فهرست مطالب لیلا افروزی

Establishing and retaining the relation between firms and government are usually subject to acquiring the competitive advantage. The purpose of some corporate managers from communication is removal of financial limitations with the least cost. Thus, this study analyzes the relation between cost of debt and corporate governance in firms with extensive political connection (PCON). Political connection means significant financial operation as in interaction with the government. For this purpose, multimodal measurement factor was used for measuring extensive political connections. Variables including employees number, foreign sale, employer’s insurance fee and unemployment insurance fee, total assets of firm, market value of shareholders’ equity and income tax as well as methods including multilateral decision making and weighting Shannon methods were used to determine the political connection level between firm and government. Chief executive officer (CEO) duality and independence of directors (INDAC) are assumed as two corporate governance mechanisms. To test the hypotheses, a sample comprised of 140 firms in 21 industries within 1381-1392 was used. Results of this study indicate a negative and significant relation between cost of debt and political connection of firms (PCON). Moreover, cost of debt in political connection firms (PCON) is not affected by chief executive officer (CEO) duality, whilst debt cost in political connection firms (PCON) was negatively and significantly affected by independence of directors (INDAC).