Other
Meymanat Ebrahimi; Mohammad Vaez Barzani; leila Torki; Hassan Heydari
Abstract
In this paper, the impact of monetary shocks on asset changes and the financial liabilities of different institutional sectors were examined. Afterwards, financial and non-financial tools of the private sector’s balance sheet in the funds flow account were analyzed. For this purpose, the data from ...
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In this paper, the impact of monetary shocks on asset changes and the financial liabilities of different institutional sectors were examined. Afterwards, financial and non-financial tools of the private sector’s balance sheet in the funds flow account were analyzed. For this purpose, the data from 1973 to 2017 of the factor-augmented vector autoregressive (FAVAR) model was employed. Results show that expansionary monetary shock has led to a rise in the assets and financial liabilities belonging to institutional sectors in the first year. With regard to the private sector and the financial tools of its balance sheet, monetary shock significantly impacts this sector’s long-term deposit while it has a weak insignificant impact on the short-term deposit. The monetary shock also has a strong significant impact on the private sector’s taking long-term loans while it has a weak insignificant impact on the short-term loans taken by the same sector. Regarding the non-financial tools of this sector, the expansionary monetary shock has a positive effect on the construction and machinery investment in the short run. In the long run, however, the two variables’ responses are reversed which indicates the negative effect of monetary shock caused by an increase in oil revenues on the private sector’s investment in both the construction and the machinery sector. As a result, it can be concluded that the oil revenue reduces the private sector’s relative size in Iran economy.
Monetary economics
Esmaeil Jafarimehr; bahram sahabi; Hassan Heydari
Abstract
Recent financial literature argues that there are gender differences between men and women, impacting financial decision making and performance. This paper, using data related to micro-loans of an Iranian private (commercial) bank between 2012 and 2018, investigates the effects of the characteristics ...
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Recent financial literature argues that there are gender differences between men and women, impacting financial decision making and performance. This paper, using data related to micro-loans of an Iranian private (commercial) bank between 2012 and 2018, investigates the effects of the characteristics of the members of the branch credit committees (BCCs), especially gender, on loan quality. Because, the dependent variable (loan quality) is a discrete ordinal variable and based on the Brant test’s result the proportional odds assumption was violated, the generalized ordinal logit model was used. The results of this paper show that increasing the presence of women in BCC improves the quality of micro-lending. Based on the literature and related studies, a potential explanation for these results is that increasing the number of women in the BCC improves the compliance of the decision-making and lending processes with the credit guidelines and recommendations, increases the BCC risk aversion, and reduces the agency problem by improving monitoring in the BCC. Moreover, the results also show that the quality of micro-lending management by BCCs with a higher average age is poorer than that of a younger BCC, and the higher education of the BCC members improves micro-lending quality.
