Financial Economics
Sareh Amirmojahedi; Ali Raeispour Rajabali; seied abdolmajed jalaee esfandabadi; reza zeinalzadeh
Abstract
Considering that in the knowledge economy , production, distribution and application of knowledge and information is the main factor of development, produce of wealth and employment in all economic activities, therefore, it is important to examine the financial friction and financial development on the ...
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Considering that in the knowledge economy , production, distribution and application of knowledge and information is the main factor of development, produce of wealth and employment in all economic activities, therefore, it is important to examine the financial friction and financial development on the indicators of the knowledge economy of economic sectors, Therefore In this research the effect of shocks due to financial friction (increase in legal reserve rate) and financial development (reduce in bank loans interest rate) on knowledge base index (R&D expenditure) of each economic sector (agriculture, industry and services) was studied using Recursive Dynamic Computable General Equilibrium (RDCGE) model. For this purpose the required date was gathered from social accounting matrix of Islamic Parliament of Iran related to year 2011 and input-output table of Central Bank of Iran related to year 2016. Results indicated that shocks of financial friction have significant inverse effect and shocks of financial development have significant positive effect on knowledge base index (R&D expenditure) of agriculture, industry and services sectors. Because with increase in financial friction or development, the ability of banks for allocating bank loans to economic firms will reduce and consequently their knowledge base index (R&D expenditure) will reduce. In addition between studied economic sectors, the financial friction and development shocks have the most effect on knowledge base index (R&D expenditure) of industry, agriculture and services sectors, respectively.
Financial Economics
Habib Ansari Samani; dariush Fareed; golnazosadat alavi nasab; farzaneh jandaghi
Abstract
In the past two years, the Tehran Stock Exchange has experienced severe fluctuations and a significant decline due to various factors. One of the important factors is the herding behavior of investors, Investors in the Tehran Stock Exchange exhibit emotional and sometimes irrational behaviors towards ...
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In the past two years, the Tehran Stock Exchange has experienced severe fluctuations and a significant decline due to various factors. One of the important factors is the herding behavior of investors, Investors in the Tehran Stock Exchange exhibit emotional and sometimes irrational behaviors towards buying and selling orders as well as market growth and recession, which can lead to herding behavior. Therefore, the aim of this study is to investigate the effect of herding behavior of investors on stock price fluctuations and industry indices. The target population of the study is all active and accepted companies in the Tehran Stock Exchange whose shares have been traded from 2015 to 2021, and a sample of 156 companies has been selected from among 18 industries using systematic elimination method. In order to collect the required financial data and information, reported data from financial statements and audited financial statements of listed companies for a period of 7 years have been used and analyzed. Various statistical tests such as Limmer and Haseman F-test, Breusch-Pagan test, and panel data test have been used for inferential analysis of variables, and the results have been estimated using time series regression models and panel data, indicating that the herding behavior of investors has a significant impact on stock price fluctuations and industry indices. Additionally, these emotional behaviors and decision-making of investors can lead to increased volatility of returns and market instability.
Financial Economics
Ahmad Agheli; Seyyed Ali Paytakhti Oskooe; Nader Mehregan; Monireh Dizaji
Abstract
1- INTRODUCTION
Considering the role of the capital market in the economy of countries and studying the performance of this market has a particular importance. One of the factors that affect the performance of the capital market is the decisions made regarding the financial structure of companies’ ...
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1- INTRODUCTION
Considering the role of the capital market in the economy of countries and studying the performance of this market has a particular importance. One of the factors that affect the performance of the capital market is the decisions made regarding the financial structure of companies’ performance in this market. Today, in fact, the credit rating of companies is largely dependent on their financial structure, or in other words, their capital structure, and in fact, the basis of production and service provision depends on the way financial funds are provided and used. On the other hand, the financial structure of each company is an early warning regarding the number of financial resources of the company, and it is necessary to determine the factors affecting their financial structure in the strategic planning of companies. Many variables affect the financial structures of stock companies, among which we can mention financing with Islamic instruments. Sukuk is one of the important financial instruments and conforms with the Islamic Shari'ah, which provide an alternative source of funding, especially for large (very active) companies, and more efficient sources compared to conventional bonds.
2- THEORETICAL FRAMEWORK
In financial field, the way in which the company invests is called financial structure. Financial structure, or in other words capital structure, describes the long-term capital financing of a company, which represents debt and equity, and is a type of permanent financing that supports the growth of the company and related assets. One of the most important functions of the Islamic financial system is to facilitate financial flow and guide it towards the most efficient type of investment, and as a facilitator of financial flow, it gives producers the opportunity to move economic resources with greater speed and accuracy by relying on monetary and financial resources. The existence of these types of financial instruments increases capital efficiency and optimal allocation of resources in companies. Since Islamic financing can lead to global financial stability and economic growth; Therefore, wider access to financial services improves social participation and increases market power, and ultimately strengthens protective laws and solves problems and issues of financial development, and increases profitability and improves the financing process of companies.
