AN FINANCIAL STRESS INDEX (FSI) FOR IRAN

Recent financial crisis, according to many experts, that is one of the most crises in the world afterthe1929 crisis, has affected on not only America's economy but also has affected on the economy of many countries. Due to this crisis, economy witnessed the bankruptcy announcement of financial institutions and buying them by rival or government companies. Price index in large and small stocks of the world faced with a significant reduction. The Power of loans and liquidity of financial institutions fell sharply. By crisis contagion to the real part of economy, economic growth was reduced and unemployment in the world was increased. According to distributing effects of the crisis, there is the fear that Iran is susceptible to damage caused by crisis. Accordingly, in this study, the characteristics of financial stress and presentation of a model for measuring it in capital market of Iran are investigated. Research methods are descriptive and creational. Multiple variable regression statistical method is used to examine the relationship between the independent and dependent variables. To further test the research hypotheses, 71companies were selected (in form of 4260 observations of company- months) as end samples using information of companies listed on Tehran Stock Exchange. Finally, the present study results confirming all hypotheses indicate less financial stress in Iran's capital market.

Financial Stress, Uncertainty, Asymmetry of Information, Risky Assets, Decreased Illiquidity