THE ANALYSIS OF THE PROBLEMS CONNECTED WITH THE RISK-SHARING FINANCING MECHANISMS
Abstract
This article explores the problems associated with the activities of risk-sharing financing models, primarily, in terms of Islamic financial instruments. It lists the disadvantages of risk-shifting mechanisms and the achievements of risk-sharing financing. Simultaneously, it discusses the main causes of problems with risk-sharing financing and strategies to eliminate them. It analyzes the problems connected with information asymmetry, moral hazard, adverse selection, principle-agent relations, and incentive structures.
Keywords:
PLS contracts mudarabah musharakah murabahah murabahah syndrome informational asymmetry adverse selection principal agent incentive structures moral hazardReferences
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