Analyzing the Relationship between Financial Performance and CAMELS's Component in Banking Industry of Tehran's Stock Market

Bozorgasl, Mousa; Mohagheghnia, Mohammad Javad; Razavi, Seyed Mehdi

doi:10.22055/jiar.2017.17633.1037

Analyzing the Relationship between Financial Performance and CAMELS's Component in Banking Industry of Tehran's Stock Market

Document Type : Original Article

Authors

Mousa Bozorgasl ¹

Mohammad Javad Mohagheghnia ¹

Seyed Mehdi Razavi ²

¹ Assistant Professor of Accounting, University of Allameh Tabatabai, Tehran, Iran

² Ph.D. Student of Finance Management, University of Allameh Tabatabai, Tehran, Iran

10.22055/jiar.2017.17633.1037

Abstract

T
This study aimed to analyze the relationship between financial performance and CAMELS's component in Banking Industry of Tehran's stock market. The study relied on CAMELS's variables as independent variables including capital adequacy ratio, debt ratio, assets quality ratio, net income (per capita), total income to total loans ratio, net income margin, deposits to assets ratio, and changes in income to changes in interest rate, and ROA was used as the dependent variable. The research was conducted between 1388 and 1393. The results indicated, significant relationships CAMELS's components and the dependent variable.

Keywords

CAMELS rating system

Capital adequacy

Management

Liquidity

Sensitivity to Market Risk