Investigating and explaining the factors affecting financial misconduct in Iranian banks

Since the stability and health of the country's banking system is dependent on the healthy environment of monetary and financial markets, therefore, in recent years, topics related to the reduction of banking violations and the destructive effects of the types of risks created have been of great importance. Therefore, in this research, the effects of indicators and effective factors on financial misconduct in Iranian banks have been investigated. The research method is mixed (qualitative and quantitative), in this way, in the first stage, the fuzzy Delphi method was used to identify the variables affecting the financial misconduct of banks and then the effect value of the variables was investigated using the panel data regression method. The participating team in the qualitative section 32 experts in the monetary and financial profession and the statistical population is all the calls accepted in the Tehran Stock Exchange The required data for 19 banks were analyzed during the years 2012-2021. Based on the findings of the research, operational characteristics, leadership characteristics and behavioral factors were identified as effective indicators of financial misconduct. Further, by performing three regressions using the logit-probit method and performing the necessary pre-tests, the results showed that Among the variables of operational characteristics, variables of bank size, number of employees, profit (loss), profitability and growth of assets, Among the variables of governance characteristics, the variables of state ownership, independence of the board members, tenure of the CEO, financial expertise of the board members, size of the auditing firm, tenure of the auditor. And among the CEO's behavioral factors, CEO's optimism variables, CEO's narcissism have a significant effect on financial misconduct in banks.