Product Market Competition and Companies' Investment

Perhaps one of the most critical economic discussions worldwide is the debate on ‎competitiveness and the improvement of the status of various industries for survival ‎and growth in the turbulent arena of global markets. On the one hand, the importance of ‎investment for economic and social growth and development is so significant that it has ‎become one of the powerful levers for achieving development. However, it should be ‎remembered that as much as attention to this matter can lead to economic growth and ‎prosperity, neglecting it can result in economic decline. Therefore, long-term economic ‎growth and increased public welfare are not possible without considering investment ‎and the important influencing factors in its environment.‎‏ ‏This research examines the ‎relationship between product market competition and the investment of companies ‎listed on the stock exchange.

The statistical sample of the study includes 82 companies during the period from 2018 ‎to 2022. Panel regression analysis is employed to analyze the data and test hypotheses. ‎

The research findings indicate a significant relationship between product market competition and ‎investment, as well as a significant moderating role of company sales growth in the ‎above relationship.‎