The Influence of Financial Market on the Financial Provision of Economic

• Main Authors: Kliuchka Olha V., Voronchenko Vitalii V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2019-09-01
• Series: Bìznes Inform
• Subjects: financial market; sources of financial provision; flexibility of financial market; structure of financing sources; financial provision; economic entities
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2019-9_0-pages-252_258.pdf
• ISSN: 2222-4459; 2311-116X

The article is aimed at exploring the main sources of financial provision for economic entities in the current environment and generalizing their main ways of attracting. The article considers the financial provision of economic entities, which includes implementation of the measures to attract the necessary amount of financial resources to finance their productive and other activities . The current problems of forming the structure of sources of financial provision for providing the activities of economic entities and the criteria for their optimal attraction are researched. The advantages and disadvantages of financing at the expense of both their own and the attracted sources are defined. The optimality of the ratio between the borrowed and the own sources of financing is characterized, which in turn depends on the specific conditions of management, financial policy, capital turnover, sectoral features, etc. The authors analyze the known schemes for attracting financial resources in the national financial market, such as issuing securities and obtaining bank credits. Opportunities to attract capital at the national financial market are explored on the basis of a multi-criteria comparison of the main methods for mobilization of financial resources: obtaining bank credits, leasing, issuing shares and bonds. The role of the financial market as a mechanism is considered, which, in turn, allows to turn free funds and savings into investments. It is proved that the financial market, being the optimal distribution mechanism, can provide and improve the efficiency of structural transformations and, as a result, stimulate economic growth.