Abstract:
This study examined the effects of related factors to risk on shareholders’ equity
cost by considering earnings quality for accepted companies in Tehran Stock
Exchange. This survey investigates a population of 76 companies during the time
period of 2009-2014. The results show that under high earnings quality, the market
risk factor, the book risk to market factor, and the size risk factor have positive
effects, and the profit risk factor has negative effects on shareholders equity cost.
Machine summary:
Studying the effects of related factors to risk on shareholders’ equity cost by considering earnings quality for accepted companies in Tehran Stock Exchange Masome Mamia , Rahmatollah Mohammadipoura ,* aDepartment of Accounting, Ilam Branch, Islamic Azad University, Ilam, Iran.
Results show that 4 risk factors have significant effects on shareholders’ equity cost under earnings quality.
3. Surveys hypothesis First hypothesis: market risk factor has positive effect on shareholder's equity cost, under high earn- ings quality and adverse.
Study’s hypothesis analyzing First hypothesis: market risk factor has positive effect on shareholder's equity cost, under high earn- ings quality and adverse.
Second hypothesis: size risk factor has positive effect on shareholder's equity cost, under high earn- ings quality and adverse.
Second hypothesis: size risk factor has positive effect on shareholder's equity cost, under high earn- ings quality and adverse.
Third hypothesis: book risk to market factor has positive effect on shareholder's equity cost, under high earnings quality and adverse.
Third hypothesis: book risk to market factor has positive effect on shareholder's equity cost, under high earnings quality and adverse.
Fourth hypothesis: profit risk factor has negative effect on shareholder's equity cost, under high earn- ings quality and adverse.
Fourth hypothesis: profit risk factor has negative effect on shareholder's equity cost, under high earn- ings quality and adverse.
6. Conclusion As the study’s results shows some of risks aspects have informational content and with regarding to earnings quality that has significant relationship with shareholders’ equity cost, meanwhile some of other features have not informational content and does not constitute as related information in invest- ment decisions.