M.A. Thesis:

Transparency profits٫ capital costs and additional returns stock

The purpose of this study is to find the relationship between Earnings Transparency, the cost of capital on additional returns. Earnings Transparency based on the explanatory power of profitability. That is, to what extent measurements are related to changes in profit in the company's value. Although investors can obtain information on changes in the company's value from profit or from other sources, the measure only represents the amount of profit and change in profit, and information related to profit and change in profit and Returns will be. Considering that the relationship between cost of capital and additional returns and Earnings Transparency are considered as new issues in accounting and financial management. This research examines the relationship between capital cost (using the Fama and French model and capital asset pricing model) and Earnings Transparency.In the next stage, the relationship between extra returns (using the Fama and French model and capital asset pricing model) and Earnings Transparency are paid. At the final stage, the accuracy of the Fama and French models is compared to the capital asset pricing model in the above-mentioned relationships. For this purpose, financial information of 108 companies listed in Tehran Stock Exchange has been used during the years 1395-1391. This research is a type of correlation in terms of categorization of purpose-based research, applied type, descriptive categorization, and descriptive type of research. The approach of this research is then an event (using past event data). In this research, the statistical method used to analyze the data is multivariate regression method using combined data. So the software used is EVEIWS software, which has the capability of such an analysis. The final result is the acceptance of the first hypothesis, suggesting a negative and significant relationship between capital cost using the Fama and French model and Earnings Transparency. The results also indicate the acceptance of the second hypothesis, suggesting a negative and significant relationship between capital cost using capital asset pricing model and transparency of profit. Also, the third hypothesis is accepted, suggesting a positive and significant relationship between the additional returns using the Fama and French model and Earnings Transparency.The results indicate acceptance of the fourth hypothesis that there is a positive and significant relationship between the additional returns using capital asset pricing model and Earnings Transparency. On the other hand, the final result is the acceptance of the fifth hypothesis, that is, the Fama and French models are more accurate in estimating the relationship between Earnings Transparency and capital cost relative to the capital asset pricing model. Finally, the final result is the acceptance of the sixth hypothesis, that is, the Fama and French models are more accurate in estimating the relationship between profit .

Keywords: transparency and return on investment in the capital asset pricing model