Financial Economics
Year:2019 | Volume:13 | Issue:48 |Papers Count:10

This research empirically analyzed the impact of business environment risk on the relationship between credit risk and financial performance in the Banking Industry of Iran. The research samples include 18 Bank over the period 2006-2016. The solely research hypothesis examined by using multivariate regression model based on panel data method. The method in terms of purpose is an applyed recerch and in terms of the type of recerch is a correlation method. The evidences indicated that the impact of credit risk on financial performance in the banking industry of Iran is a neghative and significant. The impact of business environment risk on financial performance in the Banking Industry of Iran is a neghative and significant. The impact of business environment risk on the relationship between credit risk and financial performance in the Banking Industry of Iran is a neghative and significant. Other results showed the effect of Lending, Leverage and Size of Bank on the financial performance is a positive and significant.

Regarding Iran national budget dependence on oil revenue and its side effects on other macroeconomic variables such as liquidity and economic stability, oil revenue hedging investigated in this study. Iran oil revenue is calculated by Dollar but it is received by Euro or other counterparts currencies. Therefore, oil revenue is not only encountered to oil price decrease risk, furthermore, but it also faces the second risk that is dollar devaluation against commercial counterparts' currencies. Therefore, any dollar devaluation against Iran oil buyers currencies is the second source of the risk factor for oil revenues. Since these two risk sources are not mutually independent, in this paper oil revenue hedging evaluates by using modern integrated hedging approach and compares by separate (non-integrated) hedging results. Considering nonlinear relationships between financial variables and their specific features by using Vine Copula-GARCH approach, separated and integrated hedged portfolios has constructed and their efficiency examined. In separate hedging, regarding oil price decrease risk and Dollar devaluation risk independently, reduces Iran oil revenue risk about 40 and 6 percent respectively, meanwhile integrated hedging can decrease oil revenue fluctuation about 60 percent since considering oil price and dollar value interdependence. As results, according to in-sample and out-of-sample efficiency, Integrated hedging outperforms separate hedging and because of less needed contracts, it incurs low transactions cost.

The world economy has experienced a bulk of positive and negative shocks over the years and have challenged the economies of these countries. In this article In order to investigate the effect of three external shocks included global oil price shock, euro / dollar exchange rate shock and global inflation shock Also, the effect of these shocks on social welfare in Iran as a small open oil exporting economy, we estimate a Dynamic Stochastic General Equilibrium Model (DSGE) with a new Keynesian approach based on the characteristics of Iranian economy. In this research, we tried to clarify the following question Due to the vulnerability of the economy to external shocks, What is the proper rule of monetary policy for the Iranian economy that minimizes macroeconomic fluctuations and maintains inflation at a low level and improve social welfare? Therefore, in this research to answer the above question in the first step, we analyzed Instantaneous response functions and compared the external shocks according to alternative monetary policy rules, including the headline inflation targeting (IT), core inflation targeting (CIT) rule and exchange rate rule (ER) and ultimately, the welfare costs of each monetary policy rule were calculated. Our primary finding showed that core inflation rule was the best monetary rule for stabilizing both macroeconomics and inflation. It also seems to be the best way to improve social welfare.

The response of fiscal policy to financial crises has expressed substantial discussion about the size of the fiscal multipliers over last years. In this regard, used for selected MENA countries, the Panel Vector Auto regression (PVAR)model (2000-2016) and Iran's economic Vector Auto regression (VAR) model (1980-2016) and computed the fiscal multipliers (spending, tax, transfer payments) with discussion of the effect of fiscal policy shocks on economic growth for each of them. The results show that in the short run (the first year of shock performance) in the selected countries of the MENA and Iran transfer payments and spending shocks have the greatest impact on production. But the maximum impact on production in selected MENA countries is due to government spending shocks in the seventh year and in Iran due to government spending shocks in the fifth year. Also, in the long run, the shock of government spending is the best selection to influence production in the selected countries of MENA and Iran.

The present study examined the effect of macroeconomic variables on stock firm’ s return in condition of boom and downturn of the capital market. Markov-switching model was used for this purpose. Statistical population of this research were consisted of all firms in the Tehran Stock Exchange during the years 1992 to 2017, so, all firms were considered as sample. Research hypothesis have been tested using the quarterly data between 1992 and 2017 and within software OxMetrics6. The findings show that there is a significant positive relationship between the consumer price index and stock price index, as well as, the impact of inflation during downturn is more than booms. In addition, there is a significant positive correlation between the exchange rate, oil prices and growth domestic product with stock price index during the downturn; but in terms of capital market boom, there was not observe a significant relationship between these variables. However, there is a significant positive relationship between long-term bank interest rates and stock price index during of the boom; but there is no significant relationship in downturn.

