Management Research in Iran

Investigating the Impact of Financial performance metrics on Financial Stability of Banks in the Financial Crisis

Authors

Mohammad Ali Yousefi Ghaleh Roudkhani 1
Reza Tehrani 2
Seyed Mojtaba Mirlouhi 3

1 PhD student in Financial Management, Department of Management, University of Tehran, Tehran, Iran

2 Professor, Department of Management, Faculty of Management, University of Tehran, Tehran, Iran

3 Assistant Professor, Department of Management, Faculty of Management, Shahroud University of Technology, Shahroud, Iran

Abstract
Banks as one of the influential financial institutions in the economy, their financial performance and financial stability are considered by many governments. How the relationship between bankschr('39') financial performance and financial stability works in times of financial crisis is also very important. Therefore, due to the necessity of this study, the purpose of investigating the effect of financial performance criteria on the financial stability of banks in the financial crisis among banks listed on the Tehran Stock Exchange was conducted. The sample studied in this research included 11 banks (all banks) listed on the Tehran Stock Exchange for a period of six years from 1392 to 1397. Data analysis and research hypotheses were performed using combined regression by EViews10 software. Hypothesis analysis using the Generalized Least Squares (EGLS) method at 95% confidence level showed that return on assets and return on equity have a positive and significant effect on the financial stability of banks. Also, in times of financial crisis, the return on equity leads to an increase in the financial stability of banks.

Keywords

Bank
Financial Crisis
financial performance
Financial Stability
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Management Research in Iran
Volume 25, Issue 2
July 2021
Pages 1-21

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