Investigating the Delay in Terminating Non-Profitable Operations Reduces the Cost of Capital in Corporations of Accepted in Tehran Stock Exchange

Abstract

The main objective of this research is to investigating the delay in terminating non-profitable
operations reduces the cost of capital in Companies Accepted in Tehran Stock Exchange. In this research
statistical samples include 160 companies accepted in Tehran stock market whose data has been
statistically analyzed during a period of 10 years (from 2005 until 20144). Research hypothesis has been
through multiple regression and logistic models; according to the findings, increasing the
timely realization of unachieved losses raises the possibility of stopping non-profitability. Also, the
results showed that in consistent with the findings; the delay in stopping non-profitable operations has
had no effect on the cost of the capital of statistical sample of companies during the course of the study.