The Intellectual Structure and Evolution of Investment Efficiency Research: A Comprehensive Bibliometric Review

Abstract

This study offers a comprehensive bibliometric analysis of investment efficiency (IE) research, focusing on the integration of advanced technologies and ESG (environmental, social, and governance) criteria in modern financial decision-making processes. Utilizing the Bibliometrix R package, the analysis reviews 950 peer-reviewed articles from 1970 to 2023. It employs advanced techniques such as factorial analysis, thematic evolution mapping, and collaboration network analysis to explore the intellectual structure and thematic progression of IE research. The data is extracted from the Web of Science Core Collection to ensure a high-quality dataset. The study identifies major contributions in areas such as corporate governance, capital management, and the integration of emerging technologies like artificial intelligence, machine learning, and blockchain. ESG factors are highlighted as a transformative theme reshaping investment strategies and the overall direction of the field. This study provides a framework for understanding IE’s evolution, offering insights for researchers on ESG integration and technology’s role. Practitioners can apply these findings to enhance strategies, while policymakers can use them to promote responsible investing and capital innovation.

Keywords

investment efficiency / bibliometric literature review / corporate governance / thematic evolution / ESG

Author Contributions

Conceptualization, D.Z.; Methodology, D.Z.; Software, D.Z. and A.N.C.K; Validation, D.Z., W.S.Y. and A.N.C.K; Formal analysis, W.S.Y.; Investigation, D.Z. and W.S.Y.; Data curation, D.Z.; Writing—review & editing, D.Z., S.L.N., A.H.J. and M.F.M.S.; Visualization, D.Z. and M.S.S; Supervision, S.L.N., A.H.J. and M.F.M.S.; Project administration, S.L.N. and A.H.J.; Funding acquisition, S.L.N. All authors have read and agreed to the published version of the manuscript.

Funding

This research was funded by Universiti Kebangsaan Malaysia—Graduate School of Business (GSB-2025-013 and GSB-2025-016).

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Not applicable.

Data Availability Statement

Data are contained within the article.

Conflicts of Interest

The authors declare no conflict of interest.

References

[1] Modigliani F.; Miller M.H. The cost of capital, corporation finance and the theory of investment. Am. Econ. Rev. 1958, 48, 261-297.

[2] Jensen M.C. Agency costs of free cash flow, corporate finance, and takeovers. Am. Econ. Rev. 1986, 76, 323-329.

[3] Myers S.C.; Majluf N.S. Corporate financing and investment decisions when firms have information that investors do not have. J. Financ. Econ. 1984, 13, 187-221.

[4] Gaviria-Marin M.; Merigo J.M.; Popa S. Twenty years of the Journal of Knowledge Management: A bibliometric analysis. J. Knowl. Manag. 2018, 22, 1655-1687.

[5] Huang F.; Ge L.; Wu S. Minority shareholder protection, corporate governance, and investment efficiency. Financ. Res. Lett. 2023, 58, 104506.

[6] Tian J.; Sun S.; Cao W.; et al. Make every dollar count: The impact of green credit regulation on corporate green investment efficiency. Energy Econ. 2024, 130, 107307.

[7] Wang M.; Yan Y. The dark side of investor interactive platforms: Evidence from corporate investment efficiency. Financ. Res. Lett. 2023, 57, 104264.

[8] Tversky A.; Kahneman D. Availability: A heuristic for judging frequency and probability. Cogn. Psychol. 1973, 5, 207-232. https://doi.org/10.1016/0010-0285(73)90033-9.

[9] Benlemlih M.; Bitar M. Corporate Social Responsibility and Investment Efficiency. J. Bus. Ethics 2018, 148, 647-671.https://doi.org/10.1007/s10551-016-3020-2.

[10] Hao W.; Gao H.; Liu Z. An Evaluation Study on Investment Efficiency: A Predictive Machine Learning Approach. Complexity 2021, 2021, 6658516.

[11] Ellili N.O.D. Impact of ESG disclosure and financial reporting quality on investment efficiency. Corp. Gov. Int. J. Bus.Soc. 2022, 22, 1094-1111.

[12] Schembri L. Getting Down to Business: Investment and the Economic Outlook; Deputy Governor of the Bank of Canada: Vancouver, BC, Canada, 2024.

[13] Wang Z.; Chu E.; Hao Y. Towards sustainable development: How does ESG performance promotes corporate green transformation. Int. Rev. Financ. Anal. 2024, 91, 102982.

[14] Zhao L.; Yang M.M.; Wang Z.; et al. Trends in the dynamic evolution of corporate social responsibility and leadership: A literature review and bibliometric analysis. J. Bus. Ethics 2023, 182, 135-157.

[15] Durach C.F.; Kembro J.; Wieland A. A new paradigm for systematic literature reviews in supply chain management. J. Supply Chain. Manag. 2017, 53, 67-85.

