Using the lemon theory as an input to explain the efficiency of corporate investment Saudi industrial listed on the stock exchange
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Abstract
Investment efficiency is one of the most important topics of financial management, because it enables companies to make good use of resources in order to maximize their value. The reasons are in line with the edges of financial knowledge, which may enable companies to avoid them, and this was applied to a sample representing (15) Saudi industrial companies listed in the stock market, based on the main goal of interpreting the investment efficiency according to the entrance of the lemon theory, using longitudinal data According to the multiple regression model,
which takes the actual investment size with several approved variables and the determinants of investment efficiency, then explanatory variables through which the estimated investment size is estimated. It is greater than its actual counterpart, then this is an indication of a lack of investment, which means relying on the residuals of the
regression model to estimate the level of efficiency in investment. For over-investment, as for the negative residuals, they indicate a lack of investment. The research found that Saudi industrial companies vary in terms of over-investment and lack thereof. To issue them to finance their investments at an inflated price, and the second is the result of the asymmetry of information that pushes investors to price the shares of high-quality companies that seek to issue them to finance their investments at a reduced price. for its actual performance.
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