Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Examining the short-term and long-term effects of the diversification of bank income and assets and the performance of the banking sector on the behavior of bank stocks

Document Type : Original Article

Author
majid akhavan
Master of Business-Financial Management, Science and Research Unit, Islamic Azad University, Tehran, Iran.
Abstract
This research examines the short-term and long-term effects of the diversification of bank income and assets and the performance of the banking sector on the behavior of bank stocks in selected banks admitted to the Tehran Stock Exchange. In this research, all the private banks active in the Tehran Stock Exchange, among which 18 banks are the research sample from 1390 to 1394. In fact, all private banks were selected as a community, and then by applying conditions and restrictions, the qualified sample was considered as the research sample, and finally 18 banks were used as the research sample. Examining the hypothesis of the existence of a long-term relationship between the research variables in the studied banks shows that, first, Johanson's test shows the existence of a long-term relationship between the research variables. It also extracts the long-term vector corresponding to each model that shows the long-term coefficients. Secondly, the one-way causal relationship has been confirmed from assets diversification variables, income diversification variables and banking sector variables towards stock market fluctuations in selected banks.
Keywords
Short-term and long-term effects
diversification of bank income and assets
stock behavior

Subjects