Investigating the Effect of Shadow Banking on the Banks’ Risks in Terms of Capital Adequacy in Tehran Stock Exchange
Mehdi Fadaee, Saeid Yousefizadeh Naeini
The aim of the current study was to investigate the effect of shadow banking on the banks’ risks in terms of capital adequacy in the Tehran Stock Exchange. This research was conducted during 2011 to 2016 and the accepted banks were selected as the samples. In order to analyze the research data through a mixed method, a multivariate regression model has been used in EViews econometric software. In this research, the dependent variable was risk-taking and the independent variable was capital adequacy, the mediator variable was governance system and the control variables were financial leverage, size and return on assets. The research findings showed that there was a significant relationship between risk-taking and banks’ capital adequacy in shadow banking. Moreover, there was a significant relationship between risk-taking and banks` governance system in shadow banking. However, the bank governance system did not play a mediating role with regard to the relationship between risk-taking and capital adequacy of banks in shadow banking.