Financial and Banking Strategic Studies

Abstract Purpose: In developing countries, including Iran, optimal financial risk management and performance enhancement in banks are major challenges. This research examines the impact of key financial ratios on the risk-adjusted return on capital (RORAC) in non-governmental commercial banks in Iran, aiming to identify influential components that enhance banking performance and reduce risk.
Methodology: This study utilizes data from 17 non-governmental commercial banks in Iran over the period 2015 to 2022 and employs the Generalized Method of Moments (GMM) to analyze the relationships among variables.
Findings: The findings indicate that the lagged RORAC variable has a negative and significant effect on its current value, reflecting temporal dependency in this indicator. Moreover, the return on equity and capital adequacy ratio exhibit a positive and significant effect on RORAC, while the non-performing loan ratio and return on assets have a negative impact on this metric.
Originality/Value: This study provides new insights into the effective role of financial ratios in banking risk management and financial efficiency improvement. It offers practical recommendations for bank managers and policymakers to focus on enhancing capital adequacy and reducing non-performing loans in order to develop more effective strategies for risk management and performance optimization.

Abstract Purpose: Investigating the study opportunities in the finance field during the COVID-19 pandemic, both in terms of trying to provide information to the managers and planners of this field and discovering, identifying, and introducing new finance topics for researchers, is of particular importance. The purpose of this article is to investigate the research opportunities arising in the financial field during the COVID-19 pandemic in Iran.
Methodology: This applied study used the content analysis method and an exploratory approach. Content analysis is one of the main methods of studying and reviewing scientific and research texts.
Findings: The research findings show that, despite the many and diverse study opportunities in the finance field during the COVID-19 pandemic, nearly 5 years after its onset, the number of articles published by Iranian researchers in this area has remained very small.
Originality/Value: By identifying and introducing new research topics, this research has provided new evidence and insights to advance research on the financial field of the COVID-19 pandemic in Iran. In addition to this article, it identifies major research gaps. It outlines the direction of future research on finance issues related to the COVID-19 pandemic in Iran, with implications for policy-making and research planning in this field. It is used to help develop the finance literature in Iran.

Abstract Purpose: The present study seeks to investigate the role of social responsibility and information transparency on the performance of Mehr banks in Western Mazandaran.
Methodology: The statistical population of the present study included employees of Mehr banks in western Mazandaran, totaling 220 individuals. Of those, 141 were selected using simple random sampling and the Krejcie and Morgan table. The research method is a field study that collected the required data using three questionnaires. To analyze the data in the descriptive statistics section, percentage frequency distribution tables and calculation of median, mean, standard deviation, variance, and kurtosis were used to display the data numerically, and a bar chart was used to display the data visually.
Findings: The study's assumptions were tested using a structural equation model and AMOS. The results showed that the social responsibility index has a coefficient of 0.787, or 78.7 percent, on the financial performance of Mehr banks in western Mazandaran. At a confidence level of 0.95 and considering the t-test value of 15.513, it can be said that social responsibility has a significant effect on the financial performance of Mehr banks in western Mazandaran; also, the information transparency index has a coefficient of 0.739, or in other words, 73.9 percent, on the financial performance of Mehr bank employees in western Mazandaran. At a 0.95 confidence level and with a t-test value of 12.383, information transparency affects the financial performance of Mehr Bank employees in western Mazandaran.
Originality/Value: Transparency in caring about norms, laws, and regulations in the organization, reducing social harm violations of the law, and leading to the organization's assigned tasks being carried out in the best possible way within the framework of organizational laws and regulations, achieving the organization's goals, and attracting employee satisfaction.

Abstract Purpose: The objective of this study is to assess the maturity level of risk culture and the risk-taking behavior of frontline managers at Sepah Bank, employing the Financial Stability Board's framework. Using quantitative tools and statistical analysis, this research aims to identify strengths and weaknesses within the risk culture and risk-taking levels across branches. The findings provide insights to improve authority distribution and strengthen the organizational risk culture at Sepah Bank, aiding managers and decision-makers in shaping effective management policies and fostering a resilient organizational culture.
Methodology: The research follows a positivist philosophy and adopts a quantitative, inductive approach. The analysis used a t-test and Structural Equation Modeling (SEM). Data were collected through two questionnaires, yielding 4,049 valid responses from Sepah Bank branches. These responses were analyzed using SPSS and SmartPLS to effectively evaluate and interpret the data.
Findings: The findings of this research indicate that the overall risk culture maturity score in Sepah Bank's branch operations was slightly below average, with a mean score of 2.43 on a 1-to-5 scale, suggesting areas for improvement. In terms of risk-taking behavior, frontline managers scored an average of 4.9 out of 11, reflecting a relatively cautious approach to risk within the organization. Additionally, an analysis of the relationship between demographic characteristics and risk-taking behavior revealed significant correlations, suggesting that factors such as age, experience, and educational background influence managers' willingness to engage in risk. These findings highlight key areas for intervention to enhance both risk culture and adaptive risk management practices.
Originality/Value: This research is original and valuable because it assesses risk culture and risk-taking behavior among frontline managers at Sepah Bank using the Financial Stability Board framework. The study provides practical insights for improving the distribution of authority within Sepah Bank branches.

Abstract Purpose: Optimization problems are one of the most interesting, important, and popular fields of financial mathematics. A better portfolio optimization model can help investors earn more sustainable profits. The existing literature shows that traditional mean-variance portfolio strategies are not suitable. To address this issue, this study uses a multilayer perceptron neural network and a convolutional neural network to predict future stock price movements.
Methodology: We compare the prediction accuracy of these two methods and use the outputs from the higher-accuracy method in the proposed model. Then, given the future direction of stock prices, we propose an efficient stock selection scheme for investors. We also test the proposed stock selection scheme and investment strategies using the components of the Tehran Stock Exchange index as test cases.
Findings: The experimental results show that the proposed stock selection scheme can effectively improve the performance of all investment strategies. In addition, the proposed investment strategy outperforms the traditional minimum global variance investment strategy.
Originality/Value: This research provides an innovative framework for portfolio selection based on deep learning networks. These networks are key to improving investment efficiency, risk management, and decision-making in the Iranian capital market and serve as an advanced model for similar markets.

Abstract Purpose: This study examines the impact of Corporate Social Responsibility (CSR) on organizational trust in the auditing profession, with gender as a moderating variable. CSR aims to enhance managers' and employees' performance by fostering trust within organizations to achieve institutional goals.
Methodology: This research is applied, descriptive, and correlational. The statistical population consists of independent auditors working in auditing institutions. The dependent variable is organizational trust, while the independent variable is social responsibility. Data were collected using a valid and reliable questionnaire, and the responses of 181 auditors were analyzed using Partial Least Squares (PLS) and Structural Equation Modeling (SEM).
Findings: The analysis showed significant results for variables such as gender, age, job experience, education, and professional rank. The findings confirmed that CSR positively influences organizational trust in the auditing profession.
Originality/Value: CSR has a significant, positive effect on organizational trust in auditing firms, thereby contributing to improved socio-economic performance. The moderating variable of gender does not influence the relationship between CSR and organizational trust. The study highlights the importance of CSR in building trust and enhancing organizational performance. It offers valuable insights for improving the economic and social effectiveness of institutions. This study provides new evidence on the effective role of cognition-based social responsibility and trust-based orientation in auditing institutions. It examines the impacts of responsibility on enhancing trust-building and the quality of auditors' work.