The effect of total factor productivity on mobilization of financial resources in the stock market of Iran

Document Type : Research Paper

Authors

1 Faculty Member of Tolou-e-Mehr Non-profit Institute of Higher Education

2 Professor of Economics, Alzahra University, Tehran, Iran

Abstract

The goal of investing and participating in the stock market and other markets is usually to achieve expected returns. Improving the total factor productivity leads to increased competitiveness, which contributes to the expansion of the market for the products of bourse companies both at home and abroad; the profitability of those companies is, thus, increased. As a result, the improvement of returns will increase the incentive for investors to direct their resources to bourse companies. Also, increasing the total factor productivity leads to an increase in the expected returns of bourse companies which, in turn, leads to increased demand for investment in the stock market. The aim of this study is to investigate the effect of total factor productivity on the mobilization of financial resources in Iran’s stock market. For this purpose, quarterly data of the 1993-2015 period and Ordinary Least Squares are used. The results of the research show that total factor productivity has a positive and significant effect on the mobilization of the financial resources in the stock market. Similarly, other variables such as stock market liquidity, saving rate and the dummy variable of approval procedures for the online trading of securities have positive and significant effects on the mobilization of financial resources. However, the economic risk and return of rival markets have a negative and significant effect in this regard.

Keywords

Main Subjects

References

  1. ابزری، مهدی. عابدی شربیانی، علی‌اکبر. و یاری، عوض (1391). "بررسی تاثیر عوامل کلان اقتصادی و سیاسی بر توسعه بازارهای مالی". کنفرانس ملی حسابداری، مدیریت مالی و سرمایه‌گذاری، دانشگاه جامع علمی-کاربردی استان گلستان.
  2. امامی میبدی، علی (1379). "اصول اندازه‌گیری کارایی و بهره‌وری". فصلنامه پژوهشنامه بازرگانی 1(5): 80-64.  
  3. ترابی، تقی. و هومن، تقی (1389). "اثرات متغیرهای کلان اقتصادی بر شاخص‌های بازدهی بورس اوراق بهادار تهران". فصلنامه مدلسازی اقتصادی 1(1): 144-121.
  4. تهرانی، رضا. و خجسته، محمدعلی (1387). "رابطه بهره‌وری سرمایه با بازده آتی سهام و تاثیر آن بر استراتژی‌های سرمایه‌گذاری ارزشی و رشدی". فصلنامه علوم مدیریت ایران 3(11): 20-1.
  5. جعفری، مهدی (1395). تاثیر امنیت سرمایه‌گذاری بر تجهیز منابع مالی بازار سرمایه ایران، پایان نامه دکتری، دانشگاه مفید.
  6. خلیلی عراقی، منصور. و رمضانپور، اسماعیل (1380). "اهمیت محیط باثبات اقتصاد کلان". مجله تحقیقات اقتصادی 58(36): 28-1.
  7. دادگر، یداالله. و نظری، روح‌االله (1388). "ارزیابی شاخص‌های مالی در ایران". اولین کنفرانس بین‌المللی توسعه نظام تأمین مالی در ایران، مرکز مطالعات تکنولوژی دانشگاه صنعتی شریف.
  8. زارع‌شاهی، احمدعلی (1379). "بی‌ثباتی سیاسی و امنیت اقتصادی؛ و تاثیر آن بر عوامل تولید در ایران". فصلنامه مطالعات راهبردی 3(7): 241-222.
  9. شاه‌آبادی، ابوالفضل (1383). "بررسی اثر بهره‌وری کل عوامل بر قدرت رقابت‌پذیری (مطالعه موردی ایران)". نامه مفید (45): 169-139.
  10. عزتی، مرتضی. و دهقان، محمدعلی (1387). امنیت اقتصادی در ایران، تهران، مطالعات اقتصادی مرکز پژوهش‌های مجلس شورای اسلامی.
  11. قائمی، محمدحسین. حمیدی، سلمان. و زواری رضایی، اکبر (1390). "رابطه شاخص‌های مالی و شاخص بهره‌وری در شرکت‌های تولیدی". مجله حسابرسی (52): 5-1.
  12. نیلی، مسعود. و راستاد، مهدی (1382). "نقش نهادهای مالی در توسعه اقتصادی: عملکرد و چشم انداز (تجربه ایران)". م‍ج‍م‍وعه‌ م‍ق‍الات ‌سیزدهمین کنفرانس سالانه سیاست‌های پولی و ارزی: تهران، پژوهشکده پولی و بانکی.
    1. Abdelbaki, H. H. (2013). "Causality Relationship between Macroeconomic Variables and Stock Market Development: Evidence from Bahrain". The International Journal of Business and Finance Research 7(1): 69–84.
    2. Ang, J. B. and McKibbin, W. J. (2007). "Financial Liberalization, Financial Sector Development and Growth: Evidence from Malaysia". Journal of Development Economics 84(1): 215-233.
    3. Avouyi, D. and Matheron, J. (2006). "Productivity and Stock Prices". Financial Stability Review 8: 81-94.
    4. Bekaert, G. Lundblad, C. and Harvey, C. R. (2011). "Financial Openness and Productivity". World Development 39(1): 1-19.
