Investigating the Relation between Financial Reporting Quality and Investment Efficiency and the Role of Debt Maturity in Such Relation among the Companies Listed in Tehran Stock Exchange

The present study aims to investigate the relation between financial reporting quality and debt maturity structure with investment efficiency of the firms listed in the Tehran Stock Exchange. To do so, Dechow and Dichev's (2002) accrual quality model is employed as a proxy for the financial reporting quality, and short-term liabilities to total liabilities ratio is used to measure the debt maturity structure. A sample of 92 firms listed in Tehran Stock Exchange from 2010 to 2014 is selected, and multiple regression model based on panel data techniques is also used to test the research hypotheses. According to the first hypothesis, there is a positively significant relation between financial reporting quality and firm's investment efficiency. Also the results of the second hypothesis indicate that there is a positively significant relation between debt maturity structure and firm's investment efficiency. Finally, the third hypothesis documents that the short term liabilities may account for the weak relation between firm's financial reporting quality and the investment efficiency.