Document Type : Case Study

Authors

1 Department of Accounting, Islamic Azad University Damghan Branch, Damghan, Iran

2 Allameh Tabataba'i University, Faculty of Management and Accounting, Tehran, Iran

Abstract

Market development is one of the goals of accelerated and continuous economic growth which plays a major role and has always been one of the key topics in economic development, thus, market development is considered as one of the preconditions for growth and economic development. The objective of this article is evaluation of the effect of financial market and bank’s development on capital ratio of banks listed on the Tehran Stock Exchange during the period from 2009 to 2014 which includes 11 banks and 66 observations. Spss and Eviews were used to test the hypotheses. The results indicated that there is a direct and significant relation between the development of capital market and capital ratio of bank and direct and significant relation between the development of bank and capital ratio of bank.

Keywords

Dong,Su.(2010).TheRelationshipBetweenWorking  Capital  Management  And  Profitability:  A  Vietnam  Case.  International  Research  Journal  Of  Finance  And  Economics; ;  49:  1450- 2887
Joshua, A. (2007). Debt policy and performance of SMEs: Evidence / Debt policy and performance of SMEs_Debt policy and performance of SMEs_ The Journal of Risk Finance_ Vol 8, No 4. Htmlfrom Ghanaian and South African firms. Journal of Risk Finance, 8, 364-379.
Mahdavi, R and Mahdavi, R (2011). The impact of foreign direct investment and financial market development on economic growth. New Journal of Economics and Business, Issue 14, fall 2008, pp. 129-147.
Prasad, B. and Harler, P.T. (1997). Examining the Conribution of information technology toward productivity and profitability in U.S. Retail Banking, Working paper
Sabaie, AM (2011). The relationship between macroeconomic variables and the profitability of Parsian Bank. Master's thesis, affiliated with the University of Science and Culture.
Samadi, S; Nasrollahi, Kh and Karamalian Sichani, M (2007), "The relationship between the development of financial markets and economic growth", Journal of Economic Research, Issue Three, Fall, pp. 1-16.
Sameti, M., Ranjbar, H and Hemmatzadeh, M. (2012). A comparative study of the effect of financial development on economic growth under asymmetric information (the case of developed countries and developing). Journal of Research and Economic Development, Issue ninth, Esfand 2012.
SeyyedNourani, M, Amiri, H and Mohammedan, AS. (2012). Causal relationship between bank capital and profitability: with emphasis on the regulatory capital structure. Journal of Economic Growth and Development, 2 (6). 44-11.
Vithessonthi, Ch. (2012), " Financial markets development and bank risk: Experience from Thailand during 1990–2012", Journal of Multinational Financial Management, No 27 (2014), pp 67-88.