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:: year 17, Issue 62 (2-2025) ::
JMBR 2025, 17(62): 661-688 Back to browse issues page
The Effect of Monetary Policies Uncertainty and Banks Stability on Capital Structure Dynamic Adjustment Speed
Mostafa Shamsoddini *
Department of Accounting and Economics, Faculty of Management, Economics and Accounting, University of Hormozgan
Abstract:   (85 Views)

The purpose of this study is to analysis the effect of monetary policies uncertainty and banks stability on capital structure dynamic adjustment speed. The population of this research includes all banks listed on the Tehran Stock Exchange that were active on the market from the beginning of 2014 to the end of 2023. In accordance with the research objectives, research hypotheses were formulated based on a statistical sample of 14 banks admitted to the Tehran Stock Exchange. The hypotheses were tested using the dynamic panel estimation method, which employed the generalized moments method and Arellano-Bond estimators through the EViews software. The results indicate that in the context of monetary policies uncertainty, the capital structure dynamic adjustment speed of banks has increased; Conversely, in conditions of stability in the bank’s performance, the capital structure dynamic adjustment speed has decreased. Furthermore, the vector coefficients of the bank's specific characteristics in the model are significant, and the variables of bank size, liquidity coverage and capital adequacy have a positive effect, and the variables of return on assets, net non-current facilities and cost of financial facilities have a negative effect on the bank's capital structure. Understanding how these factors interact can provide valuable insights into how to manage financial challenges and optimize the bank’s capital structure in a dynamic environment and to explain the need for central bank officials and bank’s managers to pay attention to monitor the consequences of monetary policies uncertainty.

Article number: 4
Full-Text [PDF 496 kb]   (25 Downloads)    
Type of Study: Case Study | Subject: Monetary Policy, Central Banking, and the Supply of Money and Credit (E5)
Received: 2024/07/7 | Accepted: 2024/12/10 | Published: 2025/04/13
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year 17, Issue 62 (2-2025) Back to browse issues page
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