Investigating the Relationship between Political Influence and Investment Efficiency of Listed Companies in Tehran Stock Exchange

From the perspective of political economy, the major shareholders and executives associated with the political power centers can influence the performance of their respective companies. Undoubtedly, a large part of the Iranian economy is under the influence of a government controlled by various political groups. And to a certain extent they have different political and economic ideas. This study seeks to investigate the possible relationship between managers' political influence and government's political support as political factors on the investment efficiency of listed companies in Tehran Stock Exchange. The sample consisted of 104 companies listed in Tehran Stock Exchange during the years 2008-2017 that were selected by systematic elimination method. Ives software was used to test the research hypotheses. The results indicate that there is a positive and significant relationship between managers' political influence and performance evaluation, but there is no significant relationship between government political support and investment efficiency.