The Relation of Cost of capital with Iranian Accounting Standard and Stocks Liquidity

This study investigates the relation of cost of capital with Iranian accounting standard and share liquidity. The sample includes 62 firms listed in Tehran Stock Exchange during 1997-2012. We used Gordon models to measure the cost of capital. The results suggest that cost of capital has no significant relation with approval of national accounting standards، but there is a significant negative and positive relation between share liquidity and cost of capital respectively before and after approval of accounting standards. So، increase in share liquidity increases the cost of capital after accounting standard approval.