The Impact of Deviations from Industry Resource Allocation Strategies on Investment Inefficiency Considering the Moderating Role of Corporate Governance, Market Competition, and Information Asymmetry

Subject Areas : Financial engineering

Yones Amjadian ¹ , Seyyed Abbas Borhani ^{2 *}

1 - Department of Accounting, Qom branch, Islamic Azad University, Qom, Iran
2 -

Received: 2025-01-26 Accepted : 2025-02-28 Published : 2025-06-21

Keywords: deviations from industry resource allocation strategies, investment inefficiency, corporate governance, product market competition, information asymmetry.,

Abstract :

This study aims to examine the impact of deviations from industry resource allocation strategies on investment inefficiency and to provide solutions for reducing these inefficiencies. The research utilizes quantitative data from companies listed on the Tehran Stock Exchange between the years 2015 to 2022. The sample consists of 129 companies over a period of 8 years. Data analysis was performed using EViews and Excel software. Independent variables include deviations from industry resource allocation strategies (STRAT_DEV), while the dependent variable is investment inefficiency (INV). The findings revealed that deviations from industry resource allocation strategies lead to increased investment inefficiency. Strong corporate governance can mitigate the negative effects of these deviations, whereas market competition has no significant impact. Additionally, reducing information asymmetry can decrease the positive relationship between deviations from resource allocation strategies and investment inefficiency. The results highlight the importance of industry-aligned strategies and effective oversight in improving investment efficiency. Strong corporate governance and reduced information asymmetry can mitigate the negative impacts of deviations from resource allocation strategies, aiding in better investment decision-making and enhancing corporate value.

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