Investigating the impact of financial corruption, economic freedom, laws and regulations, and transparency of information on the profitability and financial stability of banks

The purpose of this research is to investigate the impact of financial corruption, economic freedom, laws and regulations, and transparency of information on the profitability and financial stability of banks. This research is a library and analytical-causal study and is based on panel data analysis. In this research, the financial information of 109 companies admitted to the Tehran Stock Exchange during the period of 2016 to 2021 has been examined. The results of the research in connection with the confirmation of the first hypothesis of the research showed that financial corruption has a negative and inverse effect on the profitability of banks. Further, the results of the research in connection with the confirmation of the second hypothesis of the research showed that economic freedom has a positive and direct effect on the profitability of banks. Also, the results of the research in connection with the confirmation of the third hypothesis of the research indicated that laws and regulations have a positive and direct effect on the profitability of banks. Further, the results of the research in connection with the confirmation of the fourth hypothesis of the research showed that the transparency of information has a positive and direct effect on the profitability of banks. Also, the results of the research in connection with the confirmation of the fifth hypothesis of the research indicated that financial corruption has a negative and inverse effect on the financial stability of banks.