Evaluating Degrees of Efficiency and the Effects of Macroeconomic Variables on the Performance of Banks Active in the Stock Exchange During 2007-2015

^{Authors: 1}Hadi Mohammadkhani, ²Hossein Abdo Tabrizi, & ³Ezatollah Abbasian

¹PhD. Student of Financial Management in Tehran University, Tehran, Iran

²Associate Professor of Financial Management, Faculty Member of Department of Economics and Management, University of Sharif

³Associate Professor of Economics, Faculty Member of Department of Economics, University of Bu-Ali Sina

 Abstract

The financial sector of the economy, and specifically the banking industry, plays an important role in promotion of investment and promoting economic growth, and hence, this sector has always been one of the main areas of government policy in order to achieve macro-economic objectives. Banks as financial intermediaries play a decisive role in achieving economic growth and development. As well as, the development of the banking industry and its performances can lead to long-term economic growth. In this paper, using the WDEA model, degrees of efficiency, as well as the effects of macroeconomic variables on the levels of performance of the banks is investigated. The results indicate that degrees of efficiency has been associated with increasing the dispersion and degrees of efficiency have had tendency to low degrees of efficiency, and at the macro level, the sanctions and their effects on the economy after 2011 had a negative effect on performance levels.

Keywords: Economy, Bank, Degrees of Efficiency, Performance, Macroeconomic Variables

Download