Effect of Investment Efficiency on Cost of Equity in Tehran Stock Exchange

One way to fund capital is to issue bonds and stocks through the stock market. The stock market provides an important role in attracting small businesses and financing companies. Since these markets have a constructive role in allocating resources and national capital, their utility will be in the economic development of society. People in this market expect to gain profit. The most important factor involved in investing in an investor's investment fund is the efficiency of the investment. The statistical population of the research was the companies accepted in Tehran Stock Exchange which 131 companies of 917 years were selected by systematic sampling. The purpose of this research is to investigate the effect of equity investment efficiency on equity companies in Tehran Stock Exchange (TSE) companies using the combined data method during 2010-2017. The results of the data analysis showed that there is a significant relationship between the investment efficiency and the cost of equity, as well as the excessive investment variable on the cost of equity, therefore, with the expansion of studies in the field of investment to the stockholders It is suggested that members of the board of directors of companies, shareholders, audit firms, researchers, etc. be introduced to investment efficiency issues in order to play an important role in reducing the cost of equity