The Effect of Internal Control Quality on the Relationship between Managerial Ability and Investment Efficiency in the Tehran Stock Exchange

With increasing competition in the business field, companies need to make appropriate and timely investments for their survival. Considering the developments in the world today, especially developing countries, these countries need appropriate solutions to better use their facilities to solve their economic problems. In this regard, one of the important factors in solving the economic problems of countries is the expansion and development of investment; But this alone is not enough and due to the limitation of financial resources, in addition to the issue of investment development, increasing the efficiency of investment is also one of the important issues. Based on this, the current research examines the effect of managerial ability on investment efficiency and also the moderating role of internal control quality in this regard. In order to achieve the above objectives, two hypotheses were formulated. Therefore, in order to test the research hypothesis, a sample of 140 firms was selected from the firms listed in Tehran Stock Exchange during the period 2014 to 2021. Multivariate regression model based on combined data was used to test the research hypothesis. The findings of the research showed that managerial ability has a positive and significant effect on investment efficiency, that is, an increase in managerial ability leads to an increase in investment efficiency; In addition, the results indicate that the internal control quality strengthens the relationship between managerial ability and investment efficiency.