Impact of Financial Strategies on Financial Operation of Iran Banks and Develop a Model to Prioritize the Financial Strategy Using Combined Techniques SWOT and AHP

Abstract

Financial strategy is a framework organization which directed the financial decision making resulted from different conditions, dynamic competitors and collection of relative reactions. Financial strategy is one of key factors in organizations and increase shareholder wealth by identifying value drivers. Accordingly, this study aimed to analyze the impact of financial strategy on financial operation of banks and also presented a pattern to develop and prioritize such strategies. To do this purpose, data were collected relative to Iran banks from 2010-2011. Independent variable of this study was determined as financing strategy (combine deposits) and investment strategy (payment facilities) and variables like net interest margin and economic added value were accounted as financial operation criteria (dependent variables). Data were analyzed by Kruskal-Wallis test and using SPSS software. Results of present study indicated that financing strategy influenced significantly on economic added value, but did not influence on net interest margin. In contrast, impact of investment strategy on economic added value was rejected, but on net interest margin was confirmed. In second part, after using Delphi method, viewpoints of scholars in a private bank were collected and relative strategies in four fields of opportunities, threats, strengths and weaknesses were determined and after creating SWOT matrix, they were prioritized using AHP technique and presented a pattern to develop such strategies in an organization.

Keywords

• financial strategy
• net interest margin
• economic added value
• SWOT analysis
• hierarchical analysis
• Delphi method