leverage decisions , economy policy uncertainty and peer-bank behavior in accepted banks of TSE

Document Type : Original Article

Authors
sepideh kazemi 1
maryam khalili araghi 2
hashem nikoumaram 2
1 Financial management student for Ph.D., Science and Research branch of Islamic Azad university, Tehran, Iran.
2 Department of financial management, management and economic faculty, Science and Research branch of Islamic Azad university, Tehran, Iran.
Abstract
dealing with rivals is a common and important note for banks. Previous studies have shown that matched and competing banks play an important role in shaping a variety of banking policies, but the impact of the behavior of matched and competing banks on corporate financial decisions is often overlooked. In this regard, this study investigates the impact of the uncertainty of economic policy and bank characteristics on the leverage decisions of financial institutions considering the role of peer-bank behavior. The statistical population of this research is the banks listed on the Tehran Stock Exchange during the period 2016 to 2020. The results showed that the average ratio of net industry profit, the average ratio of market value to book value of industry and fluctuation of net industry profit do not affect the leverage decisions of the bank. However, the average logarithm of the total assets of the industry influences the leverage decisions of the bank. Overall, the results show that like-minded banks do not imitate their industry in choosing foreign financing policies
Keywords
peer banking
Imitative behavior
economic policy uncertainty
leverage decisions
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