The objectives of the study are detailed below.
To examine and study the evolution of financial instruments over the years and the ways in which innovative financial instruments have developed from time to time.
To study and examine the various types of innovative financial instruments, with specific regard to their utility, advantages and limitations.
To study the role of financial instruments in the modern global economy.
To examine and analyse the risks associated with innovative financial instruments and the ways in which such risks can be governed and controlled.
1.3. Research Questions
The research questions for this study, formulated in accordance with the detailed aims and objectives are provided below.
Research Question 1: How have innovative financial instruments developed and evolved over time?
Research Question 2: What are the various types of innovative financial instruments; what are their advantages, limitations and risks?
Research Question 3: What is the role of financial instruments in the modern economy?
1.4. Benefits of the Study
Innovation is a continuous and ongoing process and its continuous occurrence in the area of finance has resulted in the development of numerous types of financial instruments, practices, processes and markets (Gallouj&Djellal, 2010; Sandor, 2012). The area has become extremely complex and comprises numerous types of financial instruments with different characteristics and features (Sandor, 2012; Gallouj&Djellal, 2010). The area of financial instruments has in recent years attracted significant debate and discussion on account of its perceived role in the development of the financial crisis (Bernholz&Vaubel, 2014; Beck et al., 2016). The subject is thus of great contemporary interest and fit for detailed research. The conduct of the research project has generated focused, detailed and useful information on the subject.
1.5. Structure of Dissertation
The research project has been appropriately structured:
n This introductory chapter provides a brief overview of the subject, details the aims, objectives and research questions, and explains the benefits of the study.
n The second chapter provides details about the research method adopted for the dissertation and the reasons for its adoption.
n The third chapter contains a detailed literature review of the research subject.
n The fourth chapter contains a discussion and analysis of the findings of the literature review.
n The fifth chapter contains summative conclusions of the research study.
2. Research Method
The development of an appropriate research method is an extremely important element of a research project on account of its impact on research outcomes. It should thus be carried out with considerable thought and care. The research for this project shall essentially be library based and entail the conduct of an elaborate and detailed review of available literature on the subject. Such a research approach is considered to be appropriate for research subjects that do not need empirical or analytical study and where substantial information is available in the public space. The conducting of a detailed review of literature in such circumstances helps in the generation of considerable important information, which can thereafter be taken up for critical review, discussion and analysis (Saunders et al., 2007).
Information for this literature review has been obtained in a clear and sequential manner. The exercise has been initiated with the formulation of carefully chosen and appropriate keywords and phrases, which have thereafter been used for the identification of appropriate information sources. These information sources have been carefully examined, with particular regard to their relevance for the study, the reliability and dependability of the authors and publishers and the number of citations. The chosen information sources have thereafter been studied in detail, compared and contrasted w
