The Role of Management Ability, Political Influence and Financial Pressure in the Assets and Liability Management of Iranian Banks

Iranian Journal of Accounting, Auditing and Finance

دوره 4، شماره 4، اسفند 2020، صفحه 15-29   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2021.39502

نویسنده

Habib Piri^*

Faculty of Economics and Administrative Sciences, Zahedan Branch, Islamic Azad University, Zahedan, Iran

چکیده

This study aims to assess how management ability, political influence, and financial pressure affect Iranian banks' assets and liability management. To do this, the information of 11 active banks on the Tehran Stock Exchange is analyzed during 2009-2017. Three indices of liability to capital ratio, deposit to total assets ratio, and loans to total assets ratio are used for assessing the assets and liability management of banks. The results show that, first, management ability contributes to the liability to assets ratio. However, there is no significant relationship between management ability and deposit to assets ratio and loan to assets ratio. Second, political influence is inversely associated with the liability to capital ratio. This paper is the first study to assess such a topic in an emerging market. Thus, the results can provide useful insights for the financial analysts, shareholders, investors, government, and directors of banks in neighborhood countries.

کلیدواژه‌ها

Management ability؛ Political influence؛ Financial pressure؛ Assets and liability management؛ Liability to capital ratio؛ Deposit to total assets ratio؛ Loans to total assets ratio

مراجع

Biety, M. (2012). An introduction to Liquidity and Asset Management. World Council of Credit Union,

Chen. Ch. (2009). Bank Efficiency in Sub-Saharan Africa Middle –Income Countries IMF. international monetary fund, ISBN: 9781451871616/1018-5941

García-Meca, E. and García-Sánchez, I.M. (2018). Does managerial ability influence the quality of financial reporting?. European Management Journal,  36(40), 544-557.‏ https://doi.org/10.1016/j.emj.2017.07.010

Greuning, H. and Bratanovic, S.B. (2000). Analyzing Banking Risk, Washington, D.C.The World Bank.

Guttman, J.L. (1994). Private Investment in Developing Countries: An Empirical Analysis. International Monetary Fund, 38(1), 33-58. https://www.jstor.org/stable/3867034

Brayan, J. (1993). Index of economic freedom. Washington: the heritage foundation. https://www.heritage.org/index/about

Lina, N. and Petraitytė, I. (2014). Assessment of Banks Asset and Liability Management: Problems and Perspectives (Case of Lithuania). Procedia - Social and Behavioral Sciences, 110, 1082 – 1093. https://doi.org/10.1016/j.sbspro.2013.12.955

Morsman, E.M. (1997). Commercial loan structuring. Journal of commercial bank lending, 74(3), 24-42.

Myers, S.C. (1984). The paradox of liquidity. The Quarterly Journal of Economics, 113930, 733-71. https://www.nber.org/papers/w5143

Vaidyanathan, R. (1999). Asset-liability management: Issues and trends in Indian context. Asci Journal of Management, 29. 39-48.

Watts, R. (1993). A Proposal for Research on Conservatism. Presented at the American Accounting Association Annual Meeting (San Francisco, CA). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6044.