Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach

Pejman Ebrahimi, Maria Fekete-Farkas, Parisa Bouzari and Róbert Magda
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Pejman Ebrahimi: Doctoral School of Economic and Regional Sciences, Hungarian University of Agriculture and Life Sciences (MATE), 2100 Gödöllő, Hungary
Maria Fekete-Farkas: Institute of Economic Sciences, Hungarian University of Agriculture and Life Sciences (MATE), 2100 Gödöllő, Hungary
Parisa Bouzari: Department of Industrial Management, Lahijan Branch, Andishmand University, 44 Lahijan, Iran
Róbert Magda: Institute of Economic Sciences, Hungarian University of Agriculture and Life Sciences (MATE), 2100 Gödöllő, Hungary

JRFM, 2021, vol. 14, issue 6, 1-15

Abstract: It is widely believed that the financial system is dependent on the banking industry, and its strength and development are vital for economic prosperity. This paper tried to show the financial performance of Iranian banks listed on the Tehran Stock Exchange (TSE) during 2013–2019, as the research population. The statistical population included 18 banks listed on the TSE from 2013 to 2019, which were sampled using a screening method. The results indicated a significant relationship between explanatory variables of capital ratio and the financial performance of banks in all models. However, a significant negative relationship was found between the inflation rate and the financial performance of banks in all models. Furthermore, it seems that banks with high asset strength are more profitable than the others. Regulators should guarantee that banks remain highly capitalized for a viable banking sector in Iran.

Keywords: financial performance; bank-specific factor; macroeconomic factors; panel data (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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