An Investigation to the Measurement of Corporate Investment Behavior Matters

Document Type : Research Paper

Author

Assistant Professor of Payame Noor University

Abstract

In corporate finance literature, various investment measures have been widely used to examine corporate investment behavior. Different results of research based on data in the field of corporate investment behavior have been disputed and discussed in the field of corporate finance literature. Research on various measures can enhance understanding and knowledge in this field and provide a broader and more comprehensive insight for researchers for future research. Using the panel data of Tehran Stock Exchange (TSE) companies during the period of 1384-1394, twenty common and customary investment measures in the corporate finance field have been investigated from the aspect of importance, volume and noise, the ability to predict stock returns and information content. Were trained. A generalized system torque regression method has been used to study the hypotheses. The results of the research show that cash-based net investment measures have the best performance of investment behavior among different measures. Because the aforementioned measures have less noise and provide more relevant value information. Therefore, it is suggested that researchers in the corporate finance field should use cash-based gross cash-earning measures in futures research if there are options for collecting gross margin for investment.

Keywords

References

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  • Receive Date: 11 April 2018
  • Revise Date: 07 December 2018
  • Accept Date: 11 December 2018

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