Formulation of a Minority Shareholder Protection Model Based on Global Indices Using a Grounded Theory Approach
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Formulation of a Minority Shareholder Protection Model Based on Global Indices Using a Grounded Theory Approach

Document Type : Original Article

Authors
Soraya Yari 1
Mir Feiz Fallah Shams 1
Hamid Reza Vakili Fard 2
Gholamreza Zomorrodian 3
1 Department of Financial Management, CTC, Islamic Azad University, Tehran, Iran.
2 Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran
3 Department of Financial Management, CTC, Islamic Azad University, Tehran, Iran
10.22034/jse.2026.12609.2387
Abstract
The capital market, as a fundamental pillar of the financial system, plays a central role in resource mobilization and optimal capital allocation; however, minority shareholders are persistently vulnerable to risks stemming from information asymmetry, conflicts of interest, and inadequate regulatory mechanisms. The capital market crisis of August 2020 in Iran exemplified structural deficiencies in investor protection policies, which inflicted severe financial losses on millions of retail investors, eroded public trust, and amplified systemic risk within the national economy. The World Bank report indicates that Iran's ranking on the Minority Investor Protection Index remains below the global average, highlighting the need for a context-sensitive framework. This study aims to develop a comprehensive model aligned with Iran's capital market conditions, employing a qualitative approach based on Grounded Theory. World Bank indicators were adopted as the reference framework, and data were collected through semi-structured interviews with 20 capital market experts via snowball sampling until theoretical saturation was achieved. Data analysis was conducted through open, axial, and selective coding using MAXQDA software. The core category of minority shareholder protection was identified as the central phenomenon around which all other categories were systematically organized. The final conceptual framework, comprising 39 components across 6 dimensions, was validated and refined by an external expert panel to ensure theoretical rigor and practical applicability. By presenting a multidimensional framework, this study provides a roadmap for policymakers and capital market regulators, with the potential to enhance public confidence, improve market efficiency, and strengthen Iran's standing in global investor protection indices.
Keywords
inority Shareholder Protection
World Bank Indicators
Iran’s Capital Market
Grounded Theory Methodology
Subjects
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Quarterly Journal of Securities Exchange
Volume 19, Issue 74
Summer 2026
Pages 171-214