The Effect of Investment Security on Mobilization of Financial Resources in Capital Market of Iran

The countries that have a high investment security can better mobilize savings in production projects. High investment security leads to participation of many savers in stock market. Also investment security is a determinant factor in mobilization of savings through capital market for financing economic activities. Thus, the present study investigates the effect of investment security on mobilization of financial resources by using the quarterly data during 1992-2012. Results of research show that the investment security has a positive and significant effect on mobilization of financial resources in capital market. Also, other variables like stock market development, saving rate and the difference of return on stock with return of competitor markets have positive and significant effect on mobilization of financial resources, while banking sector development has negative and significant effect on mobilization of financial resources in capital market.