The relationship between banks’ financial corruptions news and banks’ stock price and subsidiaries firms

Subject Areas : Journal of Investment Knowledge

zahra dianati dalami ¹ , Ahmad Heshmati ²

1 - Associate Professor of accounting, Faculty of financial sciences, Kharazmi University, Tehran, Iran
2 - MSc. student of accounting, Faculty of financial sciences, Kharazmi University, Tehran, Iran.

Received: 2019-05-02 Accepted : 2019-07-02 Published : 2021-06-22

Keywords: Bank, Subsidiaries of Banks, stock index, Corruption, Financial Corruption (Economic),

Abstract :

Financial corruption has a profound effect on economic growth, the optimal allocation of resources and active decision-makers of the capital market. The main purpose of the present research is to investigate the relationship between the publication of financial corruption news on stock prices of banks and their affiliated companies. In order to collect data, the library method and the historical information in the stock exchange library and stock trading prices at the TSETMC site were used during the period from the beginning of 2011 to the end of 2017. The hypothesis test has been used in 14 news stories using the paired comparison test method for 25 banks and 17 companies that have been admitted to Tehran Stock Exchange or OTC in Iran. The results of the research indicate that there is no significant relationship between the publication of financial corruption news and stock prices of the respective banks, also this relationship has been no significant in relation to the stock prices of subsidiaries of banks and other banks accepted in Tehran Stock Exchange or OTC in Iran.

References:

• آقائی، تیمور. مشبکی، اصغر، زارع، حسن. (1383). بررسی رابطه بین فساد مالی و اداری بر میزان سرمایه گذاری. پایان نامه کارشناسی ارشد، دانشگاه آزاد اسلامی، واحد تهران مرکزی، دانشکده مدیریت.


• برکچیان، رضا. انصاری، ولی الله. گودرزی، عبدالرضا. (1377). بررسی ارتباط فساد مالی در دستگاههای دولتی با میزان حقوق و مزایا و یا دستمزد. پایان نامه کارشناسی ارشد، مرکز آموزش مدیریت دولتی.


• حساس یگانه، یحیی، داغانی،رضا و اسکو، وحید، (1388)، «مدیریت ریسک تقلب»، فصلنامه حسابدار رسمی، شماره 20، صص 95-86.


• جلایی، سید عبدالمجید. میر، هدیه. رحیمی پور، اکبر. (1394). تاثیر حکمرانی خوب بر بازدهی سهام در بورس اوراق بهادار تهران. فصلنامه علمی پژوهشی دانش  مالی تحلیل اوراق بهادار،(27)8، 13-1.


• دل انگیزان، سهراب. کریمی، محمد شریف. خالوندی، زینب. (1392). تاثیر شاخص درک فساد مالی بر رشد اقتصادی بر اساس تفکیک بین کشوری در حوزه آزادی اقتصاد با روش گشتاورهای تعمیم یافته. فصلنامه علوم اقتصادی، (24)7، 186-161.


• دیانتی، زهرا، مرادزاده، مهدی، محمودی، سعید، (1392). بررسی عکس العمل سرمایه گذاران در مقابل خبرهای اقتصادی و سیاسی غیر منتظره در بورس اوراق بهادار تهران. فصلنامه علمی پژوهشی دانش سرمایه گذاری، (7)2 ،72-55.


• دیانتی، زهرا، خداکرمی، الهام، (1396). تأثیر انتشار اخبار زیست محیطی روی قیمت سهام شرکتهای پذیرفته شده در بورس اوراق بهادار تهران. فصلنامه علمی پژوهشی دانش سرمایه گذاری، سال ششم، شماره 23 ،212-189.


• رهنمای رودپشتی، فریدون. یعقوب نژاد، احمد. نوری فرد، ید اله. گودرزی، احمد. (1392). ارزیابی تاثیر افشای رویه های حسابداری انتقادی بر معیارهای ارزیابی عملکرد و کیفیت گزارشگری مالی. پژوهش های حسابداری مالی، (16)2، 92-73.


