The Effect of Internal Control Weakness on Investment Efficiency of Companies Listed in Tehran Stock Exchange
نویسندگان
1 Phd Candidate of Accounting, Islamic Azad University, Khorasgan Isfahan Branch, Isfahan, Iran
2 Professor, Faculty of Accounting, Islamic Azad University, Khorasgan Isfahan Branch Isfahan, Iran (Corresponding author)
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چکیده
This study explores the effect of internal control weakness on investment efficiency of companies listed in Tehran Stock Exchange. The statistical population included all companies listed in Tehran Stock Exchange during the time period 2012-2015. Purposive sampling was the sampling method. Given the theoretical principles and the research literature, two hypotheses were proposed which were tested via regression model. Eviews was employed to perform final analyses. The results revealed that there is a significant relationship between internal control weakness and investment efficiency. In other words, in the event that there is internal control weakness or the number of internal control weaknesses is increased, lack of investment efficiency (over-investment and under-investment) will increase.