3- METHODOLOGY
This research is considered as applied research in terms of its objective; Because it examines the relationships between variables, the subject of the research is the Tehran Stock Exchange Organization in terms of location, and the time scope of the research is from the fiscal year 2010 to 2019 by using the annual data of the companies. The 83 companies were selected as the statistical sample used in the research. In order to estimate the effects of the variables, the panel data technique with Johnssen's approach is used. In this research, the variable of financial structure is used as dependent variable and the variables of ejare sukuk, murabaha sukuk, sode sukuk, istisna sukuk and mosharekat sukuk are used as explanatory variables.
4- RESULTS & DISCUSSION
According to the empirical results of this study, all new Islamic financing instruments had a positive effect on the financial structure index (ratio of capital to assets). In the long run, ejare sukuk, murabaha sukuk, sode sukuk, istisna sukuk and mosharekat sukuk explain 7.06, 20.32, 0.07, 3.32 and 0.84 percent respectively, of the changes in the financial structure index.
5- CONCLUSIONS & SUGGESTIONS
The present study investigates effectiveness of the financial structure of listed companies from new Islamic financing instruments (Sukuk) by using the panel data technique with the Johanssen approach. For this purpose, the data of 83 listed companies on the Tehran Stock Exchange has been used during the years 2010 to 2019. According to the research results, instruments had a positive effect on the financial structure index (ratio of capital to assets). Accordingly, the issue of sukuk can significantly improve the financial structure of companies. Companies should use a complete combination of modern financing tools (Sukuk) to achieve benefits such as increasing liquidity, increasing shareholders' wealth and increasing diversity in financing sources.
Financial Economics
Mahdi Jalili; Elnaz Entezar; Tahereh Akhoondzadeh Yousefi; Mohammad Sokhanvar
Abstract
1- INTRODUCTION
Undoubtedly, it is possible to achieve long-term and continuous economic growth in any country by equipping and optimally allocating investment resources in the national economy of that country, and the role of developed financial markets is necessary to achieve this goal. In fact, the ...
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1- INTRODUCTION
Undoubtedly, it is possible to achieve long-term and continuous economic growth in any country by equipping and optimally allocating investment resources in the national economy of that country, and the role of developed financial markets is necessary to achieve this goal. In fact, the role and importance of the financial system in the development process of countries is such that the difference between developed and developing economies can be found in the degree of efficiency and effectiveness of their financial system. Financial development is a category, which, according to the developments of financial markets, following the discussions of globalization and financial integration after the 70s, was taken into the attention of economists. Therefore, considering the importance of the financial development category in different countries, the study of factors affecting it has always been emphasized. Financial development is a set of factors, policies and institutions that lead to the creation of effective financial markets and financial intermediaries and provide deep and wide access to capital and financial services.
2- THEORETICAL FRAMEWORK
Many factors can influence the development process of financial markets, among which, the role of the combined index of globalization and inflation can be very important. Some economists and economic policymakers, such as Greenaway and Baltaji, believe that globalization leads to better macroeconomic performance and faster financial development in terms of financial and commercial openness, which many empirical studies support this view. International institutions such as the World Bank, the International Monetary Fund, and the Organization for Economic Cooperation and Economic Development advise member countries to believe that commercial and financial liberalization has a positive effect on financial development.
3- METHODOLOGY
In this research, the non-linear effects of globalization and inflation on the financial development index (facilities granted by the banking system) in Iran during the period 1368 to 2020 have been investigated by using the Markov switching econometric technique.
In this study, the dependent variable is financial development, and the independent variables are inflation, globalization, capital stock, and government spending.
4- RESULTS & DISCUSSION
In the first regime, the economic dimension of globalization has a positive effect on financial development, which indicates that, due to the increase in the economic dimension of globalization, the index of financial development (facilities granted by the banking system) increases. But in the second regime, the economic dimension of globalization has a negative effect on financial development, which indicates that, due to the increase in the economic dimension of globalization, the index of financial development (facilities granted by the banking system) decreases.
Inflation caused by demand pressure and monetary inflation in both regimes has a negative effect on financial development, which indicates that, due to the increase in inflation caused by demand pressure and monetary inflation, the index of financial development (facilities granted by the banking system) decreases.
Human capital in both regimes has a positive effect on financial development, which indicates that, due to the increase in human capital, the financial development index (facilities granted by the banking system) increases.
In the first regime, capital stock has a positive effect on financial development, which indicates that, due to an increase in capital stock, the index of financial development (facilities granted by the banking system) increases. But in the second regime, it has no effect on financial development. Government spending in both regimes has a negative effect on financial development, which indicates that, due to an increase in government spending, the financial development index (facilities granted by the banking system) decreases.
