*Department of Accounting, College of Humanities, Najafabad Branch, Islamic Azad University, Najafabad, Iran
**Department of Accounting, College of Humanities, Neyshabour Branch, Islamic Azad University, Neyshabour, Iran
Online published on 5 July, 2014.
The link between accounting information and the cost of capital of firms is one of the most fundamental issues in accounting. The current study aims to assess the effect of accounting information quality on cost of capital of stock companies. Target population of the research is consisting of 96 listed companies on Tehran stock exchange over a period of 6 years (2007–2012). The achieved findings confirm the hypothesis was also confirmed that there is a significant reverse relationship between accounting information quality and the cost of capital.
Accounting information quality, cost of capital, Tehran Stock Exchange
