DEVELOPING A REGIONAL STOCK MARKET MECHANISM FOR FINANCING THE AGRO-INDUSTRIAL COMPLEX OF CHERKASY REGION
DOI:
https://doi.org/10.31379/sed.3.3.2024.30Keywords:
regional stock market, securities, agro-industrial complex, investment financing, corporate bonds, Cherkasy regionAbstract
The paper develops an applied framework for using regional stock market instruments to finance the stabilization and development of the agro-industrial complex of Cherkasy region. The relevance of the research is determined by the investment-resource deficit faced by agricultural and processing enterprises, the need to modernize production technologies, and the limited ability of bank lending alone to support long-term restructuring projects. The study systematizes the organizational, institutional and financial elements required for a regional securities-based financing mechanism and adapts them to an integrated agro-industrial association model. The methodological basis includes system analysis, comparative institutional analysis, structural-logical modelling and financial analysis of project indicators. The empirical foundation is formed by the programme model for the development of the agro-industrial complex of Cherkasy region for 2021-2027 and the calculated indicators of an agro-industrial association operating across crop production, grain and oilseed processing, mixed feed production, livestock and meat processing. The results substantiate the need to combine a regional stock exchange segment, a depositary and clearing system, disclosure rules, investor-protection mechanisms and corporate governance standards. Financial analysis indicates that the integrated project can generate USD 85.94 million in gross sales, USD 14.03 million in net profit and an overall profitability level of 22.63% over the calculation period. The proposed approach supports the transition from fragmented enterprise financing to a systemic model of mobilizing private and institutional capital for regional agro-industrial development.
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