Abstract: Science Set Journal of Economics Research

Abstract:
This study examines the impact of information asymmetry on the capital structure and capital costs of companies listed on the Tehran Stock Exchange. For this purpose, four different criteria of cost of capital were analyzed, in cluding the weighted average cost of capital (WACC), the cost of capital accumulated from profits, the cost of debt, and the average cost of capital. The statistical population of this study consisted of 94 companies from 20 different industrial groups, which showed a significant relationship between information asymmetry and two criteria for the cost of capital stock and debt expenses over the period 2004-2014 using combined data. Between information asymmetry and the other two criteria, the accumulated profit cost and the rationale for the cost of capital are not significant. Therefore, it can be said that the operational definition of cost of capital affects the existence or non-ex istence of the mentioned relationship.