Investigating the effect of company liquidity on the relationship between financial constraints and investment

The rapid growth and transformation of economic relations has led to fierce competition in trade, industry and investment. Therefore, companies need to make appropriate, timely and efficient investments to survive and expand their activities. Therefore, the purpose of this study is to investigate the relationship between financial constraints and investment efficiency as well as the effect of cash flows on the relationship. This research is applied in terms of purpose and analytical in nature. To collect its data, the financial statements of Tehran Stock Exchange companies have been used. The statistical sample of the research is 100 companies listed on the Tehran Stock Exchange during the years 1390 to 1395. The results show that financial constraints have a positive and significant effect on the efficiency and underinvestment of the company and also the flow of free cash intensifies the relationship between financial constraints and investment efficiency.