A Study on the Relationship between the Presence of Institutional Shareholders, Bank Shareholders and the Cost of Financing Firms

The present study seeks to obtain evidence regarding the relationship between the presence of institutional investors, bankshareholders and financial costs of listed firms in Tehran Stock Exchange. To achieve this goal, the information of 188 firms iscollected through the financial statements of firms listed in the stock market, and analyzed through R and spss statisticalsoftware and combined data. In this study, the presence of institutional investors and shareholders of the bank is evaluated as theindependent variable and financial costs as the dependent variable. Based on Albring Model (2014), two indices are studied asthe variables of financing. According to the results of research hypotheses, the existence of a significant relationship between thevariables of institutional investors’ presence and firm growth, due to the reduction of financial costs, debt-to-asset ratio anddividends on assets ratio, taking into account internal growth rate, has been approved. In addition, the presence of thisrelationship is confirmed about debt-to-asset ratio with regard to the variable of short-term growth rate.

Keywords:

Institutional Shareholders , Bank Shareholders , Cost of Financing , Tehran Stock Exchange , Firm Growth