Economic Strategy

Economic Strategy

Investigating The Effects of Stock Insurance on Increasing Investment in Iran’s Capital Market

Document Type : Original Article

Authors
Hossein Amiri 1
Wahhab Ghelich 2
Ozra Hamdast 3
1 Associate Professor, Department of Islamic economics and banking, Faculty of economics, Kharazmi University, Tehran, Iran,
2 Assistant professor, Islamic Law and Banking Studies Department, the Monetary and Banking Research Institute of the Central Bank of Iran, Tehran, Iran
3 Master's degree in Islamic Financial Economics, Department of Islamic economics and banking, Faculty of economics, Kharazmi University, Tehran, Iran.
10.22034/es.2025.504169.1835
Abstract
Given the inherently high-risk nature of capital markets, stock insurance has emerged as one of the effective mechanisms in both developed and developing countries to mitigate risks and promote investment. In Iran, upstream policy documents - such as the General Policies of the System for Preventing and Reducing the Risks of Natural Disasters - have also emphasized the importance of expanding insurance mechanisms. The main objective of this study is to examine the effects of stock insurance on investment growth in Iran’s capital market. To this end, three main channels of influence were identified - general conditions of stock insurance, utilization of financial instruments, and improved risk management - along with 30 sub-indicators. Using structural equation modeling and survey data, the significance of both main and sub-channels was confirmed. The findings indicate that stock insurance contributes to reducing investment risks and enhancing investor confidence, thereby fostering investment growth in Iran’s capital market. Based on these results, the study recommends greater application of stock insurance as a practical tool for minimizing trading risks and mitigating potential losses.
Keywords
Capital market
stock insurance
investment
risk
structural equations
توحیدی، محمد؛ میرطاهر، سید محمدجواد و شجاعی زرقانی، امیرحسین (1403). نگاشت چالش‌های انتشار اوراق بیمه اتکایی در بازار سرمایه ایران. راهبرد مدیریت مالی، (12).
داوری، علی و رضازاده، آرش (1392). مدل‌سازی معادلات ساختاری با نرم‌افزار PLS. تهران: سازمان انتشارات جهاد دانشگاهی.
سلیمانی، سعید؛ صادقی شاهدانی، مهدی و فطانت، محمد (1392). طراحی صندوق سرمایه­گذاری مشترک بیمه­ای به‌منظور افزایش ظرفیت بیمه اتکایی. تهران: انتشارات مؤسسه مطالعات و برنامه­ریزی آموزشی.
عبده تبریزی، حسین (1380). نقش صنعت بیمه در بازارهای سرمایه جهانی شده. پژوهش‌نامه بیمه، 64(4).
معاونت پژوهشی پژوهشکده بیمه (1393). فرصتی نو برای بیمه­گران و سرمایه‌گذاران. گزارش موردی، (3).
هومن، حیدرعلی (1387). مدل‌یابی معادلات ساختاری برای کاربرد نرم‌افزار لیزرل. تهران: سازمان مطالعه و تدوین کتب علوم انسانی دانشگاه‌ها.
 
Al-Faryan, M. A. S., & Alokla, J. (2023). Do Publicly Listed Insurance Firms in Saudi Arabia Have Strong Corporate Governance? Economies, 11(1), 21.
Canter, M. S.; Cole, J. B., & Sandor, R. L. (1997). Insurance derivatives: a new asset class for the capital markets and a new hedging tool for the insurance industry. Journal of Applied Corporate Finance, 10(3), 69-81.
Chance, D. M., & Ferris, S. P. (1991). Mutual fund distribution fees: An empirical analysis of the impact of deregulation. Journal of Financial Services Research, 5(1), 25-42.
Dehghan, A. M.; Fahimi, A., & Farina, P. (2018). Catastrophe Bonds Securitization in Iran's Insurance Industry. Journal of Investment Knowledge, 7(27), 277-298.
Esbensen, K. H., Guyot, D., Westad, F., & Houmoller, L. P. (2002). Multivariate data analysis: in practice: an introduction to multivariate data analysis and experimental design. Multivariate Data Analysis.
Fringuellotti, F., & Santos, J. A. (2021). Insurance companies and the growth of corporate loans’ securitization. FRB of New York Staff Report, 975.
Froot, K. A. (2001). The market for catastrophe risk: a clinical examination. Journal of Financial Economics, 60(2-3), 529-571.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.
Godin, S. (2001). The New P's of Marketing. Sales & Marketing Management, 153(2), 45-46.
Homburg, C.; Wieseke, J., & Bornemann, T. (2009). Implementing the marketing concept at the employee-customer interface: the role of customer need knowledge. Journal of marketing, 73(4), 64-81.
Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20(2), 195-204.
Li, Y., & Lyons, B. (2012). Market structure, regulation and the speed of mobile network penetration. International Journal of Industrial Organization, 30(6), 697-707.
Lin, F.; Fofanah, S. S., & Liang, D. (2011). Assessing citizen adoption of e-Government initiatives in Gambia: A validation of the technology acceptance model in information systems success. Government Information Quarterly, 28(2), 271-279.
Mason‐Jones, R.; Naylor, B., & Towill, D. R. (2000). Engineering the leagile supply chain. International journal of agile management systems.
Rejda, G. E. (2005). Risk management and insurance. Person Education Inc, (13), 44-55.
Smets, F., & Wouters, R. (2002). Openness, imperfect exchange rate pass-through and monetary policy. Journal of monetary Economics, 49(5), 947-981.
Templeton, G. F., & Byrd, T. A. (2003). Determinants of the relative advantage of a structured SDM during the adoption stage of implementation. Information Technology and Management, 4(4), 409-428.
Van Hoek, R. I. (2001). Epilogue‐Moving forward with agility. International Journal of Physical Distribution & Logistics Management.
Wixom, B. H., & Watson, H. J. (2001). An empirical investigation of the factors affecting data warehousing success. MIS quarterly, 17-41.
Wold, S.; Ruhe, A.; Wold, H., & Dunn, Iii, W. J. (1984). The collinearity problem in linear regression. The partial least squares (PLS) approach to generalized inverses. SIAM Journal on Scientific and Statistical Computing, 5(3), 735-743.
Yang, Y. Y., & Yi, M. H. (2008). Does financial development cause economic growth? Implication for policy in Korea. Journal of Policy Modeling, 30(5), 827-840.

  • Receive Date 02 March 2025
  • Revise Date 02 September 2025
  • Accept Date 17 September 2025