Impact of Sanction Shock on Iran's Stock Market Index
The imposition of Western economic sanctions against Iran has had varying effects on the country's financial markets, with the capital market being one of the sectors not immune to the shockwaves of these sanctions. Given the pivotal role of sanctions in shaping Iran's economic fluctuation...
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University of Isfahan
2024-06-01
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| Series: | Journal of Asset Management and Financing |
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| Online Access: | https://amf.ui.ac.ir/article_28620_de01514eda170e62bd105ff8b9b20dce.pdf |
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| author | Reza Tehrani Mahmood Mokhtarband Menal Aboodeh |
| author_facet | Reza Tehrani Mahmood Mokhtarband Menal Aboodeh |
| author_sort | Reza Tehrani |
| collection | DOAJ |
| description | The imposition of Western economic sanctions against Iran has had varying effects on the country's financial markets, with the capital market being one of the sectors not immune to the shockwaves of these sanctions. Given the pivotal role of sanctions in shaping Iran's economic fluctuations, this study aimed to examine the effects of sanctions on the state of the Iranian capital market using a structural macroeconomic econometric model. Unlike previous research, this study accounted for the non-linear, intensity-dependent nature of the sanctions' impact, rather than assuming a constant effect. The research methodology employed an Auto-Regressive Distributed Lag (ARDL) model, considering datasets with both annual and seasonal frequencies over a 30-year period from 1991 to 2021. The findings of the optimal model indicated that the sanctions index had a negative and statistically significant effect on the behavior of the Iranian capital market. |
| format | Article |
| id | doaj-art-a04ec60969d24bebae96860b0a30510d |
| institution | Kabale University |
| issn | 2383-1189 |
| language | fas |
| publishDate | 2024-06-01 |
| publisher | University of Isfahan |
| record_format | Article |
| series | Journal of Asset Management and Financing |
| spelling | doaj-art-a04ec60969d24bebae96860b0a30510d2025-01-26T10:23:34ZfasUniversity of IsfahanJournal of Asset Management and Financing2383-11892024-06-0112211312610.22108/amf.2024.141380.188028620Impact of Sanction Shock on Iran's Stock Market IndexReza Tehrani0Mahmood Mokhtarband1Menal Aboodeh2Professor, Department of Financial Engineering, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, IranAssistant Professor, Department of Economy, Faculty of Economics and Political Sciences, Shahid Beheshti University, Tehran, IranPh.D. Candidate, Department of Financial Engineering, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, IranThe imposition of Western economic sanctions against Iran has had varying effects on the country's financial markets, with the capital market being one of the sectors not immune to the shockwaves of these sanctions. Given the pivotal role of sanctions in shaping Iran's economic fluctuations, this study aimed to examine the effects of sanctions on the state of the Iranian capital market using a structural macroeconomic econometric model. Unlike previous research, this study accounted for the non-linear, intensity-dependent nature of the sanctions' impact, rather than assuming a constant effect. The research methodology employed an Auto-Regressive Distributed Lag (ARDL) model, considering datasets with both annual and seasonal frequencies over a 30-year period from 1991 to 2021. The findings of the optimal model indicated that the sanctions index had a negative and statistically significant effect on the behavior of the Iranian capital market.https://amf.ui.ac.ir/article_28620_de01514eda170e62bd105ff8b9b20dce.pdfshockfluctuationssanctionmidasexchange rate |
| spellingShingle | Reza Tehrani Mahmood Mokhtarband Menal Aboodeh Impact of Sanction Shock on Iran's Stock Market Index Journal of Asset Management and Financing shock fluctuations sanction midas exchange rate |
| title | Impact of Sanction Shock on Iran's Stock Market Index |
| title_full | Impact of Sanction Shock on Iran's Stock Market Index |
| title_fullStr | Impact of Sanction Shock on Iran's Stock Market Index |
| title_full_unstemmed | Impact of Sanction Shock on Iran's Stock Market Index |
| title_short | Impact of Sanction Shock on Iran's Stock Market Index |
| title_sort | impact of sanction shock on iran s stock market index |
| topic | shock fluctuations sanction midas exchange rate |
| url | https://amf.ui.ac.ir/article_28620_de01514eda170e62bd105ff8b9b20dce.pdf |
| work_keys_str_mv | AT rezatehrani impactofsanctionshockoniransstockmarketindex AT mahmoodmokhtarband impactofsanctionshockoniransstockmarketindex AT menalaboodeh impactofsanctionshockoniransstockmarketindex |