The Role of The Capital Market in The Cost of Capital of Perrochemical Companies Listed in Tehran Stock Exchange (Tse)

The present study investigates the impact of financing though the capital market on the cost of capital of petrochemical companies listed in Tehran Stock Exchange (TSE). Primarily, the relationship between financing through the two methods of capital increase and long-term receivable loans, and the company's cost of capital is explored. Subsequently, the impact of both methods of capital increase and long-terms receivable loans on the company's cost of capital has been investigated. The research data has been obtained from 7 petrochemical companies listed in TSE over the 2005–2013 and in order to test the hypotheses, the panel data model has been used. Based on the research data, there is a significant relationship between financing through capital increase (stock) and long-term receivable loans, and cost of capital, and also the results of the study show that the impact of capital increase on the cost of capital is less than the impact of the long-term receivable loans.