[16] Mahajan R.; Lim W.M.; Sareen M.; et al. Stakehold. Theory. J. Bus. Res. 2023, 166, 114104.

[17] Mas-Tur A.; Kraus S.; Brandtner M.; et al. Advances in management research: A bibliometric overview of the Review of Managerial Science. Rev. Manag. Sci. 2020, 14, 933-958.

[18] Singh A.; Lim W.M.; Jha S.; et al. The state of the art of strategic leadership. J. Bus. Res. 2023, 158, 113676.

[19] Fama E.F. Efficient market hypothesis: A review of theory and empirical work. J. Financ. 1970, 25, 28-30.

[20] Jensen M.C.; Meckling W.H. Theory of the Firm:Managerial Behavior, Agency Costs, and Ownership Structure. In Economics Social Institutions:Insights from the Conferences on Analysis & Ideology; Brunner, K., Ed.; Springer: Amsterdam, The Netherlands, 1979; pp. 163-231. https://doi.org/10.1007/978-94-009-9257-3_8.

[21] Shanmuganathan M. Behavioural finance in an era of artificial intelligence: Longitudinal case study of robo-advisors in investment decisions. J. Behav. Exp. Financ. 2020, 27, 100297. https://doi.org/10.1016/j.jbef.2020.100297.

[22] Friede G.; Busch T.;Bassen, A. ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. J. Sustain. Financ. Invest. 2015, 5, 210-233. https://doi.org/10.1080/20430795.2015.1118917.

[23] Park S.R.; Jang J.Y. The Impact of ESG Management on Investment Decision: Institutional Investors’ Perceptions of Country-Specific ESG Criteria. Int. J. Financ. Stud. 2021, 9, 48.

[24] Bilyay-Erdogan S.; Danisman G.O.; Demir E. ESG performance and investment efficiency: The impact of information asymmetry. J. Int. Financ. Mark. Inst. Money 2024, 91, 101919. https://doi.org/10.1016/j.intfin.2023.101919.

[25] Chen C.-D.; Su C.-H.; Chen M.-H. Are ESG-committed hotels financially resilient to the COVID-19 pandemic? An autoregressive jump intensity trend model. Tour. Manag. 2022, 93, 104581. https://doi.org/10.1016/j.tourman.2022.104581.

[26] Paul J.; Lim W.M.; O’Cass A.; et al. Scientific procedures and rationales for systematic literature reviews (SPAR-4-SLR). Int. J. Consum. Stud. 2021, 45, O1-O16. https://doi.org/https://doi.org/10.1111/ijcs.12695.

[27] Tricco A.C.; Lillie E.; Zarin W.; et al. PRISMA Extension for Scoping Reviews (PRISMA-ScR): Checklist and Explanation. Ann. Intern. Med. 2018, 169, 467-473. https://doi.org/10.7326/m18-0850.

[28] Hardwicke T.E.; Wallach J.D.; Kidwell M.C.; et al. An empirical assessment of transparency and reproducibilityrelated research practices in the social sciences (2014-2017). R. Soc. Open Sci. 2020, 7, 190806.

[29] Shokraneh F. Reproducibility and replicability of systematic reviews. World J. Meta-Anal. 2019, 7, 66-71.

[30] Aria M.; Cuccurullo C. bibliometrix: An R-tool for comprehensive science mapping analysis. J. Informetr. 2017, 11,959-975. https://doi.org/https://doi.org/10.1016/j.joi.2017.08.007.

[31] Kraus S.; Breier M.; Lim W.M.; et al. Literature reviews as independent studies: Guidelines for academic practice. Rev. Manag. Sci. 2022, 16, 2577-2595. https://doi.org/10.1007/s11846-022-00588-8.

[32] Mukherjee D.; Lim W.M.; Kumar S.; et al. Guidelines for advancing theory and practice through bibliometric research. J. Bus. Res. 2022, 148, 101-115.

[33] Merigó J.M.; Mas-Tur A.; Roig-Tierno N.; et al. A bibliometric overview of the Journal of Business Research between 1973 and 2014. J. Bus. Res. 2015, 68, 2645-2653.

[34] Merigó J.M.; Cancino C.A.; Coronado F.; et al. Academic research in innovation: a country analysis. Scientometrics 2016, 108, 559-593.

[35] Gaviria-Marin M.; Merigó J.M.; Baier-Fuentes H.J. T F.; et al. Knowledge management: A global examination based on bibliometric analysis. Technol. Forecast. Soc. Chang. 2019, 140, 194-220.

[36] Donthu N.; Kumar S.; Mukherjee D.; et al. How to conduct a bibliometric analysis: An overview and guidelines. J. Bus. Res. 2021, 133, 285-296.

[37] Donthu N.; Kumar S.; Pattnaik D.J. Forty-five years of Journal of Business Research: A bibliometric analysis. J. Bus. Res. 2020, 109, 1-14.

