مهسا ولی مرادی

Abstract

The purpose of this research is to investigate the influence of government shareholders on the way of allocating bank resources and exercising power over bank management for political and social goals. The statistical population of the research includes ۱۲۵ commercial banks of ten countries of the MENA region with an emphasis on Iranian banks during the years ۲۰۱۵-۲۰۱۹. In order to investigate the impact of politics on bank management, we first extracted the percentage of shares in each bank in the hands of the government or government politicians and divided them through two clustering methods. A simple clustering method that focuses on banks with more than ۵۰% government shares and a hierarchical clustering method that divides banks into three categories according to the percentage of government shares. After that, using the method of estimating generalized moments, we checked income smoothing through the loan loss provisions, which is a tool in the hands of the management. And based on the clustering done, we enter the percentage of government shares into the model. In order to investigate the political impact, we include the election factor in the model. To investigate the political impact, we entered the election factor into the model and also examined the previous and subsequent years to ensure the research findings. According to the results obtained from the models, income smoothing has been done in the studied banks without considering the amount of government shares. On the other hand, income smoothing has been done in banks with higher percentage of government shares, which shows that political power has been involved in bank management. Also, the political factor of the election has increased the reserve of questionable claims and smoothed the income. which is another proof of the effect of policy on income smoothing.