Authors : Roya Darabi, Reza Nemati Koshteli and Nastaran Khalafi
Abstract: Financial markets have a key role in mobilizing and channeling funds towards sectors of the economy and industry and thus improve economic growth, as according to some economists, development of financial markets is economic growth thrusters of countries. In this study, the role of financial institutions in the development of capital market in Iran is studied. Therefore, to do research, data and time-series regression model are used to test the hypothesis of the distribution.The results of tests show that, firstly, financial institutions has a direct role in the development of stock exchanges in the Tehran Stock Exchange and secondly, financial institutions have a direct role in increasing the play value of the rial in Tehran Stock Exchange. Therefore, it can be concluded that there is a significant positive relationship between the development of financial institutions and the stock market’s development.
Roya Darabi, Reza Nemati Koshteli and Nastaran Khalafi, 2016. Investigating the Role of Financial Institutions in the Development of Capital Market in Iran. International Business Management, 10: 6307-6312.