The investigation of the relationship between financial reporting quality and investment efficiency in Tehran Stock Exchange (TSE)

Abstract

Considering the development and importance of the capital market role, measuring the efficiency of the firm's investment in decision making process is one of the most important issues in economic and financial world. Moreover, impact of financial reporting quality on improving the investment decisions is well-known. There are many researches in international level in this case which show the impact of financial reporting quality on investment efficiency. The study period is 2006 to 2010 and in nature and method is the correlation research. The method of data analyses is correlation and regression. The results of study show that financial reporting quality and investment efficacy have positive and significant relationship.