Exploring the role of government in the development of Iran's capital market (2005-2018)

Capital market strengthening and deepening can lead to economic growth and development, which Iranian governments have overlooked for years. We continue to face the conundrum that government decisions and actions obstruct capital market development while also increasing investment risk. Under these circumstances, it appears necessary to examine the relationship between Iran's government and the capital market. Accordingly, this study analyzed the performance and role of government in the development of the capital market (stock and security markets) over a 12-year period using qualitative and field methods, including designing a questionnaire for four groups, i.e., experts, managers, activists, and capital market expert reporters, as well as evaluating data using thematic analysis. The findings demonstrate that Iranian governments hampered capital market development from 2005 to 2017 due to a lack of understanding of capital market mechanisms, interference in market processes, and disruption of transparency, accountability, and corruption control mechanisms (good governance indicators). The only way out of the current situation appears to be the government's movement toward minimal capital market intervention.