The Effects of Inflation Rate and Foreign Exchange Rate Changes Due to the Global Financial Crisis on the Financial Performance of Banks Listed on the Tehran Stock Exchange

The aim of this study is to investigate the effects of inflation rate and foreign exchange rate changes due to the global financial crisis on the financial performance of banks listed on the Tehran Stock Exchange. This descriptive-correlational research is a quantitative study due to the nature of data. This is an applied study in terms of objectives. This study was conducted on all banks listed on the Tehran Stock Exchange during 2005-2015. The sample was selected by purposive sampling. Accordingly, a total of 20 banks listed on the Tehran Stock Exchange was selected during the study period. Information on theoretical foundations was collected through desk study from domestic and foreign books and journals in the field of research.The required data was collected from the Tehran Stock Exchange website and CDs containing financial information published by the Tehran Stock Exchange including the annual financial statements and audited financial statements and explanatory notes. Regression test was used to confirm or reject research hypotheses. The results were analyzed with the help of EVIEWS. The results showed that the inflation rate due to the global financial crisis affects the financial performance of banks listed on the Tehran Stock Exchange. Changes in the exchange rates due to the global financial crisis affect the financial performance of banks listed on the Tehran Stock Exchange.

Keywords:

Financial performance , Global financial crisis , Inflation rate , Changes in exchange rates