Financial Policies and Investment Efficiency in the Companies Listed in Tehran Stock Exchange

Investment efficiency is achieved when the company only invests in projects with positive present value. The aim of this study was to evaluate the impact of financial policies on investment efficiency in the company is listed on the Tehran Stock Exchange. The main hypothesis in this study is: there is a significant relationship between Financial politics and investment efficiency. What distinguishes this research from other research in the field of investment efficiency is variable financing policy using the model McKnight et al. (2009) and Brukman (2009) that the debt ratio, financial leverage and cash dividends have used is measured and to measure the efficiency of investment have used Richardson (2006). The sample has been selected using systematic elimination and restricting the number of variables 75 years (1390-1395). The hypotheses were tested and analyzed using regression model and control variables taking into account the value of the company, ROA, ROE and net working capital using panel data regression technique. The results suggest that financial policies have significant impact on investment efficiency. In addition, financial policies and investment efficiency have different effects on companies with different values. The users of financial statements including investors are recommended to choose companies with higher debt ratio and financial leverage and less dividend