摘要：In this research, the effects of product market competition on labor investment efficiency with emphasis the role of financing constraints are examined. The methodology of this study is a quantitative and ex-post. The sample of this research is consist of 122 companies on Tehran Stock Exchange (TSE) from 2012 to 2020. The results of research regression analysis showed that there is a positive and significant relationship between product market competition and firms’ labor investment efficiency. The relationship between financial constraints and firms’ labor investment efficiency is also negative and significant. Also, the evidence showed that the relationship between product market competition and over- or under-investment in labor is negative and significant. In addition, the intensity of the positive (negative) relationship between product market competition and labor investment efficiency (over- or under-investment in labor) in companies with financial constraints is less. These findings have important political implications for businesses and employment policymakers.
