌoʊvərˌkæpɪtələˈzeɪʃən/

Translation

n.excessive capitalisation; the act of overestimating the value of assets or overvaluing a company's capital
Word Forms

Phrases & Collocations

overcapitalisation risk

overcapitalisation problem

prevent overcapitalisation

excessive overcapitalisation

corporate overcapitalisation

overcapitalisation occurs

severe overcapitalisation

concern about overcapitalisation

overcapitalisation leads to

address overcapitalisation

Example Sentences

many companies fell victim to overcapitalisation during the economic boom, leading to significant financial losses when the market corrected.

investors should be wary of overcapitalisation, as it often signals misallocated resources and inflated valuations.

the tendency towards overcapitalisation is particularly pronounced in emerging technology sectors where competition is intense.

bank regulators have expressed concerns about overcapitalisation in the real estate market, warning of potential systemic risks.

strategic financial planning helps businesses avoid overcapitalisation and maintain sustainable growth trajectories.

overcapitalisation can result in excessive debt burdens that become difficult to service during economic downturns.

financial analysts have identified several cases of overcapitalisation among major pharmaceutical companies this year.

the problem of overcapitalisation requires careful monitoring by both corporate management and external auditors.

some businesses engage in overcapitalisation to create an impression of strength and attract potential partners.

market corrections often expose instances of overcapitalisation that were previously hidden by optimistic projections.

economists have studied the phenomenon of overcapitalisation extensively to understand its impact on long-term growth.

the risk of overcapitalisation increases significantly when companies rely too heavily on future growth projections.

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