Investment efficiency

This research attempts to investigate the effect of financial constraints and different levels of agency costs on the investment efficiency of companies in Iran. Following the design of the financial risk assessment indexes, the transaction information was collected from the Stock Exchange in the five-year period of 2011-2015. The statistical sample consists of 128 companies selected by sampling method based on Cochran formula in which totally obtained 640 year-firm data. Linear regression and correlation were used to investigate the hypotheses of the research. Also Eviews software was used to analyse the data and test the hypotheses. What is summarized in the overall conclusion of the research hypothesis test is that financial constraints are effective on investment performance based on the indicators (kz) and (ww), as well as the various levels of agency costs, including high and low agency costs effect on investment efficiency.

The purpose of the present study is to investigate the relationship between corporate social responsibility and investment efficiency with particular emphasis on the mediating role of agency cost and information asymmetry in a sample of 121 firms listed on the Tehran Stock Exchange during the time period from 2012 to 2017. The research hypotheses are tested using multivariate regression analysis based on panel data and Eviews software. The results indicate that corporate social responsibility is negatively correlated with investment inefficiency. In other words, corporate social responsibility leads to reduced investment inefficiency. Also, information asymmetry plays a mediating role in the relationship between corporate social responsibility disclosure and underinvestment, whereas the variable of agency cost mediates the association between corporate social responsibility disclosure and overinvestment.

This study postulates the relationships between earning quality and investment efficiency among Tehran Stock Exchange-listed companies with an emphasis on the moderating role of board characteristics including independence, the duality of executives and the financial expertise of members. The research is applied in terms of purpose and takes a correlative-descriptive approach. The statistical population is comprised of TSE listed companies from 2008 to 2018 and, the final sample consisting of 78 companies was selected using systematic (purposeful) elimination. To test the hypotheses, two regression models were estimated using Ordinary Least Squares method through Eviews software. The empirical results revealed a positive and significant relationship between the quality of earning and investment efficiency in TSE publicly-traded companies. As well as, the board members' independence and financial background can significantly exaggerate such a relationship. Based on our findings, capital market legislators, regulators, and policymakers may reinforce the governance role of the board of directors in monitoring the behavior of firms, and as a result, increase the efficiency of allocating capital among companies listed in TSE and also in macroeconomic levels. The findings can persuade corporate shareholders to pay more attention to the degree of independence and expertise of their board of directors to gain more return on their investment opportunities.

Sustainability is a wide concept that contains other concepts such as social responsibility and has been investigated with concepts such as competition sustainability, reporting sustainability, and social sustainability. The present study aims to investigate the role of social interest rate risk management (SIRRM) in the relationship between sustainability performance and investment efficiency. In terms of purpose, this study is an applied one, and form the methodological point of view is a descriptive correlational study. Accordingly, the required data has been collected from 79 listed firms on Tehran Stock Exchange during 2013-2017. In this research, social risk management includes SIRRM, and sustainability performance includes sustainability of reporting, competition, and ownership. The results indicate that SIRRM reinforces the relationship between competition sustainability, reporting sustainability, and ownership sustainability with investment efficiency.

Efficient market hypothesis predicts that capital markets are beset with cer-tain biases which result from wrong estimation, and negatively influence shareholders’ expectations for higher returns, which in turn affects invest-ment efficiency, financial constraints and corporate performance efficacy in competitive markets, and eventually mitigates firm value. The present study aims at examining the impact of CEOs’ perceptual biases on investment efficiency and financing constraints of the firms listed on the Tehran Stock Exchange over the period 2013-2017. Earnings forecast error and CEOs’ overconfidence biases serve as the measure of CEO’s perceptual biases, the model developed by Biddle et al (2009) is employed to proxy for investment efficiency, and KZ model is also adopted to calculate financing constraints. The results reveal that both earnings forecast error and overconfidence biases negatively affect investment efficiency, while they positively influence cor-porate financing constraints.

The primary purpose of this study is to investigate the relationship between Political Communication and Information Asymmetry with the efficiency of investment in companies listed on the Tehran Stock Exchange. To achieve the above goal, two hypotheses were formulated. To test research hypotheses, a sample consisting of 109 companies listed on the Tehran Stock Exchange in the period 2014 to 2019 was selected. And a panel regression model based on composite data was used which has independent and dependent variables. The results of this study show that Political Communication has a negative and significant impact on Investment Efficiency, In contrast, Information Asymmetry has a positive and significant impact on Investment Efficiency, and this means that with increasing information asymmetry, investment efficiency increases. Therefore, political communications prefer corporate resources to pursue profitable investment options, thus altering corporate investment behaviors and reducing corporate investment efficiency. The results also show that Information asymmetry prevents investors from commenting on investment opportunities, thus allowing local managers to take advantage of profitable investment options.

This study investigates the impact of the board's social capital on the investment efficiency of listed companies in the Tehran Stock Exchange. Based on the theoretical foundations, the board social capital as a social-behavioral factor can affect the problem of over or under-investment (both of which are examples of the inefficiency of investment decisions). Therefore, when the board's social capital is at a high and favorable level, company managers show less opportunistic behavior and do their best to increase cooperation and interaction within the company, which leads to the strengthening of investment efficiency. In terms of purpose, the current research is the applied-developmental type and takes a descriptive-correlational manner. We measured board social capital using the Co-Working Experience index. Investment efficiency is also measured through under- and over-investment using the Richardson (2006) model. The control variables also include the size of the board of directors, the independence of the board of directors, the size of the company, the ratio of net profit to sales, the rate of return on assets, and the level of financial leverage. The statistical population of the research includes 183 companies admitted to the stock exchange from 2016 to 2022. In order to test the research hypothesis, a multivariate regression model has been fitted using the panel data method with the fixed effects approach. The results of the research indicate that the hypotheses of the research are confirmed, and there is a positive and significant relationship between the social capital of the board of directors and investment efficiency.

Social trust is considered as an important type of social capital and in fact an informal institution in any country. The purpose of the present study is to evaluate the impacts of social trust and managers' over self-confidence on the investment efficiency. The general method used in this study had been an applied one in terms of purpose and a correlational and fundamental experimental method type in nature. To achieve this purpose, financial information of 130 companies in the years 2012 to 2021 has been extracted and analysed as the research statistical sample. A linear regression method has been used to test the hypotheses. The research findings showed that social trust has positive, significant positive and negative impacts on the investment efficiency, over-investment and under-investment, respectively. In addition, managers' over self-confidence has positive, significant positive and negative impacts on the investment efficiency, over-investment and under-investment, respectively.