Kvasnytska R.
Doctor of Economics, Associate Professor, Professor of the Department of
Finance, Banking and Insurance, Khmelnytsky National University, Khmelnitsky,
Ukraine
Starostenko H.
Doctor of Economics, Professor, Professor of the Department of Economic
Theory, National University of the State Fiscal Service of Ukraine, Irpin, Ukraine
INSTITUTIONAL INVESTORS AS AN INTEGRAL ELEMENT OF THE
MODERN FINANCIAL MARKET
Introduction. The current stage of development of the financial market is
characterized by the fact that one of the indirect incentives for this development is the
intensification of the collective investment industry which is a prerequisite for the
accumulation of funds for their further investment in the national economy. Therefore,
in recent years, there has been an intensification of the institutional investors' activity
in the financial market which contributes to creating an enabling environment for the
accumulation of the financial resources by the economic agents and ensuring the
functioning of an effective mechanism for their transformation into investment. This is
explained by the fact that the inflow of investments into the economy is slowing down
not so much because of the lack of investment funds, but also due to the fact that the
mechanisms of transformation of the savings of individual and corporate investors into
investments are not transparent. That is, the individual and corporate investors, having
no opportunity, the necessary knowledge, and time to efficiently place their savings on
the financial market through direct investment, need professional management of their
investment resources that they receive from the institutional investors. It is on
institutional investors that one of the important tasks of the state investment policy lies
in the creation of an enabling environment for the accumulation of the financial
resources by economic agents and ensuring the functioning of an effective mechanism
for their transformation into investment [1, p.260]. In addition, the institutional
investors contribute to the efficient allocation of the financial resources of the society
that are the source of long-term investments that are essential for the development of
the national economy.
Given the importance of the activity of the institutional investors in the scientific
circles, there is a significant interest in the study of the problems of their functioning.
Content description of the concept “institutional investor”. The essence,
composition and peculiarities of the functioning of the institutional investors are the
object of scientific research of many scholars-economists. However, there are some
cases in which the scientists, using the term “institutional investor”, invest in it
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