Increasing human well-being is undoubtedly one of the most important challenges for economic development and economic development requires structural changes. Structural changes are a dynamic process that affects almost all of the real economic variables, including welfare. Therefore, structural changes can be considered as a process for promoting the economic well-being of the community. In this context, the present study seeks to answer the question of how structural changes in Iran's economy affect the level of economic well-being. For this purpose, the share of employment in the main economic sectors including agriculture, industry and services has been used as a structural variable and using the computable general equilibrium model, the impact of structural changes in Iran's economy on economic well-being is measured by measuring the Hicksian Equivalent Variations. In this regard, four scenarios are defined that the results of all scenarios indicate the negative impact of structural changes in employment on economic well-being. Also, the results of the research indicate the effect of service sector spillovers on the industry sector.

Financial procurement is one of the important and effective factors in firms’ decision-making processes. This matter has been specified in Article 44 of the constitution with regard to cooperative firms. The present study has been carried out with the aim of identifying proper methods of financial procurement in cooperative firms of Ilam province. The research was mixed qualitative and quantitative. The population in the qualitative phase included all financial experts and managers of cooperative firms in Ilam province among who 20 persons were selected by means of snowball sampling; and Delphi technique was run. The population in the quantitative phase comprised of 1614 persons who were members, and or managers, of cooperative firms of Ilam province from among whom 264 persons were selected using Cochran formula through stratified sampling. The validity of the instrument was measured in terms of construct and face validity. The reliability was confirmed using Cronbach’ s Alfa coefficient. The findings show that financial procurement was carried out in 4 phases and almost 84 components were identified which after removing the components with low mean during Delphi process, 7 main dimensions and 36 components including economic factors, political factors, financial procurement using debt, increasing capital and supporting policies were found and discussed to be highly effective in financial procurement (empirical mean of variables “ people participation” and “ new methods of financial procurement” was assessed as medium). Finally, a conceptual model was designed for financial procurement in cooperative firms of Ilam province.

The concept of development has been considered in the economic literature. The main goal of development is to achieve better life circumstances and promoting a higher level of welfare for people in society. At this time, the best index in order to evaluate the economic growth (development) is Human Development Index (HDI). This index concentrates on development goals in three main aspects of development, which are achieving the honorable life, health, and knowledge access. In this study, we analyzed the relationship between financial development and HDI. First, we identified three indexes in order to test financial development including the ratio of debt liquidity to GDP, the ratio of commercial bank asset to total bank asset and the ratio of private sector allocated credits to GDP. In the second step, all information related to HDI and financial development index for developing countries have evaluated. By adding the institutional, social, and economic control variables, the econometric model in data panel framework has represented. In which the relationship between financial development and human development index studied divided into three financial development indexes the experimental model results of this study, which obtained from panel data estimation show that in developing countries, within three financial development indexes, just the ratio of commercial bank asset to total bank asset has a significant and positive relationship with HDI. Furthermore, the results show that, the government efficiency index doesn't have a significant effect on HDI. However, two other control variables such as the ratio of urban population to total population and per capita income (PPP $) has a strong and positive effect on HDI.

Performance measurement is very important to assessment Banks performance. Data envelopment analysis is one of the performance measurement tools. The purpose of this research is to investigate the efficiency of branches by using data envelopment analysis approach. The research is descriptive-quantitative in terms of purpose, application and nature. Branch entry consists of three variables: cost, number of personnel, amount of outstanding debt to the total loan of each branch. The top banks are far more cost efficient in terms of performance and have a lower amount of outstanding debt than loans. Output variable including absorbed resources, consumption and number of customers for each year compared to prior periods of each item, first with win4deap, GAMS soft with Data analyzed by window approach and efficient branches And inefficiently ranked and ranked accordingly.

The purpose of this study is to investigate the effect of market orientation and managerial stability on financial performance among listed companies in Tehran Stock Exchange. The research method is descriptive-correlation. The statistical population includes the companies listed in Tehran Stock Exchange among which 81 companies were selected by systematic elimination method and field data on market orientation were collected through questionnaires. Corporate financial information has been used to measure management stability and financial performance. Multiple regression tests under SPSS and Eviews software were used to analyze the model. The results showed that market orientatio and dimensions of cross-sectoral, competitiveness and customer orientation have a positive and significant effect on financial performance of companies. Also, managerial stability has a positivand significant effect on corporate financial performance.