The Impact of behavioral Financial and Political Connections on Investment Efficiency with the Mediating Role of Growth Opportunities

Abstract Evidences suggested that investors do not use of quantitative methods to determine stock value and judgements are made on mental imagery, non-scientific information and psychological conditions. According to limit literature, in other hand, increased investment efficiency is one of the most important problems in addition to investment development. Therefore, this study aimed to the mediation role of growth opportunities on the impact of sentiment tendencies of investors as a behavioral financial criteria and political connections on investment efficiency. This study is a causal, applied and post-event one. To end, sample were selected including ۱۴۹ firms at Tehran Stock Exchange ۲۰۰۹-۲۰۱۹. According to composed data analysis method and multivariate-linear regression and logistic regression, results showed that investors’ sentiments as a behavioral financial criteria and political connections directly impacted on investment efficiency. In addition, growth opportunities play mediating role on the impact of investors’ sentiments and political connections on investment efficiency

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Keywords: Behavioral Financial , Political connections , Growth Opportunities , Investment Efficiency