Investigating the Relationship between Financial Reporting Quality andCorporate Investment Decisions with an Emphasis on Accounting Information Governance Role

This research investigates the relationship between financial reporting quality and corporate investment decisions in terms of the role of accounting information governance in Tehran Stock Exchange. Although researches has been conducted on the quality of corporate finance reporting and investment, none of them have addressed the role that accounting and financial reporting information plays in strengthening corporate governance. The present research is a descriptive-correlative research aim in terms of development. The statistical population of this research are the listed companies in Tehran Stock Exchange from 2012 to 2016. After systematic screening and deletion, 105 companies were sampled and analyzed using Spearman correlation coefficient. The results showed that high-quality accounting information by playing a role of governance would help investors identify inefficient investments and, by adopting buy-and-sell positions in relation to company stocks, would focus management on the core business of the company. As a result, efficiency in the allocation of capital is enhanced and the capital is absorbed into the core of the business of the company (not interests of the managers).