Title of article
The Effect of Free Float on Cost of Equity Capital in the Companies Listed in Tehran Stock Exchange
Author/Authors
Rostami، Moslem نويسنده Department of Accounting, Borujerd Branch, Islamic Azad University, Borujerd, Iran , , Javid، Driush نويسنده Department of Accounting, Borujerd Branch, Islamic Azad University, Borujerd, Iran , , Hemmat Far، Mahmoud نويسنده Department of Accounting, Borujerd Branch, Islamic Azad University, Borujerd, Iran ,
Issue Information
روزنامه با شماره پیاپی 0 سال 2013
Pages
5
From page
635
To page
639
Abstract
The present study aimed to investigate the effect of free float on the cost of equity capital in the companies listed in Tehran Stock Exchange (TSE). In this regard, the research hypothesis was developed to propose that ‘there is a significant relationship between free float and the cost of equity capital.’ A number of 65 companies listed in TSE were selected as the sample. The research hypothesis was examined using linear regression analysis and correlation coefficient. The results showed a significant positive relationship between free float and the cost of equity capital. This suggests that, although increased free float percentage may increase stock trading, it will increase the cost of equity capital in practice and affect shareholders’ assets.
Journal title
International Journal of Basic Sciences and Applied Research
Serial Year
2013
Journal title
International Journal of Basic Sciences and Applied Research
Record number
1116723
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