5- CONCLUSIONS & SUGGESTIONS
The results of the estimates indicate that the sources of inflation (inflation caused by demand pressure and monetary inflation, structural inflation, inflation caused by cost pressure and imported inflation) had a negative effect on financial development in both regimes. Regarding the dimensions of globalization (economic dimension, social dimension and political dimension), we saw a positive relationship in the first regime and a negative relationship in the second regime. In connection with the results of the control variables, the variables of capital stock and human capital in both regimes had a positive effect on banking facilities, but the effect of government spending on banking facilities in both regimes was negative. Now, according to the results, policy proposals are presented as follows:
- What can be stated with certainty is that paying attention to globalization and joining international organizations such as the World Trade Organization can help improve the performance of financial development indicators in Iran. Because Iran has a long way to go on the path of globalization and integration into it. Therefore, the economic, political, social and cultural dimensions, especially the political dimension, need a fundamental revision.
Financial Economics
reza khalillo; mahdi abdolhamid; Ali Rezaeian
Abstract
Importance- Performance Analysis (IPA) of Policies to Reform the Banking System of the Islamic Republic of Iran based on the Islamic Banking ApproachIn the current research, the policies of reforming the banking system of the Islamic Republic of Iran have been analyzed. In the qualitative ...
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Importance- Performance Analysis (IPA) of Policies to Reform the Banking System of the Islamic Republic of Iran based on the Islamic Banking ApproachIn the current research, the policies of reforming the banking system of the Islamic Republic of Iran have been analyzed. In the qualitative section, articles published from 2000 to 2020 in reliable domestic and foreign databases in the field of Islamic banking were examined. To analyze the articles, the meta analysis approach and the seven-step method of Sandlowski and Barroso (2007) were used. The research sample included 23 experts in the field of Islamic banking who were selected using purposive and snowball sampling. In data collection, the researchers extracted the banking system reform policies with the Islamic banking approach through library studies and literature review. Through library studies and systematic literature review, the researchers extracted the banking system reform policies with Islamic banking approach. In the quantitative stage, the researchers analyzed the identified reform policies through the importance-performance analysis method. The findings of the research show that reform policies such as requiring the formation of specialized sub-committees of the Jurisprudence Council in banks, establishing a connection between money supply and the real sector of the economy, changing the formal operations of Islamic contracts to real Islamic operations, especially profit and loss sharing and formulating and approving the prerequisites for obtaining a managerial position based on having the ability, experience in Islamic banking, along with the training of banking jurisprudents, is one of the policies that should be taken into consideration by decision makers.
Financial Economics
mahdieh rezagholizadeh; majid aghaei; mehran abbaszadeh
Abstract
The global crude oil market has experienced a significant downturn since the outbreak of the Covid-19 virus in December 2019. Considering the importance of safe haven asset in recent years, this paper empirically investigates the time-varying correlations between Bitcoin and oilmarkets to examine whether ...
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The global crude oil market has experienced a significant downturn since the outbreak of the Covid-19 virus in December 2019. Considering the importance of safe haven asset in recent years, this paper empirically investigates the time-varying correlations between Bitcoin and oilmarkets to examine whether Bitcoin is a safe haven asset for the international crude oil markets during the 2014-2021 (daily) with emphasis on COVID-19 period).The results of the time-varying correlations obtained through the dynamic conditional correlation (DCC-GARCH) model show that during the period of investigation (2014-2020), there is a positive conditional correlation between Bitcoin and crude oil, and this positive conditional correlation increase during the period of the Covid-19 virus. This result indicates that Bitcoin cannot be accepted as a safe haven for crude oil fluctuations and can only be considered as a diversifier in the asset portfolio.Keywords: Crude Oil, Bitcoin, Covid- 19, Safe Haven, Dynamic Conditional Correlation (DCC-GARCH)
Financial Economics
Seyyed Abdollah razavi; Seyyed Mohammad Javadi
Abstract
Investment funds are one of the suitable tools for investing in the capital market, which manage risk by diversifying the composition of assets. The first refining fund was launched by the government in 2019. Based on economic theories, it was expected that the price of the investment units of this fund ...
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Investment funds are one of the suitable tools for investing in the capital market, which manage risk by diversifying the composition of assets. The first refining fund was launched by the government in 2019. Based on economic theories, it was expected that the price of the investment units of this fund would be higher than the value of the assets in that fund, but for various reasons, this did not happen and the price of the shares of this fund has always been sold below the nominal value. The purpose of this research is to identify the influencing factors on the activities and evaluate the performance of this fund. This research is of the type of library studies, through interviews with experts, 16 important factors affecting the performance of the 1st Refinery Fund were identified. Finally, the information was collected from the questionnaire using a five-point Likert scale to answer the questions of the questionnaire. In this regard, the required quantitative information was collected through the design and distribution of a questionnaire among 35 experts and analyzed using the statistical method of analysis of variance (ANOVA). The results of the research show that the identified factors have affected the performance of the 1st Refinery Fund in different ways.