[38] Ingale K.K.; Paluri R.A. Financial literacy and financial behaviour: A bibliometric analysis. Rev. Behav. Financ. 2022, 14, 130-154.

[39] Ogutu H.; El Archi Y.; Dénes Dávid L. Current trends in sustainable organization management: A bibliometric analysis. Oeconomia Copernic. 2023, 14, 11-45.

[40] Biddle G.C.; Hilary G.; Verdi R.S. How does financial reporting quality relate to investment efficiency? J. Account. Econ. 2009, 48, 112-131.

[41] Cuccurullo C.; Aria M.; Sarto F.J.S. Foundations and trends in performance management. A twenty-five-year bibliometric analysis in business and public administration domains. Scientometrics 2016, 108, 595-611.

[42] Greenacre M.; Blasius J. Multiple Correspondence Analysis and Related Methods; CRC Press: Boca Raton, FL, USA, 2006

[43] Biddle G.C.; Callahan C.M.; Hong H.A.; et al.Do Adoptions of International Financial Reporting Standards Enhance Capital Investment Efficiency? 2016. Available online: https://ssrn.com/abstract=2353693. (accessed on 3 March 2024).

[44] Chen F.; Hope O.-K.; Li Q.; et al. Financial reporting quality and investment efficiency of private firms in emerging markets. Account. Rev. 2011, 86, 1255-1288.

[45] Pan X.; Tian G.G. Political connections and corporate investments: Evidence from the recent anti-corruption campaign in China. J. Bank. Financ. 2020, 119, 105108.

[46] Heaton J.B. Managerial optimism and corporate finance. Financ. Manag. Tampa 2002, 31, 33-45.

[47] Harford J.; Klasa S.; Maxwell W.F. Refinancing risk and cash holdings. J. Financ. 2014, 69, 975-1012.

[48] Johnson S.A. Debt maturity and the effects of growth opportunities and liquidity risk on leverage. Rev. Financ. Stud. 2003, 16, 209-236.

[49] Lara J.M.G.; Osma B.G.; Penalva F. Accounting conservatism and firm investment efficiency. J. Account. Econ. 2016, 61, 221-238.

[50] McLean R.D.; Zhang T.; Zhao M.J. Why does the law matter? Investor protection and its effects on investment, finance, and growth. J. Financ. 2012, 67, 313-350.

[51] Jo H.; Harjoto M.A. The causal effect of corporate governance on corporate social responsibility. J. Bus. Ethics 2012, 106, 53-72.

[52] Wang Y.; Chen C.R.; Huang Y.S. Economic policy uncertainty and corporate investment: Evidence from China. Pac.-Basin Financ. J. 2014, 26, 227-243. https://doi.org/https://doi.org/10.1016/j.pacfin.2013.12.008.

[53] Admati A.R.; Pfleiderer P. Robust financial contracting and the role of venture capitalists. In Venture Capital; Routledge: London, UK, 2022; pp. 175-206.

[54] Chen H.; De P.; Hu Y.; et al. Wisdom of crowds: The value of stock opinions transmitted through social media. Rev. Financ. Stud. 2014, 27, 1367-1403.

[55] Raimo N.; Caragnano A.; Zito M.; et al. Extending the benefits of ESG disclosure: The effect on the cost of debt financing. Corp. Soc. Responsib. Environ. Manag. 2021, 28, 1412-1421.

[56] Zong Z.; Guan Y. AI-Driven Intelligent Data Analytics and Predictive Analysis in Industry 4.0: Transforming Knowledge, Innovation, and Efficiency. J. Knowl. Econ. 2024, 16, 864-903. https://doi.org/10.1007/s13132-024-02001-z.

[57] Harvey C.R.; Rabetti D. International business and decentralized finance. J. Int. Bus. Stud. 2024, 55, 840-863.https://doi.org/10.1057/s41267-024-00705-7.

[58] Ozili P.K. Decentralized finance research and developments around the world. J. Bank. Financ. Technol. 2022, 6, 117-133. https://doi.org/10.1007/s42786-022-00044-x.

[59] Chen G.; Dong J.; Hu J.; et al. Regulatory, institutional misalignment and cross-border acquisitions: Evidence from an emerging-market country. J. Int. Bus. Stud. 2024, 55, 172-193. https://doi.org/10.1057/s41267-023-00665-4.

[60] Li W.; Su Y.; Wang K. How does economic policy uncertainty affect cross-border M&A: Evidence from Chinese firms. Emerg. Mark. Rev. 2022, 52, 100908. https://doi.org/https://doi.org/10.1016/j.ememar.2022.100908.

[61] Mandal P.K.; Thakur M. Higher-order moments in portfolio selection problems: A comprehensive literature review. Expert Syst. Appl. 2024, 238, 121625. https://doi.org/https://doi.org/10.1016/j.eswa.2023.121625.