The Effects of "Decision-making and Governmental Considerations" Regarding the Choice of Social Security's Portfolio in Iran

This study examines effect of the decision-making and governmental considerations regarding the choice of Social Security Organization’s portfolio in Iran (Social Security Investment Company [SHASTA]) in light of vector regression approach. This study aims to examine effect of the governmental considerations on increase in governmental debt to Social Security Fund and its impact on Social Security Investment Company’s portfolio risk in exchange for redeeming debts. Descriptive method and survey was used to collect data. Measuring the data validity was done through interviewing with academicians and practitioners and measuring the data reliability was done through Cranach’s Alpha Model. Statistical population in this study is Social Security Investment Company. Experts working in Investment and Economic Affairs Unit within this company have been selected as a statistical sample. The number of experts is 30, all of which are sampled according to institutional circumstances. In order to analyze data drawn from the questionnaires, Spearman’s correlation coefficient test as well as vector regression, in which all variables are seen as endogenous and don’t rely on any particular economic theory does not rely is used. This study’s findings suggest that governmental considerations and in fact redeeming governmental debts to the organization through giving shares regardless of paying attention to risk calculations as well as expertise will increase portfolio risk and ultimately, reduce profitability.