The Effect of Monetary Policies on the Performance of Business Firms Using the Pyotroxic Index and Using the GMM Dynamic Data Panel

Subject Areas : Financial engineering

azam Mohammadzadeh ¹ (University of sistan and baluchestan , Zahedan, Iran)

Received: 2017-06-26 Accepted : 2017-12-03 Published : 2018-03-21

Keywords: Monetary Policy, Piotroski F-Score index, Corporate performance, Macroeconomic variable,

Abstract :

Today the importance of evaluating performance and factors affecting corporate performance is one of the most important areas of the financial Economics So that research has been done on this. In this regard, the main purpose of this research is to examine the factors affecting the performance of Bourse companies with an emphasis on monetary policy. Contrary to previous research that for corporate performance has been captured only an indicator such as profit or income In this research, FPT Comprehensive Index has been used to measure the performance of companies. The data used in this research is annual data for the period from 1385 (2006) to 1392 (2013) and for 94 companies admitted to the stock exchange. And monetary policy instruments include the growth rate of banks' loan facilities, liquidity growth rates, and legal deposit rates. The results of model estimation using GMM dynamic data panel show that there is a Significance relationship between monetary variables and firm performance. With the increase in bank facilities and the increase in liquidity, the Piotroski F-Score index is also increasing which reflects an increase and improvement in the company's performance. Therefore, given the direct impact of monetary policies on corporate performance indicators, policymakers should be more careful about acting any other policy.