• شهیکی تاش، محمد نبی. مجیدزاده بدرآبادی، اسماعیل. (1394). تحلیل رابطه میان مالکیت منابع زیر زمینی و افزایش سطح فساد؛ مطالعه موردی کشورهای منتخب عضو اوپک. دانش ارزیابی، (25)7، 115.


• طالقانی، غلامرضا، طباطبایی، زهرا، غفاری، علی، (1393). بررسی عوامل فردی و سازمانی موثر بر فساد در شعب بانک سپه استان قم. مدیریت فرهنگ سازمانی، (12)2، 253-235.


• فرهادی نژاد، محسن. (1380). فساداداری وشیوه های کنترل آن، دومین همایش علمی وپژوهشی نظارت و بازرسی، 46-23.


• محنت فر، یوسف (1387 ). فساد اقتصادی و چگونگی مبارزه با آن در فرایند توسعه اقتصادی، صص16،4،3.


• مشایخ، شهناز.حدیدی فرد، شهره، سرور، پژمان. (1392). نقش اخبار و مراجع خبری بر بازار سرمایه. پژوهش حسابداری،8، 42-57.


• مهرآرا، محسن.عبدلی، قهرمان. (1385). نقش اخبار خوب و بد در نوسانات بازدهی سهام در بازار ایران. فصلنامه پژوهش های اقتصادی ایران، (26)8، 40-25.


• مهرانی، ساسان. مرادی، محمد. اسکندر، هدی. (1384). رابطه نوع مالکیت نهادی و حسابداری محافظه کارانه. مجله پژوهش های حسابداری، 3. 62-47.


• نوروش، ایرج، ابراهیمی کردلر، علی، (1384). بررسی و تبیین رابطه ترکیب سهامداران با تقارن اطلاعات و سودمندی معیارهای حسابداری عملکرد.  بررسی های حسابداری و حسابرسی. 42،  124-97.


• وکیلی فرد، حمیدرضا.جبارزاده کنگرلوئی، سعید. پوررضا، اکبر . احمدی، سلطان،.(1388). بررسی ویژگی های تقلب در صورتهای مالی. مجله حسابدار. 210، 41-36.


• یحیی زاده فر، محمود. آقاجانی، حسنعلی. پاکدین، مرتضی. (1390). عوامل موثر بر شاخص قیمت سهام با رویکرد فازی در بورس اوراق بهادار تهران. ماهنامه مدیریت و پیشرفت، (47)18، 522-511.


• Abed, G. T., & Gupta, S. (2002). Governance, Corruption & Economic Performance. The International Monetary Fund. ISBN 9781589061163


• Albrecht, W.S and D.J. (2001). Top 10 Reasons why fraud is increasing in U.S, Strategic Finance, 82 (11), 58-61.


• Andvig, J. C., & Fjeldstad, O.-H. (2001). Corruption, A Review of Contemporary Research. Bergen: Christian Michelsen Intitute. (CMI Report R 2001:7).


• Arnold, M., & Engelen, P.-j., (2007), Do financial markets discipline firms for illegal corporate behavior? Management & marketing, 2(4),103-110.


• Barberis, N., Shleifer, A., & Vishny, R. (1998). A model of investor sentiment, Journal of financial economics, 49(3), 307-343


• Benjamin E. Hermalin & Michael S. Weisbach, (2003), "Boards of directors as an endogenously determined institution: a survey of the economic literature, Economic Policy Review,7-26


• Berkchian, R., Ansari, V., Goodarzi, A. (1998). Investigating the Corruption of Financial Corruption in Governmental Organizations with the Level of Salary or wages. Master's Thesis, Governmental Training Center. [In Persian]


• Bjarte Kristoffer Botn, (2015),” Does a country`s corruption level affect the outcome of a corruption scandal? ”, Norwegian School of Economics, Thesis in Finance


• Bocek, K. M. (2013). Stock market reactions to corporate misconduct. NHH.


• Bodie, Z., Kane, , & Marcus, A. J. (2014). Investments, 10th Global Edition. McGraw Hill Higher Education.


• B and Dahl.B,E.(2015), Does a country`s corruption level affect the outcome of a corruption scandal?, Thesis in Finance, Norwegian School of Economics.


