Institutional Ownership and Investment Efficiency: Evidence from Iran

Investment efficiency shows how well a company invests its assets. Although institutional shareholders play undeniable roles in companies, it is not clear whether they are able to monitor managers and make investment decisions or not. This study gives answers stakeholders, addresses concerns about the effect of owners on efficiency, aims add literature emerging markets by investigating relationship Iran, different environment from developed ones. Based monitoring power, divided into two types: active passive problems classified over- under-investment problems. The sample consists 101 firms listed Tehran Stock Exchange between 2010 2016. Some regression models used. results illustrated that have positive decrease both so, efficient school approved. Additionally, ones positively correlated with inefficiency Institutional ownership cause reverse. findings, like Iran’s market, investors recommended give notice level firms; structure good sign efficiency.