Investigating the Relationship between Capital Expenditures and Investment Efficiency in Different Stages of Firms Life Cycle

Document Type : Original Article

Authors

1 Assistant Professor of Accounting, Bandar Abbas, Islamic Azad University, Bandar Abbas, Iran

2 Ph.D. Student of Accounting and Member of Young Researchers and Elite Club, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

Abstract

The purpose of this research is to investigate the relationship between capital expenditures and investment efficiency in different stages of company life cycle in companies admitted to Tehran Stock Exchange. Following a post-revolutionary approach, the study was conducted between 2011 and 2015 and the selected sample consists of 69 companies listed in admitted to the Tehran Stock Exchange. E-Views software version 9 was used to study the research hypotheses. The results showed that there is a negative and significant relationship between capital expenditures and investment efficiency. Also, in different stages of the life cycle, there is a relationship between capital expenditures and negative investment efficiency, the highest amount related to the growth stage and lower the amount related to the decline stage.

Keywords

Journal of Iranian Accounting Review
Volume 5, Issue 18
June 2018
Pages 47-64

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