Document Type : Original Research


1 Department of Accounting, Barayand Institute of Hiegher Education, Shahrood, Iran

2 Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran


Capital structure discusses the composition of company financing sources including short-term debts, bonds, long-term debt, preferred stock, and common stock. Some firms define no predetermined plan for capital structure; rather, the capital structure is determined respecting to financial decisions taken by financial management lacking any specific plan. Despite these firms may succeed in short-term, finally they face major problems for required financing activities.  The main objective of the present research is to study the relationship between ownership structure and debt cost focusing on the role of financial crisis in companies listed in Tehran Stock Exchange within 2011-2015 (a five-year period). The results show that there is no significant relationship between the type of ownership and debt cost; in addition, financial crisis may not mediate the relationship between ownership and debt cost.  On the other hand, the results also indicate that there is no significant relationship between the proportion of institutional owners and debt cost; further, financial crisis shows no mediating role.


Ahmadpour, A., and Kashanipour, M. (2010). Studying the effect of corporate governance and auditing quality on debt financing cost (borrowing). Accounting and Auditing Studies, (62). Pp. 17-32.
Berle, A.A., Jr. and Means, G.C. (1932). "The Modern Corporation and Private Property", Macmillan, New York, NY.
Botosan, C. A. (1997). Disclosure Level and the Cost of Equity Capital. The Accounting Review, Vol. 22, No. 3, pp. 323-349.
Bozorgasl, M. (2006). Intermediate accounting, financial statements (1st volume). Auditing Organization publication, 4th edition.
Dastgir, M., and Bazazzade, H.R. (2003). “The effect of exposure on common stock cost”. Financial studies, 16. Pp. 83-103.
Diamond, D and Verrecchia R (1991). Disclosure, liquidity and the cost of equity capital. The journal of finance, September, Vol (3), pp. 1335- 1360.
Espinosa, M. and Trombetta, M. (2007). Disclosure Interactions and the Cost of Equity Capital: Evidence from the Spanish Continuous Market. Journal of Business Finance & Accounting, Vol. 34, No. 10, pp.1371- 1392
Fathi, S. E., and Kamyabi, Y. (2012). Studying the relationship between corporate governance and working capital management in stock exchange companies. M.A. thesis of financial administration, Islamic Azad University of Amol.
Fathi, S.M., and Zanjirdar, H. (2010). Studying the relationship between corporate governance mechanisms and earning management in Tehran Stock Exchange companies. M.A. thesis. Islamic Azad University of Arak.
Foster, G, Financial statement Analysis, Engnewood cliffs noj: prentice- hall 1989.
Francis, J., R. Lafond, P. Olsson, and K. Schipper. (2004). Costs of equity and earnings attributes. The Accounting Review 79(4): 976-1010
Gietzman, M. and Ireland, J. (2005). Cost of Capital, Strategic Disclosures and Accounting Choice. Journal of Business, Financial & Accounting, Vol. 23, No. 3&4, pp. 599-634.
Hernan,O. , Molina & Gordon,PH. (2009). Asset liquidity & the cost of capital.
Ibrahimi kordlor, A. (2007). “Corporate governance and the role of institutional shareholders”. Quarterly of Accounting research and knowledge, 8.
Jensen MC. (1986). "Agency costs of free cash flow, corporate finance and takeovers". Am Econ Rev;76:323 – 9
Karami, Gh. (2008). Studying the relationship between institutional ownership and return information content. Accounting and auditing studies, 15 (45). Pp. 125-131.
Kurdestani, Gh., and Majdi, Z. (2007). “Studying the relationship between earning qualitative characteristics and cost of common stock”. Accounting and Auditing Studies, 48. Pp. 85-104.
Modares sabzevari, A., and Abdollahzade, F. (1999). Finnacial management, second volume, Tehran, Bazargani publication.
Mohammadi, M., and Chirani, I. (2013). The role of corporate governance in debt cost in Tehran Stock Exchange. M.A. thesis of financial administration, Islamic Azad University, Rasht.
Nikoomaram, H., Rahnamy roudposhti, F., and Heybati, F. (2011). Basics of financial management. 1st and 2nd volumes, Termeh publication.
Noravesh, I., and Ibrahimi kordlor, A. (2005). “Studying and explaining the relationship between shareholder integration to symmetric data and usefulness of performance accounting criteria”. Quarterly of accounting and auditing studies, 42.
Osmani, M.Gh. (2002). Identifying effective factors of cost of capital model. PhD thesis, Allameh Tabataba'i University, Tehran.
Peyravi, R., Janani, M.H., and Tabatabaei, M.R. (2011). Assessment of the relationship between institutional ownership and dividend policies in Tehran Stock Exchange listed companies. M.A. thesis, Islamic Azad University of Arak.
Pourheydari, O., and Hemati, D. (2004). “Studying the effect of debt contracts, political costs, incentive plans and ownership on return management in the companies listed in Tehran Stock Exchange”. Accounting and auditing studies, 36. Pp. 47-63.
Qaemi, M.H., Qeytasvand, M., and Toujiki, M. (2003). Smoothing effect of stock return in the companies listed in Tehran Stock Exchange. Accounting and auditing studies, 33.
Rahimi dastjerdi, M., Izadiniya, N. (2007). “Studying the effect of capital structure on stock rate of return and earnings per share in companies listed in Tehran Stock Exchange (1999-2005)”. M.A. thesis, Isfahan University.
Ramsay , I., Blair, M.(2000 ). “ownership concentration, Institutional Investment and corporate governance An Empirical investigation of 100 Australian companies” , Melbourne university law Review ,19:153 -194 .
Rasaeiyan, A., and Hosseini, V. (2008). “The relationship between accrual quality and cost of capital in Iran”. Accounting and Auditing Studies, 53. Pp. 67-82.
Rezaei, F., Ghaderi, H., and Mohammadi, T. (2010). Studying effective accounting factors of capital cost in Tehran Stock Exchange listed companies. Management researcher. 7 (special issue). Pp. 14-29.
Sengupta, P. (1998). Corporate Disclosure Quality and Cost of Debt. The Accounting Review. Vol (73), 459-474.
 Setayesh, M.H., and Zolfaghari, M. (2011). The effect of free cash flows and investment opportunities on debt ratio and dividend of companies listed in Tehran Stock Exchange Market. Journal of Stock Exchange, 15 (4). Pp. 71-87.
Sheri, S., and Marfou, M. (2008). “The relationship between the percentage of non-executive board members and institutional investors with earning forecasts”. Journal of Accounting Research, number
Solomon.Jill.And Solpmon.Airs (2004)," corporate governance and Accountability "John Wiley &Sonns, Engalan
Zhang, L, Ding, S. (2006). The Effect of Increased Disclosure on Cost of Capital: Evidence from China. Review of Quantitative Financial Accounting, Vol. 27, pp. 383-401.