FACTORS AFFECTING THE VALUE OF BANK SHARES IN TEHRAN STOCK EXCHANGE

Alireza Mousavi, Ali Karshenasan

Abstract


Growth opportunities for investments form an important part of the bank's value. When investors determine value of the bank according to the bank's accounting report, it is necessary to consider the bank's expectations for growth investments. With the development of capital markets has been more pronounced role of performance measures at reflecting in the performance of banks through their existing content. Identify economic and financial accounting factors which influence from different directions on the value of bank shares are effective in creating positive conditions for increasing investment and financial credit absorption of bank. Taking into account the stated conditions, the purpose of this investigation is to investigate factors affecting the value of bank stocks. Needed data for research are collected from 25 active banks in Tehran Stock Exchange during 2008-2014. The data are analyzed using Excel, SPSS and E-views soft wares. Im, Pesaran, and Shin test is used to evaluate the reliability of variables, then F-Limer fitness tests and Hausman are reported and finally regression model corresponding to the research questions is fitted. Obtained results show that bank size, bank performance, inflation rate and bank credit risk have impact on market value of bank shares.

JEL: D53, E31, G32

 

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Keywords


value of bank shares, bank size, bank performance, inflation rate, bank credit risk

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