Quarterly Studies in Banking Management and Islamic Banking

Analyzing the Role of Banking Industry Risk Taking in Corporate Investment with the Moderating Role of Corporate Cash

Document Type : Original Article

Authors

mohammad mehdi 1
armina mirzadeh 2
homeira Rigi 3

1 Assistant Professor of Imam Ali University (AS)

2 Faculty member of Chabahar International University

3 Master's student in financial management at Chabahar International University

https://doi.org/10.22034/jifb.2025.492795.1592
Abstract
Foreign financing is very important for the investment of companies. Companies are more willing to invest in periods of so-called easy money. In other words, the state of financial markets and especially the banking sector can affect the investment of companies. Accordingly, the purpose of this research is to examine the relationship between risk-taking in the banking sector and corporate investment, as well as the role of cash holding on this relationship. For this purpose, the information of a sample of 128 companies admitted to the Tehran Stock Exchange during the period 2013 to 2022 has been used. The results of data analysis using the linear regression method with panel data show that the risk-taking of the banking sector has a significant effect on corporate investment. In addition, the holding of cash by companies moderates the impact of the banking sector's risk-taking on corporate investment. In other words, companies that have more cash assets are less affected by the risk-taking of the banking sector in investment.

Keywords

Banking
Investment
Risk taking
Cash

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