عنوان مقاله [English]
نویسندگان [English]چکیده [English]
The aim of this study is to determine the impact of news (good or bad), of earnings per share released by directors on the cost of capital (with emphasis on the cost of equity capital) in listed companies of the Tehran Stock Exchange.
In this study, using data from 90 companies of Tehran Stock Exchange for the five year period from 1384 to 1388 (2005-2009) to evaluate the effects of predicting earnings per share released by directors of the cost of capital for the companies listed in the Tehran Stock Exchange. The data segregated in two part (good news and bad news), and we used Abnormal Earnings Growth Models (PEG) for measurement cost of equity. This paper analyzed the effect of actual and prediction news released by directors of the companies on the cost of capital in the Tehran Stock Exchange. The results show that bad news in forecasts of earnings per share, increase capital costs; forecasts earnings per share compared actual earnings per share with good news aren’t affected on capital cost. So, investors change their return based on bad news and they were indifferent compared to good news.