Investigating the Perspective of OTC Institutional Investors and Brokers' in Relation to Variables of Affecting Promoting Shareholdings Culture in Iran

اقتصاد پولی مالی

Article 2, Volume 21, Issue 7, January 2015, Pages 30-44   

Document Type: پژوهشی

DOI: 10.22067/pm.v21i7.43009

Authors

Mahdii Salehi^* ; Mohammad Donyaei

Abstract

The stakeholders' culture developing is one of the key factors influencing in the
development of capital markets and is one of the economic developments symbols.
Current survey, is measured the institutional investors and OTC brokers attitudes
about the variables affecting stakeholders culture developing.
This research is a descriptive survey that a census by making use of a researcher
made questionnaire that its validity was confirmed and its reliability with Cronbach's
alpha coefficient was obtained 0.87, analyzed institutional investors and OTC
brokers attitudes by Minitab and SPSS softwares, using the Kolmogorov-Smirnov
test (KS), One-sample Wilcoxon test, Mann-Whitney test (U) and the Kruskal-
Wallis test (H).
Results reveal that the OTC market's trading transparency, costs and supportive and
training mechanisms for investors and companies is appropriate. Furthermore, Iran's
OTC market providing innovation and diversification trading opportunities for
investors and decrease their risk to invest and participate in the capital market. Also,
there is no significant difference between institutional investors and brokers visions
on the examined variables. But, in aspects of educational levels, in all variables andaspects of the activity field, except the transactions transparency, is confirmed this
different perspectives.

Keywords

Participation; Shareholder's Culture; Investment; Over the Counter (OTC) Market; Capital Market

References

[1] Abzari, Mehdi, Samadi, Saeid and Safari, Ali. (2007). the Role of Reference

Group in Motivating Individuals on Investing in Stock Exchange. Quarterly

Journal of Iranian Accounting and Auditing Review; 14 (2): 3-22 (in Persian).

[2] Acharya, Viral and Bisin, Alberto. (2011). Counterparty Risk Externality:

Centralized Versus Over-The-Counter Markets. NBER Working Paper, No.

17000.[3] Arrondel, Luc, Debbich, Majdi and Savignac, Frederique. (2012).

Stockholding and Financial Literacy: New Results from a French Survey.

IPEDR, 50 (22): 109-114

[4] Azizi, Firouzeh. (2004). the study of executive mechanizme of developing

capital market. Research Project, Management and Productivity Study Center,

Tarbiat Modares University (in Persian).

[5] Babus, Ana. (2010). Strategic Relationships in Over-the-Counter Markets.

Discussion Paper, University of Cambridge.

[6] Bilias, Yannis, Georgarakos, Dimitris and Haliassos, Michael. (2013). Equity

Culture and the Distribution of Wealth. Netspar Discussion Paper, No. 010

[7] Bozec, Richard and Dia, Mohamed. (2012). Convergence of Corporate

Governance Practices in the Post-Enron Period: Behavioral Transformation or

Box-Checking Exercise?. Corporate Governance, 12 (2): 243-25

[8] Donyaei, Mohammad. (2011). The Role of Over the Counter (OTC) Market in

Iran's Capital Market Development. Master Thesis, Faculty of Management

and Accounting, University of Sistan and Baluchestan (in Persian).

[9] Duffie, Darrell, Li, Ada and Lubke, Theo. (2010). Policy Perspectives on OTC

Derivatives Market Infrastructure. IMF Working Paper Series, No. 2010-002

[10] European Commission. (2002). Benchmarking Business Angels. Enterprise

Directorate General. Final Report of the Expert Group, Directorate-General

for Enterprise and Industry.

[11] European Commission. (2005). Best Practices of Public Support for Early-

Stage Equity Finance. Final Report of the Expert Group, Directorate-General

for Enterprise and Industry.

[12] European Commission. (2007). Communication from the Commission to the

Council, the European Parliament. The European Economic and Social

Committee and the Committee of the Regions: Removing Obstacles to Cross-

Border Investments by Venture Capital Funds, Brussels, 21.12.2007.

[13] Ezazi, Mohammad Esmail, Salehi, Mahdi and Donyaei, Mohammad (2011a).

A Survey on Transaction Costs: Some Evidence from Iranian OTC Market.

Middle-East Journal of Scientific research. 8 (2): 467-470

[14] Ezazi, Mohammad Esmail, Salehi, Mahdi and Donyaei, Mohammad (2011b).

Transparency of Trading in OTC Market: Some Evidence from Iran. Middle-

East Journal of scientific research, 8 (2): 460-466

[15] Friewald, Nils, Jankowitscha, Rainer and Subrahmanyam, Marti G. (2012).

