Investigating the role of relationship between risks based on accounting components and capital market criteria in state banks
Subject Areas : Journal of Capital Market Analysis
1 - Department of Accounting, Abarkoh Branch, Islamic Azad University, Abarkoh, Iran
Keywords: accounting standards, capital market criteria, risk, total return risk, systematic risk,
Abstract :
Banks play an important and fundamental role in the economy of emerging countries so that they supply a huge and wide part of economic activities, and they certainly are exposed to many risks in performing them. The purpose of this research is to investigate the relationship between risks based on the accounting and market criteria of registered banks in Stock Exchange Organization. Following this issue, the quality and transparency of registered banks' reporting in Iran's capital market is considered significantly important, therefore the improvement of the quality and transparency of banking information causes the sufficient awareness and adopting the correct decisions by investors. This research has investigated the role of the relationship between risks based on accounting components and capital market criteria in state banks in the period of 2013 to 2022. Total market risk, systematic risk and the specific risk of each bank is considered as dependent variables and total risks, liquidity and credit leveraged accounting are considered as independent variables. Panel data statistical technique was used for testing the hypotheses. The obtained results indicate that there is a significant relationship between risks based on accounting components and capital market criteria of state banks.