Investigating the Effect of Corporate Governance on the Cost of Debt and the Cost of Capital in Companies Listed on the Stock Exchange and Securities

Corporate governance is one of the basic aspects of business that attention is increasing day by day. The scope of application of corporate governance includes, on the one hand, limited approaches that are limited to the relationship between the company and shareholders, and on the other hand, it includes broad approaches that consider the rights of all stakeholders. Therefore, it is important to carry out detailed research on the functioning of this concept and the factors that influence it and are influenced by it.In this research, the relationship between the corporate governance index and the cost of capital and the cost of debt in the companies listed on the Tehran Stock Exchange has been investigated. The statistical community of the present research is the companies listed on the Tehran Stock Exchange for the period of the research, i.e. ۲۰۱۸ to ۲۰۲۰. In this research, the model of Tran (۲۰۱۴) has been used with some adjustments to estimate the factors affecting the cost of capital. In order to estimate the models with combined data from the Eviews computer program, the results of the investigation showed that there is a negative and significant relationship between the component of the corporate governance index and the cost of financial debt and the cost of capital. Financial has a positive relationship and operating profit has a negative relationship with the cost of debt and the cost of capital.

Keywords:

corporate governance , cost of capital , cost of debt