Authors : Maryam Khalili Araghi and Mohammad Reza Soleymani
Abstract: The aim of this study was to investigate the effect of bank competition on stability of the banks listed in Stock Exchange Market. Sample of 10 banks listed on the stock market were selected during the years 2007-2012 to test the hypothesis. The multivariate regression model based on combined data is used to analyze the data and testing of hypothesis. In this research, the effect of three measures of banking soundness, market pricing power and market pricing power due to banking soundness are investigated as indicators of competitiveness, on the systematic risk as an indicator of the bank stability. The results indicate that there is significant and direct relationship between the bank soundness and systematic risk and there is significant and inverse relationship between market pricing power and the systematic risk and finally between markets pricing power due to the bank soundness on systemic risk, too.
Maryam Khalili Araghi and Mohammad Reza Soleymani, 2016. The Effect of Competition on the Stability of the Banks Listed in Tehran Stock Exchange. International Business Management, 10: 2130-2136.