Illiquidity or Credit Deterioration: A Study of Liquidity in the US Corporate

Bond Market during Financial Crises. Journal of Financial Economics. 105

(1): 18–36

[16] Geissler, Ulrike and Einwiller, Sabine. (2001). A Typology of Entrepreneurial

Communicators: Findings From an Empirical Study in e-Business.

International Journal on Media Management, 3: 154-160.

[17] Green, Richard C., Li, Dan and Schurhoff, Norman. (2010). Price Discoveryin Illiquid Markets: Do Financial Asset Prices Rise Faster Than They Fall.

Journal of Finance, 65(5): 1669–1702.

[18] Guiso, Luigi and Jappelli, Tullio. (2005). Awareness and Stock Market

Participation. Review of Finance, 9 (4): 537-567

[19] Guiso, Luigi, Haliassos, Michael and Jappelli, Tullio. (2003). Equity Culture:

Theory and Cross-Country Evidence. Economic Policy, Printed in Great

Britain, pp. 123–170

[20] Guvenen, F. (2006). Reconciling Conflicting Evidence on the Elasticity of

Intertemporal Substitution: A Macroeconomic Perspective. Journal of

Monetary Economics, 53 (7): 1451–1472

[21] Hacimahmutoglu, Sibel. (2007). The Problems of Minority Protection and

Their solutions Within the Legal Framework in Turkish Corporate

Governance. Journal of Banking Regulation, 8 (2): 131-158

[22] Haliassos, Michael and Hassapis, Christis. (2002). Equity Culture and

Household Behavior. Oxford Economic Papers, 54 (4): 719-745.

[23] Hendershott, Terrence and Moulton, Pamela C. (2011). Automation, Speed

and Stock Market Quality: The NYSE’s Hybrid. Journal of Financial Markets,

14: 568–604

[24] Hennessy, Alexandra. (2007). The Role of Agenda Control in the Creation of

a Single Market for Pension Funds. in: UNSPECIFIED, Montreal, Canada.

(Unpublished)

[25] Hosseini, S. H.; Ezazi, M.E.; Donyaei, M. and Tehrani, R. (2012).

Comparative Study on Ranking of the Top Companies In Tehran Stock

Exchange based on Financial Ratios and TSE Indice with ahp-topsis method,

Financial Engineering and Portfolio Management. 2 (9): 27-50 (in Persian).

[26] Hruska. Sharon Brown and Laux. Paul A. (1999). Complementary Markets,

George Mason University

[27] Huang, R. D. and Stoll, H. R. (1997). The Components of the Bid-Ask Spread:

A General Approach. The Review of Financial Studies, 10: 995-1034.

[28] Madura, Jeff. (2006). Financial Markets and Institutions, Thomson/South-

Western, 7th edition.

[29] Mcgovern, Mark and Candemir, Nurcan. (2006). Agents, Institutions and

Regions in Transition. 46th Congress of the European Regional Science

Association, 30 August 30-3 September 2006, Greece, Volos

[30]Mohammadzadeha, Amir, Hamidib, Naser, Abedic, Sadegh and Jabari,

Fehimeh. (2013). An Application of Multiple Attribute Group Decision

Making in Ranking Investors’ Concerns: A Case Study of Tehran Stock

Exchange. Management Science Letters, 3: 457–462

[31] Nofsinger, John R. and Varma, Abhishek. (2010). Pound Wise and Penny

Foolish? OTC Stock Investor Demographics and Portfolios. Working paper,

Washington State University

[32]Okamoto, Karl S. (2010). A Law and Personal Finance: View of Legal

Origins Theory. Brigham Young University Law Review, Desktop PublishingExample.

[33] Osei. Kofi A. (1998). Analysis of Factors Affecting the Development of an

Emerging Capital Market: The Case of the Ghana Stock Market. AERC

Research Paper, No. 76

[34] Safari, Ali. (2005). Factors Affecting the Individuals’ Capital Attracting in the

Stock Exchange (Case Study: Regional Stock Exchange of Isfahan). Master

Thesis, Faculty of Administrative Sciences and Economics, University of

Isfahan (in Persian).

[35] Tehrani, Reza, Donyaei, Mohammad, Navabi zand, Kambiz, Ghasemi,

Masoud and Hosseini, Seyed-Hasan. (2012). Comparative Study on Ranking

of the Top 50 Companies In Tehran Stock Exchange Based on Financial

Ratios and (TSE) Indices. Archives Des Sciences Journal, 65 (6): 56-69.