ANALYZING THE RELATIONSHIP BETWEEN STOCK RETURNS AND RISK MANAGEMENT STATUS IN THE BANKS LISTED ON THE STOCK EXCHANGE FROM THE PERSPECTIVE OF SHAREHOLDERS

Abstract

According to nature of their activities, banks are exposed with various risks and risk management in the management of these institutions is one of the essential activities. In leading research also tries to use the analysis of financial statements, the status of risk management at Tehran Stock Exchange member banks to be evaluated and determine its relationship that, which of bank stock returns and is capital market participants consider the risk management in decisions about pricing bank stocks? The result shows that there is a significant relationship between indicators of capital adequacy and resources which are taken by the banks with the bank stock returns. However, there is not a significant relationship between net interest and net wage income with stock returns. The results indicate that the hypothesis of relationship between the bank's risk management and stock returns in and capital adequacy and resources the margins taken by the banks is true.