The effect of transparency of information on the relationship between family ownership and cost of debt

The main purpose of this research, The effect of transparency of information on the relationship between family ownership and cost of debt for companies in Tehran Stock Exchange. Statistical population consisted of 27 family and 76 nonfamily companies of the study period of 2009 to 2016 year-on behalf. In this study using a scores of ranking system of disclosure quality and information science Tehran Stock Exchange, for the separation of firms, the firms with low and high level of information disclosure. The statistical method, used in order to test the second research hypothesis, is panel data. The results of the first hypothesis of this research showed that there is a significant positive relationship between family ownership and cost of debt. In other words, the cost of debt in family firms is higher than nonfamily firms. Then, by examining the second hypothesis, it became clear that transparency of information on the relationship between family ownership and the cost of debt has a significant negative effect. This indicates the fact that the family enterprise-level higher information transparency, cost of debt decreases.