The Relation between Earnings Quality, and Cost of Capital with Voluntary Disclosure

This study has investigated the relations between voluntary disclosure, earning quality and cost of capital in the companies accepted on the Tehran Stock Exchange (TSE). Also this study has demonstrated the importance of viewing voluntary disclosure as a response to earning quality during analyzing the disclosure effects to firms cost of capital. The 77 firms is selected during 1998-2013 by elimination sampling and the hypotheses is tested by the method of multi-variable linear regression. The results represent a significantly positive relation between earning quality and voluntary disclosure. Firms with better(worse) earnings quality have more (fewer) voluntary disclosures and there is the exist significantly relation between cost of capital and voluntary disclosure only if pay no attention to control variables linked to risk. Also we find there is no significant relation between the cost of capital and firms voluntary disclosure in the companies accepted on the Tehran Stock Exchange by controlling the earning quality effects