The Factors Effective on the Financial Leverage Cycle In Iranian Banks and The Moderating Role of Nature and Kind of Banks Activity
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

The Factors Effective on the Financial Leverage Cycle In Iranian Banks and The Moderating Role of Nature and Kind of Banks Activity

Document Type : Original Article

Authors
ali kamali 1
Seyed yousef Ahadi Serkani 2
Ali Amiri 3
Hojatollah Salari 3
1 Ph.D. Student of Accounting, Islamic Azad University, Bandar Abbas Branch, Hormozgan, Iran
2 Associate Professor, Faculty of Management and Accounting, Firoozkooh Islamic Azad University, Firoozkooh, Iran
3 Assistant Professor, Department of Accounting, Islamic Azad University, Bandar Abbas Branch, Hormozgan, Iran
10.22034/jse.2020.11057.1315
Abstract
Based on the evaluations of The Committee on the Global Financial System (CGFS), the recent crisis in the financial system has started with a sharp increase in total leverage. In this study, we are looking at the causes and means of preventing a financial crisis. We also seeks to address the impacts of different banks on the cycle of financial leverage(CFL) including accepted banks in TSE and other banks, commercial and Professionalized banks, and private and public banks. We mainly focus on GDP growth and asset volumes in CFL. First, based on the results of Granger's causality test, the causal relationships between GDP variables, asset volume and financial leverage were determined and then independent and dependent variables were determined in multivariate regression models. By using panel data (fixed and accidental effects), we examined the effect of types of banks with three main variables. Then we analyzed wealth- accumulation of 15 banks from 2009 to 2016. The findings show that GDP has a significant positive and important relationship with financial leverage, and government-owned banks have an increasingly interactive role in this regard. The results also indicate a positive and significant relationship between assets and financial leverage. Government-owned banks, banks accepted in TSE and commercial banks, have a more effective role in leverage than others when it come to the relationship between assets with a more leverage effect.By relying on these findings, we will be able to review goals of privatization, bank Professionalization and capital market development.
Keywords
Banks Accepted in TSE؛ Professionalized Banks؛ Government-owned إanks
Financial Leverage؛ GDP
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Quarterly Journal of Securities Exchange
Volume 13, Issue 49
Summer 2020
Pages 102-133