Journal of Iran's Economic Essays; an Islamic approach
Year:2015 | Volume:12 | Issue:23|Papers Count:10

This study investigates the causal relations between corruption and government size in Islamic and developing countries of the D8 group from 2000 to 2013. For this purpose, some variables such as the control of corruption (as an indicator for measuring corruption) and the ratio of government consumption expenditure to GDP (as an indicator for assessing government size) are used. The method used in this study is based on the panel causality test provided by Konya (2006). This method is based on the Seemingly Unrelated Regressions (SUR) model and Wald tests with the country specific bootstrap critical values. Experimental results show the two-way causality between corruption and government size for Nigeria and Indonesia, one-way causality from the corruption to government size for Iran and Turkey, one-way causality from the government size to corruption for Malaysia and Bangladesh and lack of causality between the corruption and the government size for Egypt and Pakistan. Accordingly, we can say that the causality between corruption and government size is not the same in different countries of the D8 group, with regard to their particular circumstances.

At the beginning of 2014, resistance economy's policies were declared by supreme leader of Islamic Republic of Iran. Because of its importance, this article aims to explore the systemic aspects of "Economy of Resistance". For this purpose, we firstly study the "Economy of Resistance" from economic systems' point of view in order to explain its nature and significance. Regarding the Islamic character of the policies of "Economy of Resistance" confirmed repeatedly by his Excellency, this article proposes three theories of "the Right of Ma'ash" (subsistence), "the Justice in Production", and "Islamic Market" as its foundations and tries to explain its systemic characteristics according to Islamic economic system. It seems possible to explain the principles extracted out of these policies (policies of Economy of Resistance) in the framework outlined by aforementioned theories in Islamic Economics. Finally this article concludes the characteristics of "Economy of Resistance" as justice and Islamic based Economics that could not be satisfied by neoclassic economics.

Cooperative sector is mentioned as one of the sectors of the economy in the Article 44 of the constitution of the Islamic Republic of Iran. Accordingly, many cooperatives are formed and operated in the country. However, cooperatives are faced with problems, some of which date back to the internal structure of the company. So the world today is witnessing the development of new types of cooperatives that are trying to solve some problems through changing their structure. Investor-Share Cooperation is one of the new models of this type. This thesis focuses on the issue that, how a cooperative can offer its shares in the stock market, but still adheres to cooperative principles. For doing this, we describe and analyze some different new models and we use the results to design the model. Our model has three important components: take holders, the rights and preferred stock. Members and investors (take holders) have one same voting right and they contribute to the ultimate benefit of its profitable activities. The share of this company will publish in market and the shareholders of the company are joint owners. According to the new legal relationship, "pseudo investor-share cooperation" for the company is more favorable. At the end, we checked out the model with Shi’a jurisprudence and in conclusion the application of this model was known permissible in Sharia.

The current study examines the effect of stock market development on capital structure on one hand and capital structure on firm performance on the other hand. It also examines some variables related to firm specifications. To do so, unbalanced panel data of 175 non-financial firms in securities and exchange organization of country and a recursive equation system including two equations related to capital structure and firm performance have been used. Evaluation of the stock market development effect on capital structure and considering how capital structure affects firm performance makes it possible to evaluate direct effect of stock market development on firm capital structure and also its indirect effect on firm performance. In this regard, some prevalent market development indices in terms of size, activity and efficiency of market and also performance criteria such as market value added and Tobin's Q have been examined. The result shows a positive and significant effect of debt ratio on firm performance, a positive and significant effect of stock market size and activity on capital structure and finally a positive and significant effect of stock market size and activity on performance of non-financial firms in Iran.

Despite the developments of Islamic economy and banking, Islamic accounting hasn’t grown along with the needs of this field. Because, the challenges of Islamic accounting haven’t been noted in the international financial reporting standards (IFRSs) on one hand, and on the other hand Islamic accounting standards which are issued by involved organizations in this field, particularly AAOIFI, are not globally accepted. In this research we discuss the challenges about those Islamic disclosure procedures which are not addressed by IFRSs. Especially, the statement of uses and sources of Qard Fund, the statement of uses and sources of Zakat and charity fund, the statement of changes in restricted investment accounts, are not included in contemporary accounting. The decision on presenting these three financial statements should be made based on the juridical and accounting studies. Regarding to lack of sufficient literature, this intra-field will be processed via mixed-explorational method. Qualitative part, as the first step, provides Islamic discussions and solutions for the challenge using descriptive-analytical method (a reliable Islamic research method). Second stage, which is quantitative, completes the research via using survey and questionnaire to gather accounting experts' opinions. Results show that presenting the statement of uses and sources of Qard Fund, the statement of changes in restricted investment accounts will be result in good consequences, but the statement of uses and sources of Zakat and charity fund is not in conformity with Islam.

Exchange rate is one of the most important factors affecting the stock returns. Thus, in this study, the relationship between stock returns and exchange rates is discussed significantly. This study investigated the effects of currency shocks on stock returns in Iran. For this end, data related to 52 companies listed in Tehran Stock Exchange during 2007-2012 were used in the study. Also, the generalized Autoregressive Conditional Heteroskedasticity model (GARCH) was used to extract currency shocks. In addition, the panel data approach was addressed to obtain the relationship between currency shocks and stock returns. The results indicate that exchange rate shocks and gross domestic product (GDP) have significant positive effects on Iran's stock market returns. However, the consumer price index has a significant negative effect on stock market returns. The results show that exchange rate shocks and gross domestic product (GDP) have significant positive effects on Iran's stock market returns. However, the consumer price index has a significant negative effect on stock market returns.