List of articles (by subject) Financial Economics
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Open Access Article
1 - Modeling the Factors Affecting the Capital Structure in Companies Listed on the Tehran Stock Exchange, the Approach of Bayesian Averaging Model
Zahra Talebi Mohammad Sokhanvar Tahereh AkhoondzadehThe capital structure, meaning the way the company is financed, affects the value of the company, the relationship between the components of the capital structure, which is a mixture of bonds and stocks for financing, has a significant effect on the performance results MoreThe capital structure, meaning the way the company is financed, affects the value of the company, the relationship between the components of the capital structure, which is a mixture of bonds and stocks for financing, has a significant effect on the performance results of companies, the aim of the research is to model the factors affecting the capital structure in companies listed on the Tehran Stock Exchange (the approach of Bayesian averaging (BMA), This research is practical in terms of purpose and correlational in terms of nature. In order to achieve the goal of the research, 175 companies were selected from among the companies admitted to the Tehran Stock Exchange during the years 1390 to 1400 by systematic elimination method and considered as the main sample.In order to identify the most important variables affecting the capital structure, the BMA model has been used. Based on this, 61 identified variables affecting the capital structure were included in the Bayesian averaging model. These variables were divided into two categories of internal and external factors. Based on previous probabilities, 17 variables were identified as important variables on capital structure. Among these variables, 10 intra-company variables (type of ownership; net operating profit; current ratio; total assets turnover ratio; interest rate coverage ratio; debt-to-equity ratio; beta per share; accrual profit management; financial distress and tax) and 7 external variables (inflation, exchange rate, budget deficit, business climate index, economic resilience index, sanctions index, capital market depth) were effective on the capital structure Manuscript profile -
Open Access Article
2 - The Financial Inclusion and Unemployment in Urban and Rural Areas of Iran
Reza MaaboudiThe paper aims to investigate the financial inclusion effect on the unemployment rate in urban and rural areas of Iran. Panel generalized method of moments and provincial data from 2015 to 2020 used to analyze the relationships between variables. Findings show that fina MoreThe paper aims to investigate the financial inclusion effect on the unemployment rate in urban and rural areas of Iran. Panel generalized method of moments and provincial data from 2015 to 2020 used to analyze the relationships between variables. Findings show that financial inclusion leaves a negative and significant effect on the unemployment rate in urban and rural areas of Iran. On the one hand, financial inclusion increases entrepreneurs’ and economic firms’ access to financial credits by reducing transaction costs and by increasing information transparency, which in turn leads to an increase in production capacity and a decrease in the unemployment rate; On the other hand, increasing the access of low-income people to borrowing leads to an increase in investment in human capital and, as a result, a decrease in the unemployment rate. Also, economic growth and human capital have a negative significant effect, and the real wage has a significant positive effect on the unemployment rate in urban and rural areas of Iran. According to the research results, in order to use the benefits of financial inclusion to reduce unemployment in the country, it is necessary to adopt effective policies in the field of training and increasing the financial literacy of individuals in deprived areas to participate in the financial sector, increasing investment to promote innovative financial technologies, expanding banking hardware and improving the infrastructure of the payment system. Manuscript profile -
Open Access Article
3 - Bootstrap-DEA efficiency: Radial and non-radial approaches in the banking industry
mohamadreza pahle mahdi fathabadi parvane salatinThis article aims to assess the efficiency of 15 stock market banks over the period 2014-2022. Utilizing non-parametric radial efficiency (Debreu-Farrell efficiency) and non-radial efficiency (Russell efficiency) methods, we analyze constant, non-increasing, and variabl MoreThis article aims to assess the efficiency of 15 stock market banks over the period 2014-2022. Utilizing non-parametric radial efficiency (Debreu-Farrell efficiency) and non-radial efficiency (Russell efficiency) methods, we analyze constant, non-increasing, and variable return-to-scale technologies. Recognizing limitations within radial methods, bias-corrected technical efficiency is also estimated using bootstrap data envelopment analysis. Radial analysis reveals inefficiency among all banks except for the Middle East bank. The average Debreu-Farrell efficiency stands at 77% under constant return to scale and 82% under variable return to scale, while the average Russell efficiency is 58% and 67% respectively. These results suggest slack in Debreu-Farrell efficiency. Bootstrap efficiency findings reveal underestimation in both radial and non-radial efficiency, thereby overstating actual efficiency levels. Bias-corrected radial technical efficiency scores from the bootstrap approach indicate inefficiency across all banks, with Dey and Sarmaye banks exhibiting particularly poor performance. Thus, adopting appropriate strategies such as non-performing loan management, increased non-interest incomes, and reduced operational costs is imperative to enhance efficiency. Manuscript profile -
Open Access Article
4 - Analysis of agency conflict with emphasis on aspects of earnings management, audit quality, and cost of equity: Game theory approach
Zahra Moghadam Hamzeh Didar Kiumars Shahbazi Ali EbadianThis article aims to describe and explain the strategic behavior of managers and shareholders in the interactive conflict environment of joint-stock firms using the tools of game theory, specifically through signaling games. Managers, considering the quality of internal MoreThis article aims to describe and explain the strategic behavior of managers and shareholders in the interactive conflict environment of joint-stock firms using the tools of game theory, specifically through signaling games. Managers, considering the quality of internal controls, engage in both deceptive and informative earnings management strategies. Shareholders then respond with strategies involving high or low capital costs and opt for either high or low-quality audit services. The findings of the research outline the theoretical conditions necessary for establishing balance in strategies such as deceptive earnings management with high capital costs and deceptive earnings management with high-quality audit services in environments characterized by weak internal controls. Additionally, it highlights the conditions required to establish equilibrium in strategies like informative earnings management with low capital costs and informative earnings management with low-quality audit services within environments boasting strong internal controls. Manuscript profile