Document Type : Research Paper

Authors

• Seyed Kazem Ebrahimi
• Ali Bahraminasab
• Fatemeh Jalali
• ,Sedigheh Parvaneh

Department of Accounting, Semnan University, Semnan, Iran

Abstract

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.
 

Keywords

• Product market competition
• Diversion of investment efficiency
• Free cash flow