چکیده (انگلیسی):

The present study aims to assess the relationship between information asymmetry and the cost of equity
capital in listed companies on Tehran Stock Exchange, over a period extending from 2006 to the end of 2011. The cost
of equity capital is considered as a part of the cost of capital, which is the minimum expected return on equity.
Ordinary shareholders expect an appropriate return, since they take investment risks. Information risk is a component
of investment risk which affects the cost of capital. Information asymmetry is also a significant index for information
risk. The effect of information asymmetry on the cost of equity capital was assessed in 106 listed companies on Tehran
Stock Exchange from 2006 to the end of 2011. Simple and multiple regression models were employed in order for
testing the research hypotheses. The obtained findings indicate that there is no significant relationship between
information asymmetry and the cost of equity capital; however, this hypothesis can be confirmed in case of utilizing
control variables.