M.A. Thesis:

Information risk,stock returns,And the cost of capital in china

The purpose of this study was to investigate The relationship of information risk with capital cost(Cost of equity and expenses Debt) And stock returns among the companies active in the Tehran Stock Exchange. Various research They have shown that the quality of information provided by companies is higher, From the amount of ambiguity in estimating the return on the item Expectation is reduced and information risk will be reduced And thus reduce the cost of capital and increase Return on equity. In this research, accrual quality was used to identify information risk. This study has two main hypotheses, The first hypothesis is the relationship between information risk and capital cost That means the cost of debt and equity costs And the second hypothesis is also the relationship to information risk Stock returns. For the implementation of the research, information was provided by 118 companies from the time period of 90 to 94 Collected. To analyze information and test hypotheses from EXEL and EVIEWS software used. Research findings show that there is a meaningful and direct relationship between information risk and cost Debt and equity costs And with the increased risk of information, the cost of equity is also increase, Also, the results showed that there is an inverse relation between information risk and stock returns With increasing risk, information on stock returns is reduced.

Keywords: Information risk; Accuracy of accruals, stock returns, cost of capital