The Research Department of Economics and Management of Tadbir Nikan Business, Marketing, and Finance Open 3092-6238 2 Serial Number 11 2025 09 01 The Effect of Economic Growth on the Stock Returns of Iranian Listed Banks, with Emphasis on Endogenous Money Supply The Effect of Economic Growth on the Stock Returns of Iranian Listed Banks, with Emphasis on Endogenous Money Supply 1 16 EN Journal Article 2025 05 01 <p>The endogeneity of the money supply means that the money supply is determined by internal factors within the economy. This study tests the Post-Keynesian theory concerning the stock returns of Iranian listed banks. In the first model, endogenous money supply is used as the threshold variable, whereas in the second model, endogenous money supply and economic growth are employed as threshold variables. Using panel data from 14 Iranian listed banks during the 2013–2024 period, this study examines the effects of endogenous money supply and economic growth on stock returns through the Panel Smooth Transition Regression (PSTR) approach. The threshold variables of endogenous money supply and economic growth have nonlinear relationships with stock returns. The findings indicate that, in the endogenous money supply threshold model, neither the direction nor the intensity of the effect of endogenous money supply on stock returns changes in the upper regime. In other words, when a regime transition occurs, the effect of endogenous money supply remains positive in the upper regime. In the second model, which uses endogenous money supply and economic growth as threshold variables, economic growth has a positive effect on the stock returns of listed banks in the upper regime. The findings recommend the adoption of robust policies aimed at promoting economic growth and sustainable development for economic stakeholders.</p> https://www.bmfopen.com/index.php/bmfopen/article/download/522/404