The effect of readability of financial reporting on the cost of capital and the probability of bankruptcy

The main purpose of the current research is to investigate the effect of the ease of understanding financial reporting on the cost of capital and financial distress in companies listed on the Tehran Stock Exchange. The research method is descriptive-correlation with an applied approach, as well as the method of gathering information in the theoretical foundations section of The library method and in the section of hypothesis testing is the document analysis method of financial statements. In general, the hypothesis testing method is the correlation and multiple regression method. The results of the research showed that the ease of understanding financial reporting has an inverse and significant effect on the cost of capital and financial helplessness, which means that companies whose financial reports are less complex will reduce the cost of capital and the probability of bankruptcy and financial helplessness. The results related to the control variables showed that financial leverage has a direct and significant effect on the cost of capital and financial helplessness, and the effect of company size, growth opportunities, operating cash flow on the cost of capital and financial helplessness of the company; It is opposite and significant.