Investigating the relationship between stock returns and situation of risk management at accepted banks from the perspective of shareholders in stock exchange of Iran

Abstract

Banks are exposed various risks according to nature of their activities and risk management is one of the essential activities in the management of these institutions. In leading research also has been tried to evaluate the status of risk management in banks member of Tehran Stock Exchange by using the analysis of financial statements and investigate its relationship with stock returns of banks to determine whether capital market participants notice to the status of risk management about  pricing of bank stocks in their decisions or not. The results of research show that, indicators of capital adequacy and the margins of reserves taken by the bank has a significant relationship with the bank stock returns .However, net interest margin and net margin of wage income has no significant relationship with stock returns. According to the results of research can be said that the hypothesis of existence a relationship between the status of bank risk management and its stock returns about capital adequacy and the margin of reserves taken by the bank is true.