Presenting an Interpretive Structural Model for Hedging Risk of Common Investment Methods Using Cryptocurrencies

Subject Areas : Risk Management

Raziyeh Eskandari ¹ , Rasol Eskandari ² , Hossein Panahian ³ , Hasan Ghodrati Ghzaani ⁴ , Mahdi Madanchi Zaj ⁵

1 - Accounting Faculty,, Kashan branch,, Islamic Azad University, Kashan, Iran.
2 - Accounting Faculty, Kashan branch, Islamic Azad University, Kashan, Iran.
3 - Accounting Faculty, Kashan branch, Islamic Azad University, Kashan, Iran.
4 - Department of Accounting, Kashan Branch, Islamic Azad University, Kashan, Iran.
5 - Department of Finance, Electronic Branch, Islamic Azad University, Tehran, Iran.

Received: 2023-11-09 Accepted : 2024-06-04 Published : 2024-06-04

Keywords: Cryptocurrency, Interpretive Structural Model, Investment in Iran, Risk Hedging,

Abstract :

Objective: Understanding the potential of cryptocurrencies in the country's economy leads to targeted investment in them and stabilization of the investment portfolio value. Risk hedging of capital through cryptocurrencies can be a novel potential for preserving the value of the investment portfolio. In this study, the factors affecting the risk hedging of conventional investment portfolios using cryptocurrencies and the nature of the relationships between these factors have been identified.

Research Methodology: In the present study, first, by examining domestic references, common investment methods forming the investment portfolio that are of interest to the general public in the country were identified. Then, by conducting an integrated review of existing references in the field of cryptocurrencies and other conventional investment methods, the factors influencing the hedging capacity of the investment portfolio using cryptocurrencies were identified. Subsequently, utilizing the opinions of experts including university professors and capital market managers, the relationships between variables were determined. Based on the interpretive structural modeling approach, a model of factors affecting the risk hedging of common investments in the country using cryptocurrencies has been presented.

Findings: The results of this study showed that the most influential factors in using cryptocurrencies for investment risk hedging in Iran are international political factors and global prices of gold and oil. On the other hand, the most dependent variables are related to the lack of user knowledge and regulations in the field of cryptocurrencies within the country.

Originality/Scientific Value-Added: Based on the conducted research, a model is proposed to identify factors affecting capital risk hedging in the country with the help of cryptocurrencies. Considering the obtained relationships, it was determined that factors affecting the understanding and application of cryptocurrencies in Iran do not have an impact on the risk of conventional investment methods in Iran. Furthermore, in hedging investment risks in Iran using cryptocurrencies, international factors are considered the most influential factors.

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