Influence of internal and external audit on investment efficiency: The role of institutional support

Investment efficiency, reflecting optimal allocation of financial resources, is essential for firm performance and economic growth, yet organizations in emerging economies continue to face underinvestment and overinvestment that hinder resource use. While internal and external audits are recognized as key governance mechanisms, limited research has examined their combined effect on investment efficiency or how institutional support shapes this relationship. This study examines the influence of internal and external audit on investment efficiency and tests the moderating role of institutional support, drawing on agency and institutional theories. Using a quantitative, explanatory design grounded in positivist philosophy and a deductive approach, convenience sampling was used to collect data from ۸۷۵ respondents via a questionnaire, analyzed with SPSS version ۲۶. Results show that internal audit (B = ۰.۳۵۱, p < .۰۰۱) and external audit (B = ۰.۵۵۲, p < .۰۰۱) significantly and positively affect investment efficiency, and institutional support significantly strengthens both relationships. These findings extend agency and institutional theory by showing that audit effectiveness depends on institutional context, and offer managers and policymakers guidance for strengthening governance and regulatory frameworks to improve investment efficiency in emerging markets.

کلیدواژه ها:

Internal Audit ، External Audit ، investment efficiency ، Institutional Support