Arth prabandh: A Journal of Economics and Management
  • Year: 2014
  • Volume: 3
  • Issue: 7

Capital Structure and Investment Efficiency: Empirical Evidence from Companies Listed in Tehran Stock Exchange

  • Author:
  • Samaneh Bari, Meisam Karamlou
  • Total Page Count: 14
  • Page Number: 80 to 93

*M.A. Student of Accounting, Allame Tabatabaee University, Tehran, Iran

**M.A. of Auditing, Allame Tabatabaee University, Tehran, Iran

Online published on 13 May, 2015.

Abstract

The main purpose of this study is investigating the relationship between capital structure and investment efficiency. The sample of this study, includes 87 companies listed in the Tehran Stock Exchange during the period 2009 to 2013 and for processing and testing hypothesis, Estimated Generalized Least Squares (EGLS) method is used. Study results show that capital structure (leverage) has a negative and significant impact on the investment efficiency.

Keywords

Capital Structure, Leverage, Overinvestment, Underinvestment, Investment Efficiency