Growth opportunity and investment policy considering the role of managerial incentives in Iran's capital market

Subject Areas : Investments

Meysam Doaei ¹

1 - department of Finance, Islamic Azad University, Esfarayen Branch, Esfarayen, Iran

Received: 2023-11-20 Accepted : 2024-06-04 Published : 2024-06-04

Keywords: Growth Opportunity, Investment Policy, Managerial Incentive,

Abstract :

Objective: This study examines the relationship between growth opportunities and investment policy, considering the role of managerial incentives within a sample of firms listed on the Tehran Stock Exchange and the Iran Fara Bourse. Methodology: This research is applied in goal, quantitative in data type, inductive in logic, and descriptive-correlational in its implementation. Using library resources, relationships between variables were tested using correlation models and multiple regression with a dynamic panel approach. Initially, data collected were organized and processed in Excel, and subsequently, the R statistical software was employed for data analysis. Findings: Statistical analysis and regression estimates indicate that there is a significant relationship between growth opportunities and investment in both tangible and intangible assets. Furthermore, managerial incentives moderate the relationship between growth opportunities and investments in both types of assets. Originality/Scientific Value: The innovation of this research lies in identifying the role of managerial incentives in the relationship between growth opportunities and investment policy in Iran's capital market.

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