An analysis of the association between firm investment opportunities and firm performance

Investors aim at maximizing their wealth. Growth opportunities are a driving force that creates motivation and is considered rewarding for investors. Improving professional knowledge in the field of investment along with the expansion of information technology led the capital providers to invest their cash/capital in companies where there is a better chance for profit. Thus capital has had a multi-facet movement and increased greatly in recent years. In this study we analysis of the association between firm investment opportunities and firm performance by using data of firms listed in Tehran stock exchange we examined 85 firms accepted in Tehran stock exchange 2003-2009 periods. Finally¡ regress model using for test hypotheses. The results demonstrate significant evidence of an association between investment opportunities and firm performance.