Private financing is a supplementary of financial services and capital market allocation of resources, and it is also an important financing channel for SMEs and an important factor which has great impact on economic ...Private financing is a supplementary of financial services and capital market allocation of resources, and it is also an important financing channel for SMEs and an important factor which has great impact on economic and financial operations. However, with the growing scale of private financing, there are large potential risks which affect the normal operation of private financing, and even affect the long-term development of financial markets. This paper analyzes the current situation of private financing and risks existing in current private financing, and propose some ways to avoid the risk of private financing, to provide a theoretical basis for future research on private financing risks.展开更多
At present,the biggest obstacle that growing enterprises may encounter in their development process is insufficient funds.Private equity financing does not only solve the capital problem of enterprises,but also provid...At present,the biggest obstacle that growing enterprises may encounter in their development process is insufficient funds.Private equity financing does not only solve the capital problem of enterprises,but also provide enterprises with professional management concepts and even help growing enterprises to go public in advance.However,high returns must be accompanied by high risks.For example,private equity financing has information asymmetry risks,principal-agent risks,etc.,and these risks make it impossible to maximize the advantages of private equity financing.Therefore,in order to reduce the risks brought by financing,investment and financing parties should choose to sign gambling contracts to reduce the risk.In recent years,the use of VAM agreements has become more in China.However,according to incomplete statistics,less than 30%of VAM agreements are successful,and this result is mainly due to the insufficient depth and breadth of research on VAM agreements.Therefore,this article will comprehensively analyze the problems that need to be paid attention to when signing a gambling agreement by introducing the case of Anda Technology,and the issue of targeted risk prevention will also be discussed in this paper.展开更多
The research objective of the article is to extend the theoretical basis of risk management in the public and Islamic finance. The author hypothesizes that the existing theories of finance, the public choice theory, a...The research objective of the article is to extend the theoretical basis of risk management in the public and Islamic finance. The author hypothesizes that the existing theories of finance, the public choice theory, and the concept of New Public Management create insufficient conditions for risk management in the public finance sector entities and associated international structures of public-private partnership. As shown by the experience of recent years, the theory of financial markets as regards its operators has not yet developed a widely accepted model of risk management. In addition, the public choice theory and the concept of New Public Management do not fully illustrate the essence of risk management in the public sector, especially in capital structures where a private entity （Islamic investor） partners a public one. In Islamic finance, Sharia complaint instruments cannot be based on gharar, which is usually translated as risk, deception, delusion, and excessive uncertainty. The research methods mostly used in the article are analysis and critique of scientific literature with respect to risk of operation of public entities and risk in Islamic finance as well as public-private partnerships. The basic conclusion is that the adopted interpretations of risk in selected theories of conventional finance and the foundations of Islamic economy indicate that joint projects related to infrastructure are feasible.展开更多
文摘Private financing is a supplementary of financial services and capital market allocation of resources, and it is also an important financing channel for SMEs and an important factor which has great impact on economic and financial operations. However, with the growing scale of private financing, there are large potential risks which affect the normal operation of private financing, and even affect the long-term development of financial markets. This paper analyzes the current situation of private financing and risks existing in current private financing, and propose some ways to avoid the risk of private financing, to provide a theoretical basis for future research on private financing risks.
文摘At present,the biggest obstacle that growing enterprises may encounter in their development process is insufficient funds.Private equity financing does not only solve the capital problem of enterprises,but also provide enterprises with professional management concepts and even help growing enterprises to go public in advance.However,high returns must be accompanied by high risks.For example,private equity financing has information asymmetry risks,principal-agent risks,etc.,and these risks make it impossible to maximize the advantages of private equity financing.Therefore,in order to reduce the risks brought by financing,investment and financing parties should choose to sign gambling contracts to reduce the risk.In recent years,the use of VAM agreements has become more in China.However,according to incomplete statistics,less than 30%of VAM agreements are successful,and this result is mainly due to the insufficient depth and breadth of research on VAM agreements.Therefore,this article will comprehensively analyze the problems that need to be paid attention to when signing a gambling agreement by introducing the case of Anda Technology,and the issue of targeted risk prevention will also be discussed in this paper.
文摘The research objective of the article is to extend the theoretical basis of risk management in the public and Islamic finance. The author hypothesizes that the existing theories of finance, the public choice theory, and the concept of New Public Management create insufficient conditions for risk management in the public finance sector entities and associated international structures of public-private partnership. As shown by the experience of recent years, the theory of financial markets as regards its operators has not yet developed a widely accepted model of risk management. In addition, the public choice theory and the concept of New Public Management do not fully illustrate the essence of risk management in the public sector, especially in capital structures where a private entity （Islamic investor） partners a public one. In Islamic finance, Sharia complaint instruments cannot be based on gharar, which is usually translated as risk, deception, delusion, and excessive uncertainty. The research methods mostly used in the article are analysis and critique of scientific literature with respect to risk of operation of public entities and risk in Islamic finance as well as public-private partnerships. The basic conclusion is that the adopted interpretations of risk in selected theories of conventional finance and the foundations of Islamic economy indicate that joint projects related to infrastructure are feasible.
