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Financial reporting purposes stem from information needs and demands of outside the organization users. The main goal is economic effects of events and financial operations on the status and performance of the business unit for help to foreign entities and financial decision making in connection with the business unit. This research deals to investigate the relationship between the quality of financial reporting and investment efficiency. Expected higher quality of financial reporting improve investment performance by reducing information asymmetries between business unit and external suppliers. Quality of financial reporting can improve investment efficiency from two ways: First, through reducing information asymmetries between company and investors, thus reduce financial costs. Second, through reducing information asymmetries between investors and managers, thus reduce monitoring costs and improving …