The Effect of Internal Control Weakness and Controlling Shareholder's Wedge on Investment Efficiency of Companies Listed on Tehran Stock Exchange

Importance of investment for economic and social growth and development is to the extent that it is recalled as one of the strong leverages for obtaining development. However, it is noteworthy that inattention to this issue can be led to economic decline.The present study seeks to investigate the effect of internal control weakness and controlling shareholder's wedge on investment efficiency of companies listed on Tehran Stock Exchange. The research population includes all companies listed on Tehran Stock Exchange during delet 2009-2015. For this purpose, 104 companies listed in Tehran Stock Exchange were selected as the research sample through purposive sampling. The research hypotheses were tested via multi-variable regression and final analyses were carried out through Eviews software. The results disclosed that there is a significant relationship between controlling shareholder's wedge and investment efficiency.In other words, whatever the controlling shareholder's wedge is increased, lack of investment efficiency will be increased. The results revealed that there is a significant relationship between internal control weakness and investment efficiency. In other words, in the event that there is internal control weakness or the number of internal control weaknesses is increased, lack of investment efficiency will increase.