Transactions on Data Analysis in Social Science

Transactions on Data Analysis in Social Science

Evaluation of Financial Strategies Based on Structural Analysis

Document Type : Original Article

Authors
1 Phd Candidate of Business Management, College of Farabi, University of Tehran, Qom, Iran
2 Associate Professor, College of Farabi, University of Tehran, Qom, Iran
Abstract
The main objective of this study is to evaluate financial strategies through the application of structural analysis, with a particular focus on identifying the most influential strategies in the banking sector. Data were collected using a mixed-method approach, combining structured questionnaires and semi-structured interviews with relevant experts. The mutual influence analysis technique, operationalized through the Mutual Effects Analysis Matrix, was employed to assess the interrelationships among the identified financial strategies. The research population consisted of bank managers in Iraq, with twelve experienced experts, including senior managers and financial specialists, participating in the study. This methodological approach enabled a systematic evaluation of both the direct and indirect effects of each strategy on the others, providing a comprehensive perspective on their strategic significance. The findings reveal that cost control strategies emerge as the most critical financial strategies, exerting the highest level of influence across the strategic network. This suggests that effective cost management not only improves operational efficiency but also strengthens the implementation and sustainability of other financial strategies. The results provide valuable insights for policymakers and banking executives in Iraq, highlighting the importance of prioritizing cost control measures as a central pillar of financial strategy formulation and implementation.
Keywords

  • Bertalanffy, L. V. (1968). General system theory: Foundations, development, applications. George Braziller.
  • Granger, C. W. J., & Newbold, P. (1974). Spurious regressions in econometrics. Journal of Econometrics, 2(2), 111–120. https://doi.org/10.1016/0304-4076(74)90034-7
  • Bollen, K. A. (1989). Structural equations with latent variables. Wiley. https://doi.org/10.1002/9781118619179
  • Markowitz, H. M. (1952). Portfolio selection. The Journal of Finance, 7(1), 77–91. https://doi.org/10.2307/2975974
  • Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297. https://www.jstor.org/stable/1809766
  • Black, F., & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of Political Economy, 81(3), 637–654. https://doi.org/10.1086/260062
  • Allen, F., & Gale, D. (2000). Financial contagion. Journal of Political Economy, 108(1), 1–33. https://doi.org/10.1086/262109
  • Acemoglu, D., Ozdaglar, A., & Tahbaz-Salehi, A. (2015). Systemic risk and stability in financial networks. American Economic Review, 105(2), 564–608. https://doi.org/10.1257/aer.20130456
  • Heaton, J. B., Polson, N. G., & Witte, J. H. (2017). Deep learning for finance: Deep portfolios. Applied Stochastic Models in Business and Industry, 33(1), 3–12. https://doi.org/10.1002/asmb.2209
  • Dixon, M. F., Halperin, I., & Bilokon, P. (2020). Machine learning in finance: From theory to practice. Springer. https://doi.org/10.1007/978-3-030-41068-1
  • Gorton, G., & Metrick, A. (2012). Securitized banking and the run on repo. Journal of Financial Economics, 104(3), 425–451. https://doi.org/10.1016/j.jfineco.2011.03.016
  • Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. https://doi.org/10.2307/1914185
  • Shiller, R. J. (2003). From efficient markets theory to behavioral finance. Journal of Economic Perspectives, 17(1), 83–104. https://doi.org/10.1257/089533003321164967
  • Holland, J. H. (1992). Adaptation in natural and artificial systems. MIT Press. https://doi.org/10.7551/mitpress/1090.001.0001
  • Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
  • Baqaei, A., Mousavy, S. M., & Vosough, B. (2009). Appropriate Financial Strategy for Managing Total Risk at Financial Recession. Strategic Management Thought, 3(2), 129-148.
  • A'arabi, S. M., & Abedi, R. (2010). Relationship between business and financial strategies alignment and organizational performance. Industrial Management Studies, 8(19), 239-277.
  • A'arabi, S. M., & Razmjoee, M. (2012). Financial Strategies and Stock Return of Companies in Tehran Stock Exchange. Journal of Strategic Management Studies, 2(8), 141-166.
  • Abedi, R., & Zeynalzadeh, H. (2016). The Coordination Model of Financial Strategy and Organizational Life Cycle with Financial Performance. Journal of Accounting Advances, 7(2), 85-116.
  • Pouralireza, K., Baradaran Hasanzadeh, R., Badavar Nahandi, Y., & Zeynali, M. (2019). Relationship between Financial Constraint and Investment Efficiency and Working Capital Strategy. Journal of Investment Knowledge, 8(32), 129-150.
  • Mahjoub Hasan, Naderi Abulqasem, Kharazi Kamal, Inteziri Yaqoub. (2016). Investigating factors affecting financial strategic decisions in Tehran University. Iran's higher education, 8 (2): 81-111
Volume 6, Issue 4
Autumn 2024
Pages 245-254

  • Receive Date 06 August 2024
  • Revise Date 19 October 2024
  • Accept Date 18 December 2024