• Cotton D.L., “Fixing CPA Ethics Can Be an Inside Job”, Wash. Post, Oct.20, 2002at b2.


• Chen, Gongmeng, Firth, Michael, GAO, Daniel N, Rui, Oliver m. (2006). Ownership structure, corporate governance, and fraud: Evidence from China. journal of corporate finance, vol. 12,424-448.


• Lin, Micah.S. Officer, Zengyuan.s. (2016). Corruption and Trust: Evidence from Stock Market. Journal of corporate finance, vol. 12, 2-48.


• Cole, Rebel A. Moshirian, F., Wu, Q.(2008). Bank stock returns and economic growth. Journal of Banking & Finance, Elsevier, vol. 32(6),995-1007.


• Daniel, K., Hirshleifer, D., & Subrahmanyam, A. (1998). Investor psychology and security market under‐and overreactions. the Journal of Finance, 53(6), 1839-1885.


• Delangizan, S., Karimi, M.sh. Khalvandi, Z. (2013). The Effect of the Indicator of Financial Corruption Perception on Economic Growth Based on the Separation of Between Countries in the Field of Economic Freedom by Generalized Torque Approach. Economics Quarterly, (24) 7, 186-161. . [In Persian].


• Dianati deylami.,Z, Dinmohamadi.,M, Saeid Motamedi,s. (2013). xamination of investor reaction to unexpected economic and political events in Tehran stock market ,Journal Management System.2(7), 55-72[In Persian].


• Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25, 383-417.


• Fan, J. P., Rui, O. M., & Zhao, M. (2008). Public governance and corporate finance: Evidence from corruption cases. Journal of Comparative Economics, 36.


• Farhadi Nejad, M. (2001). Corruption and its Control Methods, Second Scientific and Research Conference on Supervision and Inspection, 46-23. [In Persian].


• George, Guan, Ru, Wu, Tony, Chieh, Tse, HouJin, Lung, Lin (2019), (Can economic news predict Taiwan stock market returns?), Asia Pacific Management ReviewVolume 24, Issue 1, March 2019, Pages 54-59.


• Hong, Harrison, Terence Lim, and Jeremy C. Stein, (2000). Bad news travels slowly: Size, analyst coverage, and the profitability of momentum strategies, Journal of Finance 55, 265-295.


• http://imi100.imi.ir/SitePages/NewsDispForm. aspx?nID=28


• https://www.transparency.org/research/bpi/bpi_2006/0


• https://www.transparency.org/research/bpi/bpi_2013/0


• https://unctad.org/en/Pages/publications.aspx


• https://www.acfe.com/


• Huntington, S. (1968). Political Order in Changing Societies. London: Yale University Press.


• Jalaei ,S. A, Mir,H.,Rahimipour,A.(2015),The impact of good governance on stock returns in Tehran Stock Exchange, Financial Knowledge of Securities Analysis, (27) 8, 13-1. [In Persian].


• Justin, Robinson, AdrianGlean, Winston, Moore, (2018), How does news impact on the stock prices of green firms in emerging markets?, Research in International Business and Finance, Volume 45, October 2018, Pages 446-453.


• Karpoff, J. M., Lee, D. S., & Martin, G. S. (2014). The Economics of Foreign Bribery: Evidence from FCPA Enforcement Actions, Available at: www.fmaconferences.org/Tokyo/Papers/JonathanKarpoff.pdf


• Kaufmann, D. (2005). Myths and Realities of Governance and Corruption. Available at:


• http://siteresources.worldbank.org/INTWBIGOVANTCOR/Resources/2-1_Governance_and_Corruption_Kaufmann.pdf


• Lambsdorff, J. G. (2003). How Corruption Affects Productivity. International Review for Social Sciences, 457-474.


• Leff, N. H. (1964). Economic Development through Bureaucratic Corruption. American Behavioral Scientist. 14(8),8-14.


• Mathieu Couttenier and Farid Toubal (2017). Corruption for Sales. Journal of Comparative Economics, 45(1),56-66.