    5. Bencivenga, V. R. & Smith, B. D. (1991). "Financial Intermediation and Endogenous Growth". Review of Economics Studies 58(2): 195-209.
    6. Bonfiglioli, A. (2008). "Financial Integration, Productivity and Capital Accumulation". Journal of International Economics 76(2): 337-355.
    7. Chun, H. Kim, J. W. and Morck, R. (2016). "Productivity Growth and Stock Returns: Firm- and Aggregate-Level Analyses". Applied Economics DOI: 10.1080/00036846.2016.1142659
    8. Cherif, M. & Gazdar, K. (2010). "Institutional and Macroeconomic Determinants of Stock Market Development in MENA Region: New Results from a Panel Data Analysis". The International Journal of Banking and Finance 7(1): 139-159.
    9. Copeland, T. Koller, T. and Murrin, J. (1996). Valuation: Measuring and Managing the Value of Companies (2nd Ed.), John Wiley and Sons, Inc. Hoboken, New Jersey.
    10. Garcia, F. V. and Liu, L. (1999). Macroeconomic Determinants of Stock Market Development. Journal of Applied Economics 2(1): 29-59.
    11. Greenwood, J. and Jovanovic, B. (1990). "Financial Development, Growth, and the Distribution of Income". Journal of Political Economy 98(5): 1076-1107.
    12. Hall, R. E. & Jones, C. I. (1999). "Why do Some Countries Produce so much more Output Per Worker than Others?". The Quarterly Journal of Economics 114(1): 83-116.
    13. Hiriyappa, B. (2008). Investment Management: Securities and Portfolio Management, New Dehli, New Age International (P) Ltd., Publishers.
    14. Ho, S. Y. and Iyke, B. N. (2017). "Determinants of Stock Market Development: A Review of the Literature". Studies in Economics and Finance 34(1): 1-24.
    15. Holmen, M. Marton, J. and Sjogren, S. (2002). "The Relation between Technological Innovations. Firm Value and Accounting Reports in the Airline Industry". Working Paper Presented at EAA Conference in Copenhagen Denmark, 25-27th of April.
    16. İmrohoroğlu, A. and Tüzel, S. (2014). "Firm-Level Productivity, Risk, and Return". Management Science 60(8): 2073-2090.
    17. Jun, Z. Hongzhong, Z. Thierry, B. & Yannick, G. Z. S. (2015). "Macroeconomic Determinants of Stock Market Development in Cameroon". International Journal of Scientific and Research Publications 5(1): 1-11.
    18. Khan, U. S. (2005). Macro determinants of total factor productivity in Pakistan. Munich Personal RePEc Archive, MPRA Paper 8693, 2. Retrieved from http://mpra.ub.uni-muenchen.de/8693/.
    19. Khorshidi, H. A. Mokhatab Rafiei, F. & Hoseini, S. M. (2010). "Macroeconomic Determinants of Stock Market Development, Evidence of Iran". International Journal of Decision Science 1(2): 135-144.
    20. King, R. and Levine, R. (1993). "Finance and Growth: Schumpeter Might be Right". The Quarterly Journal of Economics 108(3): 717-737.
      1. Kose, M. A. Prasad, E. S. & Terrones, M. E. (2008). "Does Openness to International Financial Flows Contribute to Productivity Growth?" . IZA Discussion Papers from Institute for the Study of Labor (IZA) Paper 3634.
      2. Kurach, R. (2010). "Stock Market Development in CEE Countries-The Pane Data Analysis". Ekonomika 89(3): 20-29.
      3. Levine, R. (1997). "Financial Development and Economic Growth: Views and Agenda". Journal of Economic Literature 35: 688-726.
      4. Pellegrini, C. B. Sergi, B. S. and Sironi, E. (2017). "Stock Returns, Productivity, and Corruption in Eight European Fast-Emerging Markets". Thunderbird International Business Review 59(1): 15-22.
      5. Tadesse, S. (2005). "Financial Development and Technology". William Davidson Institute Working Papers Series WP879, Working Paper Number 749. www.world-exchanges.org/home/index.php/statistics/annual-statistics.
      6. Yartey, A.C. (2008). "The Determinants of Stock Market Development in Emerging Economies: Is South Africa Different?". IMF Working Paper WP/08/32.
      7. Yartey, C. A. (2010). "The Institutional and Macroeconomic Determinants of Stock Market Development in Emerging Economies". Applied Financial Economics 20: 1615-1625.
The Journal of Economic Policy
Volume 11, Issue 21
September 2019
Pages 151-170

Files

Share

How to cite

Statistics