Strong Shareholder Rights, Internal Capital Allocation Efficiency, and the Moderating Role of Market Competition and External Financing Needs

Nowdays, the capital market in developing countries is considered as a tool to increase investment and economic growth. Since efficiency is the main and most The purpose of this study was to Investigate strong shareholder rights on the internal capital allocation efficiency, the role of competition and external financing in companies listed on the Tehran Stock Exchange.The spatial domain of this research was the companies listed in the Tehran Stock Exchange . In this research, the rights of the strong shareholders of the independent variable and the efficiency of internal capital allocation  of the dependent variable were considered..In the data section of the study, data were collected from sample companies by referring to financial statements, explanatory notes and stock exchange monthly.Based on systematic elimination method, 100 companies were selected as statistical sample.Descriptive and inferential statistics were used to describe and summarize the data collected.In order to analyze the data, pre-tests of variance homogeneity, F-Lemer test, Hausman test, and Dicky-Fuller  test and then multivariate regression test were used to confirm and reject the research hypotheses (EViews  software).The results showed that strong shareholder rights significantly increase the internal capital allocation efficiency.However, the moderating effect of market competition and external financing needs is not found to be significant.