Financing restrictions and changes of corporate bonds yield according to political relations and financial crises on the improvement of performance in the Tehran Stock Exchange

Document Type : Research Paper

Authors

Department of Accounting, Aliabad Katool Branch, Islamic Azad University, Aliabad Katool, Iran

Abstract

Banks are the engine of providing financial resources in the economy and have special importance for governments. Accordingly, presenting the factors and components affecting financing restrictions and changes in the corporate debt bonds yield, risk management, as well as changes in their stock prices, in terms of bank management and from a macroeconomic perspective, can be considered as the leader of the economy and government. On the other hand, the proper management of banking challenges and the improvement of factors affecting the efficiency and effectiveness of banking resources can move the economic cycle in the right direction, considering that the banks' primary activity is to grant loans and provide them to applicants. Accordingly, the researcher addressed the effect of the ability to manage political relations and financial crises on performance improvement. Therefore, a combination of Data Envelopment Analysis (DEA) and Two-Stage least squares (2SLS) regression analysis was used. This study is descriptive research with the correlational and post-event approach. In this way, the information about 11 banks in a period of 9 years (2014-2023) was analyzed. The results showed that the improvement of ability level and proficiency in bank management will lead to the improvement of financing constraints, changes in corporate bond yield, and the growth rate of stock and non-shared incomes. The management authority not only affects credit risks, credit risk management and liquidity risk but also does not affect the stock price drop.

Keywords

[1] M. Alimoradi, A. Ahmadi Saeed, and D. Foroghi, The effect of the level of optimism and risk tolerance of decision makers on investment sales decisions with an emphasis on fair value accounting, Financ. Account. Quart. 12 (2020), no. 45, 1.
[2] A. Ashtab and P. Piri, The effect of profit forecast disclosure features on company risk concerning real profit management, Financ. Account. Quart. 12 (2020), no. 45.
[3] J.L. Banks, H.S. Beard, Y. Cao, A.E. Cho, W. Damm, R. Farid, A.K. Felts, T.A. Halgren, D.T. Mainz, J.R. Maple, and R. Murphy, Integrated modeling program, applied chemical theory (IMPACT), J. Comput. Cem. 26 (2005), no. 16, 1752–1780.
[4] P. Chalermchatvichien, S. Jumreornvong, P. Jiraporn, and M. Singh, The effect of bank ownership concentration on capital adequacy, liquidity, and capital stability, J. Financ. Serv. Res. 45 (2014), 219–240.
[5] C. Chen, Bank efficiency in Sub-Saharan African middle income countries, International Monetary Fund, 2009.
[6] A. Dietrich and G. Wanzenried, The determinants of commercial banking profitability in low-, middle-, and highincome countries, Quart. Rev. Econ. Financ. 54 (2014), no. 3, 337–354.
[7] X. Freixas and J.-C. Rochet, Microeconomics of Banking, MIT press Cambridge, 2014.
[8] J. Gallemore, M. Mayberry, and J. Wilde, Corporate Taxation and Bank Outcomes: Evidence from US State Taxes, University of Chicago, Florida and Lowa Graduate School of Business, 2017.
[9] E. Garcıa-Meca and I.-M. Garcıa-Sanchez, Does managerial ability influence the quality of financial reporting?, Eur. Manage. J. 36 (2017), no. 4, 544–557.
[10] M.R. Homaeinezhad, M. Homaeinezhad, S. Akbari and D.N.G. Hosseini, Input-decoupled discrete-time sliding mode control algorithm for servo multi-field multi-armature DC machine, ISA Trans. 127 (2022), 283–298.
[11] S.M.R. Hosseini Moghaddam and S.R. Hejazi, The effect of entrepreneurial orientation on the performance of banks with the mediating variable of market orientation, J. Entrepr. Dev. 7 (2013), no. 2 (24 consecutive), 211–229.
[12] S. Jaiswal, M.P. Chao, R. Majeti, and I.L. Weissman, Macrophages as mediators of tumor immunosurveillance, Trends Immun. 31 (2010), no. 6, 212–219.
[13] J. Liu and R. Zhong, Political uncertainty and a firm’s credit risk: Evidence from the international CDS market, J. Financ. Stabil. 30 (2017), 53–66.
[14] S. Louati, A. Louhichi, and Y. Boujelbene, The risk-capital-efficiency trilogy: A comparative study between Islamic and conventional banks, Manag. Finance 42 (2016), no. 12, 1226–1252.
[15] M. Mehrara and M. Mehranfar, Banking performance and macroeconomic factors in risk management, Econ. Model. Sci. Res. Quart. 7 (2015), no. 21, 21–37.
[16] M. Rahimkhani, M. Saberian, A. Mordadi, S. Varmazyar, and A. Tavakoli, Urinary tract infection with Candida glabrata in a patient with spinal cord injury, Acta Medica Iran. 53 (2015), no. 8, 516–517.
[17] M. Sabzali, M. Sarfi, M. Zohouri, T. Sarfi, and M. Darvishi, Fake news and freedom of expression: an Iranian perspective, J. Cyberspace Stud. 6 (2022), no. 2, 205–218.
[18] S. Sharifi, A. Haldar, and S.N. Rao, Relationship between operational risk management, size, and ownership of Indian banks, Manag. Finance 42 (2016), no. 10, 930–942.
[19] G. Soleimanian, D. Foroghi, and H. Amiri, Development of capital asset pricing factor models through the pricing of value, momentum, and stock quality factors, Financ. Account. Quart. 11 (2019), no. 44, p. 37.
[20] R. Vaidyanathan, Asset-liability management: Issues and trends in Indian context, Sci. J. Manag. 29 (1999), 39–48.
[21] H. Zarrouk, K. Ben Jedidia, and M. Moualhi, Is Islamic bank profitability driven by same forces as conventional banks?, Int. J. Islamic Middle Eastern Finance Manag. 9 (2016), no. 1, 46–66.
Volume 15, Issue 9
September 2024
Pages 319-336
  • Receive Date: 28 January 2023
  • Revise Date: 14 July 2023
  • Accept Date: 19 July 2023