Identifying the Components of a Corporate Financialization Model in Iran’s Capital Market

Hamidreza  Ghanbari; Mehdi Zeynali; Mohammadreza Abbasi  Astamal; Ahmad  Mohammadi

Authors

Hamidreza Ghanbari Department of Accounting, Ta.C., Islamic Azad University, Tabriz, Iran Author https://orcid.org/0009-0002-2297-110X
Mehdi Zeynali Department of Accounting, Ta.C., Islamic Azad University, Tabriz, Iran https://orcid.org/0000-0002-7791-0139
Mohammadreza Abbasi Astamal Department of Accounting, Va.C., Islamic Azad University, Varzaghan, Iran Author https://orcid.org/0000-0003-1326-1878
Ahmad Mohammadi Department of Accounting, Ta.C., Islamic Azad University, Tabriz, Iran Author https://orcid.org/0000-0003-3335-2611

Keywords:

Corporate Financialization, Capital Market, Grounded Theory, Financial Capability, Financial Innovation, Corporate Strategy, Iran

Abstract

This study aimed to identify and develop the components of a corporate financialization model in Iran’s capital market. This qualitative study was conducted using grounded theory based on the Strauss and Corbin approach. The study population consisted of experts and professionals in capital markets, corporate finance, financial management, accounting, and investment in Iran. Participants were selected through purposive and snowball sampling based on relevant academic and professional experience. Data were collected through 23 in-depth semi-structured interviews, with sampling continuing until theoretical saturation was achieved. The participants included university faculty members, financial managers of listed companies, capital-market analysts and consultants, and senior experts from financial institutions. Data were analyzed through open, axial, and selective coding using the constant comparative method. MAXQDA version 10 was used to support data organization, coding, categorization, and development of the final paradigm model. The analysis identified corporate financialization as the core phenomenon shaped by five major dimensions. Causal conditions included corporate financial capability, capital structure, transparency and quality of financial information, innovation in financial instruments, management and decision-making quality, organizational flexibility, and access to the capital market. Contextual conditions comprised capital-market conditions, the legal and regulatory environment, organizational culture, macroeconomic conditions, and technological and information infrastructure. Intervening conditions included leadership style, quality of decision-making information, internal policies and processes, employee participation, and access to financial and technological resources. Strategic factors included organizational goal setting, sustainable growth policies, financial and investment strategies, market-share development, and risk management and strategic control. The principal consequences were prevention of organizational failure, increased organizational productivity and success, enhanced resilience and flexibility, and strengthened competitive advantage and sustainable growth. Corporate financialization in Iran’s capital market is a multidimensional and context-dependent process whose effectiveness depends on the alignment of financial capabilities, organizational mechanisms, market conditions, and strategic actions; therefore, successful financialization requires an integrated managerial and institutional framework rather than isolated financial decisions.

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