The Effect of Non-Shared Income Share on Risk of Banks in Iran

Autor: Majid Alirezaee, Mohammad Javad Mohagheghnia, Mohammad Ali Dehghan Dehnavi
Jazyk: perština
Rok vydání: 2018
Předmět:
Zdroj: مطالعات مالی و بانکداری اسلامی, Vol 4, Iss بهار, Pp 1-25 (2018)
Druh dokumentu: article
ISSN: 2588-3569
2588-4433
Popis: This research investigates the effects of increase in the non-shared revenue share of total revenue on risks faced by Iranian banks over the years 2008-2014 using generalized method of moments (GMM). Data were collected from the balance sheets of 18 active banks as well as the central bank website. To measure the risk four indicators including the volatility of return on equity, the volatility of asset returns, NPL and logarithmic index of stability are employed. The results show that increase in the non-shared revenue share of total revenue not only reduce the overall risk but also increase the stability and sustainability of the banks. In addition, analyzing sub hypothesis of this study shows that this effect is greater during the economic boom.
Databáze: Directory of Open Access Journals