Financial reporting quality and investment efficiency: the Moderator role of family ownership

With increased competition in business supply, companies need to invest in time to survive. Given the developments in today's world, especially developing countries, these countries need appropriate solutions to make better use of their resources to solve economic problems. One of the important solutions in this regard is the development and expansion of investment. Due to limited resources, in addition to the problem of investment, increasing the efficiency of investment is one of the most important issues that is realized through high quality accounting information. Financial reporting is one of the sources of information available in the capital markets that is expected to play an effective role in expanding investment and enhancing its efficiency. The composition of the shareholding or ownership structure are important issues of corporate governance that influence the motivation of managers and thus can have a significant impact on the performance of the company. Family Membership in the Board of Directors The percentage of family ownership of shares is one of the factors that define family companies. The quality of financial reporting increases investment efficiency by reducing the information asymmetry between management and funders. Therefore, the present study examines the relationship between the quality of financial reporting and investment efficiency as well as the moderating role of family ownership in this regard. In this regard, a sample of 131 companies listed in Tehran Stock Exchange during the period 2012-2017 was selected and tested. For this purpose, the proposed model of Bidel et al has been used to measure the investment efficiency. Kaszink's model has also been used to measure the quality of financial reporting. Results using multiple regression method indicate that there is a positive relationship between financial reporting quality and investment efficiency; In addition, the results of the second hypothesis indicate the positive impact of family ownership on the relationship between financial reporting quality and investment efficiency.