Financial regulation as a way to ensure the volume and optimization of the composition of investment financing sources in imperfect markets
Author(s) -
Ali Fadl BUYAWI
Publication year - 2021
Publication title -
finance and credit
Language(s) - English
Resource type - Journals
eISSN - 2311-8709
pISSN - 2071-4688
DOI - 10.24891/fc.27.12.2830
Subject(s) - finance , investment (military) , internal financing , imperfect , financial market , market liquidity , economics , production (economics) , external financing , business , information asymmetry , microeconomics , debt , linguistics , philosophy , politics , political science , law
Subject. This article considers financial regulation as a way to ensure the volume and optimization of the composition of sources of financing investment in imperfect markets.Objectives. The article aims to find out how financial regulation contributes to ensuring the volume of investment financing in imperfect markets and how to optimize investment financing sources, and identify other aspects of ensuring the sustainability of financing investment projects in oil production in the face of short-term constraints in financial markets.Methods. For the study, I used content, statistical, and economic analyses.Results. The article shows that the choice of sources of financing investments in oil production is actualized primarily by the fact that in each specific period of time (for example, a fiscal year), an investment entity needs to finance the relevant investments, taking into account the "matrix" and continuing nature of investments in oil production, and regularly invest a certain amount of money.Conclusions. If the investment market situation is unfavorable, asymmetry gets manifested in some cases. The mechanisms of perfect financial markets, which generally contribute to a certain balancing of investment financing sources, at the same time do not guarantee a deterrent to the cost of financing. And, on the contrary, these mechanisms can affect significant fluctuations, if the main attribute of the instability of the investment market is the lack of liquidity.
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