The Advantages of Financing Business Entities through Financial Markets
Keywords:
Financial Markets, Business Financing, Equity Financing, Corporate Bonds, Digital Finance, Sustainable Investing
Abstract
This study investigates the advantages of financing business entities through financial markets, addressing a gap in understanding how firms can optimize financial resources such as equity and bonds, especially in emerging economies like Uzbekistan. A mixed-method approach, utilizing both qualitative and quantitative data from global and local sources, was employed to examine trends in business financing. The findings reveal that financial markets provide significant benefits, including risk diversification and access to substantial capital, which enhance business operations. The results underscore the need for Uzbekistan to further develop its financial market infrastructure. The study's implications suggest that fostering financial literacy and market regulations will be pivotal for sustainable economic growth in the region.
References
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Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. (2008) 'How Important Are Financing Constraints? The Role of Financial and Legal Institutions in Firm Growth', Journal of Financial Economics, 87(1), pp. 83-109.
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Demirgüç-Kunt, A. and Maksimovic, V. (1998) 'Law, Finance, and Firm Growth', The Journal of Finance, 53(6), pp. 2107-2137.
Global Sustainable Investment Alliance (2020) 'Global Sustainable Investment Review 2020', GSIA. Available at: [http://www.gsialliance.org](http://www.gsialliance.org) (Accessed: September 3, 2024).
Kim, E. H. and Singal, V. (2000) 'Stock Market Openings: Experience of Emerging Economies', The Journal of Business, 73(1), pp. 25-66.
Levine, R. (1997) 'Financial Development and Economic Growth: Views and Agenda', Journal of Economic Literature, 35(2), pp. 688-726.
Muminov, O. (2019) 'The Development of Stock Markets in Uzbekistan: Challenges and Prospects', Central Asian Economic Review, 3(2), pp. 45-60.
Securities Industry and Financial Markets Association (SIFMA) (2022) 'US Capital Markets: A Overview', SIFMA. Available at: [https://www.sifma.org](https://www.sifma.org) (Accessed: September 5, 2024).
Tursunov, A. (2020) 'Corporate Bond Market in Uzbekistan: A New Avenue for Business Financing', Finance J, 9(1), pp. 90-110.
Abdullayev, S.P., 2024. Modern trends of modernization of the banking and financial sector of Uzbekistan in the context of integration into international financial markets.
Based on the data of www.openinfo.uz
Based on the data of www.uzse.uz
Based on the data of www.lex.uz
M. Li, “Clean energy business expansion and financing availability: The role of government and market,” Energy Policy, vol. 191, 2024, doi: 10.1016/j.enpol.2024.114183.
contracts under the background of business tax replaced with value-added tax reform in China,” Journal of Industrial Engineering and Engineering Management, vol. 38, no. 5, pp. 66–80, 2024, doi: 10.13587/j.cnki.jieem.2024.05.005.
F. Bertoni, “Digitization in the Market for Entrepreneurial Finance: Innovative Business Models and New Financing Channels,” Entrepreneurship: Theory and Practice, vol. 46, no. 5, pp. 1120–1135, 2022, doi: 10.1177/10422587211038480.
R. W. Masulis, “Family business group expansion through IPOs: The role of internal capital markets in financing growth while preserving control,” Manage Sci, vol. 66, no. 11, pp. 5191–5215, 2020, doi: 10.1287/mnsc.2019.3418.
Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. (2008) 'How Important Are Financing Constraints? The Role of Financial and Legal Institutions in Firm Growth', Journal of Financial Economics, 87(1), pp. 83-109.
Bank for International Settlements (2022) 'OTC derivatives statistics at end-June 2022', BIS Quarterly Review. Available at [https://www.bis.org/statistics/derivatives.htm](https://www.bis.org/statistics/derivatives.htm) (Accessed: September 2, 2024).
Bloomberg (2021) 'Global IPO Market Hits Record High', Bloomberg. Available at: [https://www.bloomberg.com](https://www.bloomberg.com) (Accessed: September1, 2024).
CB Insights (2021) 'The State of Fintech: Q1 2021', CB Insights. Available at: [https://www.cbinsights.com/research/report/fintech-trends-q1-2021/](https://www.cbinsights.com/research/report/fintech-trends-q1-2021/) (Accessed: September 2, 2024).
Demirgüç-Kunt, A. and Maksimovic, V. (1998) 'Law, Finance, and Firm Growth', The Journal of Finance, 53(6), pp. 2107-2137.
Global Sustainable Investment Alliance (2020) 'Global Sustainable Investment Review 2020', GSIA. Available at: [http://www.gsialliance.org](http://www.gsialliance.org) (Accessed: September 3, 2024).
Kim, E. H. and Singal, V. (2000) 'Stock Market Openings: Experience of Emerging Economies', The Journal of Business, 73(1), pp. 25-66.
Levine, R. (1997) 'Financial Development and Economic Growth: Views and Agenda', Journal of Economic Literature, 35(2), pp. 688-726.
Muminov, O. (2019) 'The Development of Stock Markets in Uzbekistan: Challenges and Prospects', Central Asian Economic Review, 3(2), pp. 45-60.
Securities Industry and Financial Markets Association (SIFMA) (2022) 'US Capital Markets: A Overview', SIFMA. Available at: [https://www.sifma.org](https://www.sifma.org) (Accessed: September 5, 2024).
Tursunov, A. (2020) 'Corporate Bond Market in Uzbekistan: A New Avenue for Business Financing', Finance J, 9(1), pp. 90-110.
Abdullayev, S.P., 2024. Modern trends of modernization of the banking and financial sector of Uzbekistan in the context of integration into international financial markets.
Based on the data of www.openinfo.uz
Based on the data of www.uzse.uz
Based on the data of www.lex.uz
Published
2024-10-12
How to Cite
kizi, K. (2024). The Advantages of Financing Business Entities through Financial Markets. Central Asian Journal of Innovations on Tourism Management and Finance, 5(6), 285-289. https://doi.org/10.51699/cajitmf.v5i6.747
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