Analysis of Stock Market management with a good governance approach in Iran

Document Type : Original Article

Authors

1 Associate Professor and faculty member of social Sciences, Ayatollah Ozma Borujerdi University, Borujerd, Iran

2 Faculty member of Economics, Kharazmi University, Tehran, Iran

3 Associate Professor and faculty member of Economics, Kharazmi University, Tehran, Iran

Abstract

The capital market, as the pulse of the country's economy, has faced a sharp decline in the index since August 2020 and has created many challenges. The present study uses the theory of good governance to answer the basic question of what is the governance of the capital market in Iran and what are the problems and harms?Using purposeful and theoretical sampling method, 23 capital market actors were interviewed. After conducting the interviews, data analysis was performed based on the three steps of open, axial and selective coding.
The results showed that the bank-oriented economy and the lack of centrality of the capital market, the normalization of index decline, incoherence between the institutions in charge of the capital market and legal gaps and inadequacies are among the causes of stock market collapse. Lack of institutional support and lack of equity culture are the contexts of this decline. Media propaganda, political developments and comments, and price bubbles are among the intervening conditions in this matter. The main strategies used, disruptive and mass behavior and organizational decisions were identified. Endangering national security, social distrust and feelings of financial insecurity are the consequences of this rule.
The decline of the stock market index and the outflow of liquidity from it indicate that the capital market needs to monitor transactions, transparency and efficiency, and with the expansion of good governance can make a significant contribution to raising the capital market and rebuilding trust and continuing liquidity to the stock market.

Keywords

References

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Economic Strategy
Volume 11, Issue 41 - Serial Number 41
September 2022
Pages 65-92

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