scholarly journals Financial regulation as a way to ensure the volume and optimization of the composition of investment financing sources in imperfect markets

2021 ◽  
Vol 27 (12) ◽  
pp. 2830-2846
Author(s):  
Ali Fadl BUYAWI
Keyword(s):  
Financial Markets ◽  
Financial Regulation ◽  
Oil Production ◽  
Fiscal Year ◽  
Imperfect Markets ◽  
Investment Projects ◽  
Investment Financing ◽  
The Matrix ◽  
The Face ◽  
Economic Analyses

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.

Project portfolio valuation using real options

2020 ◽  
Vol 13 (2) ◽  
pp. 126-146
Author(s):  
A.B. Lanchakov ◽  
S.A. Filin ◽  
A.Zh. Yakushev
Keyword(s):  
Real Options ◽  
Real Option ◽  
Project Portfolio ◽  
Risk And Uncertainty ◽  
Expected Effect ◽  
Investment Projects ◽  
Financial Options ◽  
Portfolio Efficiency ◽  
The Face ◽  
Effective Development

Subject. The article analyzes the expected effect of a portfolio of projects in the face of risk and uncertainty, when using real options. Objectives. The purpose is to offer a more objective formula to assess the expected impact of a portfolio of projects for real investment objects under risk and uncertainty, using real options, and provide recommendations for improving the portfolio efficiency. Methods. The study draws on methods of real options and evaluation of investment projects through the real option value, the cash flow discounting method, synthesis, and mathematical modeling. Results. We systematized the main types of real options and developed a formula for calculating the expected effect of project portfolio implementation. The said formula shows that considering the additional long-term costs embedded in a portfolio of real options, which are associated with the use of these real options, and, therefore, reducing the overall risk of projects and the entire portfolio, permit to improve the objectivity of such calculations. Conclusions. When analyzing real options that have real assets as underlying instruments, it is often impossible to apply the computational formulae for financial options, as they differ significantly. The systematization of the main types of real options helps expand the range of application of management solutions. The offered formula enables to improve the efficiency of project insurance under risk and uncertainty and to use additional opportunities for effective development of the company.

The Capital Market Authority Effectiveness in the Regulation of Financial Markets perspectives from the financial sector actors

2012 ◽  
Vol 02 (11) ◽  
pp. 15-24
Author(s):  
Charles Kombo Okioga
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Regulation ◽  
International Standards ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Market Participants ◽  
New Business

Capital Market Authority in Kenya is in a development phase in order to be effective in the regulation of the financial markets. The market participants and the regulators are increasingly adopting international standards in order to make the capital markets in sync with those of developed markets. New products are being introduced and new business lines are being established. The Capital Markets Authority (Regulator) is constantly reviewing existing regulations and recommending changes to regulate the market properly. Business lines and activities are being harmonized by market participants to provide a one stop solution in order to meet the financial and securities services needs of the investors. The convergence of business lines and activities of market intermediaries gives rise to the diversity of a firm’s business operations to meet multiplicity of regulations that its activities are subject to. The methodology used in this study was designed to examine the relationship between capital markets Authority effective regulation and the performance of the financial markets. The study used correlation design, the study population consisted of 30 employees in financial institutions regulated by Capital Markets Authority and 80 investors. The study found out that effective financial market regulation has a significant relationship with the financial market performance indicated by (r=0.571, p<0.01) and (r=0.716, p≤0.01, the study recommended a further research on the factors that hinder effective financial regulation by the Capital Markets Authority.

Benefit-Cost Analysis for Financial Regulation

2013 ◽  
Vol 103 (3) ◽  
pp. 393-397 ◽  
Author(s):  
Eric Posner ◽  
E. Glen Weyl
Keyword(s):  
Cost Analysis ◽  
Financial Markets ◽  
Financial Regulation ◽  
Allocative Efficiency ◽  
Social Value ◽  
Wall Street ◽  
Benefit Cost Analysis ◽  
The Social ◽  
Benefit Cost ◽  
Rule Making

Calls for benefit-cost analysis in rule-making, based on the Dodd-Frank Wall Street Reform Act, have revealed a paucity of work on allocative efficiency in financial markets. We propose three principles to help fill this gap. First, we highlight the need for quantifying the statistical cost of a crisis to trade off the risk of a crisis against loss of growth during good times. Second, we propose a framework quantifying the social value of price discovery, and highlighting which arbitrages are over- and under-supplied from a social perspective. Finally, we distinguish between insurance benefits and gambling-facilitation harms of market completion.

