Study the Effect of Institutional Ownership on the Relationship Between Accounting Quality and Cost of Capital

The purpose of this study is to investigate the impact of institutional investors on the relationship between the quality of accounting reporting and the cost of capital available in Iran.The cost of common stock capital is measured through the regression model of capital asset pricing and the statistical population includes 90 companies listed on the Tehran Stock Exchange and the sampling method is done by systematic elimination method. The data are based on the years 1390 to 1397 and to test the hypotheses, the basis of estimation, multivariate linear regression has been used with the help of Excel and Ivyuz software.The results of the first hypothesis showed that the variables of accounting reporting quality, financial leverage, company size and return on assets are at the level of α = 0.05. Therefore, the existence of a negative and significant relationship between the quality of accounting reporting and capital expenditure is confirmed with 95% confidence. The results of the second hypothesis showed that the variables of accounting reporting quality, financial leverage, company size and return on assets are at the level of α = 0.05, but the variables of institutional investors are not significant at the level of α = 0.05. Therefore, the research hypothesis that the significant impact of institutional investors on the relationship between the quality of accounting reporting and capital expenditure is rejected with 95% confidence.