Investigating the Impact of Business Complexities on the Risk-Taking of Iranian Banks | ||
| International Journal of New Political Economy | ||
| مقاله 11، دوره 6، شماره 2، 2025، صفحه 271-303 اصل مقاله (446.8 K) | ||
| نوع مقاله: Original Article | ||
| شناسه دیجیتال (DOI): 10.48308/jep.2025.241360.1243 | ||
| نویسندگان | ||
| Zeinab Askari1؛ Mohammad Hossein Ranjbar* 2؛ Faegh Ahmadi3؛ Hossein Badiei4 | ||
| 1Department of Accounting, Qe. C., Islamic Azad University, Qeshm, Iran. | ||
| 2Department of Accounting and Finance, BA. C., Islamic Azad University, Bandar Abbas, Iran | ||
| 3Department of Accounting and Finance, Qe. C., Islamic Azad University, Qeshm, Iran. | ||
| 4Department of Accounting and Finance, ST.C., Islamic Azad University, Tehran, Iran. | ||
| چکیده | ||
| This study investigates how multiple facets of corporate complexity influence risk exposure in the Iranian banking sector, using a panel data sample from 21 banks spanning the years 2009 through 2022. Complexity is assessed through two key metrics: non-core assets (nonbank assets) and revenue generated from non-interest activities. Findings from the static model suggest that a greater proportion of non-core assets correlates with lower levels of bank risk. In contrast, non-interest revenue exhibited no meaningful relationship with risk. Additional tests determined that the risk mitigation observed from non-core assets does not operate via increased non-interest income, leading to a rejection of the hypothesized mediating effect. Additionally, it was discovered that bank size, which was included as a moderator, had no discernible impact on this association. In contrast, a dynamic assessment using the System GMM approach produced conflicting results. The key discovery here is proof that bank risk has inherent persistence. Once dynamic variables were properly controlled, the impact of non-core assets on risk was statistically insignificant. This finding shows that the complexity-risk link is less direct than static techniques suggest, as long-run risk features tend to outweigh the effect of specific components. The study improves understanding of the complexity-risk nexus by presenting empirical data from a rising market and emphasizes the importance of using dynamic methodological frameworks in future research. | ||
| کلیدواژهها | ||
| Banks؛ Business complexity؛ Non-bank assets؛ Revenue streams؛ Risk taking | ||
| مراجع | ||
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