The effect of management ability, political relations and financial crises on the fall in the stock prices of banks admitted to the Tehran Stock Exchange

Kuzegar Kaleji, Abdolmajid; Ali Pour Aghajan, Abbas; Abbasian, Mohammad Mehdi

doi:10.22075/ijnaa.2024.33130.4933

The effect of management ability, political relations and financial crises on the fall in the stock prices of banks admitted to the Tehran Stock Exchange

Document Type : Research Paper

Authors

Abdolmajid Kuzegar Kaleji

Abbas Ali Pour Aghajan

Mohammad Mehdi Abbasian

Department of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran

10.22075/ijnaa.2024.33130.4933

Abstract

The aim of the current research is to evaluate the effect of management ability, political relations and financial crises on the performance, risk management and stock price fall of banks admitted to the Tehran Stock Exchange. For this purpose, 8 private and public banks admitted to the Tehran Stock Exchange for the period of 2013 to 2014 were selected as a statistical sample. According to the type of research data, consolidated/panel data analysis and multivariate regression model were used in the Eviews software environment to analyze the research hypotheses. The results of the research indicate that management ability has a positive and significant effect on the variables of asset return, credit risk and operational risk, and a negative and significant effect on the variables of liquidity risk and bankruptcy risk, and no significant effect on the variable of return on capital. The results show that political relations have a positive and significant effect on the variables of capital return, credit risk, and stock price fall, and a negative and significant effect on the variables of asset return, operational risk, and bankruptcy risk, and no significant effect on the liquidity risk variable. . Finally, the results of his study showed that the financial crisis has a positive and significant effect on the variables of bankruptcy risk and stock price fall, a negative and significant effect on the return on assets and return on capital, and no significant effect on the variables of credit risk, liquidity risk and operational risk. is.

Keywords

management ability

political relations

financial crisis

bank performance

risk management

stock price fall

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