Financial reporting quality, Debt maturity investment Efficiency
Case Study: Stock Market Listed Chemical and pharmaceutical industries
Abstract
The aim of this study is to investigate the relationship between the financial reporting quality, debt maturity and efficiency of investment in stock companies (Case Study: Chemical and pharmaceutical industry). Research method of this study is correlational in nature and content. In this study, the financial data of 36 Tehran Stock Exchange listed companies in the chemical and pharmaceutical industry were chosen as sample and extraction method was used for systematic removal of data, during the period of fiscal years of 2005 to 2014. Combined data and multivariate regression was used to test research hypotheses. Experimental evidence obtained from testing the hypothesis shows that firms with higher financial reporting quality and greater use of shorter debt maturities, have a higher investment efficiency. In addition, these findings suggest that shorter debt maturities have significant effect on the relationship between financial reporting quality and efficiency of their investment. But this has no effect on investment in projects not having a negative net present value. In addition, these findings suggest that shorter debt maturities have no significant effects on the relationship between financial reporting quality and efficiency of their investment.