Volume 20, Issue 3 (9-2025)
J. Mon. Ec. 2025, 20(3): 391-414 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Moghaddam M, Jamali J, Rahnamarodposhti F. Feasibility study of forfeiting in Iranian financial markets. J. Mon. Ec. 2025; 20 (3) :391-414
URL: http://jme.mbri.ac.ir/article-1-737-en.html
URL: http://jme.mbri.ac.ir/article-1-737-en.html
1- Department of Management and Economics, SR.C., Islamic Azad University, Tehran. Iran.
Abstract: (363 Views)
Forfaiting, as one of the modern instruments of international trade finance, enables the conversion of medium- and long-term receivables into immediate liquidity while transferring the full spectrum of political, commercial, and credit risks to financial institutions. This method has played a significant role in facilitating transactions and enhancing the competitiveness of exporters in many countries, particularly in emerging economies. Despite these advantages, no clear institutional and legal framework has yet been developed for its implementation in Iran, and the existing research has largely been confined to theoretical and legal aspects. This gap highlights a critical research necessity, the examination of which can contribute to financial and trade policymaking in the country.
The purpose of the present study is to assess the feasibility of establishing a forfaiting institution in Iran’s financial market and to analyze its effect on reducing investment risk. The research is applied in nature and conducted through a descriptive–survey method. The statistical population consisted of 152 experts in the monetary and banking sector as well as financial market practitioners, with data collected using a structured questionnaire. The validity of the instrument was confirmed by experts and statistical criteria, while its reliability was verified through Cronbach’s alpha and composite reliability values exceeding 0.7. The collected data were analyzed using SPSS (version 24) and SmartPLS software. Within this framework, four main dimensions—risk reduction, risk coverage, operational mechanism, and institutional framework—were examined as determinants of the feasibility of forfaiting.
The purpose of the present study is to assess the feasibility of establishing a forfaiting institution in Iran’s financial market and to analyze its effect on reducing investment risk. The research is applied in nature and conducted through a descriptive–survey method. The statistical population consisted of 152 experts in the monetary and banking sector as well as financial market practitioners, with data collected using a structured questionnaire. The validity of the instrument was confirmed by experts and statistical criteria, while its reliability was verified through Cronbach’s alpha and composite reliability values exceeding 0.7. The collected data were analyzed using SPSS (version 24) and SmartPLS software. Within this framework, four main dimensions—risk reduction, risk coverage, operational mechanism, and institutional framework—were examined as determinants of the feasibility of forfaiting.
Type of Study: Original Research - Theoric |
Subject:
Development Economics
Received: 23 Sep 2025 | Accepted: 30 Sep 2025 | Published: 2 Nov 2025
Received: 23 Sep 2025 | Accepted: 30 Sep 2025 | Published: 2 Nov 2025
References
1. رفرنس های متنی مثل خروجی کراس رف را در اینجا وارد کرده و تایید کنید
Abdipour, A., & Ghoochani, A.Z. (2017). Examination of the relationships among the main parties to the forfaiting contract inspired by the Uniform Rules on Forfaiting and the United Nations Convention on the Assignment of Receivables. Journal of Comparative Legal Studies, 21(1), 105-129. [In Persian]
2. Contessi, S., & De Nicola, F. (2012). What do we know about the relationship between access to finance and international trade? (Working Paper No. 2012-054B). Federal Reserve Bank of St. Louis.
https://doi.org/10.20955/wp.2012.054 [DOI:10.20955/wp.2012.054.]
3. Daube, D., Vollrath, S., & Alfen, H. W. (2008). A comparison of project finance and the forfaiting model as financing forms for PPP projects in Germany. International Journal of Project Management, 26(4), 376-387. [DOI:10.1016/j.ijproman.2007.07.001]
4. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. [DOI:10.1177/002224378101800104]
5. Froot, K. A., Scharfstein, D. S., & Stein, J. C. (1993). Risk management: Coordinating corporate investment and financing policies. The Journal of Finance, 48(5), 1629-1658. [DOI:10.1111/j.1540-6261.1993.tb05123.x]
6. Gangadharan, V. (2014). Forfaiting: Updating the guidelines for trade financing. The Global Treasurer. https://www.theglobaltreasurer.com
7. Geisser, S. (1975). The predictive sample reuse method with applications. Journal of the American Statistical Association, 70(350), 320-328. [DOI:10.1080/01621459.1975.10479865]
8. Ghoochani, A. Z. (2019). The nature of forfaiting in comparison with other financing methods. Journal of Private Law Studies, 8(28), 9-38. [In Persian]
9. Guild, I., & Harris, R. (1985). Forfaiting: An alternative approach to export trade finance. Woodhead-Faulkner.
10. Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Sage Publications.
11. Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20, 277-319. [DOI:10.1108/S1474-7979(2009)0000020014]
12. International Chamber of Commerce. (2013). Uniform rules for forfaiting (URF 800). ICC Publishing.
13. Karbowski, A. (2021). Forms of forfaiting. Munich Personal RePEc Archive (MPRA). https://mpra.ub.uni-muenchen.de/108366/
14. Koehli, J., & Zuleger, V. (2006). Forfeiting financing and the construction of the waste-fuelled power station (Müllheizkraftwerk) MHKW Rothensee GmbH. Competition policy newsletter, (2), 68-70.
15. Mahdavi-Sabet, M., & Haghighi, S. (2020). The legal nature of forfaiting (absolute discounting) in Iranian and U.S. law. Retrieved from https://civilica.com/doc/1262312. [In Persian]
16. North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press. [DOI:10.1017/CBO9780511808678]
17. Rashvand, M., Tabaei, A., S., & Haghighi, S. (2020). Legal relationships and financing instruments in forfaiting contracts: A case study of the bill of exchange. Journal of Law and New Technologies, 1(2), 151-178. https://www.sid.ir/fa/journal/ViewPaper.aspx?id=543522 [In Persian]
18. Scott, W. R. (2008). Institutions and organizations: Ideas and interests (3rd ed.). Thousand Oaks, CA: Sage Publications.
19. Stone, M. (1974). Cross‐validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society: Series B (Methodological), 36(2), 111-147. [DOI:10.1111/j.2517-6161.1974.tb00994.x]
20. Tabaei, S. A., & Haghighi, S. (2017). The nature of the forfaiting contract in Iranian and U.S. law. Journal of Legal Excellence, 3(21), 107-137. [In Persian]
21. Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational statistics & data analysis, 48(1), 159-205. [DOI:10.1016/j.csda.2004.03.005]
22. United Nations Conference on Trade and Development. (2025, October 20). Trade and Development Report 2025: On the brink: Trade, finance and the reshaping of the global economy (UNCTAD/GDS/INF/2025/2).
23. Velentzas, J., Kartalis, N., & Broni, G. (2013). The factoring and forfaiting contract as contemporary types of finance: Especially the Greek regulations. Procedia Economics and Finance, 5, 757-762.
https://doi.org/10.1016/S2212-5671(13)00088-9 [DOI:10.1016/S2212-5671(13)00088-5]
24. Whittaker, V. (2000). The quick buck, international finance, and forfaiting. Thomas Jefferson Law Review, 23.
| Rights and permissions | |
 |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
