Designing a Model of Strategic Environmental Factors in the Capital Market with an Interpretive-Structural Modeling Approach

Abstract

Objective: The aim of this study is to identify and analyze the relationships between strategic environmental factors affecting the capital market, highlighting the importance of understanding them in the dynamics of the capital market. Methodology: This research is both developmental-applied in terms of its purpose and mixed-method in terms of data collection. The participants in the qualitative and quantitative sections of the study include 16 senior managers and experts from the Tehran Stock Exchange and over-the-counter (OTC) market, selected based on theoretical, purposive, and accessibility sampling methods until theoretical saturation. The components of the model were identified, categorized, and determined through content analysis and semi-structured interviews with experts, and then their relationships and levels were established using the interpretive-structural modeling approach. The validity ratio of the model’s indices was assessed and evaluated through content validity. Findings: The findings of the qualitative section indicate that the strategic environmental factors in the capital market consist of political, economic, social, technological, environmental, and legal factors, along with 81 indices and 15 factors. According to the findings of the quantitative section, "regional political-economic conditions," "economic policies," "dominant political conditions," and "environmental conditions" are the most influential factors on other factors in the capital market, while "government business regulations on the capital market" and "regulations related to the capital market" are in the second tier of influence. On the other hand, "corporate regulations in the capital market" and "economic factors related to companies in the capital market" are the most affected by environmental factors. Conclusion: These findings and the model suggest that managers should improve the capital market through political factors, and investors should focus on macroeconomic and political events when planning.