Аннотация:One of the objectives of financial reporting is to facilitate the efficient allocation of capital in the economy. One of most important aspects of this fact is to improve the investment decisions. Also, increase in the financial transparency can be considered as a useful factor to reduce investment inefficiency. Many factors influence the quality of financial reporting. Also, many factors can have an impact on financial reporting. Several studies have tried to investigate the link between the financial reporting quality and financial and non-financial variables of firms. The main approach of this research was to investigate the relationship between financial reporting quality and investment efficiency and the factors affecting the firms listed in Tehran Stock Exchange from 2009 to 2012. Results of statistical analyses on 93 firms in Tehran Stock Exchange showed that the financial reporting quality had a significant positive correlation with the investment efficiency. Furthermore, it was found that there was a direct link between firm size and growth opportunities with investment efficiency. Finally, it was found that there was no correlation between cash holdings and tangibility of assets with investment efficiency.
