Accounting Effects of Exchange Rate Dynamics and Monetary Policy Shocks on Investment: A Case Study of Non-Oil Companies on the Tehran Stock Exchange

Accounting Effects of Exchange Rate Dynamics and Monetary Policy Shocks on Investment: A Case Study of Non-Oil Companies on the Tehran Stock Exchange

Subject Areas : Management Accounting

ehsan hamid ¹ , hosein sharifi renani ^{2 *} , maan abood ³ , sara ghobadi ⁴

1 - PhD student in Economics, Isfahan branch (Khorasgan), Islamic Azad University, Isfahan, Iran
2 - Associate Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
3 - Professor of Economics, University of Kufa, Najaf, Iraq
4 - Assistant Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

Received: 2024-11-23 Accepted : 2025-01-07 Published : 2025-09-30

Keywords: Exchange Rate, Exchange Rate Dynamics, Interest Rate, Monetary Policy Shocks, Investment,

Abstract :

Investment is considered as a traditional mechanism for transmitting monetary policy shocks. In addition, exchange rate dynamics can also affect the level of investment of companies. Accordingly, the main objective of this article is to examine the accounting effects of exchange rate dynamics and monetary policy shocks on companies' investment. The statistical population of the present study is non-oil companies listed on the Tehran Stock Exchange during the years 2011 to 2024, and finally 140 companies were selected as the final sample of the study. The data analysis method is based on the quantile panel regression approach. The most important motivation for using quantile regression is that in this way, with a comprehensive and accurate look at the evaluation of the response variable, a model can be presented that allows the involvement of independent variables not only in the center of gravity of the data, but also in all parts of the distribution, and in particular in the initial and final sequences. The research findings showed that with the increase in deciles and consequently the investment level of the companies under study, the effect of the exchange rate dynamics variable on the investment of companies has been increasing, and it can be concluded that the effect of exchange rate dynamics on the investment of selected companies with high investment levels has been more severe. It is also observed that with the increase in deciles and consequently the investment level of the companies under study, the effect of the monetary policy shocks variable on the investment of companies has been increasing, and it can be concluded that the effect of monetary policy shocks on the investment of selected companies with high investment levels has been more severe. Accordingly, it is concluded that monetary policy shocks and exchange rate dynamics should be considered as two factors affecting the investment of companies.

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