Document Type: Research Paper
Department of Accounting, Semnan University, Semnan, Iran
Usually, a set or combination of investments is maintained in a company along with investors in the ﬁnancial markets often considering a reduction in the diversion of investment eﬃciency. In view of the factors aﬀecting diversion of investment eﬃciency along with the use of linear and non-linear models (linear fractional, linear plus linear fractional), the relationship between product market competition and control variables with diversion from investment eﬃciency has been investigated to help reduce diversion of the investment eﬃciency. To achieve this objective, the data of 110 companies listed in Tehran Stock Exchange during the period 2010 to 2015 was used. The results obtained revealed that the non-linear models (linear plus linear fractional) provides a more precise explanation of the impact of the product market competition on the diversion of investment eﬃciency.