Examining the Impact of Managers' Social Capital on Bank Risks

Subject Areas : Journal of Investment Knowledge

seyed moosa mohamadi ¹ , Reza Gholami jamkarani ² , mirfeiz fallah shams ³

1 - PhD Student, Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran,
2 - Assistant Professor, Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran,
3 - Associate professor, Department of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran,

Received: 2020-10-17 Accepted : 2021-01-25 Published : 2023-12-22

Keywords: Managers' social capital, operational risk, liquidity risk, credit risk,

Abstract :

Banks are the most important institutions in terms of mobilization and allocation of financial resources and savings.The risk of banks along with their performance has always been considered. Many factors affect the bank risks which have been investigated in various studies. The concept of social capital has been considered in recent years, but little research has been conducted about the relationship between social capital and the bank risks. Managers' social capital can be defined as the number of social relationships between company managers and their counterparts in other companies and other groups. the main objective of this research was to examine the impact of managers' social capital on bank risks. The research hypotheses testing were conducted using the correlation statistical method of panel data by the data on 30 banks of the I. R. Iran. Conclusively, 260 data-years were extracted to test the hypotheses. The results of the research showed that social capital had a reversal and significant effect on a variety of bank risks, including credit risk, liquidity risk and operational risk.

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