The Effect of Sustainability Performance in the Social, Environmental, Governance and Financial Domains on Investment Efficiency with an Emphasis on the Role of Financial Reporting Quality

The purpose of this research was to investigate the impact of sustainability performance in the social, environmental, governance and financial domains on investment efficiency with an emphasis on the role of financial reporting quality. The statistical population of this research was all the companies accepted in the industry and mining sector of Tehran Stock Exchange whose data was available. For this, data for 150 companies admitted to Tehran Stock Exchange from 2013 to 2021 were collected and analyzed. In terms of classification based on the purpose, the current research was of the type applied carried out using a deductive-inductive arguments framework. The results of the study showed that the financial and non-financial dimensions of the company's sustainability (social performance score (SOC), governance (GOV), ethics (ETH), environment (ENV) and economic (ECO) have significant impact on investment efficiency. We also found a significant relationship between the impact of quality of the financial reporting and financial, non-financial dimensions of the company’s stability and investment efficiency.