scholarly journals STRATEGIC ANALYSIS OF COMPETITIVE POSITIONS OF OIL AND GAS COMPANIES IN KAZAKHSTAN

2017 ◽  
pp. 79-85
Author(s):  
Tatyana Vasilyevna Pervitskaya ◽  
Olga Anatolievna Gavrilova ◽  
Tamara Nikolaevna Nikulina ◽  
Maria Vladimirovna Shendo
Keyword(s):  
Oil And Gas ◽  
Oil Production ◽  
World Market ◽  
Strategic Analysis ◽  
Foreign Companies ◽  
The Matrix ◽  
Exploration Drilling ◽  
Abc Analysis ◽  
Oil And Gas Companies ◽  
Oil Gas

The article highlights the methods of strategic analysis in order to define the competitive positions of oil and gas companies of Kazakhstan. The forecast of oil production in Kazakhstan in 2016-2030 in the context of land and sea production and the footage in exploration drilling in Kazakhstan in the context of the largest customers have been submitted. The main barriers for entering and functioning of the market of oil sale have been defined. Oil production by the companies subject to the share of "National Company KazMunaiGas", JSC has been analyzed. The characteristic of the market of oil production and petroservice has been given. The competitive analysis revealed that dynamics of the market share in 2015-2016 for the majority of the presented companies was stated as negative, which was the result of growing competition from the foreign companies (Chinese) and strengthening of competitive force of "JSCKazMunaiGas", JSC and its affiliates (50% and 100% societies). The strategic analysis of the leading oil and gas companies of Kazakhstan was fulfilled with application of methods of ABC analysis; it allowed to reveal groups of oil and gas companies in the Kazakhstan market which have the greatest impact on formation of significant indicators in the considered economic area. There has been built the matrix of analysis of growth rate of branch share and sales in the context of dynamics of exploration drilling, revenues from sales of oil, gas and their processing products. The market leader is "Tengizshevroil", JSC. It has been found that the external economic conditions, which were characterized by low price per oil barrel in the world market, had a great impact on the oil production sector in Kazakhstan.

Increase of oil recovery with harmonization of the interests of state and mineral developers

2021 ◽  
pp. 28-34
Author(s):  
A.Ya. Khavkin ◽  
Keyword(s):  
Economic Evaluation ◽  
Oil Recovery ◽  
Production Cost ◽  
Oil Production ◽  
Internal Rate Of Return ◽  
Reliable Prediction ◽  
Investment Projects ◽  
Wide Scale ◽  
Active Implementation ◽  
Oil Gas

Based on the calculation of actual internal rate of return (IRRR) in the investment projects in the context of oil production, it is shown that using IRRR will lead to the reduction of oil production cost, increase of oil recovery and return both for state and mineral developers. The analysis on the economic evaluation of profitability of investment projects based on IRR and NPV, which force the managers to accept only the projects with high IRR for the guarantee of the actual economic efficiency has been carried out. It is noted that in some cases the state support of the mineral developer is necessary for his interest in oil production. Therefore, economic evaluation of profitability of development projects should be as accurate as possible. The author emphasizes that IRR criterion provides reliable prediction of actual efficiency of technological solutions and will lead to the wide-scale and active implementation of state-of-the-art technologies in oil-gas sphere, as well as reducing the oil production cost.

Financial Deregulation

2021 ◽  
Keyword(s):  
Twentieth Century ◽  
Financial Markets ◽  
Financial Regulation ◽  
Developed Countries ◽  
Regulatory Regime ◽  
Financial Repression ◽  
Bretton Woods ◽  
Archival Material ◽  
Financial Deregulation ◽  
Depth Analysis

