Accounting and Auditing Research

Accounting and Auditing Research

Investigate the Relationship between Liquidity and Investment Efficiency with Respect to Financial Constraints and Operational Risk

Document Type : Original Article

Authors
Mahmod Yahyazadefar 1
Mansoureh Aligholi 2
Fatemeh Zabihi 3
1 Professior of Financial Management, Mazandaran University, Iran
2 Department of management, Tehran Branch, Islamic Azad University, Tehran, Iran
3 Master of management, Mazandaran University, Iran
10.22034/iaar.2020.107121
Abstract
This research examines the relationship between stock liquidity, investment and investment efficiency with respect to financial constraints and operational risk for a sample of 130 companies during the period from 2011 to 1394. The results of this research indicate that stock liquidity has a positive and significant relationship with the investment of the company. In addition, the results show that liquidity can be better off the investment opportunity by reducing its costs and facilities and lead to investment efficiency, and also showed that liquidity can reduce the sensitivity between investment efficiency and reduce investment opportunity, In other words, the higher the liquidity, the more efficient the investment, even in the case of low investment opportunities. In addition, in firms with financial constraints and operational risk, liquidity has a greater impact on investment.
Keywords
Stock Liquidity
Investment Efficiency
Financial Constraints
Operational Risk
Accounting and Auditing Research
Volume 12, Issue 45
Spring 2020
Pages 5-22