Volume 10, Issue 3, March 2015, Pages 1038–1045
Accounting, Economics and Financial Management Conference (AEFMC 2014), Iran 26-27 October 2014
Farzin Rezaei1 and Abbas Shabani2
1 Assistant Professor in Accounting, Member of Management and Accounting Faculty, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 Master of Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The aim of the study is to explore the effect of firm size and quality of disclosure on the cost of common stock. The cost of common stock as dependent variable, quality of disclosure and firm size as independent variables, financial leverage and book value to market value, and systematic risk as control variables have been reviewed. The time span of the study was a ten year course starting from 2003 to 2012, and selected sample consisted of 1090 year-firm. The research method is a correlational descriptive method, and a multivariate regression method was used to test hypothesis. Results indicated that there is a significant negative relationship between firm size and cost of common stock as well as between quality of disclosure and cost of common stock.
Author Keywords: quality of disclosure, firm size, cost of common stock.
Accounting, Economics and Financial Management Conference (AEFMC 2014), Iran 26-27 October 2014
Farzin Rezaei1 and Abbas Shabani2
1 Assistant Professor in Accounting, Member of Management and Accounting Faculty, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 Master of Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The aim of the study is to explore the effect of firm size and quality of disclosure on the cost of common stock. The cost of common stock as dependent variable, quality of disclosure and firm size as independent variables, financial leverage and book value to market value, and systematic risk as control variables have been reviewed. The time span of the study was a ten year course starting from 2003 to 2012, and selected sample consisted of 1090 year-firm. The research method is a correlational descriptive method, and a multivariate regression method was used to test hypothesis. Results indicated that there is a significant negative relationship between firm size and cost of common stock as well as between quality of disclosure and cost of common stock.
Author Keywords: quality of disclosure, firm size, cost of common stock.
How to Cite this Article
Farzin Rezaei and Abbas Shabani, “A study of the effect of firm size and quality of disclosure on the cost of company common stock,” International Journal of Innovation and Applied Studies, vol. 10, no. 3, pp. 1038–1045, March 2015.
