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، زمستان 2020، صفحه 15-29  

نوع مقاله: Finance

شناسه دیجیتال (DOI): 10.22067/ijaaf.2021.39502

نویسنده

Habib Piri

Department of Accounting, Zahedan Branch, Islamic Azad University

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