• Mashayekh, Sh. Omidi Fard, Sh., Server, p. (2013). The Role of News and News Reports on the Capital Market. Accounting Research, 8, 42-57. [In Persian].


• Mehrara M., Abdoli, Gh. (2006). The role of good and bad news on stock market volatility in the Iranian market. Journal of Economic Research, (26) 8, 40-25. [In Persian].


• Mehrani, S., Moradi, M., Alexander, H. (2005). The relationship between institutional ownership and conservative accounting. Journal of Accounting Research, 3. 62-47. [In Persian].


• Murphy, D. L., Shrieves, R. E., & L. Tibbs, S. (2004). Determinants of the Stock Price Reaction to Allegations of Corporate Misconduct: Earnings, Risk, and Firm Size Effects. Available at: http://citeseerx.ist.psu.edu/messages/downloadsexceeded.html


• Murphy, K., Shleifer, A.,Vishny, R. (1993). Why is Rent-Seeking So Costly to Growth? American Economic Review Papers and Proceedings. Available at: https://scholar.harvard.edu/files/shleifer/files/rent_seeking.pdf


• Nils D. Steiner,(2012), “Testing for a Political Bias in Freedom House Democracy Scores: Are U.S. Friendly States Judged to be more Democratic? “, Johannes Gutenberg-University of Mainz Department of Political Science 55099 Mainz Germany.


• ,I., Ebrahimi Kurdler, A. (2005). Investigating and explaining the relationship between stockholders with information symmetry and the usefulness of performance accounting metrics. Journal of Accounting and Auditing Review, 42, 124-97. [In Persian].


• Rahnamay Roodposhti.,F, Noori Fard.,Y.Goudarzi.,A.(2013). F Rahnamay Roodposhti1; F Rahnamay Roodposhti2; Y Noori Fard. A Goudar. Financila Accounting Researches.2(16),73-92. [In Persian].


• Rao, S. M., & Hamilton III, J. B. (1996, December). The effect of published reports of unethical conduct on stock prices. Journal of Business Ethics, 15,1321-1330.


• Rose-Ackerman, S. (1998). Corruption and the Global Economy. United Nations Development Program.


• Rose-Ackerman, S. (1998). Corruption: A Study in Political Economy. Academic Press ,New York. P. 89


• Shailer, G. (2004). An Introduction to Corporate Governance in Australia. Sydney: Pearson Education Australia.


• Sprenger, T. O. , and I. M. Welpe. (2011). “News or noise? The stock market reaction to different types of company-specific news events”. TUM School of Management, Technische Universitat Munchen. Working Paper. www. ssrn. com.


• Suleman, M. T. (2010). “Stock market reaction to good and bad political news”. Working Paper. www. ssrn. com.


• Sun, P., & Zhang, Y. (2006). Is there penalty for crime? Corporate scandals and management turnover in China. Peiking University, Guanghua School of Management.


• Taleghani, GH., Tabatabaei, Z., Ghaffari, A. (2014). Investigating the Individual and Organizational Factors Affecting Corruption in Sepah Branches of Qom Province. Management of Organizational Culture, (12) 2, 253-235. [In Persian].


• The World Bank. (1997). Helping countries combat corruption. World Bank, poverty Reduction and economic management 9,717


• The World Bank. (2013, December 19). Worldbank.org. Retrieved from Press release. Available at: http://www.worldbank.org/en/news/press-release/2013/12/19/corruption-developing-countries-world-bank-group-president-kim


• Transparency International (2003) “ Global Corruption Report 2003”, available at : www. Transparency.org.


• Transparency International (2009) “ Global Corruption Report 2009”, available at : www. Transparency.org.


• Transparency International (2015) “ Global Corruption Report 2015”, available at : www. Transparency.org.


• Transparency International (2016) “ Global Corruption Report 2016”, available at : www. Transparency.org


• Transparency International. (2007). Retrieved from: http://www.weforum.org/pdf/paci/BusinessCaseAgainstCorruption.pdf


• Wei, S.-J. (2000). Bribery in the Economies: Grease or Sand? Massachusetts: The Brookings Institution, Harvard University.