Financial and Banking Strategic Studies

Abstract Purpose: Diversification is an essential component of risk management in the investment field. Among the various methods at hand, the establishment of an equal-weight stock portfolio is widely acknowledged as a simple and efficient strategy. This research aims to introduce a new approach based on the equal-weighted stock portfolio strategy to enhance its efficiency in managing risk and making financial decisions.
Methodology: The proposed approach integrates the equal-weight stock portfolio strategy with risk measurement and evaluation tools. By employing common risk measures from the investment management literature, stocks are first evaluated and screened. The remaining stocks are then used to form an investment portfolio using the equal weight portfolio strategy. The risk measures utilized in this research encompass variance, standard deviation, semi standard deviation, value at risk, conditional value at risk, entropic value at risk, drawdown at risk, conditional drawdown at risk, and entropic drawdown at risk.
Findings: To evaluate the performance of the proposed approach, an experimental case study is conducted using monthly historical data of S&P 500 index symbols. The results are compared with those obtained using the traditional equal-weight stock portfolio formation approach. The empirical findings of this study carry practical implications for investors and investment fund managers.
Originality/Value: This research contributes to the field by offering an innovative perspective on stock screening and investment portfolio formation, which can also serve as a valuable measurement criterion.

Abstract Purpose: The asymmetry of information between management and external people causes more conservatism in financial reporting. Conservatism, in turn, reduces managers' motivation and ability to manipulate accounting information, thereby reducing agency costs arising from information asymmetry. In the present study, in addition to examining the effect of information asymmetry on stock returns, the effect of conditional conservatism on the relationship between information asymmetry and stock returns in companies listed on the Tehran Stock Exchange is also discussed. Methodology: In such a way that the researcher, after planning the theoretical foundations and hypotheses of the research, through systematic elimination sampling; he chose the number of 114 companies admitted to the tehran stock exchange in a period of seven years (2015-2021) as a statistical sample and after extracting the necessary data; to test the hypotheses, multiple linear regression model was used using Eviews software. Findings: Research findings; while confirming the hypotheses, he concluded that, firstly, information asymmetry has a positive and significant effect on stock returns, and secondly, conservatism does not directly affect stock returns, but its increase weakens the intensity of the direct relationship between information asymmetry and stock returns. Originality/Value: Therefore, when information asymmetry is high, company managers will create a conservative estimate of market information. Hence, information asymmetry can potentially lead to big mistakes or risks.

Abstract Purpose: One of the basic challenges in corporate and commercial banking is to attract, retain, and build customer loyalty. The purpose of this research is to design and explain the model for improving the attraction, retention, and loyalty of legal customers in the current account product at Sepeh Bank.
Methodology: This research employs a qualitative approach, with grounded theory as the primary method. The method of data collection was a review of previous research, as well as an in-depth, open-ended interview with 22 experts and professionals knowledgeable about the subject (managers, assistants, department heads, and banking experts). The interviewees examined the validity of this research. Experts in this field also assessed reliability through an access audit. To analyze the data, the continuous comparison method was used across three stages: open, central, and selective coding.
Findings: Data analysis shows that the model for improving the attraction, retention, and loyalty of corporate and commercial customers in the current account product has a core component, namely service production and supply policies, and factors related to technology, finance, and profession. The improvement in attracting and keeping corporate and commercial customers depends on the superior control and management of these components.
Originality/Value: Providing a model for improving the attraction, retention, and loyalty of corporate and commercial customers in the current account product.

Abstract Purpose: Today, some scholars believe that exchange rate volatility may reduce the arrival of tourists. Therefore, the purpose of this study was to investigate the effect of exchange rate volatility on the tourism flow in the Iranian economy during the period from the first quarter of 2000 to the fourth quarter of 2020. Methodology: In most past surveys, the standard deviation of the moving average of the exchange rate logarithm has been used as a criterion for calculating exchange rate volatility; in this research, a new criterion was used to assess exchange rate volatility. The research method is based on cointegration theory, including correcting the error in the exchange rate volatility criteria using the ARDL econometric model for cointegration. Findings: The results showed: 1) in addition to the attractions of visiting countries as expected, the ratio of GDP per capita to relative proportions has a positive and significant impact on the flow of tourism, 2) relative prices in most cases are negative and meaningful, meaning that the relative price level between the country of origin and destination has a significant and negative effect, and 3) the exchange rate volatility affect the flow of tourism and the arrival of tourists. Originality/Value: Exchange rate fluctuations have a negative and significant effect on the arrival of foreign tourists to Iran. Therefore, it is necessary for policymakers to consider this category when designing their policy measures. Although, in recent years, with the rise in the exchange rate, the arrival of a significant number of foreign tourists to Iran is expected to increase, the rise in inflation has eroded the advantage of cheap travel to Iran.

Abstract Purpose: Investigation of the impact of the structure of the internal audit committee and the organisational quality of the bank on the financial stability of banks. Methodology: This research is a library and analytical-causal study based on panel data analysis. In this research, the financial information of 10 banks listed on the Tehran Stock Exchange from 2016 to 2021 (60 bank years) has been examined. Findings: The results of the research, in support of hypothesis 1, showed that the structure of the bank's internal audit committee has a positive, direct effect on the bank's financial stability. Finally, based on analyses conducted to confirm hypothesis 2 of the research, we concluded that the bank's organisational quality has a positive, direct effect on its financial stability. Originality/Value: In the years when banks were heavily indebted and breached their financial covenants, the managers of these banks, using modern management techniques, implemented profit management measures and presented a good financial picture of the banks to creditors. One way out of the financial crisis caused by the banks is to improve the quality of internal audit and use profits to expand lending to production and service units. Many banks that were close to bankruptcy struggled to meet their financial obligations. Considering the costs caused by not using internal audit committees, the main consequences of lower return on investments, lower liquidity, re-evaluation of the risks of volatility of organisational quality, the problem of repayment of long-term loans and other financial resources, the financial crisis of banks has spread and the only way out of the crisis that has happened is the availability of loans at low interest rates, new economic policies and government guarantees and, finally, increasing the organisational quality of banks.

Abstract Purpose: Identification and quantification of spillover effects in financial markets is one of the most important topics in financial knowledge. By understanding the spillover channel and measuring spillover effects in financial markets, we can prevent disorder and disruption in markets and, by stabilizing markets, promote economic growth and welfare. In the present situation of the country and amid separate economic sanctions from Western countries, this question arises: how does the spillover effect differ across different economic sanctions scenarios? The purpose of this paper is to answer this question and investigate the spillover effect across different economic sanction periods.      
Methodology: In this order, we collect daily data on the stock, currency, and gold coin markets for the period 2009 to 2021, applying the VARMA-AGARCH model for analysis and surveying. To provide a more precise survey of the sanction role in return spillover, we divided the research period into 4 subperiods: 2 with harsh sanctions and 2 without.
Findings: Results present a direct, positive relation between the intensity of sanctions and the return spillover effect, causing instability and disorder in markets through capital shifts across markets. So we conclude that sanctions play a very important role in return spillovers across different periods of research.
Originality/Value: Using a new and innovative method, this research examines and measures the return spillover effect under variable sanctions conditions, which can be considered an effective factor in return fluctuations across markets.