Application of Soft Systems Methodology in Structuring Financing through Iran Capital Market, Case Study: Tehran Stock Exchange

The capital market is a bridge that transfers the savings of economic units with excess resources to investment units that need them. Using the capital market to finance the government expenses is among the most common form of financial transactions. Therefore the capital market is considered one of the major players of financing in the economy of any country. Iran’s capital market began its rapid development process in 2005 and within the past decade many financial institutes were formed by financing from the aforesaid market. Due to being new in Iran, the relation between the diverse and scattered components of the capital market has not been provided as a comprehensive model. The purpose of the present study is to investigate the structure and identify the aspects of financing services through Iran’s capital market that due to dynamic complexities of the issue (numerous players and interested parties, diverse and multiple aspects of services and conflict of interests between interested parties), soft systems methodology was used to study the current status. Therefore, in addition to performing triple analyses of cultural analysis and illustrating the rich picture of the current status, CATWOE analysis and root definition by holding numerous sessions with the interested parties were extracted that demonstrates how the financing process must be by including real world conditions. Results indicate that to improve the issue, changes in financing services processes must be implemented that emphasis on identifying and analyzing factors of market attraction, regulatory bodies and status of laws and regulations.