Factors Affecting the Efficiency of Corporate Investment and Its Measurement
Keywords:
Social Capital, Investment , Efficiency, Manager, CompanyAbstract
Objective: The study aims to examine the factors affecting corporate investment efficiency and to introduce and analyze the main measurement models.
Methods and Materials: This research is descriptive–analytical and relies on secondary data from companies listed on the Tehran Stock Exchange. The sample was selected using a systematic elimination method, and data were collected from audited financial statements, annual reports, and official databases. Investment efficiency was measured using established models such as Richardson (2006), Biddle et al. (2009), Chen et al. (2011), and Tobin’s Q. Panel regression techniques and diagnostic tests were applied to analyze the data.
Findings: The results showed that financial reporting quality, corporate governance, disclosure levels, and audit quality had significant positive effects on investment efficiency, while earnings management and managerial overconfidence were negatively related. Balanced capital structures and optimal use of free cash flows improved efficiency, whereas excess internal resources without proper oversight resulted in overinvestment. At the macro level, green fiscal policies and IFRS adoption indirectly enhanced investment efficiency.
Conclusion: Investment efficiency is a multidimensional construct influenced by financial, institutional, behavioral, and policy factors. Strengthening corporate governance, improving reporting quality, and employing advanced technologies such as artificial intelligence can reduce inefficiencies and promote more effective resource allocation.
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Copyright (c) 2025 Seyyed Hamidreza Mohtashmian, Hassan Ghodrati, Maryam Arabzadeh, Hossein Jabbari (Author)
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