سارا سهبدوش

Investment decision is considered as one of the influencing factors on the performance of companies. Therefore, every company tries to make better investments, but the existence of asymmetric information due to the conflict of interests between shareholders and managers
causes companies to deviate from investment efficiency. On the other hand, financial leverage
is also described as one of the reasons for investment efficiency. An increase in leverage leads
to an increase in the cost of financing and ultimately to a decrease in investment by companies.
So, despite the information asymmetry, financial leverage can have a double effect on the
reduction of the company's investment. However, in the absence of appropriate scientific and
experimental evidence, the present research examines the relationship between information
asymmetry and financial leverage on investment decisions. In this regard, a sample consisting
of ۱۳۶ companies admitted to the stock exchange during the period of ۲۰۱۴-۲۰۲۱ was selected
and tested. The results using the multi-factor regression method show that as the information
asymmetry increases, the investment amount of the companies will decrease. However,
overinvested firms are not more affected by information asymmetry than other firms. Also,
reducing the amount of financial leverage has a negative effect on the company's investment,
and information asymmetry affects the relationship between financial leverage and the
company's investment.