The relationship between information risk and capital costs in companies listed on Tehran Stock Exchange

Abstract

This study aims to investigate the relationship between accruals quality as an indicator of information risk, and capital cost. Based on the topic and its application, active companies in the Tehran Stock Exchange were selected as study sample. In this study, 90 samples were selected. The data have been collected using annual information from listed companies in Tehran Stock Exchange since 2007 until the end of 2014 and test results of hypotheses have been presented. In this study, multiple regression analysis using combined data method with fixed effects was applied for the test of research hypotheses. The results show that there is a significant relationship between the quality of accruals as an indicator of information risk, and cost of capital.