A wave of liberalization swept the end of the twentieth century. From the 1970s and 1980s onwards, most developed countries have passed various measures to liberalize and ‘modernize’ the financial markets. Each country had its agenda, but most of them have experienced, to a different extent, a change in regulatory regime. This change, often labelled deregulation and associated with the advent of neoliberalism, was sharply contrasting with the previous era, the Bretton Woods system, which has sometimes been portrayed as an era of ‘financial repression’. On the other hand, a quick glance at financial regulation today, at the amount of paper it produces, at its complexity, at the number of people involved, and at the resources invested in it, is enough to say that, somehow, there is more regulation today than ever before. In the new system, financial regulation has taken unprecedented importance. As more archival material is becoming available, a better understanding of the fundamental changes in the regulatory environment towards the end of the twentieth century is now possible. What kind of change exactly was deregulation? Did competition between financial regulators lead to a ‘race to the bottom’ in regulation? Is deregulation responsible for the recurring financial crises which seem to have characterized the international financial system since the 1980s? The movement towards a more liberal regulatory regime was neither linear nor simple. This book—a collection of chapters studying deregulation in various countries and contexts—examines the national and international pathways of deregulation by providing an in-depth analysis of a short but crucial period in a few major countries.

THE SYSTEM OF SUBSTANTIATION OF THE CHOICE OF THE WELL OPERATION METHOD BASED ON THE MATRIX OF APPLICABILITY OF OIL PRODUCTION TECHNOLOGIES

2020 ◽  
pp. 82-86
Author(s):  
M.I. Kuzmin ◽  
A.N. Bublik ◽  
P.S. Muzichuk ◽  
L.B. Rudnik ◽  
A.V. Sushkov ◽  
...  
Keyword(s):  
Boundary Conditions ◽  
Economic Effect ◽  
Oil Production ◽  
New Production ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Cost Of Ownership ◽  
The Matrix ◽  
Exploration And Production ◽  
Production Technologies

An information system is proposed that uses a new complex methodology for choosing a method for well operation based on applicability criteria and boundary conditions for the parameters of mechanized productivity technologies. A mechanism for selecting technologies is presented, which consists of filtering the general register of technologies according to the selected parameters for assessing the total cost of ownership at the Company’s fields. The process of forming and updating the technology base, criteria of applicability and their boundary conditions is considered. Graphic materials illustrate the prototype of this system. The developed methodology will speed up the process of introducing new production technologies, which in turn will lead to a positive economic effect – a decrease in the total cost of ownership of equipment for oil production at the Exploration and Production Block.

Energy Market in the Post-COVID-19 World

2022 ◽  
pp. 75-93
Author(s):  
Nima Norouzi
Keyword(s):  
Renewable Energy ◽  
Severe Acute Respiratory Syndrome ◽  
Energy Market ◽  
Interpretive Structural Modeling ◽  
Public And Private ◽  
The Matrix ◽  
The Face ◽  
Planning Strategies ◽  
Private Actors ◽  
The Impact

The objective of this chapter was to structurally model the high priority factors in the face of the impact of severe acute respiratory syndrome COVID-19 on the energy market. The method was based on interpretive structural modeling, and the matrix of crossed impacts multiplication was applied to classification. A model of 12 factors structured hierarchically in six levels is proposed in which consumption preferences, regulatory and normative modifications, political restrictions, and planning strategies have the greatest influence on the energy market from the perspective of China. As a result of this, it is suggested to move towards greater participation of public and private actors in renewable energy vectors.

Regulation and Regulators, 1993–2006

2020 ◽  
pp. 267-297
Author(s):  
Ranald C. Michie
Keyword(s):  
Financial Markets ◽  
Central Banks ◽  
Data Handling ◽  
Financial Systems ◽  
Settlement Systems ◽  
The Face ◽  
Implicit Belief ◽  
National Boundaries ◽  
Financial Transactions

By the 1990s the combination of internal deregulation and globalization led to a spectacular growth in the value of financial transactions both inside countries and across borders. There was a commensurate increase in pressure on payment and settlement systems to cope with the huge volume and variety of transactions. All this was of concern to those who regulated financial systems around the world. The speed and extent of the changes taking place, assisted by the advances made in the technology of communication and data handling, forced regulators to search for new ways of coping with the consequences, as the methods of the past were becoming inadequate. Globalization meant that national boundaries could no longer define the parameters within which financial systems operated, as all became integrated into international flows of short-term money and long-term finance. The complexities arose not only from the process of globalization and technological change but also from the disappearance of the barriers that had long separated different components within national financial systems. Rather than serving separate communities banks and financial markets increasingly competed with each other. In the face of these enormous changes regulators turned to the megabanks as a safe and secure way of monitoring and policing global financial markets. There was an implicit belief that the size and sophistication of these megabanks had made them to big to fail or even require the central banks to play a role as lenders of last resort.

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