The Moderating Eeffect of Corporate Governance on the relationship between Liquidity and Credit Risk with the Performance of Banks

Document Type : Original Article

Author

azad univercity

10.22034/iaas.2021.145161

Abstract

The purpose of this study was to investigate the effect of corporate governance on the relationship between liquidity risk and credit with the performance of banks accepted in Tehran Stock Exchange. In line with this goal, 10 banks were selected as examples during the 2018-2014 periods. To test the hypotheses, multivariate regression and t-test based on hybrid data have been used. The results of this study showed that there is a significant negative relationship between liquidity risk and the performance of the banks admitted in the stock exchange. In addition, there is no significant relationship between credit risk and bank performance. Then, the effect of corporate governance on the relationship between liquidity risk and credit with the performance of banks accepted in the stock market was investigated. The results indicate that corporate governance has a positive and significant effect on the relationship between liquidity risk and the performance of banks admitted in the stock market; also, corporate governance has a positive effect on the relationship between credit risk and the performance of banks accepted in the Tehran Stock Exchange.    

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