Sharif Digital Repository

The per capita income and welfare levels of countries around the world vary significantly from each other. Identifying the factors that lead to differences in the per capita income of countries as well as their welfare levels is a major concern for economists. Studies conducted in this field indicate that one of the main sources of these differences is the significant disparity in the total factor productivity (TFP) across countries. Suboptimal resource allocation is one of the most influential factors affecting TFP in countries. The primary importance of investigating misallocation in the Iranian economy is that, in line with the decrease in economic growth, the growth rate of industrial... 

Related Lending is defined as banks making loans to firms with which they have some kind of ownership association. On one hand, this practice can help diminish asymmetric information between bank and firm which results in a more efficient allocation of bank’s resources. On the other hand, it may lead to the banks’ transferring resources to their related firms inefficiently, without meticulously assessing the risks involved. This paper is focused on the effect of the relationship between bank and firm in their ownership structure, on the loan provision. I have gathered a unique dataset of private and privatized banks and also private firms active in Iran’s stock market, which covers the... 

In the banking and macro-financial literature، banks are modeled as financial intermediaries who give loans to the borrowers from their deposits. In these models، deposits are created from the accumulation of real goods. Besides this view، which is used more in the academic environment، others who are most practical، describe banks not intermediaries، but credit creator which do not need deposits to pay loans. In this research، we use credit creation concept in a Neoclassic environment that the central bank’s monetary policy is fractional reserve to answer this question that if banks could create credit for firms based on its future income، while firms have CIA constraints، how do economic... 

The financial depth in Iran has decreased since 2008 and simultaneously the interbank rate has increased. In addition, researches show that the bank health has decreased over the same period. This research investigates to find evidence for the existence of the relationship between the bank health indicators and its lending power. In this regard, the balance sheet data and financial statement data of the Iranian banks during 2007 to 2014 have been investigated and the effect of the bank health indicators on their lending power studied at the normal conditions and sanction periods. In this research like Kashyap and Stein 2000, and Gambacorta and Marques2011, the bank lending channel consider... 

This study examines the real consequences of credit market frictions in quantitative and qualitative terms in the framework of a dynamic general equilibrium model. In the form of a macrofinance model in which the asymmetric information between the bank and the firm and the weakness in the implementation of the contracts forms the relationship between the lender and the borrower, and the firm is able to strategically decide on default, we have analyzed the market equilibrium and the effect of credit market conditions on different markets. The findings of this study indicate that in such an economy, the decision of borrowers to voluntary default will reduce public welfare, cause a poor... 

In the banking and macro-financial literature، banks are modeled as financial intermediaries who give loans to the borrowers from their deposits. In these models، deposits are created from the accumulation of real goods. Besides this view، which is used more in the academic environment، others who are most practical، describe banks not intermediaries، but credit creator which do not need deposits to pay loans. In this research، we use credit creation concept in a Neoclassic environment that the central bank’s monetary policy is fractional reserve to answer this question that if banks could create credit for firms based on its future income، while firms have CIA constraints، how do economic... 

In this paper we empirically explore the bank lending channel and firm borrowing channel in Iran. Using the Embezzlement Scandal of 2011 as an instrumental variable for change in banks’ lending behavior, we identify the effect of credit constraints on borrowers’ performance. We use the firm-bank level data of short term loans from 2007- 2014 to maintain the goal. Results show that the banks’ lending behavior changes as a result of embezzlement shock and the borrowers’ performance get affected respectively. We show that the troubled banks reduce their lending by about 2.35 percent as compared to non-troubled ones. The results suggest that 10 percent decrease in loan supply, reduces the firms’... 

This study aims to investigate how different factors contribute to misallocation of physical capital in the Iranian economy. This is achieved by using a general equilibrium model with adjustment costs, uncertainty, and heterogeneity in firms' market power and technologies. In order to calculate the role of each factor in the observed misallocation, we need to estimate the parameters of this model using the Generalized Method of Moments. The data comes from the Annual Survey of Manufacturing Establishments from 2003 to 2013. According to the results, adjustment costs, heterogeneity in production functions, and heterogeneity in market power can explain about 80% of capital misallocation in... 

By Exploiting financial statements, ownership structure, and loan data for nonfinancial Iranian listed firms from 2007 to 2018, we investigate the impact of group structure on connected lending and its’ consequences on the firm investment. The group structure is formed, when a bank directly or indirectly owns one or multiple firms. Fist, our findings show that the vertical bank-firm connection, on average increases the probability and the amount of the loan supply by 2.53% and 78%, respectively. In return, the horizontal connection just increases the probability of the loan supply by 1.55%, and we find no evidence on its’ impact on the amount of the loan supply. Then, we investigate the... 

In this study, the revolving door effect on the bank’s performance is investigated through two paths: return on assets as an expression of banks' performance and capital adequacy ratio as a bank financial health indicator and the quality of central bank supervision. We assume these two variables are affected by conflict of interest. The form of conflict of interest used in this research is revolving doors. The board directors of commercial banks, who have previously worked in the central bank, create conflict-of-interest data. Twenty-seven commercial banks were investigated in this research between 2012 and 2022. the conflict-of-interest gap variable was defined in order to separate the... 

This study examines the effect of working capital financing on the performance of Iranian manufacturing establishments in the credit crunch of 1387 (2008). The identification strategy for this study is comparison of ex-ante features and ex-post performance using instrumental variable (IV) regression. This IV regression, by controlling other determinants of dependence on working capital (domestic demand, exports and imports) and considering credit crunch indicator, can provide an unbiased and consistent estimation impact of working capital channel in credit crunch. This study uses a sample from "Annual Survey of Iranian Manufacturing Establishments" that includes 95512 observations and 28859... 

Approximately, 60 percent of the world's populations are living at the distance of 60 kilometers of the coasts. In coastal zones, coastal aquifers are the most important resources of the available freshwater while expected that the short-term or long-term impacts of the climate changes threat such aquifers. In general, it is predicted that climate changes e.g. sea-level rise (SLR) cause to increase seawater intrusion (SWI) in the coastal aquifers. In this study, both continental and island coastal aquifers are considered. The objective of this research is the investigation of SWI behavior occurred in the coastal aquifers due to climatic change parameters and aquifer properties. For... 

Concrete has long been one of the most widely used materials in the world. Cement, as a major component of concrete, due to the use of fossil fuels in its production process, emitting greenhouse gases such as carbon dioxide, which cause air pollution and environmental issues such as climate change. On the other hand, the wastes of industrial factories such as slag of the Blast furnace, due to their large volume and lack of sufficient space for storage of these wastes, lead to the release of these wastes that have alkaline structures into enviroment, causing environmental pollution Such as embankment pollution. Alkali-activated concrete has prevented the release of these pollutant into the... 

The distinction between SOEs and private firms in access to loans is essential from the viewpoint of policy-making. This distinction is more crucial when we know that the difference is caused by factors other than natural market forces and has emerged merely by government ownership. In this paper, we investigate a unique intervention in privatization and identify the causal effect of government ownership on access to loans. In this respect, we study Sahamedalat in Iran by using DID approach and estimate the effect of giving up the treatment firm's cashflow right on the amount and composition of the loans. The results show the intervention significantly decreases the long-term loan of the...