A survey of the quality of transparency and disclosure and common stock cost of equity: Some evidences of emerging capital market of Iran

This study evaluates the relationship between quality of transparency and disclosure on common stock cost of equity. The financial information of 87 firms collected during 2007 to 2012 are used and are analyzed by multi-variate regression approach. To measure quality of disclosure and transparency, disclosure and transparency score of Standard & Poor s are used. The results show that the negative and significant impact of score of quality of transparency and disclosure S&P on cost of equity. These results show that by increasing transparency and improvement of disclosure quality, the companies can reduce information asymmetry and trading cost and cost of equity.

Keywords:

cost of equity , transparency and disclosure quality , Score of transparency and disclosure s&p