Identifying and Ranking the Factors Affecting Iran's Financial Crises Using Multi-Criteria Decision-Making Techniques

Abstract

The purpose of this study is to identify and prioritize the factors affecting the presence of emerging actors in the Iranian financial markets. In the financial crisis started in 1396, the general public, along with the three other actors (government, central bank, and dealers), as the fourth actor, entered the financial markets and had the most significant impact on causing inflammation and environmental expansion of the market. In this paper, using the opinions of 85 economic experts and implementing exploratory factor analysis, the effective parameters in the presence of emerging actors in the four criteria of "rules and regulations", "psychological factors", "market performance and response", and “financial awareness" category has been classified. In this study, using pairwise comparisons of 15 economic experts in monetary and financial policy institutions and implementing DANP and VIKOR processes, it was found that the criteria of "psychological factors", "market performance and reaction", "rules and regulations", and "financial awareness" are influential in the presence of emerging financial market players. In other words, the psychological factors resulting from unrealistic information for the growth of false demand and market contraction and expansion shocks have been more influential than any other parameter in the unbridled entry of fourth actors into the financial markets.

Keywords

• emerging actors
• financial rules and regulations
• psychological factors
• market performance and response
• financial awareness