[Home ] [Archive]   [ فارسی ]  
:: Volume 8, Issue 1 (Winter 2013) ::
jme 2013, 8(1): 141-167 Back to browse issues page
The Determinants of Banks’ Capital Structure: The case of Iran
Mahshid Shahchera
Abstract:   (3561 Views)

The capital structure and regulation of financial intermediary firms are important topics for regulators and academic researchers. In general, theory predicts that firms choose their capital structures by balancing the benefits of debt against its costs. The purpose of this paper is to analyze capital structure as a function of bank's specific variable factors. It examines the relationship between banks' capital ratio and the determinants of capital structure in the Iranian banking industry. This paper uses a dynamic panel data during the period 2000 to 2009. The main results suggest that z-score, return on equity and business cycle are positively correlated with capital ratio. But size of bank, cost ratio and deposits ratio are negatively correlated with capital ratio. The excess capital held by Iranian banks seems to be explained by their profitability, the high stability and soundness of banking system. Z-score, regulation, liquid asset and product of regulation and business cycle are positively correlated with capital ratio, but size, profitability, loan-asset ratio and deposits ratio are negatively correlated with capital ratio.

 

JEL classification: G21, G32, G28, C23

Received: 6/30/2013                          Approved: 7/29/2013

Keywords: Capital Ratio, Soundness Banking, Capital Determinants, Dynamic Panel Data
Full-Text [PDF 724 kb]   (1532 Downloads)    
Type of Study: Research | Subject: Economics
Received: 2014/10/1 | Accepted: 2014/10/1 | Published: 2014/10/1
Send email to the article author

Add your comments about this article
Your username or Email:

CAPTCHA code


XML   Persian Abstract   Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Shahchera M. The Determinants of Banks’ Capital Structure: The case of Iran. jme. 2013; 8 (1) :141-167
URL: http://jme.mbri.ac.ir/article-1-87-en.html


Volume 8, Issue 1 (Winter 2013) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
Persian site map - English site map - Created in 0.05 seconds with 30 queries by YEKTAWEB 3781