Impact of Qualitative Characteristics of Accounting Information on Cost of Common Stock Capital

The goal of this research is the investigation of the Impact of Qualitative Characteristics of Accounting Information on Cost of Common Stock Capital in accepted firms in Tehran Stock Exchange. For the study, 133 companies listed in Tehran Stock Exchange for the five-year period from 2008 to 2013 were reviewed. However, data from the years 2006, 2007 and 2014 have also been used to calculate and measure variables. To test the hypothesis at the5-year period of study a combination of fixed effect regression models (according to the results F-Limmer and Hausman test) was used. Overall, the results suggest that in level of entire companies, only the effect of conservatism on the cost of capital (expected return on equity) is negative and significant and other qualitative characteristics of accounting information is not affected on cost of common stock capital. This reflects the fact that respect for conservatism in financial reporting from the perspective of investors in the capital market of Iran, relevant and effective, and their expected return is reduced.