Authors : Alirahm Bagheri, Bahareh Banitalebi Dehkordi and Mahmood Bakhshi Nezhad
Abstract: The aim of this study was to evaluate the liquidity growth rate of bank reserves listed in the Tehran Stock Exchange. Accordingly, based on the Kashyap and Stein models and Levinthal, “bank reserves” are defined as the dependent variable, rate of return on assets as the independent variable, facilities rate, bank size, growth opportunities and profitvolatilitycontrol variables. The population of this research consisted of commercial banks listed on the Tehran Stock Exchange and among which sixteen banks were selected as sample size banks using systematic elimination. The results show the direct relationship between liquidity volatility with bank reserves as a measure of deposits of different clients in banks as the dependent variable. In addition, the interpretation of gradient in control variables of estimation relationship indicated that there was a reversed relationship between the facilities rate and the size of banks with bank reserves and also a direct relationship between growth opportunities and earnings volatility with bank reserves or customer' deposits. Student-t test and Fisher test for the estimated coefficients and the total estimated relationship supported 95% of relationships between variables. The coefficient of determination showed that between 5/83 to 5/87 of changes between the independent variables and control was represented by bank reserves by the estimated relationship and the estimated relationship between the variables has had relatively full explanatory power.
Alirahm Bagheri, Bahareh Banitalebi Dehkordi and Mahmood Bakhshi Nezhad, 2016. Assessment of the Impact of the Liquidity Growth Rate on the Bank Reserves Listed in the Tehran Stock Exchange. International Business Management, 10: 6678-6684.