Modeling the Financial Determinants of Corporate Investment Behavior

Document Type : Original Article

Authors
Tahereh Moradi 1
Naghi Fazeli 2
Arezoo Khosravani 2
1 PhD Student, Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran
2 Assistant Professor, Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran
10.22034/jik.2025.78566.4771
Abstract
Investment is one of the key elements in the growth and dynamism of companies, and investment decisions are influenced by a set of internal financial factors, decision-making structures, and environmental conditions. The aim of this study is to identify and model the financial determinants of investment behavior in companies listed on the Tehran Stock Exchange during the period 2011 to 2023, in order to provide a deeper understanding of corporate investment decision-making mechanisms. This research is applied in terms of purpose and descriptive-analytical in nature. Sampling was conducted using a systematic elimination method, and data from 141 companies were extracted. The required data were collected from audited financial statements and analyzed using EViews 12 and SmartPLS 3 software. Structural equation modeling was employed to test the hypotheses. The findings indicate that financial performance indicators, such as profitability and asset efficiency, have a positive and significant relationship with investment behavior. In contrast, the role of the board of directors and internal corporate policies was not statistically significant. The originality of this research lies in its simultaneous focus on both internal financial variables and external environmental factors, and in the use of combined analytical methods to provide a comprehensive explanation of corporate investment behavior.
Keywords
Firm Activity
Investment Behavior
Board of Directors
External Factors
Corporate Policies
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