Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock Exchange
The present study is aimed at investigating the relationship between financial distress and investment efficiency of companies listed in the Tehran Stock Exchange (with emphasis on the role of ownership type). To calculate investment efficiency, the Richardson’s model (2006) [Richardson, S. (2006)....
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2015-11-01
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| Series: | Accounting |
| Subjects: | |
| Online Access: | http://www.growingscience.com/ac/Vol2/ac_2016_13.pdf |
| _version_ | 1811262008883937280 |
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| author | Mehdi Vosoughi Hojat Derakhshan Mohammad Alipour |
| author_facet | Mehdi Vosoughi Hojat Derakhshan Mohammad Alipour |
| author_sort | Mehdi Vosoughi |
| collection | DOAJ |
| description | The present study is aimed at investigating the relationship between financial distress and investment efficiency of companies listed in the Tehran Stock Exchange (with emphasis on the role of ownership type). To calculate investment efficiency, the Richardson’s model (2006) [Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2-3), 159-189.] was employed. The aim of the present study is applied and its method is correlational- ex post facto. Using the exclusion sampling method and by applying the conditions of selecting the sample, 94 companies were selected from 2008 to 2013. To test the research hypotheses, multiple regression was used. Findings of the research indicate that there was a correlation between financial distress and investment efficiency in companies listed in the Tehran Stock Exchange, and institutional ownership had positive effects on the relationship between financial distress and investment efficiency of companies listed in the Tehran Stock Exchange. Furthermore, management ownership had no effect on the relationship between financial distress and investment efficiency in companies listed in the Tehran Stock Exchange. |
| first_indexed | 2024-04-12T19:17:25Z |
| format | Article |
| id | doaj.art-c3c2b09fd3024bf19a9bb6c6bdc97988 |
| institution | Directory Open Access Journal |
| issn | 2369-7393 2369-7407 |
| language | English |
| last_indexed | 2024-04-12T19:17:25Z |
| publishDate | 2015-11-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Accounting |
| spelling | doaj.art-c3c2b09fd3024bf19a9bb6c6bdc979882022-12-22T03:19:42ZengGrowing ScienceAccounting2369-73932369-74072015-11-012416717610.5267/j.ac.2016.3.003Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock ExchangeMehdi VosoughiHojat DerakhshanMohammad AlipourThe present study is aimed at investigating the relationship between financial distress and investment efficiency of companies listed in the Tehran Stock Exchange (with emphasis on the role of ownership type). To calculate investment efficiency, the Richardson’s model (2006) [Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2-3), 159-189.] was employed. The aim of the present study is applied and its method is correlational- ex post facto. Using the exclusion sampling method and by applying the conditions of selecting the sample, 94 companies were selected from 2008 to 2013. To test the research hypotheses, multiple regression was used. Findings of the research indicate that there was a correlation between financial distress and investment efficiency in companies listed in the Tehran Stock Exchange, and institutional ownership had positive effects on the relationship between financial distress and investment efficiency of companies listed in the Tehran Stock Exchange. Furthermore, management ownership had no effect on the relationship between financial distress and investment efficiency in companies listed in the Tehran Stock Exchange.http://www.growingscience.com/ac/Vol2/ac_2016_13.pdfFinancial distressInvestment efficiencyManagement ownershipInstitutional ownership |
| spellingShingle | Mehdi Vosoughi Hojat Derakhshan Mohammad Alipour Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock Exchange Accounting Financial distress Investment efficiency Management ownership Institutional ownership |
| title | Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock Exchange |
| title_full | Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock Exchange |
| title_fullStr | Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock Exchange |
| title_full_unstemmed | Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock Exchange |
| title_short | Investigating the relationship between financial distress and investment efficiency of companies listed on the Tehran Stock Exchange |
| title_sort | investigating the relationship between financial distress and investment efficiency of companies listed on the tehran stock exchange |
| topic | Financial distress Investment efficiency Management ownership Institutional ownership |
| url | http://www.growingscience.com/ac/Vol2/ac_2016_13.pdf |
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