The Current Status and Functionality of Capital Market Contracts in Maintaining and Promoting Economic Security

Capital markets which constitute one of most important financial mechanisms of every economy are composed of both private and public dimensions. On the one hand, these markets are private in the sense that private individuals in society can actively engage in trade on them, and on the other, they have a public dimension since they directly affect the overall economic order. The public aspect of these markets, because of its reliance on contracting mechanisms in general, and capital market contracts in particular, brings public security concerns in this field to the fore. The interventions of successive governments in the capital market, privatization policies, financial crises, sanctions as well as, the growing economic knowledge among various social strata, has added new dimensions to the traditional concept of security to include such things as economic security, Legal security, judicial security, etc. The aim of the present study is to present an efficient contracting model for capital markets that is effective in maintaining and promoting economic security. The methodology of the paper proceeds in three stages. It first uses the Meta Composition Method to identify the variables influencing capital market contracts. Subsequently, it draws on the Content Analysis Method to identify the variables that affect the development and maintenance of economic security and presents them via Structural Equations to obtain a quantitative model. Finally, it utilizes the Interpretive Structural Modeling Method to develop a model of the variables influencing capital market contracts, in terms of its development and the maintenance of economic security. The quantitative data was gathered was through interviews with managers and experts with experience in the field of capital market. Based on the results obtained, components such as organizational factors, economic factors, and innovation influence capital market contracts. Furthermore, these three components, in addition to having a mutual effect on one another, are influenced by governance.