The Impact of Financial Constraints and Agency Costs of Investment Efficiency

Normal 0 false false false EN-US X-NONE FA MicrosoftInternetExplorer4 This study will discuss the impacts of financial constraints and agency costs on the investment efficiency regarding limited resources and growing importance of investment efficiency. In order to achieve this goal، two hypotheses have been formulated and logistic regression has been used to test hypotheses. Meanwhile in this study regression (ols) has been used to measure investment efficiency and agency costs. This research has been done in 95 listed companies in Tehran Stock Exchange based on data contained in financial reports between 2001 – 2012. In this study، financial constraints has been measured using two models of Kaplan and White and wu. Results showed that financial constraints using White and Wu model does not have any effect on investment efficiency but، financial constraints using Kaplan has significant and positive effect on the investment efficiency. Agency costs have significant and negative effect on investment efficiency.