Risk, Competition, Efficiency and Relationships between Them (Evidence from The Iranian Banking Industry)
Subject Areas : Financial EconomicsMohammad Hosein Fatheh 1 * , fatemeh sadat akbarinasab 2
1 - Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran.
2 - MSc, Department of Accounting, Payame Noor University, Tehran, Iran.
Keywords: Risk, Competition, Efficiency, Banks.,
Abstract :
The banking industry is one of the most important sectors of any economy, because banks are the main pillars of financial markets, along with the stock market and insurance, as an intermediary for financial resources.The aim of this study is to investigate the interrelationships between risk, competition and efficiency among banks. The current research is applied and from the methodological point of view, the correlation is causal type (post-event). The statistical population of the research was all the banks admitted to the Tehran Stock Exchange, and finally 13 banks were selected as the sample of the research and were examined in a period of 9 years between 1392 and 1400. The approach used in this research is regression using simultaneous equations. Six hypotheses were proposed in the present study. The results of the research hypotheses test showed that there is a reciprocal relationship between risk and banking competition. Also, there is an inverse relationship between efficiency and risk of banks, and finally, there is a positive relationship between efficiency and banking competition.